Selling / Buying / Part exchange

matt1

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So the sad day has come to sell my rather special Hunter Channel 31 so I've recently advertised her on the yachtmarket but am also looking at part exchanges. I'm talking with two brands/dealers and putting aside the varying p/x offers (which get muddled by the margin available or otherwise in the new boat) and I missing something? It seems they offer me a price and if they sell her above that price, that difference goes into the new boat (or back to me if the boat has otherwise been paid and delivered by then).

But If they guarantee to give me "£x" for my boat, presumably there is absolutely zero incentive for them to sell her above "£x" and every incentive for them to sell her for "X" at the very earliest opportunity in order to reduce their exposure. Obviously I understand they too are taking a risk, so I'm not looking for all the arguments around it being a balance. I guess I just wanted to check whether I was missing some other benefit or other way of looking at it?

Also, where else would you suggest advertising a boat, other than the yachtmarket

Cheers
 

sailaboutvic

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Apolio duck got me quite a lot of coverage, I build my own web site and also made a video then took a ad out in the yacht market and apolio duck , the video was a big help , plenty of close filming of the top sides and the wood work in side help to show how well the boat been kept .
 

pvb

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You're not likely to get the best deal by part-exchanging, but it's a very easy way of moving from one boat to the next.
 

sailaboutvic

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You're not likely to get the best deal by part-exchanging, but it's a very easy way of moving from one boat to the next.
Not too sure if I agee with that I PX a boat in 2008 for a new Dufour 385 and got what I paid for 13 years early , it was also 15k above the same boat year and valve on the market at that time , mind you the Dufour cost me a pretty penny .
 

pvb

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Not too sure if I agee with that I PX a boat in 2008 for a new Dufour 385 and got what I paid for 13 years early , it was also 15k above the same boat year and valve on the market at that time , mind you the Dufour cost me a pretty penny .

If you hadn't part-exchanged, you could have got a bigger discount on the new boat.
 

Resolution

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So the sad day has come to sell my rather special Hunter Channel 31 so I've recently advertised her on the yachtmarket but am also looking at part exchanges. I'm talking with two brands/dealers and putting aside the varying p/x offers (which get muddled by the margin available or otherwise in the new boat) and I missing something? It seems they offer me a price and if they sell her above that price, that difference goes into the new boat (or back to me if the boat has otherwise been paid and delivered by then).

But If they guarantee to give me "£x" for my boat, presumably there is absolutely zero incentive for them to sell her above "£x" and every incentive for them to sell her for "X" at the very earliest opportunity in order to reduce their exposure. Obviously I understand they too are taking a risk, so I'm not looking for all the arguments around it being a balance. I guess I just wanted to check whether I was missing some other benefit or other way of looking at it?

Also, where else would you suggest advertising a boat, other than the yachtmarket

Cheers

Matt
You need to be clear whether the people you are talking to will act as a BROKER or as a DEALER.
Brokers are acting as agents, usually for a Seller. They take no principal risk but should act in the best interests of their client, ie to secure the best price possible for the seller. They are remunerated by commission based usually on the price achieved.
Dealers are acting as principals, ie for themselves. If they offer a price for your boat, then you will be selling to them. They will hope to make a profit later by selling your boat on at a higher price. This is definitely risk-taking! In a p/x deal, the dealer will be mentally combining the two transactions together and hoping to make an overall profit. In practice (and I say this from experience!) unless the dealer is careful he winds up taking less and less attractive boats in and ends up with a scrap heap clunker.
Big advantage for you of a p/x deal is speed and certainty.
 

matt1

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Matt
You need to be clear whether the people you are talking to will act as a BROKER or as a DEALER.
Brokers are acting as agents, usually for a Seller. They take no principal risk but should act in the best interests of their client, ie to secure the best price possible for the seller. They are remunerated by commission based usually on the price achieved.
Dealers are acting as principals, ie for themselves. If they offer a price for your boat, then you will be selling to them. They will hope to make a profit later by selling your boat on at a higher price. This is definitely risk-taking! In a p/x deal, the dealer will be mentally combining the two transactions together and hoping to make an overall profit. In practice (and I say this from experience!) unless the dealer is careful he winds up taking less and less attractive boats in and ends up with a scrap heap clunker.
Big advantage for you of a p/x deal is speed and certainty.

The trouble is many of the new dealers either do brokerage as well, or are allied to a subsidiary that does brokerage. So it becomes hard to know where their true motives lie. I'm not having a go at dealers or brokers. One of them I am dealing with is excellent, I'm genuinely trying to understand if there is a better way (other than selling yourself ahead of talking to dealers). I take the point about speed and certainty and of course you have to weigh that up, particularly if the p/x is against a discounted stock boat the dealer is keen to shift.
 

mickywillis

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The clue is in the OP's first sentence!!

"So the sad day has come to sell my rather special Hunter Channel 31"
You could always say what boat it is and what sort of condition it’s in rather than just saying “I’m selling my boat” and post it on a yachting forum. :encouragement:
 

shaunksb

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My Dufour was a part exchange on a new boat.

I think they were hoping to get more for it but it had been on the market a while so I made a cheeky offer and got it.

_________________________
 

Honeymonster

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The p/x price given and the price paid for the new boat is academic. It is the price to change that counts. A dealer with stock is paying floorplan interest, curtailments after the boat is in stock for a while, and tying up cash. They want to downsize and move their new stock on. Stock turnaround is key to bottom line margins. Also, the larger dealers handling main brands are target driven. Like the car trade they get retrospective bonus payments when volume targets are hit. Dealers offering p/x's will usually achieve higher turnover and bonus payments and can actually give very fair p/x offers. Smaller dealers may not have the financial ability to chase turnover margin, and have no choice but to go for higher margin deals, with less favourable p/x offers. It is worth shopping around, especially against boats actually in dealer stock. Fundamentally, the sales guys want to do a deal, even if at the expense of margin!!!
 

Resolution

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Honey monster is right about the manufacturers bonuses to dealers if they hit volume targets. If you are negotiating with a dealer who is trying to sell you a new boat, it could be worthwhile finding out the year end for the target scheme. If a marginal boat sale achieves the target and triggers the bonus, the dealer may be pressured into selling it at a very big discount.
 

Garold

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I did the same deal to buy our current boat.

Ancasta underwrote my ‘trade in’ at a fair trade price but had it for sale on their brokerage for about 4 or 5 months before our new boat arrived. We discussed the price that it would be advertised on their brokerage and agreed the wording/pics on the advert.

It sold after about a month or two, at a higher price than the agreed trade in price (about 10%). I can’t remember what the brokerage fee was but it was at their minimum and I still came about about £4-5k better than I thought that I would when we first did the deal.

It’s not for everyone, but it works if the figures (price of new boat and underwritten price of trade in) are agreeable to you, and you want to commit to the new boat and have it available at a certain time. It also can expose you to a bit of upside if the trade in sells for more.

Garold
 

Skylark

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I’ve part exchanged twice. Once against a 3 year boat and, 7 years later, that one against new.

In both cases the only important figure was the cheque I wrote before taking delivery. Both deals seemed very fair to me and I didn’t have the extra hassle of having to sell (which is a real bonus after reading a current thread :))
 

Perrycas

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I've been looking fora boat myself lately.
I'm in Australia. The boat market is pretty soft here. It really is a buyers market here.
I was helping a guy a few weeks ago organise his ad.
A lot of people aren't very talented at selling.
This is what i told him.

Organise your inventory.
Make a few drafts
divide it into categories: Hull and decks, Rigging, Deck Hardware, Ground tackle, Electrics, Electronics. etc etc.
Use point form as much as possible.
Make sure you mention the age and warranty status of anything that has it.
Show it to someone else who can then proof read it for you.
Make it idiot proof.

Organise your photos with a wide angle lense, most phones are pretty wide.
start from one end and work your way to the other showing everything to best advantage and make sure there isnt too much SHADOW.
Do this above and below decks.
A few picks showing the sail plan,
make sure your pics are relevant, prospective buyer doesnt want to see your dogs
Then do the same with a video.
If you have any boat out of the water shots, include them.
Best of luck I hope your market is better than here in Oz.
Perry
 
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