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Thread: Now its getting crazy!!
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12-23-2020, 09:39 AM #11
My theory is the OEM’s understand most buy boats with long term loans that make it difficult to pay down principal owed.
To combat that, OEM’s keep bumping prices 5-7% per year to keep the used market prices up. By doing so, it helps sell used boats which in turn creates new boat sales.
All said, this is likely my last new boat purchase, not too far from retirement and boating will not be on my 10 year forecast.
Six figure boats are the norm now, put a 2 in front of that six figure and I am tapped out personally.
Sent from my iPhone using Tapatalk2021 Supra SA 400
2018 Supra SA 400 (SOLD)
Michigan
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12-23-2020, 09:54 AM #12
I agree.
For fun I looked up Malibu's P&L info (public company so easy to get)
Their gross profit for fiscal 2020 was $150,000,000
Boats sold was 6444
Making profit per boat $23,277
Average boat sale price was $101,360 which puts their average profit margin at 23%
Comparing to 2015 Data:
31,846,000 in profit
3404 boats
67162 average cost per boat
That puts profit per boat at $9355
And profit margin at 14%
So over 5 years their average boat cost has gone up 151% and their profit per boat has more than doubled while their volume has also doubled.
What this tells me is:
It's good to be in the boat business lol
I went into this expecting that the profit margin would have stayed about the same which would mean that the cost increase on the boats has been mostly from cost increase incurred by the manufacturers. Seems that's not fully the case.2020 Supra SA
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12-23-2020, 11:51 AM #13
March/April/May 2020 that stock hovered in the $30s with the COVID fears on the luxury good market. Got to a low of $18.xx at one time.
Now it's high in the high $60s2018 Supra SL400
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12-23-2020, 02:11 PM #14
How does that breakup then when considering profit. I have heard dealers make over 20-25% profit(markup) on each boat. So Bu's avg sale/boat must no include dealer profit. So the avg sale price /boat at the consumer level must be another 20% above that, so around 121k. Right?
2020 Supra SL 400
2015 Moomba Mojo(Sold)
2018 Yamaha Waverunner(Just to fool around)
2018 F150 Lariat
sport edition, 3.5lt ecoboost
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12-23-2020, 06:42 PM #15
The good news for future new boat buyers is that I just purchased my first brand new boat (spring delivery).
That virtually assures that new boat values will plummet precipitously in the next year or two.
You're welcome.2016 Starcraft Limited 1918 (sold)
2021 MB Sports B52 Alpha (coming April 2021)
2020 Toyota Tundra TRD Pro
2022 F-150 SCREW PB (ordered 12/2021...still waiting)
B-737 (Work Vehicle)
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12-23-2020, 10:17 PM #16Senior Member
- Join Date
- Aug 2017
- Posts
- 143
Market correction is coming.... thats for sure.
2021 Mojo
2018 MAX - sold - 250 hours, absolute awesome boat.
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12-23-2020, 10:43 PM #17
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12-24-2020, 12:51 AM #182016 Starcraft Limited 1918 (sold)
2021 MB Sports B52 Alpha (coming April 2021)
2020 Toyota Tundra TRD Pro
2022 F-150 SCREW PB (ordered 12/2021...still waiting)
B-737 (Work Vehicle)
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12-24-2020, 01:18 AM #19
I think you are right Dank. I think the used market might be soon saturated with lightly used quality boats. I just think a lot of people spent their 10K they normally use for annual and semi annual vacations on down payments without really knowing if "the boat thing" is for them.
Eventually, they are going to realize that the cost and care of running, storing and maintaining the boat exceeds what they had anticipated. Plus, the payments get a little harder to swallow when there is snow on the ground and the boat is taking up your garage space or storage unit.
I know I will probably take a good beating by ordering a new boat this year, but the cost and availability of quality used boats out there this year made the cost delta marginal between the two. All the meticulous, lightly used premium brands in my area were north of 120K. It would have made financial sense for me to hold off and wait for a market adjustment , but my family has a only a few years left all together under the same roof and not missing the memories we will create in the next year or two helps to offset any loss to market adjustment.2016 Starcraft Limited 1918 (sold)
2021 MB Sports B52 Alpha (coming April 2021)
2020 Toyota Tundra TRD Pro
2022 F-150 SCREW PB (ordered 12/2021...still waiting)
B-737 (Work Vehicle)
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12-24-2020, 02:17 AM #202020 Moomba Mojo
2008 Mastercraft Prostar 197 40th Anniversary
Owner Ness Lake Watersports
Wakemakers “Exact Fit” Bags + Lead = 4,700 ballast
Audio by Wetsounds, MTX, JL Audio, Clarion
15 X 13.00 ACME prop