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NADA values vs the sinking dollar
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Author:  jvthundercat [ Wed Jan 19, 2011 9:14 am ]
Post subject:  NADA values vs the sinking dollar
After the used boating industry got hit very hard since 2008 with thier "correction" BS, what will happen as we move further into inflation? I know that mine is almost half of what it was.
One would think that if inflation raises the cost of a new boat, that used would stay within a certain percentage of that.
Do we have too many used boats? That could keep prices down as people dump them for lack of work and money.

I have been debating whether to sell this spring, as I normally would to have another project to work on, or just hang for awhile and see if it gets better.

What do you guys see and think?
Author:  Decision [ Wed Jan 19, 2011 9:35 am ]
Post subject:  Re: NADA values vs the sinking dollar
I think the price of gas also plays a significant role on peoples desire to purchase a boat, especially boats over 20 feet or so.

We love to boat, but for a lot of people that are considering getting into boating or debating on whether to move up or not that potential $6.00 US for a gallon of gas scares them. Don't blame them. I think if gas does spike higher again in the short/long term that will keep used boat prices down. Some will decide to spend their money on other less expensive hobbies.

Mike.
Author:  Bliss36 [ Wed Jan 19, 2011 11:47 am ]
Post subject:  Re: NADA values vs the sinking dollar
I talked to the owner of a local Monterey dealer about this not too long ago, and he thought it would be like the 70's where people who bought used before the inflation ended up traded in later to get the same value they paid years earlier. I think there is no doubt that high inflation...errr...I mean "Quantitative easing" is already starting!

I know on a personal level the threat of high gas prices has put upgrading any time soon out of the question. We are very happy with the 2.2 mpg w get with the 268. Instead we are looking at the option of getting an older small 25-26ft trailerable sail boat to use for our big trips. It's much cheaper to tow a 2500lb water ballast sailboat to northern Michigan for us than cruise our 268 all the way up the coast.

Any care to join us? :D
http://www.strictlysailchicago.com/
Author:  millhaven_nice_guy [ Wed Jan 19, 2011 1:43 pm ]
Post subject:  Re: NADA values vs the sinking dollar
There are many factors that affect the used boat market and all of them have been mentioned above. The popularity of NADA and it's easy access is part of the problem. Boats are worth different values in different markets. For years people would buy boats in the South or salt and with some elbow grease and minimal dollars, they could repair them and resell for a profit. This is extremely hard to do anymore. Another issue is credit... those that want to use it are having problems getting access to cash whether your credit rating is good or bad.

When I bought our H260 it was a really good deal compared to the three other local boats @ $40K CAD... The market slowly dumped to the point that my best offer less than 2 yrs later was $18 K (NADA said it was only worth $11K), well below my purchase price that I hoped to atleast break even on. Hence the trade for the Chap so we could get out on the water and do what we wanted to do.
Author:  Cap'n Morgan [ Wed Jan 19, 2011 2:08 pm ]
Post subject:  Re: NADA values vs the sinking dollar
NADA for boats over 10 years old is basically worthless. NADA is simply a guide, not the Bible. Use it as such.
Geographic location, and condition of the boat determine it's value today. Certainly with regards to a boat that
is 10 years old or older.

As far as used boats go, the pricing should start to go up slightly over the next 6 to 8 months. Simply because there are
very few late model used boats out there, as builders quit building boats for dealers in 2008 when the floor plan financing
fell through the floor. So buyers that can't swing the high dollar/instant depreciation of a new boat, will be forced to look
on the used market, thus driving the price up for those boats.
Author:  cougarcruiser [ Wed Jan 19, 2011 3:44 pm ]
Post subject:  Re: NADA values vs the sinking dollar
Cap'n Morgan wrote:
NADA for boats over 10 years old is basically worthless. NADA is simply a guide, not the Bible. Use it as such.
Geographic location, and condition of the boat determine it's value today. Certainly with regards to a boat that
is 10 years old or older.

As far as used boats go, the pricing should start to go up slightly over the next 6 to 8 months. Simply because there are
very few late model used boats out there, as builders quit building boats for dealers in 2008 when the floor plan financing
fell through the floor. So buyers that can't swing the high dollar/instant depreciation of a new boat, will be forced to look
on the used market, thus driving the price up for those boats.


+1 for what Cap'n said.
Author:  jvthundercat [ Wed Jan 19, 2011 5:03 pm ]
Post subject:  Re: NADA values vs the sinking dollar
All great feedback!

Cap'n, I really hope you are right.
Author:  LouC [ Fri Jan 21, 2011 6:41 am ]
Post subject:  Re: NADA values vs the sinking dollar
I know this varies by market but anything here that's in reasonable good shape, late model used is not that much of a bargain, if you want to buy a boat that actually holds its value. In the this market the only boats that really hold their value well are the well respected salt water brands like Boston Whaler and Grady White. Boats like FW, Chap et all that are primarily I/O powered depreciate a lot because people don't want the high maintenance of an I/O in salt water. But if you are mechanically inclined, buying one of them in good shape can be a good deal as long as you can tell if the maintenance was done and if the buyer opted for closed cooling. It's kind of like the difference between buying American vehicles vs Japanese. If buying used, and you know what you're doing, you can get a great deal because of the perception that people have and that drives resale values. Like getting a 2 year old loaded Grand Cherokee with a Hemi for less than a 4 cylinder new Camry :)
Author:  chrisvs [ Fri Jan 21, 2011 7:59 am ]
Post subject:  Re: NADA values vs the sinking dollar
I don't know if this is typical for anybody else, but in our area, average prices for used boats are quite high. It seems most people with boats under 10 years old are trying to recoup taxes and loan intrest in there asking price. When we were looking for our first FW, used boats that were up to 10 years old were within 4-5000 of the new price. That was why we bought new instead.
Author:  millhaven_nice_guy [ Fri Jan 21, 2011 8:06 am ]
Post subject:  Re: NADA values vs the sinking dollar
The interest rates on used are also quite a bit higher than what the dealers have negotiated for there mass of sales. If the cost difference is small why buy used? This is the same with used vehicles. Why pay 7-9% on used when you can get 0-0.9% on a brand new vehicle. We all know it's better to pay cash but reality is most people don't especially for a high dollar item like a boat, car or truck.
Author:  planealternative [ Fri Jan 21, 2011 9:28 am ]
Post subject:  Re: NADA values vs the sinking dollar
We'd love to move up to a 40ft+ but we would have to take a major hit to the tune of 20-25k to sell the 298, even with all the options and extras. :(
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