Boat offers

[Bradders]

Hi all

Looking at buying my first boat at around £140 K asking price, I do not need finance so I can move as fast or as slow as I wish, given the current climate what would be a reasonable percentage to ask for as discount as it`s a cash buy, I don`t want to insult the seller so hence the question..... it goes without saying all subject to a satisfactory survey etc.

All my sailing so far has been on chartered boats.

Any help or advice much appreciated.

Many thanks

 

[andymcp]

All depends what you buy.

Second hand all depends what the seller will sell at, the broker just transacts the deal. Some might take 25% off, some none. What are other boats of that make/model going for? Ask a broker - most UK boats have their asking and actual sale values listed on the broker version of the Yachtworld system (I think it's that one). Unless you ask the person if they would sell at £X minus Y% you never know for that boat on that day if the deal was available. I'm assuming you're looking at second hand, but if not....

If it's new then it will depend on the boat - there's some stock boats that have been around for months and months that the dealer will want shot of fast. I know one 'new' boat from stock that went for £90k off list, eventually selling not far off your buy figure. After that it depends on the type - how much room is there for movement on a Bav where all the possible cost has been taken out of the manufacturing process to give you more boat for your money?

Find a boat, like the price, do the deal was my approach, although I'm sure we could have hammered out a better deal if we'd really wanted.

 

[Boo2]

what would be a reasonable percentage to ask for as discount as it`s a cash buy

It's gonna depend on how long the boat's been on sale for one thing. If it's been on the market for a year at the asking price you might put in an offer at 70% of that. If it's new on the market yesterday, then your interest just on its own may make the seller reluctant to drop the price so soon.

It's also going to depend what the broker (if applicable) said to him when the price was set. If the broker said "put it in at X but be prepared to drop it in a couple of months if it doesn't sell" then the seller might feel different than if he'd been told "it will fetch X all year long and should sell in 3 days"

I don`t want to insult the seller so hence the question

I dunno how much that matters tbh. If your price is close enough to the sellers' minimum then he won't be insulted but will be keen to negotiate. If it's a long way off then you will probably not bridge the gap, insulted or not, so meh in that case.

Boo2

 

[prv]

Not sure I understand the relevance of the cash purchase. The seller is going to want paying straight away regardless; why do they care whether you borrowed some of the money or it all came straight from your bank account? It's not like a house purchase where there's an advantage in not being part of a chain and hence able to physically move quickly.

Pete

 

[Tranona]

Cash does not make any difference unless speed is important - and might be if the boat is good as good boats well priced don't hang around.

"Discount" is the wrong term in a secondhand boat as there is no fixed price, only the price the buyer wants and you are prepared to pay.

Do your homework, find out what asking prices (and maybe selling prices) are for comparable boats. Identify what is important to you and what you are prepared to pay for it. Assess each boat against this and make your offer. With some popular boats where there is a ready market, the price range is relatively narrow, but some types of boats it is very difficult to determine a price because there are so few bought and sold.

If your £140k budget is for a recent volume production boat you will probably find there is very little room for negotiation in the asking price, but for an unusual older boat that perhaps requires work there can be a big difference between the original asking price and the actual selling price.

 

[Spyro]

Obviously it depends on what boat and how long it's been for sale but most importantly depending on how keen/desperate the seller is to sell will determine how much you get off the asking price.
I can't say there is a set discount but I can tell you I offered 30% less than asking price and settled on 25%.
Soldboats.com gives details on asking and selling prices but you have to be in the trade or in the know to access the site.

 

[Lakesailor]

Hi all

Looking at buying my first boat at around £140 K what would be a reasonable percentage to ask for as discount as it`s a cash buy

Twist my arm and I could let you have it for £138K

 

[DaveNTL]

Twist my arm and I could let you have it for £138K

Oy! You said i could have first refusal, and you've dropped the price!

Anyway, he wants my Nauticat 38. Best condition, best equipped, lowest priced 2001 model world-wide.

 

[Clarky]

It depends on how much the seller needs the money and how long its been for sale for. I wouldnt care if the seller is offended by a low price offer
,there are plenty boats for sale.At the moment I would want at least 30 % off,but you need to give details.
I know new or nearly new boats are being offered at huge discounts ,so I would be looking for a bargain.

 

[TQA]

If it is a 3 year old AWB then it is fairly easy to see if the price asked is inline with others.

Find a way to see the soldboats.com figures for an accurate picture of the actual price they change hands for.

On older boats the asking price is sometimes very inflated esp. in these times. It may reflect what the owner paid for the boat and has spent on it. I know of several that eventually changed hands for less than 50% of the original asking price.

 

[Sans Bateau]

Find a boat that you like or want, does it tick enough boxes, is it in the right condition, fitted equipment etc. If the boat is right then go away, do a search and see how much is being asked for similar boats, more, less? Is the price right.

I'm very much of the opinion that if something is what I want and it is priced reasonably then if I'm happy with that price, then go for it. To miss that opportunity, may find you then having to look at something far less acceptable, and you will always kick yourself for missing the 'one you wanted'.

Put another way, if you have to make an offer for a sizeable reduction, then there must be a reason you are asking for the reduction, to repair, renew or upgrade. You may well finish up pay more than you would for the right boat in the first place.

 

[Resolution]

Not sure I understand the relevance of the cash purchase. .

Pete

Makes a difference if you are buying from a dealer (not a broker). One of the perils of being a dealer in tough times is that many/most buyers have an existing boat which they offer in part exchange. So the dealer sells a nice shiny new AWB and takes in exchange a MAB and some cash. To get rid of MAB #1 he then accepts an even worse MAB#2 plus cash, and so on and so on. Look to the bottom of the sales lists of most dealers and you will find some truly manky specimens, which take for ever to unload (and on which the asking price is rather discountable, if cash is waved aound).

If the OP is looking at a new boat, then do your research on the dealers. Most will have incentive schemes from the manufacturers under which they have performance targets to sell XXX number of boats in the model year. Catch the dealer just before the year is up and you may find he will be happy to allow major discounts (25%?) in order to hit a particular performance target.

 

[pvb]

I'm just surprised that someone who apparently has £140K cash burning a hole in his pocket doesn't already have the ability to negotiate a purchase.

 

[Tranona]

I'm just surprised that someone who apparently has £140K cash burning a hole in his pocket doesn't already have the ability to negotiate a purchase.

Could not agree more. I am always amazed by the apparent naivety of people who seem to have amassed large sums of money to spend on toys. This is perhaps more common in the MOBO market where they all seem to be terrified of being ripped off in some way or another.

Or maybe if it is easy come, they don't have the experience of making wise decisions about money!

 

[jimi]

I'm just surprised that someone who apparently has £140K cash burning a hole in his pocket doesn't already have the ability to negotiate a purchase.

I think that is unfair! It would appear to me that the guy is conducting some research before entering into negotiations. That's not stupid .. its sensible!

 

[zarathustra]

Could not agree more. I am always amazed by the apparent naivety of people who seem to have amassed large sums of money to spend on toys. This is perhaps more common in the MOBO market where they all seem to be terrified of being ripped off in some way or another.

Or maybe if it is easy come, they don't have the experience of making wise decisions about money!

That is unfair and offensive and reflects badly on you to be so judgemental. His question is perfectly reasonable. He is looking to buy his FIRST boat at a cost of £140k, how he got his money is none of your business, what makes you assume his money came easy, and anyone looking to purchase their first boat is wise to consult other boat owners for advice, and a yachting forum is as good a place as any to hope for advice about boat from other boat owners.

You may be amazed at what you call "apparent naivety" of someone who amassed enough money to buy a nice boat for himself, but I am never amazed at the arrogance of some individuals who could have chosen to give a helpful reply as opposed to grunting an insult. I also find it a little amusing that you conclude that someone who acquired £140k spare change can't make wise decisions about money!!! Whats unwise about buying a boat if you enjoy boating?

 

[Richard10002]

Hi all

Looking at buying my first boat at around £140 K asking price, I do not need finance so I can move as fast or as slow as I wish, given the current climate what would be a reasonable percentage to ask for as discount as it`s a cash buy, I don`t want to insult the seller so hence the question..... it goes without saying all subject to a satisfactory survey etc.

All my sailing so far has been on chartered boats.

Any help or advice much appreciated.

Many thanks

What kind of boat do you want?

When I was searching, (between 2003 and 2006), I narrowed it down to a yacht between 40ft & 45ft, with a swim platform, liveaboard capability, and long distance sailing capability. I had a budget of around £120k.

In the end I bought a Moody 44, (from my father as "luck" would have it), for £120k - he was asking £135k. I had seen them asking between £110k and £165k. If he had been asking £120k, I would have given him £120k If he hadnt been my father, I would have had a survey, and offered him £110k.

Depending on a sellers circumstances, or the advice received, the same boat could ask anything from £100k to £140k, and could be worth anything between. So there is no "sensible" discount formula. In the above example, you would probably snap his hand off at £100k, and not even consider the effort of viewing at £140K.

Tell us what you want, either broadly, or specifically, and I'll bet you will get some better answers.

 

[jonjo]

I don`t want to insult the seller so hence the question

Many boats are not seriously for sale so all offers will be rejected. Best sign of a yacht seriously for sale is, in a cradle 100 meters from the brokers office with all personal gear removed.

Brokers typically add 10% to a sellers expected price, so pitch in with a harder offer if a brokerage yacht.

I cannot imagine a 90% offer terminating all further sales dialogue even with a private seller. If a private seller refused to accept your phone calls after a 90% offer he is a loony who has probably made poor equipment decisions with the boat.

 

[Sans Bateau]

Gentlemen, gentlemen, lets not have yet another thread degrade into a verbal fight please. The point of a forum is that people express their views, lets just accept that some people have different views, disagree, yes, but dont get so angry.

What the OP has not told us, and it would be most useful, is he looking at new or used, that will make a huge difference.

In the current used boat climate, there are very few good used boats about, the last 18 month to 2 years when the £ was so weak, most good boats that were on the market went to europe. Only this year my friend sold his Hanse 371 for FULL ASKING PRICE!!! To a chap came all the way from Norway, the boat was sold within a week or 2 of going on the market.

Any good quality well maintained, well kitted boat will sell for a good price, tat, badly prepared, sold under duress boats will be priced too high or be just too tatty, so will sit around for a long time and so may well take an aggressive offer.

IMO the idea that every boat is priced above the real price is wishful thinking, whilst you are wrestling to get the price down, you may well lose a good boat to a buyer a little more willing to realise its a fair price.

 

[andymcp]

I guess I have a related question, which is if you were selling your boat, would you commission a survey prior to going on the market including the surveyor's view of value, or would you simply decide what is a fair price in your mind and treat each potential offer on its merits?

I have considered how we might sell our boat if it came to it - and since I don't know what it's worth I would have no idea where to start. Few boats if any when we were looking had surveys done when they went on the market so I was always curious how the asking prices (given the vast spectrum on condition we found a lot of the boats in) were decided.