Buyers Market
10-30-2002, 10:23 PM
#1
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Buyers Market
I have been looking at some used boats. People have mentioned that it is a buyers market..but..I have looked at the NADA value vs the asking price and most people are $10-$50K over the NADA retail value.
I begin to wonder if the NADA values have dropped and people are so upside down that they can't get out?
Is the market not as bad as we think? I talked to a marina owner here at LOTO and they had a record year last year in boat sales.
Dealers especially seem way out of line. I am so used to seeing the boats overpriced at the dealers that when I see one that looks reasonble I automatically wonder what all is wrong with it.
Has anyone sold or bought a used boat recently? When I sold my Fountain it got sold for just right below retail at the time and I would have called it a 81/2 to a 9 in condition, but it had 400 hours on an MPI engine so I know some people shyed away but it was also stock excet for an MSD boost box and added WPM hydraulic steering.
When I do see a boat that has big power or has a lot of other mods, I get real nervous, not knowing who did the mods, and I find most dealers can't give too many specifics.
Wondering what others have as far as thoughts...
I begin to wonder if the NADA values have dropped and people are so upside down that they can't get out?
Is the market not as bad as we think? I talked to a marina owner here at LOTO and they had a record year last year in boat sales.
Dealers especially seem way out of line. I am so used to seeing the boats overpriced at the dealers that when I see one that looks reasonble I automatically wonder what all is wrong with it.
Has anyone sold or bought a used boat recently? When I sold my Fountain it got sold for just right below retail at the time and I would have called it a 81/2 to a 9 in condition, but it had 400 hours on an MPI engine so I know some people shyed away but it was also stock excet for an MSD boost box and added WPM hydraulic steering.
When I do see a boat that has big power or has a lot of other mods, I get real nervous, not knowing who did the mods, and I find most dealers can't give too many specifics.
Wondering what others have as far as thoughts...
10-30-2002, 10:26 PM
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Nada way underprices the boats. When I was looking, whenever I found what I KNEW was a great buy, it would still be over the Nada guide. The only thing it is good for, is for basis of getting a loan. And then it's not a lot of help since it shows a lower value.
10-31-2002, 07:14 AM
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Von,
I noticed the same thing when I bought my Fountain in May. You cant go by the NADA book. The good name brands sell for more than the NADA values. The ABOS blue book is a more accurate indicator of what a name brand performance boat will sell for. The NADA is a good tool if you are a buyer. It will make an individual wonder if he is asking too much for his boat. I tried it on a few dealers and they just laughed and said they use the ABOS book.
Ron
I noticed the same thing when I bought my Fountain in May. You cant go by the NADA book. The good name brands sell for more than the NADA values. The ABOS blue book is a more accurate indicator of what a name brand performance boat will sell for. The NADA is a good tool if you are a buyer. It will make an individual wonder if he is asking too much for his boat. I tried it on a few dealers and they just laughed and said they use the ABOS book.
Ron
10-31-2002, 07:47 AM
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These other books are all fine and dandy, that is until you go to get a loan and your bank, (like mine did), and they whip out the NADA book.
What I notice with boats, and I have bought and sold four of them within the last two years, is that many people sink money into their motors and stereo equipment then expect to get it back when the boat sells.
Same goes for a fully optioned out stocker-
Example:
I bought a used 25' 1999, Baja Outlaw. It had every option available from the factory on it. 500 HP, Latham, K-Planes, big stereo, etc.
It stickered for over $100K new.
The guy I bought it from, got it from the dealer for $84K
He kept it for three seasons and put 40 hours on it.
I bought it for around $50K-(I think a good deal)
When I sold it, the next year, with 10 more hours on it. I had to price it with the WAY lesser equipped 25 Outlaws before I had any bites. I sold it for what the lesser equipped were selling for too!!!
I can't even begin to guess how many times I have looked online and in the trader to see someone that spent $30K+ into a big horse engine and add that cost to the asking price on the boat.
IMO- Put your big power in the boat, but keep the stocker under the workbench. Then when you go to sell the boat, you have a low hour stocker that the buyer has no worries on. This makes it easier on both parties.
Easier sell, easier purchase.
What I notice with boats, and I have bought and sold four of them within the last two years, is that many people sink money into their motors and stereo equipment then expect to get it back when the boat sells.
Same goes for a fully optioned out stocker-
Example:
I bought a used 25' 1999, Baja Outlaw. It had every option available from the factory on it. 500 HP, Latham, K-Planes, big stereo, etc.
It stickered for over $100K new.
The guy I bought it from, got it from the dealer for $84K
He kept it for three seasons and put 40 hours on it.
I bought it for around $50K-(I think a good deal)
When I sold it, the next year, with 10 more hours on it. I had to price it with the WAY lesser equipped 25 Outlaws before I had any bites. I sold it for what the lesser equipped were selling for too!!!
I can't even begin to guess how many times I have looked online and in the trader to see someone that spent $30K+ into a big horse engine and add that cost to the asking price on the boat.
IMO- Put your big power in the boat, but keep the stocker under the workbench. Then when you go to sell the boat, you have a low hour stocker that the buyer has no worries on. This makes it easier on both parties.
Easier sell, easier purchase.
10-31-2002, 10:09 AM
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For people like me who will have to finance. NADA will be a nightmare. Its tough to find a boat that will actually "book" out. It will be impossible to convince then to go off any other books eithers. I guess I'm relying on money down to make up the difference.
10-31-2002, 10:24 AM
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Are you adding everything up in the NADA book or going from Base price. We have alot of buyers walk in with base price NADA numbers that never added in options, power upgrades, trailer, electronics, canvas, and other items. Buy the time theyt are done the boat is listed under the book value and they realize they are getting a deal. I agree though that some "Asking Prices" are higher than Market value. With the change in ownership we have either dropped listings or will turn away listings that are not realistic "Asking Prices" I sell boats for a living...not show them! If you are looking at a boat that is way over priced, bring listings of other boats to the seller that are simalar. If they wont come down on price, wait two years and buy it then, odds are it will still be on the market
10-31-2002, 10:42 AM
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Are you looking up NADA values on their website? I go to my local credit union now and look it up in the book. The book has 3 numbers, I call them Low, Middle and High. They only show the Low and Middle numbers on their website. They used to show all 3 numbers a couple of years ago, but for some reason they dropped the High number.
10-31-2002, 12:39 PM
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I actually have access to all the books, I was looking at NADA last night when I posted this. Today I will look at ABOS.
One thing I liked about ABOS is it has the original retail price of the boat. It doesn't mean a whole lot but it's interesting to see what they stickered for.
I know fountain people are stressed over the recent price reductions. I also wonder what the effect if any the new models are having, such as a TS cig, has it really affected the value of the older boats? I don't see much difference in prices being asked for used boats from over a year ago.
For fountain to retail the 35 Exc for $149,000 has to have some impact on an older boat. But I see 95-97 boats and the cheapest is $89k and the highest $120,000 (502 power). I don't know but a 97 with 502's vs a 03 with 496s and a warrantyand $29K difference? Doesn't seem like enough for the wear, tear, hours, possible abuse and so on. Most of the boats are priced in the $100-$110 range.
So if one were to be looking at a 38 cig in the mid 90's and a full cabin with stcks power, what would someone look to pay?
One thing I liked about ABOS is it has the original retail price of the boat. It doesn't mean a whole lot but it's interesting to see what they stickered for.
I know fountain people are stressed over the recent price reductions. I also wonder what the effect if any the new models are having, such as a TS cig, has it really affected the value of the older boats? I don't see much difference in prices being asked for used boats from over a year ago.
For fountain to retail the 35 Exc for $149,000 has to have some impact on an older boat. But I see 95-97 boats and the cheapest is $89k and the highest $120,000 (502 power). I don't know but a 97 with 502's vs a 03 with 496s and a warrantyand $29K difference? Doesn't seem like enough for the wear, tear, hours, possible abuse and so on. Most of the boats are priced in the $100-$110 range.
So if one were to be looking at a 38 cig in the mid 90's and a full cabin with stcks power, what would someone look to pay?
