T&T: market status

[Scott E. Bulger]

In response to:  Has  anyone seen any hard statistics on pricing and
inventory trends in the  used boat market? We know lots about real estate,
but has the  boat  market crashed to a similar (or worse)  extent?

Jim asked:  I have asked this question, as well, and only got a squirrely
response from a broker (maybe he didn't know, or maybe he suffers from the
eternal optimist disease that afflicts 95% of the real estate and boat
broker breed).  I  hope there is a candid broker (or lender or insurance
agent) with actual  data that can share with us.  Thanks in advance to
him/her.  Jim

Scott suggests:  I think asking a broker to share these statistics will fall
on deaf ears.  A brokers job is to encourage sales, from both the buyers
perspective and the sellers.  If they don't move boats they don't eat.  The
HAVE to put a bright side to the story otherwise they will scare any buyers
away.  Here are the realities as I know them:

a.  Any broker can tell you the number of boats sold in a year.  If they
have access to www.yachtworld.com they get access to www.soldboats.com (or
something like that).  They use that system to see the difference between
asking and accepted prices so they can advise their sellers where previous
boats are selling.  

b.  Clearly the market has tanked.  I have a 40II for sale and have only
recently had any serious looks at the boat.  In the last two weeks we have
finally started to see potential buyers start to tour the boat.  Six couples
have been aboard in just the last two weeks.  Prior to this there had only
been one couple touring the boat in 4 months.  So, anecdotally things "seem"
to be thawing.

c.  Boat prices are down, a lot.  I met a couple yesterday who where proud
new owners of a beautiful 37 foot Nordic Tug.  They had made an offer on a
Nordhavn but didn't go ahead with it.  They revisited their cruising plans
and decided an inland boat would meet their needs, so they got a great deal
on a new boat.  I can only imagine what a sales meeting at Nordhavn, Krogen
or Grand Banks sounds like today.  I would expect builders have commitments
on boats that are arriving with few if any buyers.  How many of these guys
have unlimited credit lines to inventory these boats?  Ask Passagemaker
Yachts in Seattle, oh that's right, you can't because they closed their
doors this past week.

Here is the truth:  If there has EVER been a time to be a buyer its right
now.  Cash talks.  If you find a boat you want you would be crazy not to
offer 20% less than the asking price.  The owner must have a number in mind
that represents his absolutely lowest price he will accept.  What I'd do is
just be up front with a buyer and tell him what it is.  Why go back and
forth a dozen times and just piss everyone off?  We are lucky to be trawler
owners because these are the boats that people are moving to.  They are
coming from sailboats and from go fast cruisers to the wonderful trawler
life.  Yup, as bad as it is, it could get worse.  You will find desperate
owners and owners that can wait.  If you find a desperate owner and the boat
you want you will save a lot of money, but don't expect any good will or
training, your going to be on your own!  

Also, be aware, there are a lot of boats that are on the market just to
avoid local cruising taxes.  If a boat is really for sale it will be price
adjusted and well presented to the market.  Otherwise I'd ask if it's really
on the market?



Scott E. Bulger, Alanui, N40II, Seattle WA