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Old 16-08-2022, 23:36   #1
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Did the prices of yachts plummet in Match 2020?

And if they did plummet what by? What did a $50,000 yacht become?

I am still looking to buy a sailing yacht, and with talks of a looking recession end of this year, is it best waiting off?
Will the prices of yachts fall?
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Old 17-08-2022, 01:43   #2
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Re: Did the prices of yachts plummet in Match 2020?

In Australia, prices went up considerably as people could not go overseas, so they purchased yachts, boats, cruisers, caravans, new cars etc. My old yacht was sold by me in 2019 for AUS$265k, it sold again early this year for $380k.
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Old 17-08-2022, 01:58   #3
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Re: Did the prices of yachts plummet in Match 2020?

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Originally Posted by clownfishsydney View Post
In Australia, prices went up considerably as people could not go overseas, so they purchased yachts, boats, cruisers, caravans, new cars etc. My old yacht was sold by me in 2019 for AUS$265k, it sold again early this year for $380k.
Yes but lockdowns and recessions are two completely different things.

In a lockdown people had money to burn and nowhere to go, in a recession people generally have no money to burn and as a result still nowhere to go.

I think I mistook that in my original post just now myself.

I guess what I should have asked is what happened in 2008?
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Old 17-08-2022, 02:39   #4
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Re: Did the prices of yachts plummet in Match 2020?

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I guess what I should have asked is what happened in 2008?
Cheap boats of any type tanked. 30ft plus power boats didn't move due to unaffordable fuel costs. Those who owned yachts lets say £35k or more were likely financially better able to weather the credit crunch. Whilst yachts did come down in price it wasn't a cliff edge. Values of our Moody 31 bought in 2007 for £36k trickled down to perhaps £25k by 2019 and then rose to £29k. I would expect the value to drop back to £25k over the next couple of years and then level out again.

Will there be some bargain this winter? probably if you are quick and accept that some maintenance may have been postponed by the vendor. Good quality catamarans will retain much value as the demand is high. Manky auld boats (MABs) well there will be a price point on e bay some dreamer will pay the price of a second hand car for a boat.

Should you hold on if you are in the market. Yes I think you should and have a friend looking to buy a yacht at the moment. My advice so far is wait until winter draws in, fuel and food costs rise, winter storage fees are due etc.

However, don't buy a boat just because it is cheap, buy the boat you really want for long term ownership.

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Old 17-08-2022, 05:28   #5
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Re: Did the prices of yachts plummet in Match 2020?

Right now changes in the buying environment vary by locality. Our local broker is still going gangbusters.

It's pretty clear that prices are normalizing. I like to track the Catalina 36 because they're popular and common. Pre-covid, prices were about $65k, then shot up to near $100k. Now they're back down. I don't know selling prices, but presumably if boats were asking $100k, they sold north of $80k, right?

From my local observation, a number of small boat sailors (< 26ft) jumped up to larger boats; I don't expect them to bail out at any time soon; those I talk to are in love with the new-found large boat experience.

Where I observed a massive increase in new boaters is in the day/ weekend powerboats, particularly the low end junk boats. I expect these owners to quit soon, and the boats will sit in yards, surrounded by tall grass.

What's a $50k boat worth? Well, pre-COVID it was worth $50k. Then shot up to over $80k, and is now back to $50k. Is it going to drop to $30k? I doubt it, there are many sailors waiting and watching for prices to go below normal (i.e., below perceived value.) If Catalina 36 MkII drop to $40k then everyone with a Catalina 30 is going to jump- so it can't happen.
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Old 17-08-2022, 05:41   #6
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Re: Did the prices of yachts plummet in Match 2020?

Prices for used boats, RVs, and other recreational items shot up because people couldn’t spend their money on travel. As we return to normal, most of these people will return to their old habits. So they’ll want to offload all their Covid purchases.

As for a recession, yes prices will also come down. This is how I got our current boat. It had listed for way above our means, but by 2010 the price had come down considerably.

I say wait. These two factors will lead to much lower prices for used boats.
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Old 17-08-2022, 23:39   #7
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Angry Re: Did the prices of yachts plummet in Match 2020?

Quote:
Originally Posted by Pete7 View Post
Cheap boats of any type tanked. 30ft plus power boats didn't move due to unaffordable fuel costs. Those who owned yachts lets say £35k or more were likely financially better able to weather the credit crunch. Whilst yachts did come down in price it wasn't a cliff edge. Values of our Moody 31 bought in 2007 for £36k trickled down to perhaps £25k by 2019 and then rose to £29k. I would expect the value to drop back to £25k over the next couple of years and then level out again.

Will there be some bargain this winter? probably if you are quick and accept that some maintenance may have been postponed by the vendor. Good quality catamarans will retain much value as the demand is high. Manky auld boats (MABs) well there will be a price point on e bay some dreamer will pay the price of a second hand car for a boat.

Should you hold on if you are in the market. Yes I think you should and have a friend looking to buy a yacht at the moment. My advice so far is wait until winter draws in, fuel and food costs rise, winter storage fees are due etc.

However, don't buy a boat just because it is cheap, buy the boat you really want for long term ownership.

Pete
Good info
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Old 17-08-2022, 23:41   #8
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Re: Did the prices of yachts plummet in Match 2020?

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Prices for used boats, RVs, and other recreational items shot up because people couldn’t spend their money on travel. As we return to normal, most of these people will return to their old habits. So they’ll want to offload all their Covid purchases.

As for a recession, yes prices will also come down. This is how I got our current boat. It had listed for way above our means, but by 2010 the price had come down considerably.

I say wait. These two factors will lead to much lower prices for used boats.
Wow so 2 years after the 2008 signal of a recession?
Yes I am definitely going to wait, can't rush these things!
I have my ideal specs now, an a bigger water tank that 80l is a must! 300 even!
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Old 18-08-2022, 05:34   #9
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Did the prices of yachts plummet in Match 2020?

No one knows if covid purchases will unwind.

The downturn will be more a result of inflation , people remain in employment and income levels will actually rise.

Hence there is no evidence at this point that there is some approaching tsunami in boat prices or availability.

Around me brokers are selling everything they have got and middle market pricing is holding up well. The very bottom ( fixers up ) and higher end have become “ soft”. The latter due to a huge increase in material costs and the latter because cash buyers in that segment are nervous and moving to lower outlays.

Waiting years to potentially save nothing is just wasting years you could be sailing. Buy now and go.
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Old 18-08-2022, 05:56   #10
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Re: Did the prices of yachts plummet in Match 2020?

Ive priced out a new Jeanneau and the price has gone up 10% since 2020. Tariff and tax went way down so it’s a wash exception options which are all over the place.
Used anything has the best margins the biggest potential for movement.
Was a beautiful C&C for sale $30,000.00. Some idiot offered him 18,000.00 like it was not a perfectly maintained boat.
Boats have a bottom and going below it is reason for concern.
A late 90’s 37 Jeanneau is 55K below that don’t buy it is my guess.
The recession already started. Great times to grow the business. We have another wave coming.
Recreational property boats and RVs have gone nuts here. My trade in is likely up 15%.
Don’t put off boating for economic hiccups.
It’s good for you to get out there change focus.
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Old 18-08-2022, 05:58   #11
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Re: Did the prices of yachts plummet in Match 2020?

If you are 25 and can only sail weekends 1/2 a year waiting may be prudent.

If you are 65 and want to sail intensively as it is important to yourself then do it now.
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Old 18-08-2022, 07:28   #12
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Re: Did the prices of yachts plummet in Match 2020?

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Originally Posted by mrk123 View Post
Wow so 2 years after the 2008 signal of a recession?
Yes I am definitely going to wait, can't rush these things!
I have my ideal specs now, an a bigger water tank that 80l is a must! 300 even!

It takes time for people to accept that things have changed. People do everything to maintain the status-quo, so a couple of years seems right.

I have no idea if we’re heading into a recession, but I’ll stick with my covid prediction regarding used boat prices. New is a different market, and likely less impacted by this covid trend.
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Old 18-08-2022, 07:40   #13
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Re: Did the prices of yachts plummet in Match 2020?

There are still boats that sometimes are available at reasonable prices. We bought during COVID; the higher revenue we got for our previous boat offset the markup on the boat we bought.

I routinely see (cause I always am looking) very reasonably priced boats on YW. You have to move fast, and be prepared to pay. Questions via email to the broker are a waste of time, the person that gets the boat is the one that calls and says "I have cash will pay $XX pending survey." In fact, lately I've seen a number of local boats sold without a survey, so it's cash as-is. That's the competition.
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Old 18-08-2022, 07:54   #14
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Re: Did the prices of yachts plummet in Match 2020?

if you purchased a motor home 10 years ago in the UK... the price to sell will equal what you paid for it. A new RV has a 12 months waiting list so expect to pay big money for a recent used one....within £5K of the new price. Boats are commanding a good price right now....... waiting is a good idea but no promises as to it dropping in price. My mini countryman car was bought last year at 1 year old. If I sell today... I can get £3K more than I paid.
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Old 18-08-2022, 08:01   #15
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Re: Did the prices of yachts plummet in Match 2020?

Another thing going on that needs to be factored in the pressure on boat pricing.

A HUGE fraction of the people who bought boats during the COVID buying frenzy have never owned a boat before, or are huge increases in size over boats previously owned.

Along about now they are discovering that a boat is a much more expensive asset to maintain than they predicted and they use it a lot less than they expected. I personally know of one $1M sailboat which was flipped for this reason less than a year after purchase.

Those boats will be coming back on the market. Maybe not in a sudden wave, but sure enough. The downside, is they haven't be knowledgeably cared for...
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