Drastic reduction in secondhand boat prices ?

[Malo37]

As claimed in the latest issue of YM - do you believe that used boat values have dropped significantly or is this just an attempt by some broker(s) to get the market moving again ? As the cost of new boats continues to rise rapidly I suspect the latter. My solution - don't sell.

 

[Lakesailor]

Definitely dropped. Plus at the low end of prices they just aren't selling. The ongoing costs don't appeal to budget sailors.

 

[Dave-Shafa]

In December I paid £600 for my Valiant 18'
£600 for Honda 5 HP.

 

[philld]

Well I sold in October and am now looking for a replacement. I didn't get as much as I hoped, but I got more than I feared, so I guess I did well. As I've read time and again on this forum, a well maintained well presented and well equipped boat will sell quickly for a premium, the rest won't, but their owners will still seem to expect top dollar.

I've not noticed any reductions in asking prices for boats already on the market over the last couple of months (apart from boatshed), but the boats that have sold quickly are typically 10%-20% below the top of the range. In any case the absolute price is not relevant unless you are a first time buyer, it's the relative price of your next boat. I did look at buying a new boat, but after an initial burst of enthusiasm I just couldn't see my myself being able to live with the latest offerings from Jeanneau or Beneteau so I'm going down the second hand route. If the brokers are right, I suspect that new boats will suffer from even greater depreciation in future, and that will put pressure on the manufacturers to reduce costs.

 

[Kelpie]

We drove a long way to view a boat, wanted to make a below asking price offer to reflect significant problems, and the seller promptly put the price up. It is still on the market, of course.

 

[NealB]

As claimed in the latest issue of YM - do you believe that used boat values have dropped significantly or is this just an attempt by some broker(s) to get the market moving again ? As the cost of new boats continues to rise rapidly I suspect the latter. My solution - don't sell.

I've been an avid watcher of boat sales over the last forty years or more.

I'm not that in touch with, say, the £100k + market, but below that, many prices have dropped significantly.

Your 'don't sell' solution will not, of course, be logical for everyone.

 

[Rivers & creeks]

I suspect yachts are first into recession and last out. Selling gives an immediate drop in outgoings and pays off some loans. The economy has to be doing weel for a while before people have the confidence to get back in.

 

[Birdseye]

As claimed in the latest issue of YM - do you believe that used boat values have dropped significantly or is this just an attempt by some broker(s) to get the market moving again ? As the cost of new boats continues to rise rapidly I suspect the latter. My solution - don't sell.

Yes, actual selling prices have dropped by maybe 20%. Its a bit like the housing market in a slump - people wont accept that they are going to have less money for their house / boat and either advertise at unrealistic prices or simply dont come to the market at all. So immediately after the fall, the adverts are for boats at pre market fall prices and its only after a year or two ( like now) that you start getting more realistic sellers starting off with those who are forced. My boat for example was bought 4 years ago for 72k and I've just seen an almost identical one on offer for 55k. The boat that I sold for 50k mis now available at just under 40k. Pal just bought a nice sadler 29 bilge for 13k.

The real question is whether boat prices like house prices will go back up again as the economy picks up. Personally I am doubtful. Unlike housess, boats depreciate long term. And the market is changing with newbies not interested so much in older boats - better a newish bav than an old malo.

 

[Halcyon Yachts]

As claimed in the latest issue of YM - do you believe that used boat values have dropped significantly or is this just an attempt by some broker(s) to get the market moving again ? As the cost of new boats continues to rise rapidly I suspect the latter. My solution - don't sell.

I think they have come down in price. The other issue is also that boats don't often get scrapped, so the lower end of the market keeps on growing... There are lots of old GRP boats out there that no one really wants to own (or at least pay much for) that just keep on going!

Pete

 

[lw395]

I think we have now seen the end of the effect of the fall in the pound vs the euro, which propped up prices for a while in some parts of the market.
The boats I'd like are still expensive.
New boats are very expensive.
Berthing is ever more expensive.
Looking locally, I don't see as many people in their late 30s or 40s looking to buy as was the case a few years ago.

 

[bedouin]

I think this might be the start of a long-term readjustment of the Leisure marine marine market.

It was certainly buoyed for a long time by the housing bubble and the increased affluence of people retiring on very good pension schemes - those factors do not apply to the next generation and if you are struggling to buy a house in your mid 30s what chance finding the money to buy a boat as well?

The fact is that people are continuing to build new boats, and very few old boats are scrapped - so you have and expanding supply of boats and a shrinking demand.

Sometime soon we are going to address the issue of the growing supply of old GRP boats

 

[dslittle]

I suspect yachts are first into recession and last out. Selling gives an immediate drop in outgoings and pays off some loans. The economy has to be doing weel for a while before people have the confidence to get back in.

Hopefully you are right as my local broker has just sold quite a few boats and are looking for more to sell!!! They think that the market is picking up - mind they are also realistic about it (and realistic prices).

 

[jonic]

Well we are running out again!

Dec and Jan were excellent for us with enquiries way up, but I think that's because a good used boat is finding a home where perhaps a brand new one would have been chosen in the past.

 

[Twister_Ken]

Hopefully you are right as my local broker has just sold quite a few boats and are looking for more to sell!!! They think that the market is picking up - mind they are also realistic about it (and realistic prices).

It's also the time of year when buyers emerge from hibernation. Buy late winter and you can be ready to sail early spring, unless you've bought a basketcase.

 

[alant]

Well we are running out again!

Dec and Jan were excellent for us with enquiries way up, but I think that's because a good used boat is finding a home where perhaps a brand new one would have been chosen in the past.

What level of price range, age/type are selling?

 

[jonic]

What level of price range, age/type are selling?

Varied really.

Last two were a nearly new at £250kish through to an older one at £75k ish.

Enquiries are at all levels but sub £70k not as bouyant.

Blue water cruisers seem to be doing well - as also backed up by the oversubscribed rallies.

Perhaps everybody has had enough of the rat race and are casting off instead!

 

[alant]

Varied really.

Last two were a nearly new at £250kish through to an older one at £75k ish.

Enquiries are at all levels but sub £70k not as bouyant.

Blue water cruisers seem to be doing well - as also backed up by the oversubscribed rallies.

Perhaps everybody has had enough of the rat race and are casting off instead!

Maybe not your market, but should any in £20-30k range asking price, be docked 20%, as earlier suggested?

 

[TiggerToo]

Varied really.

that would tally with the impression that the recession has hit the "squeezed middle". At the upper end, it was more of a crisis of confidence that a lack of cash. Anyone considering a >£70 purchase is probably in the category that has not really been affected by the last 7 years' shenanigans

 

[JumbleDuck]

It's also the time of year when buyers emerge from hibernation. Buy late winter and you can be ready to sail early spring, unless you've bought a basketcase.

As one who regularly browses the "Sailing Boats" category of eBay for a bit of window shopping, I see a huge increase in the number of nice looking boats offered there over the past couple of weeks.

 

[jac]

My reading of the situation is that there are still a number of people out there who are financially ok. So fifties, sixties, built up assets, maybe a good pension in the background to fall back on, did well with house price inflation over the last 30-40 years, inheritance etc. someone who perhaps agreed to take early retirement a year or two ago, then downsize the house as kids finished university etc may well be able to free up £200k + (together with proceeds of existing boat sale) and can therefore support the top of the market. Add in the fact that if they are established sailors then they may have located the cheaper moorings, decent suppliers and be able to do more maintenance etc so running costs probably not too bad

The sub £70k market mentioned by Jonic is different. I suspect that those of us in that market still rely on work to pay our mortgage and boat costs so have less time and even if we have a lump sum then we still have to find moorings etc.

Given the economy over the last few years, the reduction in number of people in 30's and 40's, competition for disposable income, alternative ways to go sailing then hardly surprising that starter boats are struggling.