boat exchanging trade in

[captaindan]

Hi all

please could any one advise me of the best way to upgrade my boat I have been looking at trading in with a boat dealer but am thinking this might not be the most economical way to go about things, though it may be quicker I am wondering if that is a hasty move . Your opinions will be most valued

thanks

Danny

 

[No Regrets]

i got a great trade in, and saved on broker fees!

Might make sense, see how it adds up!!

 

[Tranona]

Trade in is not common with boats. The vast majority of sales are between individuals, perhaps with a broker intermediary. Very few dealers hold stock boats, but you may get part exchange against a new boat. However expect a trade in price up to 25% below market price.

For most people selling existing boat and then buying is the best way, but if you are in the market for a new build it is worth exploring a deal.

 

[Sheppy]

I think it rather depends on what sort of values you're talking about. If you walk in with cash you can get X deal, if you trade in you'll get Y deal, it might seem like a good deal, but he'll probably offer less on the overall package with a trade-in. That said, some dealers are so desperate to sell new boats, to keep up their numbers, that trade-in deals can be good. It's not an easy one to answer without all the facts. If you feel happy about the offer then just go for it. If you think he's pulling a fast one, then negotiate harder.
Selling any boat at the moment is hard, so work out what you think your boat with worth, then take off ten to fifteen percent as a starter, plus fees as mentioned above, and see if the figures stack up.

 

[captaindan]

I suppose your only losing 15% as the broker fees are 10 per cent anyway. Its just that transition of sell the boat find a boat to buy and no boat but hot weather that is less appealing to myself as I am currently enjoying the sun. unfortanatley purse strings will not stretch for new well not for anything I would want anyway as I have champagne taste but beer glass money.

 

[captaindan]

Yeah I suppose I should really just put the feelers out and see what comes back, do you think it will be a problem selling at the moment then even in mid season hot weather etc.

 

[Sheppy]

LOL - join the gang
Depends on the boat and price.
Hey, we all only live once, apparently, so just do what you have to do. The boat 'purchase price' is probably the smallest overall cost anyway, so does it really matter?

 

[Tranona]

I suppose your only losing 15% as the broker fees are 10 per cent anyway. Its just that transition of sell the boat find a boat to buy and no boat but hot weather that is less appealing to myself as I am currently enjoying the sun. unfortanatley purse strings will not stretch for new well not for anything I would want anyway as I have champagne taste but beer glass money.

No broker charges 10%. Very few dealers keep stock of used boats so it would be unusual to find a boat you liked that the owner is interested in taking yours. In many cases you are better as a cash buyer rather than trying to put a deal together.

 

[benjenbav]

No broker charges 10%. Very few dealers keep stock of used boats so it would be unusual to find a boat you liked that the owner is interested in taking yours. In many cases you are better as a cash buyer rather than trying to put a deal together.

Last time I changed I found the boat I wanted somewhat early in the piece (which was a private sale) and I had the following choices:

1 Buy and keep two boats until my previous sold on brokerage. On the plus side I would probably get a decent price on sale but on the minus, the time line was uncertain, fender kickers would undoubtedly abound, and it was October so I would probably have had to budget for winter maintenance and paying for two berths.

2 Not buy. Just sell and come back for the same boat or something similar when I had sold. Conservative option but I wanted to use the new boat through the winter.

3 Buy and sell the previous boat to a dealer. Plus: Quick and certain. Minus: Rock bottom price.

I took option 3. It was easy and I could afford it with some Y chromosomal logic, around the excellent price I paid for the boat I bought.

Of course if I'd been buying a new boat I would hve had a fourth option of trading in for the new boat which would have almost certainly achieved a better price. If I had wanted a new boat that is what I would have done, I think. As it was I didn't regret for a moment the choice I made.

 

[julians]

I've just bought a new boat (well its second hand, but new to me) via a private sale (no broker involved either), but I have not yet sold my old boat. So currently I'm the proud owner of 2 boats, I just factored the overall cost of keeping two boats for a period of time into the purchase costs of the new boats. Its the riskier option, but hopefully it'll allow the best of both worlds.

I have considered selling to a dealer, but the price they offered was just too low.

 

[henryf]

The problem with all your answers so far is they are hypothetical. I got this, I was offered that and one mans deal of a lifetime is another mans "they tried to rip me off but I saw right through them."

As we have previously discussed on here boat prices can be hard to establish and that can make selling a bit tricky.

If you are buying a stock boat from a dealer there's a fair chance you will be getting a good deal. My experience is when you weigh up all the odds dealers feet are firmly on the ground, it's their money tied up and so unlike a broker who has no financial investment and monthly mooring fees / deterioration they won't get all aloof with you. They will try to sit down and bash out a deal. There are also no emotional ties and they don't give a sheeite what the first owner paid for it when new.

You also need to keep in mind any on going support from the dealer once you've taken delivery.

Now to your boat. How easy is it going to be to sell? This is a key question. What's it actually worth? No, I didn't say what are they advertised for I said what's it actually worth. How much will someone pony up? Then factor in a brokerage fee - be sitting down! Then factor in getting the boat prepped for sale - lifted, antifoul, hull and top sides polished, teak cleaned, stripped out inside, possibly serviced and so on. Finally set aside a chunk for work that the buyers surveyor picks up on. You will be very lucky if your buyer and their surveyor speak the same language. The surveyor wants to cover their bottom and earns money by using fancy terminology to make even the most insignificant defect sound important. The buyer reads the survey and either runs a mile or hits you with a big bill.

Providing the numbers work how about doing a deal on the proviso that if you can sell your boat prior to completion then you pay the cash price for your new boat, if you can't then you pay the p/x difference. You then have an agreed time to try and sell you boat you know how much the dealer is offering, can you better it.

For this to work you will need to be very grown up and have a frank discussion with the dealer. You want a cash price for the new boat and you want the actual p/x price they are allowing for yours, not the number they are telling you on an over priced boat to make you think you're getting a good price for yours, the actual stand in price for your boat.

They may or may not tell you these numbers for fear of putting you off the deal when you hear a number far lower than you thought your boat was worth.

That in a nutshell is how to buy a boat off a a dealer

Henry.

 

[maby]

As others have said, you are only likely to get a trade-in offer if you are buying a new boat - the majority of boats sold via brokers are used boats and the broker is acting in much the same way as an estate agent.

Our experience from buying two new boats over the last few years is that the dealers are so hungry for sales at the moment that you can get a trade-in with little loss. There are lots of factors to take into consideration - how expensive is the boat you are selling? Is it still meeting your requirements? How expensive will it be to store it till you get a sale? Do you need the proceeds of the sale to finance the new boat? How long will it take you to find and complete the purchase on your new boat?

A lot of boats do not seem to be selling particularly quickly at the moment - at least judging by the time that they are sitting around in our marina with "for sale" notices on them. That effectively leaves you with a choice - sell first which could take a long time and risk leaving you without a boat for a long time - or buy the new one and then put your old boat on the market. The first time we went through this, we had a small boat worth around £20,000 to trade in. The dealer offered us £19,000 in part exchange and we were paying about £1,500 per annum in marina fees for a berth. We took the PX on the basis that if it took anything more than 9 months to sell, we would be out of pocket. If it had been more expensive and the difference between the PX value and theoretical market value had been greater, then the calculation might have been different.

The second time round, we had a boat with a market value of around £70,000 to trade in. The dealer made us a PX offer of about £65,000 and we accepted on the basis that by the time we had paid the brokerage fee (assuming we sold it via a broker), interest on the money we would have had to borrow to make the purchase without the PX and a few months berthing for it, again the chances were that we would have ended up out of pocket.

 

[beejay190]

What are you selling and what are you looking for?

Occasionally owners swap boats with a cash adjustment one way. I am currently looking to downsize my Bav29 and have advertised it at Cobbs Quay; have put a For Sale notice on the boat indicating that I wish to downsize and have told the local marine engineers that there will be a fat brown envelope awaiting anyone who might introduce me to a buyer. It is also on Ebay, Apollo Duck and BoatShop 24.

I am not in a hurry to sell ( this freak weather wont last long ). I have not yet set a floor price, I have some idea which boat I would like to get next and my budget - it is the cost of changing that matters most.

If all else fails I guess I am going to have to go see Nautibusiness and line his pockets with more gold.!

 

[henryf]

What are you selling and what are you looking for?

Occasionally owners swap boats with a cash adjustment one way. I am currently looking to downsize my Bav29 and have advertised it at Cobbs Quay; have put a For Sale notice on the boat indicating that I wish to downsize and have told the local marine engineers that there will be a fat brown envelope awaiting anyone who might introduce me to a buyer. It is also on Ebay, Apollo Duck and BoatShop 24.

I am not in a hurry to sell ( this freak weather wont last long ). I have not yet set a floor price, I have some idea which boat I would like to get next and my budget - it is the cost of changing that matters most.

If all else fails I guess I am going to have to go see Nautibusiness and line his pockets with more gold.!

Those magic words, "I'm not in any hurry to sell" mean a boat that isn't really for sale.

If someone makes me an offer I can't refuse (which they won't) then ill sell it. Until then it will remain unsold

You are not alone. The vast majority of privately advertised boats I saw we're still in their working clothes and "for sale" with this attitude.

There are second hand boats available owned by dealers who will gladly take a part exchange. You don't necessarily
have to buy new. Generally all new boat sales will accommodate a p/x of course.

Henry

 

[Nautorius]

Essex Boatyards are a place who will do PX on Stock boats (ES before number). Might be worth giving them a call. Also when looking at new boats ask the Purchaser if they will take PX as I know quite a few who when pushed did! Good luck, my advice is try not to own 2 boats as the old one gets abandoned and then you get minimal for it...

 

[gjgm]

Hi all

please could any one advise me of the best way to upgrade my boat I have been looking at trading in with a boat dealer but am thinking this might not be the most economical way to go about things, though it may be quicker I am wondering if that is a hasty move . Your opinions will be most valued

thanks

Danny

If you buy first, the old boat will be a millstone around your neck. You still have to pay for it, and look after it etc, and it certainly isnt going to go up in value.
Seems to me that an aweful lot of boats are simply not selling..and it isnt just the price sometimes. Maybe the weather hasnt helped, but I think there are simply few people buying, full stop.
You havent said what the boat is;if it is a very popular mainstream uk builder and you cut the price, I imagine you can shift it, but alot of other fodder seems to have little market, and the summer is running out soon, and then the market goes even quieter!
Personally, in this market, I would either sell first or accept a px if you can find one.
Just to comment, of course a px with a dealer isnt the most economic one ! It is the simplest,quickest,tidiest and involves the least hassle as you pass all that onto him. That often comes at a fairly heavy cost. OTOH, you get your new boat and move on...

 

[beejay190]

Those magic words, "I'm not in any hurry to sell" mean a boat that isn't really for sale.

If someone makes me an offer I can't refuse (which they won't) then ill sell it. Until then it will remain unsold

You are not alone. The vast majority of privately advertised boats I saw we're still in their working clothes and "for sale" with this attitude.

There are second hand boats available owned by dealers who will gladly take a part exchange. You don't necessarily
have to buy new. Generally all new boat sales will accommodate a p/x of course.

Henry

ON THIS OCCASION HENRY YOU ARE WRONG.
THE BOAT IS DEFINITELY FOR SALE.
I DONT HURRY IN LIFE ANY MORE
LAST WEEK I WAS POLISHING IT FOR ENGLAND BUT EVENTUALLY THE HEAT BEAT ME.
I DONT EXPECT TO RECEIVE AN OFFER I CANNOT REFUSE
I AM MORE THAN AWARE IT IS A BUYERS MARKET
I HOPE TO ACHIEVE AT LEAST 10% MORE THAN I HAVE BEEN OFFERED IN P/X.

Regards
Y3 CAY.

 

[oldgit]

Not a good idea to have two boats.You will constantly be having to go down and spruce up the thing everytime somebody expresses a vague interest and there is only so many times you drive to the boat only for them not to turn up.A vicous circle that will eventually end in you taking whatever you can get.
Not a good situation to be in.