Used boats pricing

[kind_cir]

Given the rising fuel prices and intrest rates, along with green zones, rego skirockting. What do you think this will do to the price of used boats over the next 2 years.
Here's my spin on it all. New boats will allways have a market but that will slow a bit. Used boat prices will come down a lot in the 5.5-6.5m range as more people will opt for a smaller more fuel efficent rig. Used prices in 4.5-5.5m will go down only slightly or may even stay steady, or even rise slightly or ........ I don't know but it would be nice to have a crystle ball to work it out.
what do you all think.

[boatboy50]

Hey Boat,

As someone who works the industry daily, I can tell you there has yet to be an effect from fuel prices, interest rates, green zones ect.

Boats are still selling, big, small and in between.

The main effect on the used boat market will be what engine a boat has. Already I see boats with two strokes sitting around for months, were a similar boat with a four stroke generally goes very quickly.

IMHO Rego, fuel ect ect has a very small bearing on the boat buying decision.

I actually think the opposite to you. As the economy closes down on us, money will be harder to come by. Therefore, people will opt for the cheaper option, used boats.

Why buy a new rig for 30k, when you can get a near new rig for 20k, or bigger but older for 15k? The new boat market will feel the power of the economy, but used boats will have a windfall from that.

Regards

Darren

[Poodroo]

Given the rising fuel prices and intrest rates, along with green zones, rego skirockting. What do you think this will do to the price of used boats over the next 2 years.
Here's my spin on it all. New boats will allways have a market but that will slow a bit. Used boat prices will come down a lot in the 5.5-6.5m range as more people will opt for a smaller more fuel efficent rig. Used prices in 4.5-5.5m will go down only slightly or may even stay steady, or even rise slightly or ........ I don't know but it would be nice to have a crystle ball to work it out.
what do you all think.

The big picture is that we will eventually be just like NSW where the EPA will basically be banning fishing in all of our favourite fishing locations particulary out in Moreton Bay. Fuel prices and inflation and general running costs are only a small part of what will influence new and used boat prices. It is already starting to happen with a lot more impact on fishing planned. My suggestion to all is enjoy it while you can because soon we will all have boats in the back yard as ornaments. Boats won't be worth a lot once all this kicks in. Offshore fishing is probably going to be our best bet unless EPA find a way to stop that as well.

Poodroo

[FNQCairns]

I will have a go, in the US house repo's are running a 1million per 12months, here is oz around 70% of all houses are owned outright, of the 30odd% left only 15% are mortgaged the rest are speculator properties.
Under the last fed government conditions were made rife for speculators to lockup family housing from the open market and drive up prices across the board a bit like the price of oil or any essential item if left unprotected.

Anyway the large number of house owners (true owners) who by birth date were well settled before the last government came to power have no cause to give a crap, they have gross expendable income, interest rate rises are a good thing -their term deposits do better, anyway their position can often be sounder under recession than boom, this underlies the overall reason for it being ok to mismanage the domestic economy. Fuel/housing/interest rates/food prices etc are not a concern in anyway to MOST.

We have massive personal debt, the majority as above this is ok, the minority it is a horrible burden.

So what will happen? the only ones hurting are by number a maximum of 30% of the population but 20-25% hurt most of the time boom or bust, somehow I cannot see say 5% of the population swaying the economy or any domestic market greatly, if it does it will be in the area price range the 5% would have been typically active.

cheers fnq

[Black_Rat]

This is the result -> http://www.ausfish.com.au/vforum/showthread.php?t=132002

:(

[Reel Blue]

I am 38 years old with three kids (10-14) on a good wage. We have a mortgage just like everyone else I know my age. A significant percentage of income after mortage and food etec goes on the kids with travel to sport and associated expenses. I still go boating when the weather lets me but the costs are becoming noticable. The rising cost of fuel and interest rates is hurting me.

People that are 'well off' often have significant investments in property and or shares and do not have a lot of disposable income as this is driven back into the investments. In this economic climate of uncertainty, many are losing money on shares and property values are declining in many areas. If they are not declining, ie SE Queensland, they have levelled off and its only predictions of rapid population growth that lead some to think they will continue to rise in value.

Boats are a luxury item to most of us and do not generate income. Luxury items are the first things to be dropped when things are getting tougher. Boats are harder to sell in this climate so their values are falling. Items are only worth what someone is able and prepared to pay. I am amazed at how many boats and cars are for sale right now. Check out the classifieds or go for a drive. Many are worried.

[reelchippy]

Given the rising fuel prices and intrest rates, along with green zones, rego skirockting. What do you think this will do to the price of used boats over the next 2 years.
Here's my spin on it all. New boats will allways have a market but that will slow a bit. Used boat prices will come down a lot in the 5.5-6.5m range as more people will opt for a smaller more fuel efficent rig. Used prices in 4.5-5.5m will go down only slightly or may even stay steady, or even rise slightly or ........ I don't know but it would be nice to have a crystle ball to work it out.
what do you all think.
Good to have bet each way:):).cheers

[Tidas]

Hey Boat,

As someone who works the industry daily, I can tell you there has yet to be an effect from fuel prices, interest rates, green zones ect.

Boats are still selling, big, small and in between.

Darren,

The businesses you're associated with must be very fortunate, I was speaking to a friend early this week who runs a boat yard in Sydney and he said his business has had an approximate 80% downturn in sales (he has quite a range of new and used rigs) and he knew of a couple of places that had already gone under and a couple more were in trouble. (We were only talking about the the greater Sydney area, I have no idea regarding Qld or Vic markets). He went on to say in the 20 odd years he's been in the business it was the biggest downturn he had seen.

He was hopeful that things would pick up a bit at the Sydney boatshow though.

Like everyone else here I don't have a crystal ball but I would imagine the whole market would be down, despite just the normal winter slow period and boats that were fitted with 4 strokes or DI 2 strokes would be easier to sell.

Time will tell I guess.

Cheers

[Mike Delisser]

Fuel/housing/interest rates/food prices etc are not a concern in anyway to MOST.
cheers fnq

???????????? Boy do you have your finger on the pulse.




The falling US dollar is also stressing some Aussie boat manufacturers atm. Importers of top end tournament, sportsfishing and cruising vessels are doing deals that begger belief. One guy bringing in US bass boats can't land them as fast as his waiting list is growing.

[paul cooper]

I remember years ago we had a major financial financial squeeze and there were deals going every where, the papers were full of bmws and all sorts of toys.So it stands to reason that in our current economic down turn plus the soaring prices of commodities when it comes to feeding the family paying the mortgage or going fishing i guess the boat will have to go and if every one decides to sell thier boat thier will be a glut and it will be a buyers market . And desperate people selling thier gear too cheap will drive the prices down . COOP:'(

[mik01]

whether you have disposable income or not, the uncertain economic environment forces consumers to put off large luxury purchases or look at ways to minimise outgoings.
this is exactly what leads to depressions such as recessions.

unless you are wealthy, you would most likely be watchful of where you put your money towards life's luxuries at the moment.

I am. with interest rates being constantly raised and fuel going through the roof, its only inevitable that the majority of consumers are choosing a wait and see approach. this can only flow on to the boating market among many others...

[Poodroo]

I for one am greatful that I purchased a boat that fitted into the category of being small enough for me to handle on my own, big enough that I can take myself, wife, and two kids on an outing comfortably, small enough to be able to run with a 40 hp motor which above all gives me great fuel economy. An average outing even with the current fuel prices including the fuel the car uses is roughly $40-$50 per trip. I have relatives who spend well over $100 and even up to $200 an outing. I guess it isn't so bad if you take out paying deckies. With the way the fuel prices are expected to continue to rise I would not like to be the owner of a boat yard right now. I'd be selling all the big boats off cheap and filling the yard with cheaper affordable rigs and only ordering the larger boats on request with firm deposits down.
Poodroo

[kingtin]

I'm not so sure about it hitting the used boat market but despite salesmen talking up the boat business, it seems to me that it is taking a big hit. Real Estate agents are the last to mention downturns as they don't want to put sellers off. I reckon boat yards are the same, only it is the buyers that they don't want to put off.

The reason I think the new market is taking a hit? Well Sundown has gone in N Brizzy so you would think that the others would be pretty well stocked to replace their business, but that doesn't appear to be the case. Yes, their yards don't look too bad but my experience of a few years back is that if you ordered an "off the peg" stacer, quinny, or alleycraft, the odds are it would be in the yard, or ready pretty quick. Sundown was always stocked to the limit with Quinnies and look what happened to them. I've spoken to a few folk who've ordered these kind of boats and they have all had a wait. That to me signifies that the manufacturers and yards either think there will be a downturn or simply aren't sure, and they aren't holding stock for fear of cash flow problems.

If you're a new buyer you want to know that there is a used market for your rig in case you want to gear up or down later. In view of this I think that the new market is certainly going to be affected if the used market appears to be dubious. New buyers will think twice if they get an inkling that they won't be able to sell on at a later date.

kev

[garman1]

Part of the reason Sundown went down I believe was customer service, wife and I went in to look at 4 to 5 mx tinnies, money in pocket................ but not dressed up like full on boaties, blue shorts, white socks etc. No-one came out to say "hi", salesman looked out of the windows and went back to reading the paper. Now if we had been looking at the 100 k boats, I bet the saleman would have been lined up.

Also I bought 5 s/s hoseclamps and was 20 cents short............ got told sorry can't help ya, had to walk out with only 4, I would have said close enough, only twenty cents short.

Well they saved 20 cents but lost em a boat sale, I bought my boat and hose clamps elsewhere.........................................

I wonder why they went under.......mmmmmmmmmmmmmmmmmm

Cheers Garry

[PinHead]

Part of the reason Sundown went down I believe was customer service, wife and I went in to look at 4 to 5 mx tinnies, money in pocket................ but not dressed up like full on boaties, blue shorts, white socks etc. No-one came out to say "hi", salesman looked out of the windows and went back to reading the paper. Now if we had been looking at the 100 k boats, I bet the saleman would have been lined up.

Also I bought 5 s/s hoseclamps and was 20 cents short............ got told sorry can't help ya, had to walk out with only 4, I would have said close enough, only twenty cents short.

Well they saved 20 cents but lost em a boat sale, I bought my boat and hose clamps elsewhere.........................................

I wonder why they went under.......mmmmmmmmmmmmmmmmmm

Cheers Garry

don't bet on that one either

[Fish Guts]

Boatboy,

As your in the industry. Was curious as to the wrap up to the Sanctuary cove boat show. Any sales or just tyre kickers ? went a couple of days there and never really saw any serious negotiations between sellers and punters. be interested to hear feedback, as you normally hear if its a good year ect.

cheers

fish guts

[boatboy50]

Hey Guys,

It might sound like i'm talking up the market, but honestly, April/May has seen more boats out the door than December/January, the normal busy times.

Admittedly, we had two months of rain back then, but it still says something about the market.

Don't get me wrong, it appears to be slightly down on previous years, but it certainly is not time to dig a hole and hide.

Sanctuary Cove was reasonably good. All honest exhibitors knew it was never going to be record sales, but on what was expected by us, it was slightly up. I believe we did do well, and some other dealers may not have done so well. It just comes down to your product.

We didn't attend the tinnie and tackle, but I believe it was very good for the dealers which did.

Shows are always 90% tyre kickers, and 10% potential buyers. Of that, maybe 3% actually buy at the show. Don't ever believe the Riviera super sales talk, it is always pre-empted and set up by the organisers to talk up the show.

Don't put marine business closing as a sign of the industry. To my knowledge, Sundown was the biggest Yammie and Quintrex seller in the country, and Boatarama was doing extremely well, just look at how many Four Winns are on the water at any given time. I am told that poor sales was not the downfall of either of those businesses.

Regards

Darren

[pedrodepacus]

hey boat boy im with your comments i to work in the industry daily and have done so for the last 20 years im in the manufacturing side of things and wat i have noticed especially over the last couple of yearsis that its not so much that dealers arnt or wont stock boats but more so that they cant get them.the manufacturers of boats up to 6m have been booming the demand has been huge i think alot of people assume that these companys are huge concerns but realisticaly they are not .the company i worked for last year at any given time had 250 to 300 boats on order which did not include stock boats for any of there dealers. i tend to feel and its just my opinion that most of the manufacturers still have plenty of work in front of them and wont mind if things slow up a little give us all a chance to catch our breath and reunite ourselves with our families as it has been a hectic couple of years . tinny and tackle show was very good for us much better than expected didnt do sanctuary cove but the grapevine said it wasnt that great for sales in our category but again tinny and tackle made up for it anyway

[Noelm]

what Boatboy says is true, places that sell a heap of Boats can go under as well, often from bad Management, but also from selling too cheap, there is a very fine line between "getting a sale at any cost" and making a sale and staying in business, to be sucessful, you need to sell at a sustainable profit, as there is a lot more to a profitable business than goods out the door, then we take into account the modern day "Cyber Shop" Internet sales from Overseas are just so easy these days, and the operators have next to no overheads, you order and pay, they then get the goods and send them out to you, and charge for freight, next comes the Boat Shows, he is also correct in the 90% tyre kickers, I reckon it may be even a higher percentage, I worked at the Sydney Boat Show for many years a while ago, and if you got almost any sales it was a bonus, it was more or less just a showcase of what was available and a way to get your name on the lips of buyers that may not have even thought of going to you, these days the Tackle sales guys are just unloading rubbish to unsuspecting "lurkers", but if they make a Dollar, then good on them.