Trading in 1 year on...

[LWR]

A hypothetical (maybe)...

If one was to trade a new boat in with the same vendor and same manufacturer after a year, would you expect to get what you paid for your boat in order to upgrade?

I know that depends on a number of factors, but let's assume you were trading a Sealine T50 for a new T60 and both boats had reasonable availability (I think the T60 has better availability than a T50).

Just interested to hear people's opinions of how these things work out in the real world.

 

[Whitelighter]

Depends on a few things:

a) what you paid for the T50 a year ago
b) what you would likely pay for a T50 today
c) what you will pay for the T60

If you got, say a 5% discount on your T50 a year ago, and that is what people will get on one today then, provided you will pay full money for the T60 then I image you stand a good chance of getting your money back.

However, if you paid top dollar for the T50 but now everyone is gettin a 10% dicount and you want a disocunt on the T60, then it is unlikely you will get your money back. Best of ways you would get your price less 10% if you pay full money for the T60.

Best and cleanest solution is to sell the T50 for what it is worth, then go with cash in hand and haggle like a b'start on the T60. Only that way will you get the best price.

All IMHO of course.

 

[[2068]]

You might do, but it would be taken from the discount that you would have otherwise got from walking up with nothing to trade in.

dv.

 

[Kipper]

Its all about the "cost to Change".

Jezz is spot on. It all depends on what you paid for T50 and how much you are going to pat for your T60.

My advice would be negiate the price of the T60 and then the cost to change assuming you get what you want for your T50 and see how the figures stack up.

 

[Nautorius]

I think it all depends on current market conditions. The slower the market the better the deal. If the Market for both boats is similar then the price to change will be Actual cost of Boat B Minus actual cost of boat A Minus a factor for dealer.

Given it is two large sealines I think you should get a decent price to swap!

Cheers

Paul /forums/images/graemlins/smile.gif

 

[PowerYachtBlog]

it depends the builder
for e.g. I always hear that British builders value a return of a second hand much more then other builders

I had an experience with a Ferretti of a client a few years back where he was upgrading for a bigger Ferretti where they thrashed 30% out of the purchase price he bought the boat for

this case might be also a problem of the size of the boat
when you go under 15 metres sometimes it is easier to sell a used boat, while over the 15 it is a bit more difficult
it also is a problem on sucess of the yard IMO and how desperate they are in selling you there product and how sales are doing during the Important Boat Shows

for e.g. if a UK builder sells 2/3 of his 2008 production in Southampton they will play more the difficult and value less your used boat as they are already quite covered
unless the model in question is suffering from sales and they would like to give it a push...

 

[SteveE]

We had a new F33 4 years ago (1st Boat) then realised it was too small for what we wanted, and decided to trade up to a new F43, if you work out the numbers we got more for the F33 than we paid for her.

There where 2 factors upgrading to a bigger boat, so the price to change was made smaller, and the F33 went end of life and F34 10% more expensive, and also Sealine likes keeping customers.

We are looking to upgrade next year and a T50 is something we are looking at, the F43 is end of life.. I would expect a good deal.

Steve

 

[Deleted User YDKXO]

Agree with jezbanks. Whilst p/exing is an easy clean deal, you will pay top dollar for the new boat because the profit margin in the new boat also has to subsidise the margin the dealer expects to make on selling the old boat plus his costs for financing it. Much less costly overall to wait to sell the existing boat and cut a good deal on the new one
But, yes, if you want to go down the p/ex route, then the dealer will probably try to structure a deal which appears to give you back close to what you paid for the existing boat to make you feel better. Thats all fine if you continue to trade up but eventually you will want to quit boating or change to another marque and then you'll find out the true cost of a p/x deal

 

[KCook]

Typical gameplan for Sea Ray dealers in the US. They will appear to give you full price for your Sea Ray trade-in. BUT that assumes your new Sea Ray is significantly bigger, more expensive. Works well for Sea Ray. Keeps Sea Ray owners bragging about their resale too.

Kelly

 

[gjgm]

yes, I m always a bit puzzled by peoples sensitivity to the values on a trade in. All that matters is the wad you have to cough up. You just have to remember the dealer is in business to make money, not to run a charity for your boating persuits. How he comes up with the cost to change isnt really the buyers business;he can use the number of baked beans on his breakfast plate if it gives me a nice number, for all I care.

 

[Nautorius]

Yep,

Mike is right. They will spin you artificial numbers to justify the price to change. When it comes to invoicing they will write it back to limit tax and their own profitability!

The price to change is key. If you are happy with the price to change then go for it, and ignore the figures about values and cost which they bound around.

Cheers

Paul /forums/images/graemlins/smile.gif