Used boat prices/short supply looming?
06-09-2015, 07:59 PM
#41
So true. I believe that the used boat market is going to explode due to the lack of inventory.
People stopped buying them due to the economy but things have come back in a big way in New England.
Lack of good used boats means more money for used ones
As for the younger crowd, they usually can't afford the go fasts due to the cost of the boat, insurance, dock fees, maintenance and $400 bucks for the day in fuel.
$400 in fuel x 4 days a month = $1,600 that's a lot of disposable cash for most people to come up with.
People stopped buying them due to the economy but things have come back in a big way in New England.
Lack of good used boats means more money for used ones
As for the younger crowd, they usually can't afford the go fasts due to the cost of the boat, insurance, dock fees, maintenance and $400 bucks for the day in fuel.
$400 in fuel x 4 days a month = $1,600 that's a lot of disposable cash for most people to come up with.
06-09-2015, 08:25 PM
#43
This is just observation with no data to back up my opinion but I think that kids today, our next generation that would drive sales, aren't as interested in these types of products, they're more of a tech crew interested in leveraging it for their social interactions as well as daily life activities.
I grew up around and dreamt of 318s, 327s, 340s, 350s, 351s, 383s, 396s (ooh those 396 Chevelle SS's), 426s, 427s, 454s, 440s to mention a few. What do kids have today...little 4popper fart cans?
My 18 year old nephew lost his iPhone on Saturday, you'd think someone cut off his arm, actually I think he'd rather lose his arm than a phone. He's not a sissy boy, tough kid but totally part of the social tech scene. The stuff that turned us on as younger kids just go right past him and his crew. But god forbid he doesn't have his SnapChat so he can get pics of some chick's snatch or whatever.
What does this mean...dunno but the future of these segment of boating will just keep getting smaller and smaller IMO. You tell younger folks that this boat burns 50 gallons an hour and they just look at you like you're from Mars...not the same times for sure.
I grew up around and dreamt of 318s, 327s, 340s, 350s, 351s, 383s, 396s (ooh those 396 Chevelle SS's), 426s, 427s, 454s, 440s to mention a few. What do kids have today...little 4popper fart cans?
My 18 year old nephew lost his iPhone on Saturday, you'd think someone cut off his arm, actually I think he'd rather lose his arm than a phone. He's not a sissy boy, tough kid but totally part of the social tech scene. The stuff that turned us on as younger kids just go right past him and his crew. But god forbid he doesn't have his SnapChat so he can get pics of some chick's snatch or whatever.
What does this mean...dunno but the future of these segment of boating will just keep getting smaller and smaller IMO. You tell younger folks that this boat burns 50 gallons an hour and they just look at you like you're from Mars...not the same times for sure.
06-09-2015, 09:17 PM
#45
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06-09-2015, 10:07 PM
#46
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IMO, the (clean) used market has bottomed and is going to do nothing but keep rising price-wise, as inventory continues to fall. Other than seasonal fluctuations that have always existed, and the occasional firesale by someone who absolutely has to sell their boat ASAP, the 2008-ish bargain deals are gone on anything turnkey and in decent shape. The lower the price range the more I find this to be the case, judging from what I've seen on various online classifieds from CL to OSO and anything in-between. The amount of clean used boats I see advertised is lower than ever and prices seem to be continuing to rise. I am basing this off of asking price however and have no way to know the actual sale prices of the boats when they have sold. The biggest hurdle still seems to be financing, but credit unions and some other institutions appear to finally be giving loans to those with excellent credit and the finances to easily afford what they want to purchase. The days of low interest and little to no down payment on a luxury item are gone forever.
I don't see the newer generation being disinterested as much as it is the cost of ownership. I am in my early 30's, and pretty much everyone in my circle of friends was financially ruined during the economic crash, and buying a boat is still not anywhere close to reality for most of them even if they would absolutely love to have one. And I'm talking any boat, let alone some of the stuff owned by those on OSO. My wife and I worked our butts off the last few years and have been able to finally purchase our first boat this spring, while many of our acquaintances are just trying to get back into a house and get their lives back to normal. Granted, our area of the country was hit pretty hard during the recession.
I don't see the newer generation being disinterested as much as it is the cost of ownership. I am in my early 30's, and pretty much everyone in my circle of friends was financially ruined during the economic crash, and buying a boat is still not anywhere close to reality for most of them even if they would absolutely love to have one. And I'm talking any boat, let alone some of the stuff owned by those on OSO. My wife and I worked our butts off the last few years and have been able to finally purchase our first boat this spring, while many of our acquaintances are just trying to get back into a house and get their lives back to normal. Granted, our area of the country was hit pretty hard during the recession.
06-10-2015, 07:46 AM
#47
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I agree with bowtie...
MTI, Nortech, etc. are building boats that cost $300k+ msrp.
I think the used market is going to be a great thing for those of us with "average man" boats. The people order 50' MTI's are the exceptions to boat buyers, not the rule. These are people with 500k+ incomes. For those "average" people in the 100-200k range (for HHI) that are shopping for a boat in a mid price range, those boats are going to hold value, in my opp. Those are the boats that were not built after 09. Those were the boats that many people ordering based on a good economy that thought things were going great. So, all the 30-42' boats sold to people with an average income that stretched the spending ceased being sold at some point. If you are in that 100-200k range, you can't afford to order a new 38' boat. You can barely afford a new rig to tow it. If you live in NYC or LA, you're just loving your studio apartment and watching big air you tube videos while you polish your Huffy. LOL!
In my opp, that's not going to get any better. The problem is, my $34k truck in 2000 would now sticker @ $60k. How many earn almost 100% more in 2015 than you earned in 2000? Some will, some will actually be less. Interest rates are low. So, to entice people to buy, reducing rates and extending terms is what banks will do. When you're at the bottom, that won't get better. I only see slow progress and that is all. Unless the 300k+ HH income folks start buying 38' boats to depreciate to $90k for the others to buy, the used market looks pretty strong to me.
My 9 year olds love to spend tablet time, but they love the boats more and will drop anything to go boating. I asked them while boating in FL in Dec if they'd rather do that or Disney. Boating wins. They think going to get ice cream in my 78 Lincoln or Iroc is cool, but they don't have an interest in cars, really. That I see as different. I loved cars as a kid. They do love sports, they'll play any sport over tablets or internet. We also limit their time per day on electronics to avoid them being dependent on them. I haven't had a boat in the water yet due to travel baseball and softball. Won't get one wet till July. But it's all enjoyable. We have friends/family that their kids live on electronics. I think they're missing out. There may be a day when they hit a wall when they are older, buy a VW Microbus and hit the streets selling tie dye on the corners.
I do think part of that is parenting and kids don't have to live on devices. But I think you have to start young and work that continuously. It's easy to spend time on them.
MTI, Nortech, etc. are building boats that cost $300k+ msrp.
I think the used market is going to be a great thing for those of us with "average man" boats. The people order 50' MTI's are the exceptions to boat buyers, not the rule. These are people with 500k+ incomes. For those "average" people in the 100-200k range (for HHI) that are shopping for a boat in a mid price range, those boats are going to hold value, in my opp. Those are the boats that were not built after 09. Those were the boats that many people ordering based on a good economy that thought things were going great. So, all the 30-42' boats sold to people with an average income that stretched the spending ceased being sold at some point. If you are in that 100-200k range, you can't afford to order a new 38' boat. You can barely afford a new rig to tow it. If you live in NYC or LA, you're just loving your studio apartment and watching big air you tube videos while you polish your Huffy. LOL!
In my opp, that's not going to get any better. The problem is, my $34k truck in 2000 would now sticker @ $60k. How many earn almost 100% more in 2015 than you earned in 2000? Some will, some will actually be less. Interest rates are low. So, to entice people to buy, reducing rates and extending terms is what banks will do. When you're at the bottom, that won't get better. I only see slow progress and that is all. Unless the 300k+ HH income folks start buying 38' boats to depreciate to $90k for the others to buy, the used market looks pretty strong to me.
My 9 year olds love to spend tablet time, but they love the boats more and will drop anything to go boating. I asked them while boating in FL in Dec if they'd rather do that or Disney. Boating wins. They think going to get ice cream in my 78 Lincoln or Iroc is cool, but they don't have an interest in cars, really. That I see as different. I loved cars as a kid. They do love sports, they'll play any sport over tablets or internet. We also limit their time per day on electronics to avoid them being dependent on them. I haven't had a boat in the water yet due to travel baseball and softball. Won't get one wet till July. But it's all enjoyable. We have friends/family that their kids live on electronics. I think they're missing out. There may be a day when they hit a wall when they are older, buy a VW Microbus and hit the streets selling tie dye on the corners.
I do think part of that is parenting and kids don't have to live on devices. But I think you have to start young and work that continuously. It's easy to spend time on them.
06-10-2015, 08:13 AM
#48
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I agree. I think the ultra high end boats will experience bad depreciation. Want something that won't depreciate to much? Build a new 35 contender with 300 yamahas on it.
06-10-2015, 09:26 AM
#49
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IMO, the (clean) used market has bottomed and is going to do nothing but keep rising price-wise, as inventory continues to fall. Other than seasonal fluctuations that have always existed, and the occasional firesale by someone who absolutely has to sell their boat ASAP, the 2008-ish bargain deals are gone on anything turnkey and in decent shape. The lower the price range the more I find this to be the case, judging from what I've seen on various online classifieds from CL to OSO and anything in-between. The amount of clean used boats I see advertised is lower than ever and prices seem to be continuing to rise. I am basing this off of asking price however and have no way to know the actual sale prices of the boats when they have sold. The biggest hurdle still seems to be financing, but credit unions and some other institutions appear to finally be giving loans to those with excellent credit and the finances to easily afford what they want to purchase. The days of low interest and little to no down payment on a luxury item are gone forever.
I don't see the newer generation being disinterested as much as it is the cost of ownership. I am in my early 30's, and pretty much everyone in my circle of friends was financially ruined during the economic crash, and buying a boat is still not anywhere close to reality for most of them even if they would absolutely love to have one. And I'm talking any boat, let alone some of the stuff owned by those on OSO. My wife and I worked our butts off the last few years and have been able to finally purchase our first boat this spring, while many of our acquaintances are just trying to get back into a house and get their lives back to normal. Granted, our area of the country was hit pretty hard during the recession.
I don't see the newer generation being disinterested as much as it is the cost of ownership. I am in my early 30's, and pretty much everyone in my circle of friends was financially ruined during the economic crash, and buying a boat is still not anywhere close to reality for most of them even if they would absolutely love to have one. And I'm talking any boat, let alone some of the stuff owned by those on OSO. My wife and I worked our butts off the last few years and have been able to finally purchase our first boat this spring, while many of our acquaintances are just trying to get back into a house and get their lives back to normal. Granted, our area of the country was hit pretty hard during the recession.
I have continually dropped my price on my boat and I would argue for you to find one cleaner and kept up better.
So from my first hand I would have to say that does not hold true just yet. It is hard for a lot of "average joes" to get the cash to buy a $50k+ boat and a lot of banks are not loaning on them right now either. So it is still a rough market for a lot of folks.
