Originally Posted by Jim Cate
It is just possible that the broker reports false prices to Soldboats (I think that is the name) organization, and does not want the surveyor to rat him out. Soldboats is the group that publish actual selling prices to subscribing brokerages, and there have been reports that many of the values are inflated above reality. Dunno why, perhaps trying to inflate selling prices for later transactions.
Sheer speculation, all the above.
Jim. Very good point. I wouldn't be digging too deep on this since a lot of people have a stake in keeping prices high. For instance you have a massive pleasure charter
business that is built on pro forma resale figures to convince new boat buyers to buy and put these gleaming shinny new boats into their charter
programs. And then at the end of 5 years they will have a boat worth x that they can sell into the used market. If the true market sale
price at the end of the 5 years is significantly less than the pro forma charter companies figures would not be as attractive in their sales pitch
Then you have existing regular boat owners who don't want to see the price fall out of their "investment". So they keep silent about the problems and reality of supply and demand in the resale market. Its like everyone has a vested interest in keeping an image of X dollars for a re sale when the reality is that it will only ever get Y dollars.
A good illustration of what could be going on is take a look at the Mercedes sales model. Mercedes through their dealers would do everything to support the resale market of their cars and work on keeping pre owned car sales values high. This was and I think still is part of the new car sales pitch
. The prospective new car buyer was told the Mercedes is a great investment, look at how much this model sells for in the second hand market. This would give the new car buyer more confidence in paying that high up front new car price feeling they will get a lot of it back when they go to sell or trade
in the car.
In the age of the internet
it is a whole lot more difficult for the pre owned market prices to be "fixed' in the car industry. From what I am seeing it is a lot easier to "fix" the pre-owned boat market. Not that I am saying that it is going on but I have serious suspicions.
A fixed, rigged or otherwise less then honest boat market in the end of the day does no one any good. It leads to pre owned boat sellers listing their boat for what could be a totally unrealistic price and having that boat sitting and not selling for months and even years.
An artificial market also has a flow through to new prices. It allows boat builders to get higher prices than they otherwise should get for their product.
For me a free and open competitive market that is based on true supply and demand is the best pricing model for all concerned. And of course competition will sort out the good from the bad. The good will survive and the bad will fall by the way side.
It is my opinion that clarity and reality needs to be instilled into the boating
industry. In particular truth about the real price of preowned boats would be a good starting point. Dishonest game
playing at the end of the day does no one any good.
I didn't mean to write so much and I could be way off track about the boat industry. But then again I my instincts are telling me that Im not.
Perhaps we should talk with Zillow and see if they would be interested in entering the boating
space. That would sure shake things up.