Covid 19 and boat prices

Tinto

Active member
Joined
25 May 2019
Messages
220
Visit site
It has been suggested VAT will go to 25% to pay for the crisis. Don’t know why governments don’t just windfall tax those companies that offshore their profits. Amazon, Starbucks, Google, Apple, Vodaphone.......and on and on

won’t come close to covering the cost but it would be a help
 

Stemar

Well-known member
Joined
12 Sep 2001
Messages
22,540
Location
Home - Southampton, Boat - Gosport
Visit site
One reason is that it would take united action from much of the world. If the UK taxes Amazon on its UK profits, there's nothing to stop Amazon moving abroad to somewhere that will cut them a good deal. Google the same. Apple just has to get its stores to buy the kit in from Apple SARL or GMBH and make no profit.

Ain't saying it's right, but it's the reality. The big international companies always have smarter tax lawyers than governments 'cos they pay more.
 

Tinto

Active member
Joined
25 May 2019
Messages
220
Visit site
I think united action is more likely now the ever. This has ruined every major economy. The economies where these companies have made their great wealth.
 

PHN

Member
Joined
3 Sep 2018
Messages
132
Visit site
One reason is that it would take united action from much of the world. If the UK taxes Amazon on its UK profits, there's nothing to stop Amazon moving abroad to somewhere that will cut them a good deal. Google the same. Apple just has to get its stores to buy the kit in from Apple SARL or GMBH and make no profit.

Ain't saying it's right, but it's the reality. The big international companies always have smarter tax lawyers than governments 'cos they pay more.

The e-taxing plans we have seen recently in Europe were based on the fact where these companies sold their goods rather than where they are located. So, if an American company with only a physical location in the US and only employees inside the US would sell to a UK customer that particular sale would be eligible for UK taxation in some form. In the end - as always - it is the customer paying the price for this, because the selling company has more expenses on that particular sale.

From a customer point of view I can ask just as well the same question: where do you choose to buy your products? It is very simple. If customers don't like a product and/or company and hence don't buy then that business will either change or stop. If you buy from a company that you don't like for whatever reason than the first to blame is yourself as the paying customer who makes the business and existance of that company possible.
 

Arch1963

New member
Joined
25 May 2020
Messages
1
Visit site
They were a great group; an 80's group too! :)

Their best was 'Too Much Pressure' and 'Missing Words' although they did plenty of other fine tunes in their day. An ace time was the 80's. ?

Bit late but you're thinking of The Selecter…. The BodySnatchers did Ruder Than You, Do Rocksteady and couple of others... but yep great group and the first I saw funny enough supporting The Selecter!
 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
There is also the bareboat rental market. Many of these boats will be on finance with most, of not all, achieving zero rental income. So many of the owners will likely need to sell them or the creditors will repossess them and sell them. That’s a lot of boats flooding into the market.

supply up + demand down = reduced prices
I hope you're right. I'm a potential buyer.
 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
Knowing who does not pay their fair share has certainly changed my behaviour. I don’t use amazon or Starbucks or any big coffee shop chain. I try to shop local as much as I can
[/QUOTE
Well done! I try to use Ebay over Amazon wherever possible. Private Eye pointed out that the founder of Amazon had donated $100m to Covid research. Sounds generous till you see that his stockholding had gone up by $28 BILLION
 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
Here's an example of a 10% price fall on a new boat.

Limited Time Lockdown Offers - Sea Ventures (UK) Limited

I'm watching it all with some interest and making a note or prices of boats that might be of interest to me. Lots of things could happen. One needs to survive the illness first, of course. I don't see the country crashing and burning, unlike some people do, but I'm certainly not parting with hard-earned money for a month or two, whilst I watch what prices do. Problem for me is, that virtually all sellers of used boats (and I'd prefer used) may still be asking the sort of sums they were two years ago. It's what the boat (or car, or house) finally goes for that matters. And we have no access to that particularly essential piece of information. Only the brokers do, it seems. If prices don't fall, well, I think I might just have to offend the occasional seller with an offer of c 20% below the asking price to see what happens. I mean, "there is always another boat".

Given that interest rates on savings are practically zero, loans should be cheap as chips. But they aren't when it comes to boats. I see figures of c 5.5% quoted. One "marine finance" outfit the other day were happy to "help me finance a boat" at a rate of 15% APR! You can borrow more cheaply than that on some credit cards now!

Anyway, enough for now.
 

lw395

Well-known member
Joined
16 May 2007
Messages
41,951
Visit site
There may be less people buying new, so good used boats at a premium?
The pound may fall increasing new prices and attracting foreign buyers for used boats.

Foreign holidays are going to be less available and maybe risky, so spending your leisure time and cash on a boat might have more appeal.

OTOH, now the concept of lockdown is out there, people may think twice before sinking capital into an asset they might be told not to use?
The gloss may have gone off holiday homes and boats in faraway marinas for some owners?

The old advice of buying the best you can find still stands, the faults on the cheaper boat/car/motorbike will still be irritating long after you've spent and forgotten the few quid you've saved. Pay a good price for a good one, and if you can't afford that, look at smaller ones.

My guess is that some prices will drop, and some won't.
 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
It has been suggested VAT will go to 25% to pay for the crisis. Don’t know why governments don’t just windfall tax those companies that offshore their profits. Amazon, Starbucks, Google, Apple, Vodaphone.......and on and on

won’t come close to covering the cost but it would be a help
Harold Wilson did that, or his chancellor in fact, to cheers from the Labour benches, as Ted Heath was a keen sailor. (At that time.)
 
Joined
21 May 2020
Messages
222
Location
Pyongyang
Visit site
Of course, if you're a grave robber, there'll always be a few whose owners have died on them, virus hitting the elderly and all that.

Expect rapid estate sales.
 

[159032]

...
Joined
16 May 2015
Messages
15,535
Visit site
Many posters on this thread have got the future position correct.
There will be far more 'clearing of the decks' and asset realisation happening, not just on the yachting arena. that lovely cottage in Brittany or Umbria will be offered up to realise capital. That treasured classic car will go under the hammer.
There will so much less distributable income available that those who can buy will be embarrassed by the bounty on offer.
Those selling will, initially, believe their asset is worth top dollar. So sales will be advertised at unattainable levels.
Two or three months on, as desperation bites,and ongoing costs continue, the light will dawn and prices will begin to fall.

Do you bite at the first seeming bargain, or hold your nerve until the price is really unrepeatable?

Don't forget. Most people who want a yacht, will already have one. So the influx of boats on the market are oversupplying the need.

.
 

Rob_Webb

Active member
Joined
20 May 2002
Messages
1,478
Location
Auckland
Visit site
Here in NZ (not representative of the world I know ?) one respected broker tells me he is busier than ever with demand outstripping supply. His explanation is that a load of people who have harboured lifelong dreams of owning a boat have suddenly realised “it’s now or never”. He knows my Jeanneau 42DS is a clean excellent example and has a queue of people who recently missed out on buying other similar boats in the last 3-4 weeks. He reckons I would sell within a week at the same price I paid for it 2 years ago.
 

[159032]

...
Joined
16 May 2015
Messages
15,535
Visit site
That will be a very temporary effect. The real savings to be made will be a few months down the line. When those needing to get shut realise they are overpriced for the remaining market. It'll be a bit like a Dutch auction, knowing when to jump in, or parhaps holding your nerve.

There will probably be a fair few boatyards and small marinas on the market,for the very brave.
 
Joined
21 May 2020
Messages
222
Location
Pyongyang
Visit site
I notice in other areas, the government has establish a framework for community groups to nominate and protect "Assets of Community Value". See link for explanation.

They may exist but I've never heard of them being applied to boatyards but, like community pubs and post offices, where rural communities have stepped in to ensure their existence, perhaps it's time for us to start exploring?

 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
Many posters on this thread have got the future position correct.
There will be far more 'clearing of the decks' and asset realisation happening, not just on the yachting arena. that lovely cottage in Brittany or Umbria will be offered up to realise capital. That treasured classic car will go under the hammer.
There will so much less distributable income available that those who can buy will be embarrassed by the bounty on offer.
Those selling will, initially, believe their asset is worth top dollar. So sales will be advertised at unattainable levels.
Two or three months on, as desperation bites,and ongoing costs continue, the light will dawn and prices will begin to fall.

Do you bite at the first seeming bargain, or hold your nerve until the price is really unrepeatable?

Don't forget. Most people who want a yacht, will already have one. So the influx of boats on the market are oversupplying the need.

.
I think you're right; that's why I'm waiting and watching. "The early bird gets the worm, but the second mouse gets the cheese."
 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
Here in NZ (not representative of the world I know ?) one respected broker tells me he is busier than ever with demand outstripping supply. His explanation is that a load of people who have harboured lifelong dreams of owning a boat have suddenly realised “it’s now or never”. He knows my Jeanneau 42DS is a clean excellent example and has a queue of people who recently missed out on buying other similar boats in the last 3-4 weeks. He reckons I would sell within a week at the same price I paid for it 2 years ago.
Yes, I can see that argument may be true too. Particularly in a country that has a "near miss" but, through prudent behaviour, was not badly affected.
 

[165264]

...
Joined
28 Dec 2016
Messages
315
Visit site
That will be a very temporary effect. The real savings to be made will be a few months down the line. When those needing to get shut realise they are overpriced for the remaining market. It'll be a bit like a Dutch auction, knowing when to jump in, or parhaps holding your nerve.

There will probably be a fair few boatyards and small marinas on the market,for the very brave.
Certainly, here in S England, the marinas that go bust will be snapped up for posh housing developments. But, as I keep telling myself, "There's always another boat."
 
Top