New Purchase Discount, does it exist?

[chasfgr]

Originally Posted by Piscis

While talking to a representative from one of the "big 5" manufacturers on the BOOT in Dusseldorf, i was told that there is a discount available. That was in January 2020.

A few weeks later i received an offer to buy a new boat on a 5% generall discount, plus a 2,5% extra discount if i sign contract within a specified amount of time (i think it was by end of March, have to look it up...).

I still receive Emails from manufacturers offering me eased buying requirements, such us delayed initial payments, reduced percentage of timely framed payments and so on...

So yes, there is, under certain circumstances, a possible discount. And i do not think that the boat manufacturing industry is that healthy at this time...

John

It all depends on how full their production schedule might be - and if they have gaps: what's the reason?
Occasionally, if you'll let them produce in their own time...
you might get something off - but you can expect your delivery to be a moveable feast.

[Sand crab]

I have also seen boat show discounts being offered. Maybe it’s different now than 2 years ago.

[sailjumanji]

If they have a build schedule filled for the next 2-4 years, depending on model, why would they discount?

The manufacturers with excess capacity vs demand, sure.

[smj]

Originally Posted by sailjumanji

If they have a build schedule filled for the next 2-4 years, depending on model, why would they discount?

The manufacturers with excess capacity vs demand, sure.

I know at one point in time Seawind was offering a reduced “boat show” special. I wonder if that will still be available now that they are back logged.

[NPCampbell]

Originally Posted by Sand crab

I have also seen boat show discounts being offered. Maybe it’s different now than 2 years ago.

I bought about $10k worth of Garmin electronics at Annapolis 2 years ago. The discount was greater than my round trip airfare and hotel stay. Most of the boats I viewed at Annapolis and Miami had discounts compared to the stock price sheets you see online.

[sailjumanji]

Originally Posted by smj

I know at one point in time Seawind was offering a reduced “boat show” special. I wonder if that will still be available now that they are back logged.

Last one i was aware of was the introduction of the 1190 Sport, i think in 2017. There were none in Jan 2018. And their backlog has only increased since then.

[Piscis]

Isn´t buying a boat and negotiating prices not the same like buying other high value assets?

I guess it might be normal practice for a sales representative to say "no discount" on any initial request on those. However, if you show more serious interests, a discount might be more possible.

Maybe not in a plain number like "i give you 10% off", but more likely in including a couple of on the list options for no additional costs.

That happened to me when building our house, when buying high value sport cars and as well when negotiating a new catamaran...

And i am talking 5 digit numbers. So negotiating is not a bad thing!



John

[valhalla360]

It's all about the market.
- We came out of a period where the economy was booming (at least for the typical new cruising boat buyer). They have money and thus sales are good.
- Oddly, the Rona has created an even bigger boom in cruising boats, RVs and other recreational toys that work with social distancing.
- In the past when the economy is down, they offered deals to move boats.

2020 price in 2025 might be great or it might be horrible.
- If the Rona is controlled soon and the economy bounces back, you will look like a genius locking in the price.
- If it takes another year to get it under control and the economy falls off a cliff, 2025 prices (actual purchase prices) may be lower than the 2020 price.

It's a crap shoot looking that far out.

[rubberducky]

Any potential savings from currency exchange rates or are prices pretty much pegged to the USD?

[bikekite]

Not sure what RONA means. Return On Net Assets??

The only crapshoot for me is that I'm committed to buying a Seawind or I lose my deposit. I can delay my slot or switch to another model. If I decide sailing is not for me, at worst I would forfeit my slot and but like likely I would sell my slot since there is big demand. If the prices decrease, I'm protected.

There has never been a decade post-great depression in the 1930s where price inflation was not positive. If we have a period sustained deflation, I/we will have much bigger issues economically. I don't think many people including myself will be in a position to buy a boat since we will be in a depression far bigger than the one we experienced in 2008-2009+. This would result in most of our investments across every asset class dropping 30+% or more.

Boats like this have small boutique production rates with multi-year backlogs. If this was a high=volume production boat with huge economic incentives to the builder to maintain production volumes due to high cap utilization then I would agree you.

robin

[sailjumanji]

Originally Posted by rubberducky

Any potential savings from currency exchange rates or are prices pretty much pegged to the USD?

My Seawind contract was USD.

[rabbi]

Originally Posted by chasfgr

It all depends on how full their production schedule might be - and if they have gaps: what's the reason?
Occasionally, if you'll let them produce in their own time...
you might get something off - but you can expect your delivery to be a moveable feast.

You are not negotiating with a manufacturer. You are negotiating with a dealer (even at a factory booth at a show you are talking to a dealer typically).

Dealer gets a certain markup (plus some special boatshow deals), and you negotiate a bit of that markup for your own pocket.

I don't know what percentage you can get these days but it doesn't hurt to shop around.

[Yihang]

Originally Posted by rabbi

You are not negotiating with a manufacturer. You are negotiating with a dealer (even at a factory booth at a show you are talking to a dealer typically).

Dealer gets a certain markup (plus some special boatshow deals), and you negotiate a bit of that markup for your own pocket.

I don't know what percentage you can get these days but it doesn't hurt to shop around.

Most of the African builders and Seawind top dogs are at the shows. In many cases the owner themselves. I think a lot of people were referring to those guys (seawind, balance, maverick etc)

Maybe this is why Production builders can negotiate more because the MSRP probably gives the dealers that wiggle room? Kinda like how most car sales guys will give everyone the 'only for you' discount.

[Yihang]

Originally Posted by bikekite

Not sure what RONA means. Return On Net Assets??

The only crapshoot for me is that I'm committed to buying a Seawind or I lose my deposit. I can delay my slot or switch to another model. If I decide sailing is not for me, at worst I would forfeit my slot and but like likely I would sell my slot since there is big demand. If the prices decrease, I'm protected.

There has never been a decade post-great depression in the 1930s where price inflation was not positive. If we have a period sustained deflation, I/we will have much bigger issues economically. I don't think many people including myself will be in a position to buy a boat since we will be in a depression far bigger than the one we experienced in 2008-2009+. This would result in most of our investments across every asset class dropping 30+% or more.

Boats like this have small boutique production rates with multi-year backlogs. If this was a high=volume production boat with huge economic incentives to the builder to maintain production volumes due to high cap utilization then I would agree you.

robin

Is Covid affectionately known at RONA now? I can imagine a few parents playing that joke with the naming of their kid....

Given all the inflation talks, locking in a price now is probably better than a lot of investments at the moment. Cost of Labor for Vietnam will increase for sure in the next 5 years. Cost of all the parts sourced from Australia and Europe will increase as well. Best thing to hope for is for the price to stay the same, assuming some of the initial cost of tooling is suppose to be spread out with the first 10 or so boats, then the savings can offset the inflation.

[Rockinar]

Originally Posted by bikekite

Couple other things to consider on new boat pricing:

1- Boats from South Africa are not subject to 1.5% import duty into the USA due to AGOA. Other countries are 1.5%.
2- Our contract locks in the price for base boat and all the options we select. With a delivery in 2025 (yes 2025!!), we will benefit from paying a 2020 price for a 2025 boat. For example they just increased the price of their 1600 by $100K.
3- Contract also allows us to cancel any options before build starts (approx 8 months) so there is no downside to loading it up and deciding later with the best price.
4- This may not apply to you but if you live in a high sales/use tax state with a cap (e.g. Florida), You can look at options as "tax free" because there is a cap on the maximum sales tax you would pay and thus all of the options added to the boat at the factory would result in the same tax bill. I live in Oregon so this does not apply.

The total cost and premium for a new boat is sobering but as long as your ok with it, go for it!

How are these Youtubers getting Seawinds with no wait and yours is 5 years?