2021 Used Boat Prices

[sandm]

our bank in green bay won't loan 20 years on boats or rv's. I chalk that up to the conservative midwest thought process but they only do 15 year max and it's not a true 15. 15 amortized out with a 5 year balloon. limits their risk in being stuck in long term loans and increases their member profits if interest rises. they push 12 year loans hard for large purchases as those are fixed. we like them as their interest rates are usually one of the lowest and how many REALLY keep boats more than 5 years but it does come with risk if you do keep long term. goes back to larrys comment on leasing.

I think msg is right in that rising prices have allowed all the new tech but this rate of increase is not sustainable over the long haul and my gut says innovation will slow in the next year as the economy as a whole blows up. there's a GLUT of rentals/houses out there that are waiting for the gov't to open up foreclosures again and if you think all this stimulus money isn't going to come due on taxes at some point... that will impact the toy market especially mb/axis/moomba/atx.

I think spring will still see strong sales as there are a ton of deposits out there for boats coming but my gut says market slows early summer.
couple dealers I watch regularly went from virtually no inventory in july when we shopped to over a dozen used units each with several showing price reductions. both dealers are tige/skiers dealers.

[SONIC]

I believe the OEMS have the pricing strategy figured out.

The only way you can sell six figure boats is long term loans

To sell a boat owner a NEW boat, the owner needs to clear his old boat loan. OEM’s therefore increase new boats to keep used boat prices high.

It’s a pricing strategy that works.

I don’t disagree that 20 year loans are questionable, but when you can finance at 3.5% you would be foolish not to take that luxury.

It gives me the flexibility to make double payments whenever I want.

Effectively a 20 year loan is a lease plan.


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I agree, I am just of the opinion that toys are a luxury and if you can't buy it you probably shouldn't have it.

Obviously everyone's opinion on this one is different but you're probably dead on with the price increase strategy.

That being said financing is the smart move, assuming you have the cash to invest elsewhere which will offset the cost of the financing.


I just hate seeing people with the attitude of "it's only this much monthly payment" because that's really not a good way to approach your finances and It just irks me that that's how the majority of people see everything today. In my opinion that's a large driving factor for the increase in cost of lots of things from cars to mortgages. People don't know, understand, or even care what the ultimate cost of the financing is they just see their monthly payment and nothing more.

[larry_arizona]

Agreed, my rule of thumb has always been, don’t pay cash for something when the interest rate is lower than what your investments are making.

I mean, yes the best thing to do financially is never buy toys and only invest. But you only live once.


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[MJHSupra]

I see all these boats flying of the shelf and I just want to find my little piece of smooth water on the lake.

Thus why we try to get out more during the week vs weekend.

[rhouse181]

This crazy price phenomenon isn't isolated to just boats... Don't know if we have any Bringatrailer.com fans here, but enthusiast / collector car prices are through the roof. I sold my e28 BMW a few years ago for what I thought was a stupid amount of money but I would have made 3x as much if I waited another year. Here in Houston, home prices are through the roof with record low inventory and bidding wars common amongst 5-10 counterparties for anything priced within the stratosphere. Credit card debt, college debt, new car loans... pick your poison and term length / outstanding balances are at historical levels.

To be honest, there is a ton of "cheap" money floating around the market right now and I can't figure out how all these people with crazy leverage will land on their feet in the end. There has to be some kind of implosion that pulls the plug on this party...

When that dust settles, then you will find yourself a cheap boat if you have some cash still left under the mattress lol

[Josh828]

I just turned 25, so I could save until I'm 40 and buy the boat or I could finance it out for literally ever and live it up while I'm young haha
This is my first toy that I haven't had the money to buy twice over in cash however. The whole thing is still terrifying to me haha
However I am looking at it as monthly payments because I just paid off a rental property which is now covering (almost) the boat payment.
So for me it all just evens out in the wash, also if y'all could steer me in the direction of 3.5% interest rate because I was told 5-6%

[larry_arizona]

I just turned 25, so I could save until I'm 40 and buy the boat or I could finance it out for literally ever and live it up while I'm young haha
This is my first toy that I haven't had the money to buy twice over in cash however. The whole thing is still terrifying to me haha
However I am looking at it as monthly payments because I just paid off a rental property which is now covering (almost) the boat payment.
So for me it all just evens out in the wash, also if y'all could steer me in the direction of 3.5% interest rate because I was told 5-6%

To get the 3.5% has some stipulation.

Actual rate is 3.99% for up to 240 months.
Must be a Michigan resident.

I earned a 0.50% rate discount from making my payments on my last boat. So technically 3.49%


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[j.mo]

Agreed, my rule of thumb has always been, don’t pay cash for something when the interest rate is lower than what your investments are making.

I mean, yes the best thing to do financially is never buy toys and only invest. But you only live once.


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My accountant jumps my case and we go rounds over this lol.
But I hate payments.
No car, toy, or house payments. Allows me to keep my mind clear and focused.
Best choice financially, no. But peace of mind is worth something


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[SONIC]

I guess ultimately my problem is people are reckless and the majority of the time they end up fine and get away with.
That bugs me from a selfish perspective because I'm not lol.

[arsnlgunnr]

To get the 3.5% has some stipulation.

Actual rate is 3.99% for up to 240 months.
Must be a Michigan resident.

I earned a 0.50% rate discount from making my payments on my last boat. So technically 3.49%


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WOW 3.5% over 240 would be awesome!

Best I'm seeing is 5.5-6% over 240 as well.