So what deals are actually being offered on new boats?

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Deleted User YDKXO

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We've all heard that LIBS is a ghost town, the industry is in a mess and now is a great time to buy a new boat. So, what kind of deals are actually being offered on new boats now? I heard of one punter at LIBS being offered 30% off a stock boat made by a well known UK manufacturer without even negotiating. Is this typical or not? What about part exchanges? Are dealers over valuing part exchanges to shift new stock, as was reported in last month's MBY, or was this a one off deal?
Anyone been offered a great deal recently?
 
hello Deleted User from the rumours which came after Genova for a cash only deal it was normal to get 25% discount, for part exchanges depends the builder
the more solid the name the harder to negotiate, I think the recession is also worse now so 30% is pretty normal

I would add that a 30% discount will be all covered by most builders too, as with the oil prices slashing more then 100$ resin cost are or will be at a low, compared to the same period last year and the past 4 years
boat prices have nearly double in the last 5 years too, an Azimut FL 55 used to start from about 550.000 UK£ in 2001/2, Azimut 58/Fl 55 Sq cost close to 1.000.000 UK£ in 2008
 
well, there must be a big difference between a UK stock boat, and a factory order, especially if its built abroad with GBP down here.
FWIW, I ve just bought a new car. Discounts for the same car varied between dealers between a free cup of coffee and about 20pct,but it was only one or two delaers who were doing anything other than a few %, and that was only on stock.
Between different car manufacturers it varied between nothing, and about 10pct generally,with above's proviso.
I wonder if that isnt really the same story with boats. If someone has a stock boat, he might well be pretty keen to clear it, but I d be less convinved that there is a general discount voucher at Excell reception !
I suppose it also depends on, a discount against what !
 
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I ve just bought a new car

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Don't tell, it's Scandinavian... /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

Cheers
Jimmy
 
Mike, you may have heard LBS is a ghost town but I really do have to disagree with you.

Yes some areas are not doing so well (guess which ones...) BUT there are a lot of exhibitors doing ok here and some doing very well.

Friday was quiet, Monday not so good and Tues afternoon not that busy but the rest of the time has been steady to busy.
 
Re: I just looove these debates - nm

So do I ...................

I like the debate I just wish they were more accurate, to say the show is a ghost town is a highly inaccurate statement!

Interestingly a lot of exhibitors (and the organisers) are reading them and coming to the stand to discuss, so discussions on here are seen by the industry and in some cases acted upon.

Christ I was even talking about one thread whilst in the loo the other night!
 
Re: I just looove these debates - nm

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I was even talking about one thread whilst in the loo the other night!

[/ QUOTE ]

Don't worry, I talk to mine as well ...
 
Re: I just looove these debates - nm

LOL by yourself /forums/images/graemlins/smile.gif

you should buy some Maxims and Playboy mags and think about some better things then some bashers here, in that precious moment of your life....
 
Can't comment on LIBS as we are not there apart from Mrs N was working on a clothing stand at the weekend helping out some friends who have stand there. They were very busy on Sat and Sunday when she was there and did slightly over their figures from last year. Having said that it is really nice stuff (made in Devon) and have built up quite a following.

Mrs N did report that the mobo hall was much quieter than last year and there were a lot of sales bods looking very dejected.

Re discounts etc, well yes there are some unbelievable deals around and 30% is not unheard of for a stock boat. However, that will not last for long, once stock has been cleared that's that, no more. Dealers have seriously curtailed their new stock for this season and they are not going to give what little new stock they have away. They need to recover some profit to survive or it is lights out and good night.

Dealer margins average between 18% and 25% so the maximum you will get after this clear out period will be around 10% and less if you are part exchanging.

My advise (if its worth anything) is if you have a fantastic deal on the table now, take it !, within the next six months all the decent stuff will have gone and it will be back to semi normal prices and perhaps even more expensive with the euro as it is , yes it is hurting imported product but that will filter though to UK builders this season too as a goodly proportion of the build is from imported material and machinery.

You have to also consider that production with many yards has been drastically cut so the availability of new stock will be lower, couple this to the fact that many dealers are finding it very difficult to get stocking finance unlike Co's such as ourselves which are funded privately and there will be some dealers with no more than brochures to sell from.

retail prices are unlike to drop significantly, boats cost what they cost to build these days and they are just darn expensive things to make. If you look at most builders P&L the margins are very tight and nett profits tend to much lower than for other industries with similar turnover.

Anyone thinking prices will collapse is off the mark, they will be much the same just much less stock around and a lot less meterage in production.
 
Having just bought one I'd say there are some decent % discounts off list price (I mean true discounts, not discounts financed by a lousy trade in valuation) but also there is an understanding with dealer that it's unfair on him to quote axshull %ages on wide open www so I wont

It does vary a lot though. I looked hard at the Azi 58 (from UK dealer) and while is is a lovely boat in many respects I was informed that there woudn't be massive discount off the list price of about €1.4m euros, even though the one UK boat is dealer stock and for sale (the one currently at LIBS). Perhaps a bit better than 10% off list price, but nothing like the 30% mentioned above. This makes it pretty uncompetitive pricewise against UK boats, even though as said it is a very nice machine
 
Sorry, Richard, slip of the pen. Of course, I meant boom town not ghost town
 
Basic Supply and Demand. Those dealers and manufacturers with a lot of stock may be strugling to get build finance so will discount heavily as they need cash.

Once the supply reduces the discounts will reduce. However it is now up to the boat building business to reduce their build costs to stay competitive!

Paul /forums/images/graemlins/smile.gif
 
Nautical, I think that's pretty much spot on. Like the car industry, there will be mega deals to be had whilst the boat industry de-stocks but once the builders and dealers adjust their production and stock levels in line with the reduced market size, these deals will disappear
 
That sounds sensible advice Nautical. Certianly the major builders are going to make many fewer boats next year, in part to avoid big unsold stock overhangs. I mean much less, like say 30% fewer in the approx 30-50foot bracket. Therefore imho the right time to buy is right now, when there must be discounts in the say 20-30% range on some stock boats. So, just imho, those holding off buying a new boat now in expectation prices will drop further in 2009 are wrong imho.

And there is no other cost in delaying a purchase - it's not as if you'll earn any interest holding money on deposit. The "interest" you get on money spent on a boat (namely fun and memories) FAR exceeds the interest on cash at the bank, imho. So I'd say "don't delay" :-)
 
yes agreed but many builders can reduce the price now, if the oil affected so much raw materials as it is in the past

the Brits have the pound problem true
but I am sure any builder seeing more then his finger will want to make this year and the next coming in as healthy as possible
IMO boat markets always react delayed due to the time of a boat building and schedule too, but also because of the buyers
then depends what your normal production nos if you make 100 a year and you sold 60 for 09 so far is not bad, but if you make 300 and sold 100 it looks much worse
dealers and companies should be togather in this, it is just not about stock boats, the companies that dont support there builders will have big trouble IMO
yesterday I read a nice article on the Jan/Feb issue Proboat builder or whatever is its name, very inspiring indeed
 
Worth noting that the current drop in materials etc... doesn't effect what they paid for them when the boat was being built. I'm not well up on the boat market but am involved in others, and it's worth noting (in my retail market) that prices have only gone down on items that are widely available and not required.
Prices for new items which are actively sought after have gone up in price as they were generally produced between 4 and 8 months ago at those prices.

As other posters I'd presume there's probably deals to be had on stock items that dealers need to shift for cash flow, and discounts on new forward orders will be RELATIVELY low and minor inter-brand incentives rather than giveaway prices.

One example is our local (river) fuel retailer was 134p litre petrol, because he'd filled his tanks on a price spike.
It's catch 22 because most people are going elsewhere for fuel, but he'l be damned to make a loss on it! So will keep plugging away until it's gone!
 
Richard, I went on Preview Day. It was like a gho... sorry it was heaving with punters
 
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