NADA Values on Boats???
 

I've been looking at mid 2000's boats 30-35ft range vhulls and finding that the NADA values, with correct engine size and options selected, even if I add $ myself for the trailer, are WAY below the price people/dealers are asking.

What's the story?

IS NADA a good indicator of what the boat is really worth?

Or not?

It's ALWAYS been that way.

Depends on the make / model. Some are better reflected in the NADA values than others. I know I would sell my Formula for "book" value any day. But maybe I'm just realistic on what I think it's worth...

I booked mine out a few days ago. I'll sell it for book any day if the week!

NADA values are not based on actual sales prices of used boats.
NADA just deducts a certain % of value each year based on the original listed retail price that they have somehow attained.

What I find is buying a boat UNDER nada would be a decent deal in most cases. Lots of people buy boats and finance them for 15-20 years and are upside down on the boat . That is why a lot of the used prices are high. People trying to sell for their payoff. You also need to remember if you are trading or selling that boat in the future, more than likely the dealer or buyer will be looking at the nada price also. Banks also figure out loan values off of nada books. Just my thoughts. Jeff Wurl

id sell mine for list any day of the week or even high retail...!

NADA is primarily a resource for banks to establish value. I wouldn't put a lot of weight on NADA, especially if it is an older boat with improvements.

I find that on newer boats the book value is fine for the most part, but when you get into older boats with modifications & upgrades, then its not that reliable, As 36Envision said.

They do even have listings for my boats.

Wrong.

I wondered how NADA came up with their values a few months ago, so I emailed them to ask, and this is what they sent me:

Our values are derived from analyzing a variety of sources, including auction information, as well as analysis of economic indicators, geographic conditions, market trends and editorialize transactional data, to ensure it is reflective of what’s going on in the marketplace at any given time.

In addition, our advisory board members are comprised of over 250 marine dealers, brokers and surveyors across the United States. We find the most active and reliable members in these fields to provide us actual used sales information. We collect, review and editorialize used sales reports from our advisory board members as a part of our criteria to develop valuations.

BumSauce.... Nice!!!

A 33 and a 34 I was looking at, both were like 30k over nada!!! I personally feel the price that nada has listed for them i.e. 60k would be reasonable prices.

Reality check - Complete!

Thanks!

The values do show the disclaimer

Note: Vessels in exceptional condition can be worth a significantly higher value than the Average Retail Price shown.

The boat I bought recently I'd consider in exceptional condition for the year and I paid over NADA. And with the repairs and upgrades needed almost immediately after the purchase I have way more in it than NADA shows.

Here we go with Nada again. Nada is GUIDE book of values, not a rule book. I have always thought NADA was lower than what true value was on a lot of boats, and is more spot on with cars and trucks. Lately I beleive NADA has been closer to selling prices as the economy is more so people are dumping. NADA is more accurate on newer boats, I think as they get older NADA loses its reality and accuracy on older boats value.

But with that said NADA is factoring in location and a bunch of things. As for sale prices people dump a lot of money into exotic paint schemes and such which doesnt up the value and then expect a return on that10k paint job they got. Frankly right now a lot of people are hurting and need to get rid of their boats. They were foolish in buying something they shouldnt have from the start and put a 20 year loan on it so they could afford it, and on a 20 year loan you will be upside down from the day you bought it till its paid off, thus people asking what they owe.

Again NADA is a guid, it is a factor when I buy and sell, I use a combo of Nada, craigs, auto trader, boat trader,etc to come up with prices when i sell and have always been sucessful and have either gotten my money back off of toys or made money.

Most banks that do much boat lending use BUC values not NADA. I suppose your corner credit union will use NADA but BUC is much closer to actual values.

http://www.bucvalu.com/

banks use nada to determine loan value they will not loan a buyer over the value amount no matter of what improvements or updates done to a vessel

i know here in Jersey..when trading a boat they use NADA base trade without adding for anything and then deduct 15% and off you that for a value.

It's surprising that there are boats still listed for more than nada in this market. Anyone wanna give me high retail??? LOL

BUC and NADA are worlds apart on their valuations.

I know financial institutions will use NADA but brokers want to use BUC. Kind of begs the question, what is behind BUC???

Of course brokers need commission so are the BUC values geared for that?

Now that Key Bank is out shouldn't BUC be out????? If not, why not??

Just pulled the BUC value on my boat, and it seems to be almost dead on what NADA suggests, and also pretty close to what the market is.

I would still agree that the values they list on most performance boats are way out of line.

When I was pricing out 06 and up 382 Fastech's last year the values were as much as 30K to 50K apart. Brokers insisted that their BUC prices were sellable but I would not pay them.

That is what they told you and they may do some of this for mass production boats, but not for most high performance boats. Realistically, there is not enough sales volume to get accurate market values.

250 dealers???? How many of those dealers have a clue about custom built performance boats and their value??
How many of those dealers, brokers, surveyors have even sold, brokered or surveyed a used high performance boat??
How can they track the value of boats when only 5-10 of a model were produced in year and all the options vary so much that value varies by 30-50%??
They can't......they guess and depreciate them based on averages and percentages.

So you’re guessing that they are guessing…:lolhit:

I followed up with the Analyst at NADA that originally responded to my question about the source of their values. She reiterated the fact that they come up with their values using a variety of sources, but did admit that some times the values for performance boats can be more for a ‘base boat’ because of the highly customizing available (engines, paint job, options, etc). Some of the sources are:
-new/used sales
-auctions
-manufacturers
-advisory board, made up of; dealers, brokers, surveyors

She also mentioned that their values go up or down based on the economy and demand in the market.

Finally, she said they are always looking for more data to help them come up with their values. And, if someone in the industry wanted to join their advisory board they could contact them. Also, if someone thinks the value on their boat is off they can contact them too.

When trying to value a boat you need to use ALL the resources available to make an educated GUESS on value. There are so many variables that it really boils down to a guess and it is only good for that given set of circumstances. They are all guides and not rules but UNFORTUNATELY, many banks use NADA as the rule.

Having sold boats for 20 years, NADA is NOT THE BIBLE. My company was NEVER asked to submit any sales data as NADA will try to make you believe. They use a straight line depreciation of about 6% per year and rarely include environmental factors like the same boat in Florida will depreciate quicker than the same boat in Michigan considering all the factors (Salt vs Fresh etc). Dealers like NADA when you want to trade in because of the lower pricing. Plus as someone said they, the dealer, will still lower the trade in value by 10-15% to protect them from market volatility.

BUC does require quarterly reporting of sales data from all their dealers. A big problem occurred when the Internet hit, BUC was way behind the power curve and didn't expect the Internet to take off like it did. Many dealers jumped ship and went to Yachtworld. More dealers on the East Coast use BUC (FL based) then West Coast dealers who mostly use YW (Seattle based). YW members report sales data to YW and YW runs SoldBoats.com accessible by dealers, surveyors, and bankers if members of YW (No Buyers).

When it comes to performance boat dealers, most don't do YW or BUC. Manufactures do send in data to NADA for model years basic pricing if they want to be included in NADA.

At best, boat valuation is a guess for that day and that set of circumstances.

I agree that NADA is just one resource that buyers/sellers/banks have to value boats. But the OP is asking how good of an indicator it is.

So can someone explain this to me, because I’m just trying to learn too. If a 2003 358 Sonic had NADA Low/Average Retail values of $76,880/$84,380 in 03/2010 and now has the values of $92,600/$100,350, they aren’t just doing straight line depreciation.

Contact NADA. They are the only ones that can explain that. Maybe it's Nobama economics. :evilb:

I did ask when I spoke to the Analyst earlier; the values were lower back then because of the repos, auctions, and sales prices being lower with the recession, and now they are higher because the market is getting better. That seems valid to me, although I’m not sure if the market has increased 20%. But that also means NADA is using a combination of data to come up with their values, not just simple depreciation.

Sounds resonable but you may want to also contact these guys:
http://www.surveyormarine.com/default.asp

I know a few years back they did a very detailed analysis of boat valuations to include the "Books" and how the books determined value. Marine Surveyors include values when they inspect boats. This particular company gives multiple values like current condition value and another value if repairs were completed. I don't know if they have updated their findings since the economic down turn but I bet they have.

Hard to say how good an indicator NADA is. It just varies from boat to boat, for better or worse, depending on what team you're batting for at that time (buying or selling). :)

But the boat is only worth as much as someone is willing to pay for it.....like anything for that matter.