Will the price of Diesel Engines come down now?

[melangeoff]

Hi all,

This may be a dumb question but I'm new to fuel guzzling vessels and also fairly new to this forum.

So you pay a considerable premium for a decent Diesel marine engine, right? So will the new Tax on leisure craft Diesel users subsequently drive the cost of these engines down?

I'm paying around 10% more for a new Diesel Cruiser in the Spring, so am I gonna end up with egg on me face when diesel prices shoot up?

 

[ms1]

I dont think there is a connection between fuel price and engine price. Its more about the cost of production, demand and the economies of (or lack of) scale.

 

[melangeoff]

I hope so Martin!

I'm also hoping the residual value of my new boat won't plummet 2-3 years down the line if Diesel becomes less popular with rising costs per litre.

 

[ms1]

I have my doubts about falling prices. People will still want boats with diesels for all the reasons other than fuel price and Ive spoken with lots of first time buyers who just assumed fuel prices were similar to road price and had no appreciation of red diesel etc when they bought.
However in the fullness of time I might be shown to be one of the mugs who bought a petrol boat and put diesels in it only to find its value is back down at petrol engine level .. but then I didn't do it for resale price .. I did it for all those other good reasons.
I wonder what is the brokers take on future diesel boat resale price.

 

[gimmesunshine]

I dont know if volvo etc will drop price, they for sure will loose out on re engine from petrol to diesel conversions.
I suspect there will be some keen deals to be done at libs.

There is no way a diesel engine & drive costs twice the amount to make as a petrol version. But whats the re-engine share of what they sell, very low i suspect.

I dont think youve made a bad decision paying the extra 10%. I much prefer diesel and still wouldnt look back.

 

[Kawasaki]

Nope!

 

[Gludy]

No - they will not drop at all.
Its a world market and the UK is a small part of it.

 

[Margem]

The price of motor boats will plummit full stop, my dealer says wait till it happens then buy, which will be when boats are traded in in droves, this apprently will be at the latter end of the new season.

 

[Kawasaki]

Well I don't see it happening in My
neck of the Woods.
There are hardly any shoreside petrol fascilities in North Wales.
So it's play Hump the Tin if you want to go down that route.
Don't see Mobo types converting to sail in droves.
Mobo types used to getting around at 12/30 kts won't want to drop down to yacht speeds of 5/6kts.
The average Mobo type in My Marina probably does 30/50 max hours a Year.
The boat is usually used as a Holiday Cottage anyway.
Average(current) value say £100.000. So £5 a gallon fuel price ain't gonna bother Him.
Probably a noticeable quietening off in Sales whilst the whole thing settles down.
Peeps uncertain and waiting to see what happens.
So maybe some reluctance to move/trade up for a while then it will be back to normal.
As said earlier engines are not going to fall in price.
If LPG was available everywhere maybe there would be a devaluation of diesel vessels but it aint.
OK it would be nice to have a clean powerfull quiet petrol driven Cruiser.
Don't go with the "riskey bit cos it's petrol" cos there are squillions of them Stateside and they don't seem to ignite regularly!
Tiss the availability of the stuff that stuffs you hereabouts.
Maybe different in other parts of the UK but here it's a big prob.
It will go "quiet" for a bit then back to normal. Whatever that is!
Can remember peeps saying things like. "If My beer goes up to 2 shillings a pint I'm packing it in" 10p in Today's Money. Fags now £4.50 For 20 ish.
It was not long ago we were screaming petrol was going up to £4 a gallon!
So it will be Fags a fiver, Petrol a fiver, Diesel a fiver, Haircut job to get one for a fiver, Pint of Guiness, be interesting to see at LIBS!
CRD Diesels, clever engine management systems, more fuel efficient motors are on the way.
Bio oils that's the way for Me cos I got loads off the stuff (cooking oil that is) handy having a Takeaway business with deep fat fryers!
Might stick a range on the boat, everyone will want Fish and Chips or summat when I motor past with the whiff coming out the exhaust!
Could be the best thing that ever happened!!! /forums/images/graemlins/grin.gif

 

[Birdseye]

[ QUOTE ]
The price of motor boats will plummit full stop, my dealer says wait till it happens then buy, which will be when boats are traded in in droves, this apprently will be at the latter end of the new season.

[/ QUOTE ]

Or will they all become houseboats that dont move? Lots seem to be waterside cottages anyway

I reckon the older ones will drop in price because many of the potential customers havent the dosh to run the boats with fuel costs at maybe £2 per mile. But then the price of older boats both power and sail has been artificially high for a long time - why shouldnt boats depreciate down to zero like cars do? What factor is it that prevents this happening?

 

[Nickcf]

[ QUOTE ]


I reckon the older ones will drop in price because many of the potential customers havent the dosh to run the boats with fuel costs at maybe £2 per mile. But then the price of older boats both power and sail has been artificially high for a long time -

[/ QUOTE ]

£2 a mile- I wish!!! if we have to buy white, many boats (40') will cost more like £8 per mile.

I don't think prices can be held artificially high by the way. It's free market and people pay what they feel is value for money. Just keeping a boat, even it if doesn't move, costs a lot of money so keeping the price above the market price is not cost effective if you are trying to sell.

The price of second hand boats will drop however in my view as there will be fewer buyers who can afford the running costs. Some people claim that if you can afford £100,000 for a boat then the fuel cost is not material. I don't agree with this view as people view capital and running costs differently -Most people need to feel that the running costs are justifiable. At £8 a mile they clearly will not be for very many people. No-one wants to buy a boat they cannot afford to take anywhere

 

[Will_M]

melangeoff,

With the alarming rate at which China is buying up the worlds steel, raw material cost alone will without question force all engine prices up very soon.

And this is true to say for almost any raw material, prices are well on the up and up...

A diesel price hike is, by comparison, not such a wory.

 

[Kawasaki]

There are a number of factors that Boats don't depreciate like Cars.
The UK Motor has a unique Customer Bank/Base.
In that the UK Populous is absolutely bonkers about Cars.
We pay more for them than anybody else, high fuel costs,high road fund licence,Insurance,servicing just to go on the road and form a Queu!

Then We change them when we don't need to.
Like---"Ooh ther's a new Glx td efg hi Model come out, with a different badge on the front and an automatic thingy that tells you something you don't need to know, gotta have one my 2 year old one looking a bit shabby bla blah blah"!

So He sticks His hand in His pocket for £10k to change.
Bod 2 comes along "Ooh there's a 2 Year old Glx td efg model taint the hi but it's lost £12000 k I'll ave a bit of that"!
Bod 3 De da De da De da you know the Score.
Bod 4 buys Bod 3's "I'll run this Gl into the deck Mabel"
"Uh you said that last time Arthur"
Anyway Mabel is right as usual. Arthur gets bored with the Gl ,failed the MOT this time cost £250's worth of drinking coupons to pass. Passes it on to a relative(He didn't like Him anyway) "Thanks Arthur I'll run into the deck" 12 months later it hits the deck.
"Hello Mabel Arthurs cousin ere as e still got that Glx is e ready to part withit yet"!
Convertibles We don't need. 4x4's Pseudo rally cars,People Carriers with 2 people in em, big buggers to tow Caravans now and again, not very Smart cars being towed behind a mobile block of flats. We are Motoring fanatics and the Manufacturers love us.
We love/hate Clarskson and the ilk.
Talk about Him/Them and our Motors at length.
Once sold a Bod an all singing and dancing 4x4.
Had to have diesel (Fair play He was doing an amazing 4000 miles a year)
Had to have leather.
Had to have air con("won.t use it much though cos it eats more fuel. but might need it if We go to France")
Had to have alloy wheels.

Then proceeds to fit steel wheels on it and cover the leather with some grose Halfords type seat covers.
"Ah well you see the alloys will look good when I part ex it in 18 months and I don,t want to spoil the leather"!
See we are bleedin mental when it comes to cars.
Manufacturers love us.
"If we build them They will buy"
So the chain is created and the depreciation.
Get to a certain "Age" they rot,they cost too much to fix.
Well that's the perception, although there is certain amount of sell by date "built in"!
But then again we ressurect some and call them "Classics"
"Handy see cos I don,t pay tax on it and keeps the miles down on me new un"
Paying tax on yer new un though!
Maybe Arthur was wrong and should have kept the Gl might be a Classic by now.
Mabel might have been pleased!

Now the Boat thing.
First off the Manufacturers don't churn em out willy nilly.
Ok there are some "Massed Produced" jobbies but the Market aint flooded (no pun intended)! quite the same as the Car world.
Second off we don't change them on a whim. Well some on here do apparently!
Third off they tend to get pampered.
Fourth off they don't rot, well the GRP ones don't.
Fifth off Prices. Got Me a June 1992 MBY in front of Me.
New Tarquin 595 (cracking boats I believe!)£395,000. How much now?
New Birchwood TS 340 £99.440 + vat. How much now?
New Broom 39 £154,500 + vat ,How much now?
How much new now I mean, not how much would they be now on the used market!
What I'm getting at is the New price today is one factor that is keeping used boats values higher than you think they should be.
Sixth off because of Third off and Fourth off a 15 year old vessel can look nice and shiney and desirable.
Because of Fifth off the price don't look to daunting.
F off now cos I need to go down the Boat and make sure it doesn't get scratched in the wind,case a branch hasn.t fallen on it. case it's feeling all lonely (some of us arn't car mental just a bit mental in other directions).
Use No2 daughters Suzuki cos it does 50 to the gallon, three miles to the Marina gotta save fuel. Only use the Convertible Oldsmobile in the Summer (it's a "Classic you know) any way She hasn't passed Her test yet but She needed a car.
SWMBO has to have an automatic No1 Son will only drive a "Bimmer" No1 daughter has to have a people carrier to take Our only Grandson to School.
Well they are planning on more apparently.
Any way stuff My cars they can stay in the elements the Garage is full off boat bits that need to kept snug and dry.
Gotta get down the Boat don't want it to devalue.
Forgot there is a Seventhly. We do look after them and make sure they are all working properly and Safe don't We? Cos it can be dangerous out there.
But then again We don't use them very much I hear.
So in a nutshell there you have it.
Some quite big nutshells around with all the wind.
Bit long winded too.
Sorry!!!!