Boat Prices

[Thom T]

Where would I find figures on the health of the boating industry. Is current inventory selling at fire sale prices? Can you still get a loan to buy a boat?

[willmarsh3]

A couple of things I heard that suggest it is not very healthy:
1) Can't get a boat loan on a larger boat.
2) Yachtworld prices dropped considerably over all in the past year.

I don't have exact figures or data - just observations folks have told me at the marina.

[Art Read]

Yacht Repossesions: http://www.yachtauctions.com/

[Gary E]

I have been trying for aprox a year to buy a twin Diesel Sportfish that a few yrs ago would sell for well over $200k... Today when they sell, which is seldom. the discount is huge... Most dont sell for anywhere near a reasonable price so the owners just keep paying slip rent, or it remains parked behind their Fla home.

I'll catch one some day... I can wait..
Boats are toys, and when the economy gets tight, people dont buy so many toys.


From a few days ago......

Posted on Saturday, August 02, 2008

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Chris-Craft Corp. cuts 40 local jobs

By SARA KENNEDY

skennedy@bradenton.com (skennedy@bradenton.com)



MANATEE --

Boat manufacturer Chris-Craft Corp. has laid off 40 workers in Manatee County and 40 more at its North Carolina plant, another indicator of trouble for the boating industry, which is suffering from high gas prices and slow sales due to a soft economy.
The company also is moving production of its Catalina line in North Carolina back to Manatee County, said Meghan Stout, director of marketing for the company. The plant, just east of the Sarasota-Bradenton International Airport, now employs about 200.
Clearwater-based MarineMax, the largest retailer of boats in the U.S., Thursday reported a 27 percent decline in same store sales for its third quarter, compared to a 9 percent decrease in the same period last year. The company reported a $113.3 million net loss during its third quarter, blaming "economic softness."
Chris-Craft officials decided on the layoffs after realizing its dealers were skittish about ordering for the coming year.
"Every year, we have a dealer meeting in the summer. We take all our commitments for the year at that time and this year, based on the economy, the dealers were extremely cautious signing commitments for the coming year," explained Stout. "Based on that, we can't maintain our current rate of production."
The layoffs involved positions "across the board," she said, adding that the company's North Carolina plant will no longer produce retail products. Rather, its staff will research and build prototypes "so when it does turn around, we'll be ready," Stout said.
"The whole industry is down about 50 percent over the last two years," she said.
Tom Murray, an economist with the Virginia Institute of Marine Science Sea Grant Program, which conducts research on the marine industry, predicts a further decline in the marine industry.
"I think we're looking at continued retrenchment," he said. "It's really hard to vision much positive growth or expansion in an industry such as recreational boating."
Lagging sales are only partly the result of high gas prices, he said.
"It's more related to the fundamental economic status of American consumers, partly the middle class, the depreciation of our main assets - our homes - the whole real estate situation, the uncertainty of future evaluation of our biggest asset. With that kind of a portfolio, we have a hard time justifying more discretionary expenditures."
Nancy Engel, executive director of the Manatee Economic Development Council, also noted many industries, not just boat builders, are struggling.
"You shouldn't be surprised that the boat industry is taking a real hit," said Engel. "It's affecting industries across the board, but obviously, the boating industry would be one of those that would be affected."
She predicted that people will start to make different choices to adapt, such as buying boats that are more fuel-efficient.
"Things will change with the times, but it takes time to make the change and adjustments," she said.

Sara Kennedy, Herald business reporter, can be reached at (941) 748-0411, ext. 4500.

[George Roberts]

Supply of production boats is higher than demand, forces prices down.

Loans are still easy to get if you have good credit.

---

Demand for custom boats is still reasonable.

[Bob Cleek]

As always, there are deals to be found on boats. Credit is as available as always to qualified borrowers... the "sub-primes" had their day, but that's past. Production boats are down because it costs the retailers money to hold them. Like cars, it isn't the per unit price that determines profit, but rather how fast they can sell them. Prices drop to move the product. On the other hand, classic, traditionally built boats, which unlike their production counterparts are appreciating assets, see not to have suffered much in the economic downturn. A new twelve foot Columbia dinghy is still costing around eight or ten grand, plus trailer. New, traditionally built Herreshoff 12 and a halfs are still going for around $30,000 for Pete's sake. Nobody's dropped the price of diamonds, either.

[Peter Malcolm Jardine]

The boat business in the USA is in the toilet. Older fibreglass project boats, that are still serviceable but need some tlc and updating are being given away almost. Gas powerboats in the 15 to twenty year old category are also in the basement price wise.

Check West Marines stock prices... they are the biggest retailer of boat parts and accessories in North America... also in the toilet.

People are losing their houses.... boats are a luxury item.

[michigangeorge]

It is certainly going to be interesting to see what happens with all the overweight, deep V, high powered fuel hogs when we get to $10.00 gas. What will people do with them? Park them in their yards or pay storage indefinately in hope that prices will fall? Very expensive to dispose of at the landfill. There will always be a small market of foolish (fuelish) rich folks who will not care about fuel cost but if things get too bad they may even be ostracized for flaunting it. At least we will be rid of the really ugly, low end crap that the American marine industry has spewed out for years:-)

[rbgarr]

This boat has languished on the market for quite a while, even with a 25% drop in asking price. I'd love to have her: http://www.pagetraditionalboats.com/mimirose.htm