Boat prices starting to fall

[Ian h]

 

[Momac]

In the USA ?

 

[Ian h]

but sure they will follow over this side of the pond

 

[Momac]

Time will tell

 

[Portofino]

Supply + demand equation .Not necessarily the same drivers 2000 miles apart .

Up side for EU + U.K. imho ….in no particular order ,
-The staycation factor both Med + Solent based .Sure there will be 2 nd thought folks but not enough to cause a rout .
- Demographic typical of 40- 70 ftr are recession proofed and resilience to economic shocks .It’s in there DNA .
- The “ crikey mr Jones down the road or at work had gotten covid” and is either dead or debilitated = throw caution to the wind I might not be here next year mentality .= we are off boating see you !
- U.K. house price inflation = a rise in consumption, not just boats , cars , foreign travel , hot tubs , garden rooms etc .Stuff they managed perfectly without until now .

2008 - 2014 significantly lower new boats built = lack of quality used supply dropping within reach ?

Gen wealth accumulation as decades roll over .Yes the gap between the not so well off and the others widens , but the not so well off how ever you want to define them pigeon hole them arn‘t or ever will get into boating.

A sub section of under 35 ft boaters who spend a significant % of income on boating may be pushed to pack it in because of inflation ( stuff like energy bills etc ) and stagnation of there income .

So at worst you might see a bifurcation of the market below a certain price .I used 35 ft as an indicative example.Could be lower .

 

[Ian h]

just looking on Yachtworld and just taken Axopar as an example.
some boats showing price reductions in the UK.
Does anyone really know what's going to happen ?
I guess its wait and see. Sellers hoping prices stay high . Buyers hoping for a fall. Its all down to supply and demand at the end of the day

Used boats for sale in Europe - YachtWorld

 

[SoulFireMage]

Supply + demand equation .Not necessarily the same drivers 2000 miles apart .

Up side for EU + U.K. imho ….in no particular order ,
-The staycation factor both Med + Solent based .Sure there will be 2 nd thought folks but not enough to cause a rout .
- Demographic typical of 40- 70 ftr are recession proofed and resilience to economic shocks .It’s in there DNA .
- The “ crikey mr Jones down the road or at work had gotten covid” and is either dead or debilitated = throw caution to the wind I might not be here next year mentality .= we are off boating see you !
- U.K. house price inflation = a rise in consumption, not just boats , cars , foreign travel , hot tubs , garden rooms etc .Stuff they managed perfectly without until now .

2008 - 2014 significantly lower new boats built = lack of quality used supply dropping within reach ?

Gen wealth accumulation as decades roll over .Yes the gap between the not so well off and the others widens , but the not so well off how ever you want to define them pigeon hole them arn‘t or ever will get into boating.

A sub section of under 35 ft boaters who spend a significant % of income on boating may be pushed to pack it in because of inflation ( stuff like energy bills etc ) and stagnation of there income .

So at worst you might see a bifurcation of the market below a certain price .I used 35 ft as an indicative example.Could be lower .

Sadly, based on our experience, the sellers market seems quite stubbornly stuck in place - much to the disappointment of this potential buyer.

Seems boats that really should be between £70-95k are firmly stuck at £125-150k.

I'm looking at 25-30 year old 45-48' flybridge cruisers and noticed one other trend - flipping flippers!

That type who've had a boat maybe a year, maybe two, done a little work perhaps, then chuck on 35 - 50k to resell.

Seen a few of these now.

It does mean as buyers, I'd rather get a few tanks of fuel than fund someone's excess profit

 

[Zing]

The last recession took from 2008 until 2011/12 to hit rock bottom. If the past is any guide this one has an awful long way to go and I don’t believe it has properly started.

 

[Parabolica]

I think we all know that what the market has done over the last few years is rare. As demand inevitably reduces to more normal levels, so too will prices but I wouldn’t confuse prices correcting to where they were and should likely be, with a huge market slump.

The above said, order books for the UKs big three are still very far ahead and so too are materials prices to make them so that will still strengthen the residual values of their back catalogue products, especially those in good order and with low hours.

in short, i see no real reason to panic right now and would be more concerned of missing life doing what i want than waiting for prices to come to me.

 

[SoulFireMage]

would be more concerned of missing life doing what i want than waiting for prices to come to me.

Aye it would be fine if the hike didn't put boats out of reach that, in a realistic ordinary market would be well within.

 

[ari]

Boat prices slumped by quite some margin about a decade ago due to the recession. A lot (but probably not all) of the increase in value was just a return to normality post recession.

I'd agree that the pendulum of boat prices has swung further than might have been expected, but bear in mind that a lot of used boat stock left the UK 2010 - 2014 due to the price slump plus exchange rates that made 'our' boats look cheap to those abroad, never to return.

Currently I'd say that supply/demand (in the UK at least) is still firmly weighted on the demand side which will keep prices elevated. Will that change? No one knows. Personally, despite being a boat owner, I'd be happy for them to drop as the price gap to a larger boat will narrow, but I won't be holding my breath.

 

[Minerva]

I'd suggest the market is still very strong. I'm in the market for ~40ft sailing boat. Firstly what I'm after seems to be few and far between. The boats which do come up get snapped up quickly. There have been 3 boats I've been interested in this last 6 weeks. The first 2, got sold the first couple of days before I could view. The third I rearranged meetings, booked time off, hopped on a plane and viewed on the 4th day it was up. After the viewing, I went away to weigh up what I had just viewed and the broker phones me an hour after I left to say someone else just put down the deposit and it was off the market! (that last one hurts as it was perfect for my wants - my upbringing not to make rash decisions and to mull it over a cup of tea bit me on that boat!)

 

[Parabolica]

I'd suggest the market is still very strong. I'm in the market for ~40ft sailing boat. Firstly what I'm after seems to be few and far between. The boats which do come up get snapped up quickly. There have been 3 boats I've been interested in this last 6 weeks. The first 2, got sold the first couple of days before I could view. The third I rearranged meetings, booked time off, hopped on a plane and viewed on the 4th day it was up. After the viewing, I went away to weigh up what I had just viewed and the broker phones me an hour after I left to say someone else just put down the deposit and it was off the market! (that last one hurts as it was perfect for my wants - my upbringing not to make rash decisions and to mull it over a cup of tea bit me on that boat!)

I get that and have had the same but, there is always another boat so stick to your guns I'd say.

 

[ontheplane]

I agree with the first post.

Bargain basement up to say 30' / £50k boats I think will be noticeably affected. Those owners on a marginal budget, who give things up and choose to boat rather than do something else may struggle to affordd / justify it.

Increased costs / Mortgages / Energy will (I think) tip the balance for some of them and this price range will be hardest hit. I would think anything over 40ft / £500,000 will be completely unaffected. Those buying / operating these boats are not giving up anything else to do it, have plenty of disposable and probably spend a tiny amount of their overall income on the essential bills.

Between those two extremes I think there will be some change but hard to predict.... Overall I think we are in for harder times than even the doomsayers are predicting... We shall see....

 

[chrislaw1968]

i just logged on to see if there was any posts about prices dropping and here is a post at the top of the page , ill be looking to purchase a 10 to 11mmotor boat plus or minus around 100k so id be happy to see a price drop , or i may have to wait until the next season when i have saved some more .

 

[PowerYachtBlog]

I think prices will soften a bit this Autumn - Winter due to what's happening around us and the World getting a bit more to normal pre-covid so some opportunities will arise.
Considering all boats still a bit cheap compared to the new and in the nineties when people used to sell ten year old boats to a fraction of (-20%) new boat prices.
In 2009 a good condition 2005 Zaffiro 34 would sell for 130k while a new one will be about 200k.
Today a 2012 Zaffiro 36 is about 140k while a new Z35 will cost you about 450k including Vat and the birds and whistles.
An another example would be a Princess V39 from 2015 which are selling about 300k while a new one will come about 650k and possibly a two year delivery wait.
So think about this.
So it depends which way you see it. It is also true that boats where relatively cheap from 2010 till about 2018/19 (they started to climb softly in around 2015/16).
And people got used to buy them for nothing.

* prices quoted are approximate in Euros

 

[QBhoy]

but sure they will follow over this side of the pond

Not sure that would be the case for all boats. Part of the issue here is that getting any boats or engines from the US has all but ceased almost. For a couple of reasons perhaps. Huge waiting lists.

 

[Bigplumbs]

Good to have a few in stock ?

 

[henryf]

I think prices will soften a bit this Autumn - Winter due to what's happening around us and the World getting a bit more to normal pre-covid so some opportunities will arise.
Considering all boats still a bit cheap compared to the new and in the nineties when people used to sell ten year old boats to a fraction of (-20%) new boat prices.
In 2009 a good condition 2005 Zaffiro 34 would sell for 130k while a new one will be about 200k.
Today a 2012 Zaffiro 36 is about 140k while a new Z35 will cost you about 450k including Vat and the birds and whistles.
An another example would be a Princess V39 from 2015 which are selling about 300k while a new one will come about 650k and possibly a two year delivery wait.
So think about this.
So it depends which way you see it. It is also true that boats where relatively cheap from 2010 till about 2018/19 (they started to climb softly in around 2015/16).
And people got used to buy them for nothing.

* prices quoted are approximate in Euros

Some wise words in there.

I think there have been some, shall we say sub prime boats which have benefited from a general lack of supply. Those craft will be the first ones to soften. Desirable boats are still in short supply and new ones still have a significant lead time.

The F55 we have coming would be March ‘24 delivery if ordered today and with a list price of circa £2 million by the time you’ve specc’d her up. That means second hand similar boats look attractive.

The proof will be in the pudding when we put our Princess 50 Mk3 flybridge up for sale shortly. I’ll let you know……

If it’s still for sale next year we’re all doomed ?

Henry

 

[Portofino]

Some wise words in there.

I think there have been some, shall we say sub prime boats which have benefited from a general lack of supply. Those craft will be the first ones to soften. Desirable boats are still in short supply and new ones still have a significant lead time.

The F55 we have coming would be March ‘24 delivery if ordered today and with a list price of circa £2 million by the time you’ve specc’d her up. That means second hand similar boats look attractive.

The proof will be in the pudding when we put our Princess 50 Mk3 flybridge up for sale shortly. I’ll let you know……

If it’s still for sale next year we’re all doomed ?

Henry

Your “ we gonna go to med with it “ mkt gone .That little thing called VAT killed them off .

So that leave s very few using the fraction of new hypothetical price left , ie willing tip a £1M ( your and PYB s 50% ) or anywhere close into a 10 yr or 7 yr or what ever used uk Princess.

A few hundred grand maybe , so we are back to 20-25 % of the £2M new .= Full circle return .