Future used boat prices.

[nicho]

There’s currently a dearth of used motor cruisers in the 34’ - 37’ range, and as a result, asking prices have rocketed. Boats that were listed at around £75K last year, are now a good £20k above that, and demand seems undiminished. We will be in the market for a Sealine F33, S34 or S37 at the end of this year/early next year. What are the panels views on asking prices over that period. How many of these boats recently sold have been purchased by those that may not have realised the expense of boat ownership, and Is it possible that once the full effects of the pandemic hit, that there could be a flood of used boats hitting the market, with a subsequent price drop. I don’t want to profit from someone else’s difficulty, but at the rate prices are currently going, we may not be able to comfortably afford the boat of our choice.

 

[ari]

In the absence of a crystal ball, you're going to get two answers to this question.

Anyone selling will believe that prices will hold firm or even increase.
Anyone buying will believe that prices are going to drop through the floor.

See any one of a million Internet arguments about the future of house prices!

 

[Momac]

£20k extra (if that is the case) sounds great but its only really good if you want to get out of boating.
I imagine boat sales will return to the previous normal in a year or two. But who knows.

 

[Nito]

We're just completing a purchase at what is arguably the 'height' of the market and we've done so with the full expectation that prices could well possibly slip over the next year or two and possibly longer, as many of the Covid boat buyers realise the full extent of boat ownership costs, the return of working full time if not already, the loss of furlough or bounce back loan repayments kicking in etc which might see more boats flood the market for sale and the return of being able to holiday again and with shops/leisure re-opening, the ability for normal competing life expenses to eat in to the artificially high boat budget.

But...on the flip side of this, new boat prices are ever increasing, a glut of boats that have been neglected maintenance wise by naïve, inexperienced or financially unprepared buyers may mean that the quality of boats available may decrease, Brexit has narrowed the pool of boats available used to the existing UK boats as overseas boats will incur vat making them dearer, which may inadvertently drive up the price of boats already in the UK, and then a whole new generation of boaters have been inducted into the hobby and may with it, draw along many of the keep up with the Jones' crew, which could mean more people wanting to buy in, all of which may see prices continue to rise.

So it's anyone's guess as to how the market will go really. We could have waited for prices to fall, but like the housing market, it just hasn't happened and keeps on going the other way, anyone selling their boat is having to pay the same premium for their replacement, so like houses, it's only really relevant to first time buyers, or those getting out of it for good. Two things are for sure;

1. It's not a buyers market at the moment, so any boats you do look at you aren't in a position to low ball and there will be a queue of people prepared to out bid you.
2. Don't hesitate too long, because if you snooze you lose. This puts a lot of pressure on you if you're the type of person who deliberates and needs time to make a decision. The danger here is you don't want to rush into anything that isn't any good either or buy badly. We've been searching for nearly a year and lost a couple of boats along the way. Another will turn up and after looking at lots you get a good feeling of what's good and what's not relatively quickly but it has been exhausting. With 8,500 posts you're hardly new to it so you know far more than me anyway, I can only comment on our experience from a first time boat buyers perspective!

 

[Sticky Fingers]

I think Nito is spot on; I don't buy the doomsayers' arguments that the bottom will drop out of the market. And I'm not selling as far as I know. (never say never...)

 

[nicho]

Back in 1997, we bought a brand new Sealine S37. At the time, there was a problem getting Volvo engines, so Mercruiser D4.4L engines were fitted. They were smooth, quiet, economical and reliable. Now however, any S37/S34 fitted with Mercruiser engines are offered at considerably lower prices than those fitted with Volvo KAD 42/43/44. Buyers are seemingly put off by anything non-Volvo, though after some of the problems we suffered with some KAD44’s we had, I cannot see them being much worse with spares supposedly available. Give a dog a bad name?

 

[nicho]

£20k extra (if that is the case) sounds great but its only really good if you want to get out of boating.
I imagine boat sales will return to the previous normal in a year or two. But who knows.

Hope you are right!

 

[ari]

It's also worth remembering that boat prices dropped a LOT in the 2009+ recession and never really recovered. It's not impossible that they are now finally simply returning to pre recession levels.

But I refer to my original post, without a crystal ball, trying to predict is little more than guesswork and wishful thinking. If you've ever heard of HousePriceCrash.co.uk, you'll know that there's a whole army of people convinced that house prices are definitely about to crash at any moment - and they have been for about 20 years!

 

[V1701]

The one thing we do know for sure is that the market is bonkers at the moment. To my great relief a (non-boater) friend of mine has just this afternoon been pipped at the post trying to buy a 37' steel Tjalk built in 1889. If you're remotely thinking of selling now is the time...

 

[R400]

As someone who has sold at exactly the wrong time ( 2019 pre COVID) and bought at precisely the wrong time ( possibly post COVID) I honestly think you have to just suck it up . After all you’re boating because its a passion and obviously you’re certifiable.

 

[Shifty]

There’s currently a dearth of used motor cruisers in the 34’ - 37’ range, and as a result, asking prices have rocketed. Boats that were listed at around £75K last year, are now a good £20k above that, and demand seems undiminished. We will be in the market for a Sealine F33, S34 or S37 at the end of this year/early next year. What are the panels views on asking prices over that period. How many of these boats recently sold have been purchased by those that may not have realised the expense of boat ownership, and Is it possible that once the full effects of the pandemic hit, that there could be a flood of used boats hitting the market, with a subsequent price drop. I don’t want to profit from someone else’s difficulty, but at the rate prices are currently going, we may not be able to comfortably afford the boat of our choice.

There’s currently a dearth of used motor cruisers in the 34’ - 37’ range, and as a result, asking prices have rocketed. Boats that were listed at around £75K last year, are now a good £20k above that, and demand seems undiminished. We will be in the market for a Sealine F33, S34 or S37 at the end of this year/early next year. What are the panels views on asking prices over that period. How many of these boats recently sold have been purchased by those that may not have realised the expense of boat ownership, and Is it possible that once the full effects of the pandemic hit, that there could be a flood of used boats hitting the market, with a subsequent price drop. I don’t want to profit from someone else’s difficulty, but at the rate prices are currently going, we may not be able to comfortably afford the boat of our choice.

Best of luck with the search Nico, last I heard you’d crossed to the dark side!
We used th have the S43 at RK.

 

[NickG1]

OK I'll be the doomsayer then. The current market boom will only last until the next economic recession (as opposed to the current Covid recession) happens. Who knows when that will be but it is 12 years since the last global recession so we are well overdue by historical trends. I'm no expert but the current flood of money in the global economy, overvalued assets and low interest rates is very reminiscent of the run up to the 2008 recession

 

[kashurst]

It's just supply and demand. At the moment lots of people want boats for holidays and fun and isolation from covid issues.
So everything any good sold quick and naturally prices drift up.
There used to be a supply of boats coming from mainland Europe (and back again) depending on currency differences at the time. Trucking a boat to the med or back again cost about £8K and no VAT issues. My own boat, a 38 foot flybridge in Spain was EU vat paid. If I want to bringit back permanently, I will need to pay trucking (probably £16K as few lorries going) plus VAT - on a £100K boat in Spain that is now @ £140K+ when it arrives in the UK.

Now the UK is out of the EU bringing an EU vat paid boat back from the med is essentially a non starter - unless prices get really stupid. So the current supply base is recyling old UK boats or buying new.

 

[Bouba]

I know a friend here in France sold his boat almost immediately. So this could be a global phenomenon, and any country coming out of lockdown might experience boat price rises. The same applies to houses out of cities, houses with gardens, with garages. Life will return to normal. After the Spanish Flu we had the Roaring Twenties, so people went from isolation to being obsessed with dancing together. When normal activity returns, people not dedicated to boating might find their new toy little used.
There is also talk of inflation arriving soon. Higher mortgage payments could really change the boating market.

 

[Greg2]

Whilst I suspect that many new ‘pandemic boat owners’ will probably look to sell when the reality of boat ownership kicks in and travel restrictions ease, I think that used boats have been pretty good value for some time when compared with buying new so what appear to be inflated prices now may not take a big dip anytime soon.
Just my thoughts in the absence of ready access to a crystal ball! ?

 

[nicho]

Best of luck with the search Nico, last I heard you’d crossed to the dark side!
We used th have the S43 at RK.

I think I know who you are Shifty (live in Warwickshire?). Anyway, over 30 years of boating we have occasionally moved to the darker side, as with our last boat (Bavaria 34). However, SWMBO does not like sail boats, or sailing, so it went earlier this year. Shame in a way, lovely boat. So that was it, at 77 and 75 we decided enough was enough, and we would concentrate on our touring caravan. Problem is, we still keep going to the coast and looking at boats, so here we go again, but with a motor boat again. At our age, we have a limited budget, and (hopefully not) a limited time of reasonable mobility, so a 34/37’ mobo will be our aim - big enough to spend a couple of weeks on, but not too big to handle. Hopefully, by the end of the year, (earliest we can sensibly move), prices will at least have stabilised.

 

[Shifty]

I think I know who you are Shifty (live in Warwickshire?). Anyway, over 30 years of boating we have occasionally moved to the darker side, as with our last boat (Bavaria 34). However, SWMBO does not like sail boats, or sailing, so it went earlier this year. Shame in a way, lovely boat. So that was it, at 77 and 75 we decided enough was enough, and we would concentrate on our touring caravan. Problem is, we still keep going to the coast and looking at boats, so here we go again, but with a motor boat again. At our age, we have a limited budget, and (hopefully not) a limited time of reasonable mobility, so a 34/37’ mobo will be our aim - big enough to spend a couple of weeks on, but not too big to handle. Hopefully, by the end of the year, (earliest we can sensibly move), prices will at least have stabilised.

Correct Nico, if I remember right you used to fly in and out of Bagington Airport at one time.
I fully understand the draw of being afloat,,we retired earlier in the year and planned to pull our horns in a bit but instead ended up being tempted by a bigger boat!We are now based in East Cowes so pop and say hello if you’re over this way.
apologies for the thread drift.

 

[nicho]

Correct Nico, if I remember right you used to fly in and out of Bagington Airport at one time.
I fully understand the draw of being afloat,,we retired earlier in the year and planned to pull our horns in a bit but instead ended up being tempted by a bigger boat!We are now based in East Cowes so pop and say hello if you’re over this way.
apologies for the thread drift.

Still flying from Baginton when Covid allows! Good to hear from you. East Cowes is one of our favourite lunch halts, so hopefully catch up next year.

 

[dragoon]

Anything that moves seems to be in demand at the moment - a main dealer bought my 2 year old car back off me last week at £3,500 over the book price (straight purchase, not even a trade in!) . I see it's now back on the forecourt at almost what I paid for it when it was new.

A friend of mine sold an old motorbike a few weeks ago - he had almost 20 persons call about it within a day and he sold it at almost 2x its book value 1 year ago.

Boats seem to be the same at present. I can't see any of this lasting the long term though - everything goes in cycles, even if fundamentals (gold, land, Lancia Betas) rise in the long term......

 

[nicho]

Anything that moves seems to be in demand at the moment - a main dealer bought my 2 year old car back off me last week at £3,500 over the book price (straight purchase, not even a trade in!) . I see it's now back on the forecourt at almost what I paid for it when it was new.

A friend of mine sold an old motorbike a few weeks ago - he had almost 20 persons call about it within a day and he sold it at almost 2x its book value 1 year ago.

Boats seem to be the same at present. I can't see any of this lasting the long term though - everything goes in cycles, even if fundamentals (gold, land, Lancia Betas) rise in the long term......

It’s reported that for every property for sale, there are 13 people chasing it.