The UK yacht market

[david_e]

What is the state of the current UK yacht market I wonder?

Regularly scanning websites, magazines and wandering around yards I see many, many boats (mainly used, but some stock boats as well) that have been for sale for well over a year and more, additionally dealers report generally sluggish activity.

Is it time for a major price re-alignment as we approach the shows and orders for new boats go in with expectant p/ex's etc. Delivery times and availablity on mass market boats are getting better all the time so the availablity factor which can keep the used price up is disapearing and more visible signs of depreciation would be evident, not quite the same but not disimilar to the car market.

Will the overheating of the housing market have an influence, or are most buyers unaffected by that?

Or will nothing change and people hang out for top dollar?

 

[jamesjermain]

It's difficult to tell. The new boat market appears to be reasonably buoyant, though patchy. According to one of the biggest lenders, the amount of money being borrowed for boat buying has never been higher.

The second-hand market is softer, though, with a general weakening of prices, particularly among the 'premium' models such as Contessa 32s, Westerlies and Moodies where the impact of cheap, imported new boats is having a significant effect. At the genuine quality end, prices seem to be firm.

JJ

 

[stretch33]

I spent a year or so looking for a boat, even travelled abroad to look at a couple, afraid a lot of brokers just send you all they have on there books and when you enquire about one they say, In good condition, needs a little work but tidy! When you get to look at it, its a pile of sh*** most l looked at had not even been prepared for a sale, just taken out of the water and a sign slapped on them. Never mind l suppose its all part of the system. Annoying though it is !

 

[robp]

The new "value for money" production boats are definitely affecting the value or saleability of premium boats, as James says. The more of us that do it, we are buying into depreciation. Plus, there is certainly a significant slow down in various industries. Somebody told me the other day that the marina waiting lists are shortening. I don't know if that's true but it won't surprise me to hear it. (Though I can't see all those new Bavs on swinging moorings). It's a confused market right now. It'll be interesting to hear the figures after the January show.

 

[david_e]

Re: The lenders, I wonder if they are measuring by equal criteria from previous years. If not there could be many variable factors that increase their figures, eg, withdrawal of competitors, tighter borrowing on property, more competetive rates from them, lower deposits etc - this would apply on newer boats because of the lower risk.

I would concur with the comments about softening of prices on older classics, still think that the newer mass market stuff is not depreciated enough. (not wanting to self inflict an injury here though!)

 

[david_e]

I am a relatively recent entrant to the market and already I feel I could write a book about these topics and a few others. Suffice to say that I have a pile of cash burning a hole in my pocket for the right boat and so far the dealers and brokers have managed to put me off parting with it. Think if I try a little harder they might accept it at some point though)

 

[david_e]

Mystery marina berth vacancies often appear from nowhere when buying a new boat, so that will be the reason they are not on the swinging moorings!

 

[pkb]

Virtually every market you look at is plagued by contradictions and uncertainties. Despite the woes on the stock market and gloomy predictions about the world economy the UK housing market is bouyant and there are a lot of companies on both sides of the Atlantic delivering good results in difficult market conditions. In the USA consumers are buying cars like they're going out of fashion - against all the expert predictions made at the beginning of the year - and in Europe while the Brits are buying more cars this year than almost at any time in the past there is huge softness in the auto markets in Germany and Italy for example. Currently I would see no good reason why UK boat sales should be heading for bad times. Individuals in the US tend to be more heavily invested in equities than here and so are potentially more likely to have their confidence hit by the plunge in the Dow. In the UK meanwhile it is the value of our property which is more generally seen as the primary wealth indicator. And on that score most potential boat buyers or those looking to trade up should feel pretty good - especially if interest rates currently at a 30-odd year low are due to come down by another 25 - 50 basis points or so.

 

[nicho]

Difficult to get a straight answer from Manufacturers/Brokers - certainly, with finance rates continuing so low, ithere could not be a better time to borrow the money, so you would expect order books to be full. However, if that's the case why are the deals available at the forthcoming Boat Show so phenominal? Many boat builders are offering thousand's of pounds off on "package" deals at really competitive prices. Some are even fitting colour chart plotters amongst a miriad of other "essential" extras (H/C water, shore-power etc etc) - OK, so you are paying for them, albeit at a subsidised rate, but the deals are still pretty good. In light of this, and the supposed log jam of used boats, why are second hand prices so high - often for poorly kept/maintained boats too!

 

[david_e]

I think you are right about the economy, but my question is, are things selling? I feel that the market is not bubbling and used prices do not reflect this.

 

[david_e]

..and despite the log jam, sellers are not moving on price, well at least not yet anyway. Think that I agree about new boat sales, why buy used if they are so good new?