Todd, great video. My wife and I have been looking at boats for over two years and are just about to close on a mid-2000’s cruiser. You’re on the mark across the board. I’ve seen inventory growing online and more boats listed for prices at or below the lows of the last two years. If I can reiterate one point…get the maintenance in order! No one wants to take on a project and, if they do, they’re going to lowball their offer to reflect not only the repair cost but their personal time to PM the work. As you say, it’s not doom and gloom, just reality.
This was a great idea Todd. I'm certain they're many of us that are interested your perspective of the industry. I grew up in NH and ME and spent my USCG time mostly in New England. Live in MO now and I miss the ocean very much. I live out my ocean going dreams with your channel and a few others. During covid I saw a similar occurrence with used truck prices. As demand outgrew capacity and rates went up, used truck prices went up as everyone who ever dreamed of trucking was trying to get a truck on the road. Generally speaking most aspects of trucking have returned to pre-covid conditions. While it's likely I won't be a customer, I will always be looking forward to your next video.
Great video and I enjoy your walkthroughs What you said is to me common sense and the reality of market cycles. Although as you pointed out we had a very wild market cycle because of covid. But this has me wondering a few things not just for boats but houses and cars as well It seems to me that a lot of people that jumped into this Gold Rush buying spree during covid for toys and houses that were first time buyers. Low interest rated and boredom fueling high prices. a lot of first-time buyers finance toys. I have never financed a toy always paid cash. But there is a new generation out there that rents and finances everything So my thought is. There's a market correction now. More inventory in part because a lot of first-time buyers are trying to get out. But they are over leveraged in unrealistic, finding it hard to realize they bought overpriced assets that are now depreciating. being first-time boat owners they may not have the knowledge or the willingness to maintain and keep records the way they should have. I know with campers and cars the repossessions are way up. Anyways long-winded comment. You said you didn't want to sound pessimistic however I detect a little frustration in your voice and was wondering if you feel there is a a larger and perhaps temporary group of sellers that seem to need basic instructions on how to present a boat for sale? Is some of this need to instruct sellers because you're dealing with newbies more than you would have pre covid?
Thanks for watching and your comments. The company I work for, Knot 10 Yacht Sales sells approximately 650 boats annually and we track sales so we can look at trends. One thing that you might find shocking is that around 30% of our sales are financed and the balance is cash. Now some of those cash buyers are using HELOCs or other means but to us it looks like cash. Regardless, there is little risk that the majority of these boats will get repossessed like in 2008, 2009 and 2010. What we believe is going to happen is that the valuations will go down and sellers are going to have to come to grips with the market and lower their expectations. Except reality for what it is and not what you want it to be. Right now sellers who purchased their boats 4 or more years ago have the ability right now to sell them and take zero depreciation for those years, that's unheard of. Those that purchased boats over the past 3 years and expect to get out whole are in for a bit of a surprise....but what do I know I'm just a dumb boat salesman!
I'm curious if your thoughts on pricing and availability apply to Freshwater diesel boats. I'm still seeing a low inventory of those boats, so does a price correction still apply.
I can only assume that the same market forces apply in your market as well. It could just be that it’s just taking a bit longer to show up. There are more boats available on the east coast and we are seeing pressure on all segments. Thanks for watching
Values of boats during covid was directly related the low cost of money, rates were 3% so it was easy to sell boats. With rates now the monthy cost is 2X for the same price boat. it was also related to inventory but much less than the cost of money.
I’m sure cheap money played a role but we track all of our sales and the amount of deals that used traditional lending was astonishing low. Knot 10 sells about 600+ boats a year and over the past 48 months just under 30% were financed.
50% of yachtworld listings have "price drop" in the listing so how are you saying that there have not been price adjustments??? If you really think sellers are not adjusting prices then you are not tuned onto what is happening in the market. This is not a new trend wither its been happening for 4-6 months and the price reductions are getting much more agressive in the last 2-3 months. I have seen some boats with 50% price reductions, most are in the 10-30% range
We are seeing sellers slowly coming to terms with the market. My saying is accept reality for what it is and not what you want it to be. Sellers who get ahead of it and adjust their pricing will sell their boats. Those that don’t, won’t. Thanks for watching and your comments.
Great advice.
Thanks for watching.
Todd, great video. My wife and I have been looking at boats for over two years and are just about to close on a mid-2000’s cruiser. You’re on the mark across the board. I’ve seen inventory growing online and more boats listed for prices at or below the lows of the last two years. If I can reiterate one point…get the maintenance in order! No one wants to take on a project and, if they do, they’re going to lowball their offer to reflect not only the repair cost but their personal time to PM the work. As you say, it’s not doom and gloom, just reality.
Good luck with your purchase. Thanks for watching!
This was a great idea Todd. I'm certain they're many of us that are interested your perspective of the industry. I grew up in NH and ME and spent my USCG time mostly in New England. Live in MO now and I miss the ocean very much. I live out my ocean going dreams with your channel and a few others. During covid I saw a similar occurrence with used truck prices. As demand outgrew capacity and rates went up, used truck prices went up as everyone who ever dreamed of trucking was trying to get a truck on the road. Generally speaking most aspects of trucking have returned to pre-covid conditions. While it's likely I won't be a customer, I will always be looking forward to your next video.
Thanks for watching, I hope I can continue to provide insights to the market. I'll do my best to keep the content interesting for you.
Great video and I enjoy your walkthroughs
What you said is to me common sense and the reality of market cycles. Although as you pointed out we had a very wild market cycle because of covid.
But this has me wondering a few things not just for boats but houses and cars as well
It seems to me that a lot of people that jumped into this Gold Rush buying spree during covid for toys and houses that were first time buyers. Low interest rated and boredom fueling high prices. a lot of first-time buyers finance toys. I have never financed a toy always paid cash. But there is a new generation out there that rents and finances everything
So my thought is. There's a market correction now. More inventory in part because a lot of first-time buyers are trying to get out. But they are over leveraged in unrealistic, finding it hard to realize they bought overpriced assets that are now depreciating. being first-time boat owners they may not have the knowledge or the willingness to maintain and keep records the way they should have. I know with campers and cars the repossessions are way up.
Anyways long-winded comment. You said you didn't want to sound pessimistic however I detect a little frustration in your voice and was wondering if you feel there is a a larger and perhaps temporary group of sellers that seem to need basic instructions on how to present a boat for sale? Is some of this need to instruct sellers because you're dealing with newbies more than you would have pre covid?
Thanks for watching and your comments. The company I work for, Knot 10 Yacht Sales sells approximately 650 boats annually and we track sales so we can look at trends. One thing that you might find shocking is that around 30% of our sales are financed and the balance is cash. Now some of those cash buyers are using HELOCs or other means but to us it looks like cash. Regardless, there is little risk that the majority of these boats will get repossessed like in 2008, 2009 and 2010. What we believe is going to happen is that the valuations will go down and sellers are going to have to come to grips with the market and lower their expectations. Except reality for what it is and not what you want it to be. Right now sellers who purchased their boats 4 or more years ago have the ability right now to sell them and take zero depreciation for those years, that's unheard of. Those that purchased boats over the past 3 years and expect to get out whole are in for a bit of a surprise....but what do I know I'm just a dumb boat salesman!
Totally agree with you!
Thanks for watching
spot on!
thanks for watching
I'm curious if your thoughts on pricing and availability apply to Freshwater diesel boats. I'm still seeing a low inventory of those boats, so does a price correction still apply.
I can only assume that the same market forces apply in your market as well. It could just be that it’s just taking a bit longer to show up. There are more boats available on the east coast and we are seeing pressure on all segments.
Thanks for watching
Values of boats during covid was directly related the low cost of money, rates were 3% so it was easy to sell boats. With rates now the monthy cost is 2X for the same price boat. it was also related to inventory but much less than the cost of money.
I’m sure cheap money played a role but we track all of our sales and the amount of deals that used traditional lending was astonishing low. Knot 10 sells about 600+ boats a year and over the past 48 months just under 30% were financed.
50% of yachtworld listings have "price drop" in the listing so how are you saying that there have not been price adjustments??? If you really think sellers are not adjusting prices then you are not tuned onto what is happening in the market. This is not a new trend wither its been happening for 4-6 months and the price reductions are getting much more agressive in the last 2-3 months. I have seen some boats with 50% price reductions, most are in the 10-30% range
We are seeing sellers slowly coming to terms with the market. My saying is accept reality for what it is and not what you want it to be. Sellers who get ahead of it and adjust their pricing will sell their boats. Those that don’t, won’t. Thanks for watching and your comments.