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Old 22-01-2011, 19:04   #1
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How Does Location Affect Selling Price ?

Hello there, once again.

Forgive me for these "unusual naive" questions, but when wandering arround in used boat sites I have found extraordinary (nearly absurd) price differences in the same boat, for different countries.

This difference is obviously understood with "new" boats, but Im talking about the old ones... the ones with a few (two digit experience) years on their sails, and wich are selling for completely different prices (in general speaking, of course).

For instance, how is it possible that boats in Florida, California and GA cost ONE THIRD less than their twin brothers in other parts of the world (and US included)?
For instance, I can find a used (ok, VERY used) boat in these parts for, say, 4K.... but in europe or south america i have to buy the same boat (and in the same condition) for about 12k !
Im European (portuguese, by the way) and currently living in south America, after a long stay in Africa... but it seems that the only place where a "normal" citizen (meaning with absolutely no friends in the right places) can buy a bargain boat... is the USA?! Why is it?

Are the used boats all being shipped to the US for a quicker sell?
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Old 22-01-2011, 19:25   #2
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The US economy has not been well the last year or so, and jobs are disappearing. Folks are having to make hard choices with their disposable incomes, and for many it means a choice between the house getting forclosed on or selling the boat. Those to whom the boat is just a hobby may be willing to sell for much less just to dump the upkeep costs.
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Old 22-01-2011, 20:25   #3
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Like Gorilla Toast said, the US economy has been hit hard. Areas of Florida have really been hit hard due to several factors, one being the housing market. If I were seriously looking for a boat and had the resources and time to travel, you can bet Florida would be my next destination.
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Old 22-01-2011, 20:52   #4
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messias, as GorillaToast says, the economic situation in those areas is not good for many, these days. Still, over the years, the disparity in prices between where I live, B.C., and as one travels down the coast through Wa., Or., and California has always been significant. Up until about 2 years ago one could expect to add 50% to the asking price of a boat in Calif. if buying the same boat in B.C. . Over the past year, however, I've noticed that some of the local brokers/sellers are becoming more realistic. I'm just thankful that I don't live in the U.K. or Australia, as prices in each area seem outrageous, to me. In tough times, I think most non-liveaboards view the boat as a money-eating luxury, less important than the house & the car.

Mike
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Old 22-01-2011, 20:58   #5
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Another big factor is the devaluation of the dollar or the appreciation of foreign currencies like the Canadien, Australian, NZ Dollar or the Euro. We are still working on the good old greenback with a local value. The reality of the actual value of the buck hasn't sunk in.
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Old 23-01-2011, 18:07   #6
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Well, even when you kindly "shed a light" to it, it is still very strange to me, because in europe things are going twice (or maybe three times) harder on the economies... but those items dont seem to be afected in any way.
As I told you, Im portuguese, and everybody knows that the portuguese economy is heading the same way the greek did... and everybody who owned a boat... is still happily "boating"

I think I may have to start considering a one way flight to the US... and back to Brasil sailing!
Ohh, by the way... for those of you who might think otherwise....
Dont even DREAM of buying a boat in Brasil nowadays.. with the "BRL" going up on the money scale, everything went from expensive to ABSURD!
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Old 23-01-2011, 19:18   #7
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Boats are also cheap in Florida because there are so many for sale. Competition lowers the price. Southern California has finally started getting cheaper for the same reason. Unfortunately, there are lots of boat owners who fail to meet market realities and let their boats sit unsold for more than a year.

The two cheapest countries in Europe to buy a boat are usually Turkey and Croatia. Both have many ex VAT boats and many charter boats for sale. Both factors help to force prices down. UK and Baltic are expensive.
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