Asking Price vs "Book"

[sailorboy1]

OK, looking at various boats of interest I decided to look up some "book" values. This just makes it harder it seems as the asking prices seem to be WAY more than the NADA (BUC bumped me for too many free lookups). As an example there are a bunch of Morgan 462s listed for around 115-135k, but NADA says the average retail is $79k. Even with adding a bunch of options it comes to about $85k. I tried this with some other boats and got the same thing. So the question becomes which is more inline with pricing you should expect to pay, the book valve or something around the asking price (assuming an average condition of the boat)?

I also noticed about the Morgan 46' that on Yatchworld there are 2 pending sales and for both the pricing was near the NADA one.

[Vasco]

It's impossible to get a good fix on boat prices from the numbers published by the various services. It's very different from used cars where the "book" value is more or less accepted by all. There is much more data in the car business. In the boat business reporting is hit and miss so the data is not the best. When buying one the best you can get from the various services is a ballpark figure. What you can actually buy a boat for will depend on the circumstances of the individual buyer and seller. Boat selling becomes a very personal thing, everyone thinks their boat is the best one in the world and that the value has appreciated since they bought it due to all the sweat they put into it.

[sailorboy1]

Thanks. I found an old thread from 2007 asking kind of the same questions, but still hope for new input. While I know book values are not always going to match selling etc due to equipment and things, you wouldn't think they would be 50% off. Insurance and finance companys must have a real way to decide if the pricing is correct.

[Pblais]

Insurance and finance companys must have a real way to decide if the pricing is correct.

yes, when you buy a boat you will get a survey done. The last part of the survey is the value. The better way is to take a look at as many similar boats as you can and compare them. Asking and selling prices should be close but there can always be exceptions. You just need to get a feel for what similar boats are asking for and you should get a better idea of where the real price should be.

There is always room to bargain. Boats and prices seem to work out a deal that makes both sides happy. A lot of people think all boats are overpriced by 15% so the real price is always less 15%. Might be easy if it was true but it's not. Some times people price their boats so they can be sold quickly other times they price them high because they think some idiot will pay that much and they really are not for sale. You just don't know who is doing which to whom.

Try to find comparable prices for similar boats. A long list of similar boats will get you pretty darn close to the real price. Of course there is no assurance that price is what you can afford. If you want to talk about a deal come with a certified check and a written offer subject to marine survey and sea trial. Then they know you mean business and you can negotiate.

[GordMay]

Since the Insurer’s risk (boat value) is offset by their Rates; their only concern with accurate pricing might be to preclude any attraction to fraud (owner scuttling for insurance).

Since a Lender’s security lies in repossession & sale, they would be much more interested in an accurate market value. They generally have no in-house expertise, and rely upon professional Surveyor’s written valuations, and “Black Books”*.
Ie:
BUC: Used Boat Values, Prices and Evaluation - BUCValu Professional
NADA: Boats.com - N.A.D.A. Boat Appraisals
etc.