Negotiating on a new boat...

[mlmarvin]

We're in the process of purchasing our second boat, but first new one, and can certainly use any advice folks could offer. I know these things vary by dealership, but is it fair to say that buying a new boat is similar to buying a new car, where the initial offer sheet is just that...initial, and an offer, and there is expectation of counter-offers, etc., etc.?

Have struggled between a Boston Whaler Montauk 170 and an Edgewater 170, but we're strongly leaning toward the Edgewater, if that matters.

Any advice much appreciated!

 

[StugeronSteve]

I think it rather depends on the current sales performance. When we were buying ours, a few years back, and there was a waiting list for many boats, it was very much a matter of take it, or leave it and negotiation was down to what kit could be thrown in. If, however, the dealer has pre-ordered unsold boats and they are still unsold as they near delivery there will be plenty of scope for haggling.

Try your hand, the worst that they can do is tell you to sling your hook.

 

[mlmarvin]

No stock on hand, which weakens my position a bit...semi-custom-made, order now, take delivery in mar/april.

With cars, in the US, rule of thumb is that MSRP is ~9% above dealer cost...no idea if that translates to the marine world....

thanks for thoughts.

 

[kengill]

So as he won't have a stocking cost and will get your money before he pays the makers you should get at least 12% for that, Add to that if you bond the payment taking out his risk of non completion you should take out about another 7% for that, make him bond the delivery for a boat that fully complies with the spec(cos you knoww there'll be mistooks) - Cost him 2% with a bank and set it against 10% of value then when there is a very slight cosmetic imperfection apply the bond and get anoth 10% back from his bank.

Should save you about 27% on the retail cost plus any extras you can get him to throw in for free.

 

[Swanrad2]

Now this I know about, download the reports from companies house to establish company year ends (often December) for the broker and maybe the manufacturer if it is to be built to order.
Wait or defer to shortly before year end and offer a stupidly low price, new orders are often more valuable when the company has had an average/poor year and needs the cash. It might not work but it just might.

 

[Richard10002]

I think the first thing you have to do is to convince the dealer that you are deadly serious about buyng a boat, that you are considering X, Y and Z boats, of which theirs is one. Make sure they have your contact details. It's also worth visiting different dealers who sell the same boat.

Perhaps come and go a few times, to have another look, ask a few "buying signal" questions, and let them know that you are doing the rounds again.

At some point, make it clear that you are finding it difficult to differentiate between the boats you are looking at and, with a bit of luck, one or more of them will try and make you a financial offer to help you make your mind up. One or more may also suggest that if you dont like theirs at the price, you should feel free to go and buy one of the others.

I dont know at which stage dealers will view persistent visitors as mere tyre kickers, but one would hope that they recognise that boat buying is a major, considered, purchase. Hopefully, you dont become a tyre kicker for some time.

During the process, you should get a feel for who will negotiate, and how keen they are to do so. You will also get a feel for those who are taking a "take it or leave it" position.

Ultimately, you could say to the preferred dealer of your preffered boat, "I really want to buy an X boat, and I would love to buy it from you.... but the deal needs to be YYY". They will either agree, because they know you can do almost the same deal elsewhere; or they will make a counter offer which you might accept; or you can walk away... and you must always be prepared to walk away, (so you actually need an alternative to walk away to).

The fact is that you dont "need" a new boat, so walking away, and not buying one, is always an alternative to negotiating a deal.. it may even result in a phone call offering the deal you wanted.

The harder you work at something like this, the better the deal you should get... but you need to be careful not to p*ss people off to the point that they think you are either a pain in the neck, or a waste of time.

If you can find out the dealers margins, so much the better.

Just my 2 pennorth

Richard

 

[Duffer]

I wonder if you or someone else could explain what bonding involves (i.e. who offers it, what does it cover, what does it cost)? I paid ahead of time to get a better deal and then worried what would happen if the dealer or the manufacturer went belly up before delivery. This has happened to many builders over the last few decades and presumably the value of a half-built yacht perhaps abroad is not great even if you can establish title. (Luckily for me all went well.)