Had an offer on the boat . . .

[oldgit]

"Do people have such over inflated ideas of what their own stuff is worth or is this an attempt by brokers to push up the market? "

Perhaps not an inflated price,more a desperately necessary price,they need that and perhaps more,simply because they paid far too much money for the old tub in the first place and maybe borrowed most of it.Was easy to spend over the top with banks saying "is that enough sir " and with many buyers commonsense dissappeared and a purple haze descended when it came looking at the HP agreement and only seeing the monthly payment in the brokers office.
Corse....three years down the line and the interest has been paid but the boat has still got a fat wad outstanding.
Basically if a seller accepts around the current market price,he is going to have to add money just to get rid of the thing. Hence the plethora of "interesting" prices.

Buy right and you can sell right .........Simples innit.

 

[gravygraham]

Basically if a seller accepts around the current market price, he is going to have to add money just to get rid of the thing. Hence the plethora of "interesting" prices.

Not sure what you're getting at here?

 

[Searush]

(snip)
PPS. I am on my 9th boat.

I hope you find one you like eventually.

 

[jimmy_the_builder]

"Do people have such over inflated ideas of what their own stuff is worth or is this an attempt by brokers to push up the market? "

Perhaps not an inflated price,more a desperately necessary price,they need that and perhaps more,simply because they paid far too much money for the old tub in the first place and maybe borrowed most of it.Was easy to spend over the top with banks saying "is that enough sir " and with many buyers commonsense dissappeared and a purple haze descended when it came looking at the HP agreement and only seeing the monthly payment in the brokers office.
Corse....three years down the line and the interest has been paid but the boat has still got a fat wad outstanding.
Basically if a seller accepts around the current market price,he is going to have to add money just to get rid of the thing. Hence the plethora of "interesting" prices.

Buy right and you can sell right .........Simples innit.

Not sure what you're getting at here?

GG, I don't think oldgit is having a go at you. I think he's just making the point that for some sellers, current market values have fallen below the level of debt on the boat - and so these sellers may have to add funds in order to clear the debt on the boat when it is sold. But like I say, my interpretation of oldgits post was that he was making a general point, rather than an observation about your own situation.

Cheers
Jimmy

 

[David of Essex]

It's a very strange market at the moment, but it has never been so bouyant for good used boats.


Slightly different to Beejays boat, but I sold a four year old Merry Fisher 625 yesterday for just £1,500 less than it was new. And even at such tiny depreciation, the buyers still got a good deal.

People believe that because we are in tough financial times that boat sales are tough and every one of them that are on the market are desparation sales. It's not the case. GOOD used boats are selling like hot cakes. They don't need to be cheap, they simply need to be the best on the market for their make and model.

I agree with your statement above. I have had 2 offers from a broker about selling my
MF 925 and it's not even up for sale, apparently the broker has sold 2 recently.

David

 

[mateyboy]

All I can say is there are more boats than cash at pres. Good luck!

 

[oldgit]

Not sure what you're getting at here?

Sorry for any confusion,basically what J the B has said, more dough outstanding on the vessel than its present market value,therefore unable to reduce asking price on boat without large loss and possible still bit of marine mortgage remaining.

 

[grumpy_o_g]

Sorry for any confusion,basically what J the B has said, more dough outstanding on the vessel than its present market value,therefore unable to reduce asking price on boat without large loss and possible still bit of marine mortgage remaining.

I think the dreaded words you're looking for are "negative equity"

 

[mateyboy]

The joys of life, I suppose my rangerover is in negative equity with what I paid for it 4 years ago, what it's worth now and what's owing on balloon. I have at least had the pleasure of driving it for the last 4 years. I think depreciation is inevitable unless you're buying at 60% Market value to start with.
You pays for your pleasures!

 

[ian38_39]

The boats I am looking at are around 10 years old so when the previous owners bought them they would have had a lot of devaluation still to go. Would think the depreciation is a lot more to blame than the current market, you would think people would build that in when buying.

 

[capsco]

The boats I am looking at are around 10 years old so when the previous owners bought them they would have had a lot of devaluation still to go. Would think the depreciation is a lot more to blame than the current market, you would think people would build that in when buying.

Would you care to expand on how that could work, if I understand what you are saying, it would mean that depreciation would only happen once, all down to the original buyer, poor sod

 

[ian38_39]

Depreciation is greatest in the first year, less in the second, less still in the third and so on until a point, probably around 15 years when depreciation effectively stops and only condition devalues the boat further.

Anyone who buys a boat new or nearly new must know that a fair chunk of money will need to be written off in depreciation. Trying to recover that money is like trying not to repair an older boat and expecting it to still work.

No doubt there are boats that will devalue faster or slower dependent on builder, model, type etc but they will all go down.

 

[U4]

I think there's a lot of psychology to this.

As a buyer, I want to feel I got a bargian

I agree with you;

And just to add *As a seller, I want to feel I sold for a good price*

So... IMO, if you refuse an offer on your sale item then that's fine. In fact, if you don't reject the offer the potential buyer will no doubt feel a certain amount of remorse as they should probably have offered less.

Just make sure you offer a concession in return for the rejected offer.

A simple concession (it doesnt matter how small and doesnt need to be financial) will allow you to start a sensible negotiation (ie continue the loop of offers and concessions) with a view to arriving at a fair price that both parties are happy with.

 

[gravygraham]

Quick update.

The offer was 82% of the asking price.

The folks who made the offer are holding fast and won't make a counter offer. So I don't get to feel like I got a reasonably good price and they don't get to feel like they got a new boat, (for less than the asking price). Hey ho! lt's early days so I'll sit tight and see how the season progresses.

 

[gjgm]

The folks who made the offer are holding fast and won't make a counter offer. So I don't get to feel like I got a reasonably good price and they don't get to feel like they got a new boat, (for less than the asking price). Hey ho! lt's early days so I'll sit tight and see how the season progresses.

Yep, try to think of it as a hard, dull business transaction, rather than your boat. If you think they wont move, write them off coz it isnt worth the emotional time. For all you know, they might be trying to get a bargain way outside their price range. Close the door and move on. Nothing to be gained from wondering what if...

 

[madabouttheboat]

Back in August we were looking for a new boat. Found one we liked and made the usual cheeky offer of around 75% of asking price. This was turned down. Made two more offers gradually creeping upwards, both of which were also rejected. Made one last offer, stating it as such, of around 90% of asking price. The difference now was about £3k. Seller rejected it again.

Moved on and found a newer and more suitable boat. The original boat is still up for sale

As far as I know, the existing owner has now had to pay another year's moorings. (I suspect a big chunk of the £3k difference between my offer and the asking price).

It's a tough market and I will be on the other side of the fence soon as I will be selling my old boat. I will listen to every offer and consider it very carefully. It's a fine line between getting the price you want and taking less but shifting the boat hence avoiding other additional costs such as maintenance, moorings and further depreciation.

 

[Jim@sea]

Of course as the Libyan crisis escalates and fuel goes from £6 to £7 a gallon peoples minds will be concentrated on other things and a refused offer now could be something to haunt you in 6 months time.

 

[gjgm]

Of course as the Libyan crisis escalates and fuel goes from £6 to £7 a gallon peoples minds will be concentrated on other things and a refused offer now could be something to haunt you in 6 months time.

Most of fuel cost is tax.. you'd need a massive hike per barrel to raise fuel by that sort of level.

 

[Searush]

Most of fuel cost is tax.. you'd need a massive hike per barrel to raise fuel by that sort of level.

Well, that increase represents about 20p/ltr & the guy on the BBC news today gave a 4;1 ratio of price per barrel to pence per litre at the pumps. So it might need a $100 increase per barrel to do that, I think we've already gone up $50 (so 10p/ltr is already in the pipeline, literally). You betting against $100 inc if Libya goes tits up?

Bahrein looks to be settling down, but Libya is ramping up & has far higher % ot total oil output.

 

[gjgm]

Well, that increase represents about 20p/ltr & the guy on the BBC news today gave a 4;1 ratio of price per barrel to pence per litre at the pumps. So it might need a $100 increase per barrel to do that, I think we've already gone up $50 (so 10p/ltr is already in the pipeline, literally). You betting against $100 inc if Libya goes tits up?

Bahrein looks to be settling down, but Libya is ramping up & has far higher % ot total oil output.

You got to be clear which oil price you are refering too, and which contract.
Demand will fall at $200 per barrel.
Price per gallon? Not very useful, these days.
Crude is at about $98 a barrel..Brent $114 ... dont know why you think its just gone up $50 ??