Went down to Peters - Chichester yesterday

admillington

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Have been interested in the Azimut 50 for sometime and as they have got two in stock I was hoping for a good deal. Looked up at Companies House for the outstanding mortgage for the AZ50 and offered that. Lombard have rejected the offer and want loads more for a new but a 2006 boat with no support, handover etc. I beleive they are looking to make a profit , I assume to pay the receivers - there were lots of suits walking around yesterday.....

The best deals seem to be the ones that Peters own themselves and don't have to involve Lombards. Might even buy something for a punt, a Sealine S34 or F34 - get it right and then sell it on.
 

gjgm

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surely the boat is an asset.Why on earth would they look to sell it at its debt level? I cant see the connection.
 

admillington

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It has to be a bargain to cover the fact that it is a year old boat that has been shipped around to various boat shows and is used - damage to the woodwork, broken cupboards, damaged covers. There will be no handover, no one to do any warranty issues - any new boat will have a number of issues in the first year. Also there is no part exchange, so I will have to have two boats with all the costs.

I was trying to be fair to allow Lombard to recover their debt. No doubt soon they will have to start paying for the mooring, insurance and without attention the boat will decline.
 

rwoofer

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I think there is something a little distasteful when people are trying to make a quick buck out of a situation that other people are losing lots of money over.

There will be lots of people losing deposits and stage payments with the collapse - spare a thought for them.
 

jfm

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can you work out the debt on each boat individually, from co house info? Is each stock boat loan the subject of an individual separate mortgage debt?
 

admillington

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I am more concerned about the staff, who have provided excellent service to me for the 4 years we have been in Chichester. I should imagine that a number will setup their own marine businesses and I will support them.

I know that a number have been working at Peters for 20+ years. Lets see how many people actually lose their deposits.
 

Richard10002

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[ QUOTE ]
£393K

[/ QUOTE ]

The administrators have a duty to get the best price in a reasonable time, rather than just pay off the debt.

This was a mistake people make when trying to buy repossessed houses. The house goes for what it's worth, given the need for a reasonably quick sale, as will the boat.

You could try an offer of a bit less than you think it is actually worth, and see how you get on with that.
 

gjgm

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I was trying to be fair to allow Lombard to recover their debt

Well, thats mighty charitable of you.
Absolute, total, bull shite. You were trying to make yourself a good deal.
I have no complaint about that, but cut the c rap.
 
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woodie1000

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I don't get the problem people have with someone making an offer on the stock boats.

If the administrator doesn't like the offer, he won't take it. However, if no-one makes any offers on the stock boats then the employees and everyone else will end up a lot worse off. If you get a good deal, so much the better.

I have bought 3 Fairlines. We went to Peters for the first one and were put off by their arrogant, supercilious attitude. We went elsewhere for that boat and boats 2 and 3. If they treated every customer like me then I can't say I'm surprised by the current situation.
 

petem

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Jez, I think he just replied to the previous post (which was yours) so I don't think it was aimed at you.

I think that some on here are suggesting that making low offers will affect the amount of money that the staff end up with. Is this realistic or are we just talking about how much HMRC and the banks will recover?

Anyway, whats really interesting is that £393 (assuming that this is the cost price to Peters) => £585 is pretty much 50% mark-up. This confirms the 33% profit margin that I'd always been told existed.

Pete
 

jfm

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Me too woodie. Only bought one boat involving Peters (current Fairline, in 2004) and I found their service poor, both in the front office and the shipyard
 

Whitelighter

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If Lombard are the funder, then Peters would have had to put up at least 10% of the pre-VAT asset value as Lombar Max LTV is 90%.

So if Lombard have lent £393K, then the actual dealer price is £437k. So from an RRP (remember, not actually guaranteed this amount by any stretch) of £585k then the profit margin is around £145k, or 25%.

Bearing in mind that boat is probably costing £2,500/month to stock then it is likely they will be getting the extra margin as an incentive from the manufacturer to take a bit of extra stock.

So, have it in stock for 6 months, that is £15,000. Give the 5% discount/PX Over allowance that everyone expects nowadays costs another £29,000. Space in the yard or marina that means you can't have a paying customers boat stored, another £500/month? so an additional £3000.

Easy to see how the cost mount and the £145,000 margin dissappears. Best ways they would be looking at £90k, less Corporation tax at 30% and you are down to £60k if all goes well. That doesn't take into consideration operating costs, staff waged, cleaners, commission etc etc etc.

Not neccessarily a issue, but to assume they are taking £200k staright to the bottom line each time is way off the mark.
 
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