New Twist On Boat Buying

[Canuckjetboater]

Had a very interesting conversation with the V.P. of a very big marina a few days ago. We've been friends for 25 years or so. He manages a marina that services/stores/launches about 400 boats a year and sells expensive boats by the dozens. He said many manufacturers are cutting shipping orders to dealers who don't have a deposit already locked-in on the boats and are instead re-directing inventory to dealers with depositors lined-up. This is new. As many of you know if you want a boat from another dealer that dealer doesn't (usually) have to give it to your dealer. It used to depend on weather the dealer who had the boat wanted it off his floorplan inventory, his relationship with the requesting dealer and if there was a promised quid pro quo for later. In our present environment that "climate" seems to have changed. The boat manufacturers seem to have altered their past shipping procedures. Big volume dealers - particularly if they have depositors with financing lined-up - are getting better and more inventory and able to offer somewhat better deals - if they want to. Smaller volume dealers are being "beaten-up" by the processes that are coming into play. My comments are provoked by the very interesting thread about boat financing that has just been posted on this forum, along with comments that purchasers are being charged for everything with little or no dealing. It seems the watering hole has shrunk and it's everyone for himself. When we bought our 2020 Yamaha SX195 the shortages were just starting. I was able to get some items at dealer cost but shortly thereafter even that stopped at most dealerships. As for financing, friends we have who purchased at the same time as us (different dealer and boat manufacturer) had the money but used a secured line of credit on their house equity instead as their investments were making better returns than the cost of the equity loan. I remember the days when a friend who owned a car dealership was forced by the manufacturer (GM) to take some clunker car models to get the ones that were easy to sell. I think those days are now here for boat dealers - I think they are entering, if not already in, a new kind of dog eat dog environment. As boat buyers we are going to have to "navigate" this new no deals - take it or leave it attitudes. Our best defense is to share our experiences on this website and seek advice from fellow boaters. This too will pass but in the meantime it does take some of the joy out of a boat purchase. My Grandfather used to say that a deal should be like a meal. Everyone should leave the table feeling full. - no one should have left feeling hungry. That is not the case in a lot of instances these days - leaving the table "hungry" because the other guy had the upper hand and rubbed it in is not, in my opinion, a good long term business plan, yet here we are. I predict 2021 is going to be interesting boat sales wise.

 

[FSH 210 Sport]

Had a very interesting conversation with the V.P. of a very big marina a few days ago. We've been friends for 25 years or so. He manages a marina that services/stores/launches about 400 boats a year and sells expensive boats by the dozens. He said many manufacturers are cutting shipping orders to dealers who don't have the boat a deposit already locked-in on the boat and re-directing inventory to dealers with depositors lined-up. This is new. As many of you know if you want a boat from another dealer that dealer doesn't (usually) have to give it to your dealer. It used to depend on weather the dealer who had the boat wanted it off his floorplan inventory, his relationship with the requesting dealer and if there was a promised quid pro quo for later. In our present environment that "climate" seems to have changed. The boat manufacturers seem to have altered their past shipping procedures. Big volume dealers - particularly if they have depositors with financing lined-up - are getting better and more inventory and able to offer somewhat better deals - if they want to. Smaller volume dealers are being "beaten-up" by the processes that are coming into play. My comments are provoked by the very interesting thread about boat financing that has just been posted on this forum, along with comments that purchasers are being charged for everything with little or no dealing. It seems the watering hole has shrunk and it's everyone for himself. When we bought our 2020 Yamaha SX195 the shortages were just starting. I was able to get some items at dealer cost but shortly thereafter even that stopped at most dealerships. As for financing, friends we have who purchased at the same time as us (different dealer and boat manufacturer) had the money but used a secured line of credit on their house equity instead as their investments were making better returns than the cost of the equity loan. I remember the days when a friend who owned a car dealership was forced by the manufacturer (GM) to take some clunker car models to get the ones that were easy to sell. I think those days are now here for boat dealers - I think they are entering, if not already in, a new kind of dog eat dog environment. As boat buyers we are going to have to "navigate" this new no deals - take it or leave it attitudes. Our best defense is to share our experiences on this website and seek advice from fellow boaters. This too will pass but in the meantime it does take some of the joy out of a boat purchase. My Grandfather used to say that a deal should be like a meal. Everyone should leave the table feeling full. - no one should have left feeling hungry. That is not the case in a lot of instances these days - leaving the table "hungry" because the other guy had the upper hand and rubbed it in is not, in my opinion, a good long term business plan, yet here we are. I predict 2021 is going to be interesting boat sales wise.

Spot on !

 

[mrcleanr6]

The boat company that i am a sub contractor for has all build slots full for almost 2 years. Here we are complaining about a 3-5 month wait from yamaha. Put a deposit on one today for a boat you will get 2 years from now lol.

 

[ripler]

As far as not being able to get a deal or not depends on the dealer. I was able to get a good deal on a 2021 Mastercraft in September, more than 30% off MSRP. The dealer I worked with was willing to throw in a few dealer installed options and other stuff for free. I wasn't going to use the boat this year, so I asked him to winterize i for free and he did. Mastercraft has a 25 hour service that needs to be done by a dealer, it's a 4-5 hour service and at dealer rates it can be pricey, he included it for free. When it came to financing he came to me with a rate from a bank, I said it was too high and asked him to go back to the bank with my counteroffer. He went back to the bank with my offer and they would only accept my offer if he lowered the boat price by a few hundred dollars, he lowered the boat price without an issue.
I went to 3 dealers when I was buying my new boat, within minutes of talking with the first 2, I could tell I wouldn't be buying from them. There are dealers out there that are honest and truly value their customers, you just have to find them.

 

[212s]

As boat buyers we are going to have to "navigate" this new no deals - take it or leave it attitudes. I predict 2021 is going to be interesting boat sales wise.

This too may become the "new normal"...I'm hearing too many reports of changes to how everything is being done from cars to restaurants to hotels and households. This pandemic and rolling lockdowns crap is literally ruining small businesses and nothing is being done to help stop it. I've seen businesses go under (local businesses that we dealt with for years) that were promised financial help for the lockdowns but received nothing from the government (and I mean not a single penny), meanwhile the big boys like Costcos, McDonald's, Walmarts, etc. continue to chug along just fine. Now boats and leisure is being gravely affected. This is not good news...and does not bode well for the future of the "little guy" or anyone else getting a mediocre paycheck.
?

 

[212s]

As far as not being able to get a deal or not depends on the dealer. I was able to get a good deal on a 2021 Mastercraft

It's good you got a deal, but remember that some brands have more wiggle room than others in their profit margins. And Canadian pricing is less flexible due to dollar exchange rates, import fees, duties, and higher taxes that we must endure. It's not always apples to apples.

 

[InmyElement]

Had a very interesting conversation with the V.P. of a very big marina a few days ago. We've been friends for 25 years or so. He manages a marina that services/stores/launches about 400 boats a year and sells expensive boats by the dozens. He said many manufacturers are cutting shipping orders to dealers who don't have the boat a deposit already locked-in on the boat and re-directing inventory to dealers with depositors lined-up. This is new. As many of you know if you want a boat from another dealer that dealer doesn't (usually) have to give it to your dealer. It used to depend on weather the dealer who had the boat wanted it off his floorplan inventory, his relationship with the requesting dealer and if there was a promised quid pro quo for later. In our present environment that "climate" seems to have changed. The boat manufacturers seem to have altered their past shipping procedures. Big volume dealers - particularly if they have depositors with financing lined-up - are getting better and more inventory and able to offer somewhat better deals - if they want to. Smaller volume dealers are being "beaten-up" by the processes that are coming into play. My comments are provoked by the very interesting thread about boat financing that has just been posted on this forum, along with comments that purchasers are being charged for everything with little or no dealing. It seems the watering hole has shrunk and it's everyone for himself. When we bought our 2020 Yamaha SX195 the shortages were just starting. I was able to get some items at dealer cost but shortly thereafter even that stopped at most dealerships. As for financing, friends we have who purchased at the same time as us (different dealer and boat manufacturer) had the money but used a secured line of credit on their house equity instead as their investments were making better returns than the cost of the equity loan. I remember the days when a friend who owned a car dealership was forced by the manufacturer (GM) to take some clunker car models to get the ones that were easy to sell. I think those days are now here for boat dealers - I think they are entering, if not already in, a new kind of dog eat dog environment. As boat buyers we are going to have to "navigate" this new no deals - take it or leave it attitudes. Our best defense is to share our experiences on this website and seek advice from fellow boaters. This too will pass but in the meantime it does take some of the joy out of a boat purchase. My Grandfather used to say that a deal should be like a meal. Everyone should leave the table feeling full. - no one should have left feeling hungry. That is not the case in a lot of instances these days - leaving the table "hungry" because the other guy had the upper hand and rubbed it in is not, in my opinion, a good long term business plan, yet here we are. I predict 2021 is going to be interesting boat sales wise.

My brother owns a bike shop same scenario for him now..

 

[mwalker4]

These type of issues are common when the government prints money and distributes it without goods and services being produced. Too many dollars chasing too few goods. The theory says this should result in inflation. We shall see.

 

[Beachbummer]

I agree with the inflation concerns, but the cause this time is both reduction of supply due to Covid, and the increase in Demand due to boating being a Covid compatible activity. I don't think stimulus $ is yet a factor in the boat supply/demand imbalance.

 

[traderfjp]

I just bought a 195S and there is maybe 3 -5 in stock in the nation. They are hard to find and they go fast. I was lucky enough to get a deposit on one and am picking it up shortly. I was able to get a starter kit thrown in and a mooring cover for 500.00. I was charged 500.00 for prep and 1500 for destination charges. I was around 42500 without tax which is 3%. I would have bought used but once again that 195S is hard to find on the used market and for a few grand more I get a brand new boat with a warranty. However, I read that dealer prep and destination charges are standard in a normal year and that to get a deal you have to go to a boat show or find a dealer who is having a hard time moving the boat model you want. I think I did ok because I did find a 195 and the dealer wanted an extra 1k over the 195S. I also had huge bids for the 195s that we several thousand more. We are in crazy town right now. Not much dealing.

 

[bigwaves]

I'm so lucky to have bought when I did back in February. I got a free Yamaha Premium Cover, free spare tire, free spare tire mount, free safety/Coast Guard required stuff, discounted YES extended warranty, installation of my SIMRAD GPS chartplotter for free, free 10 hour service and the winterization for this offseason done for free, dealer prep $0.00., shipping $0.00. I wasn't charged for the anchor kit (did that come with the boat?). Timing is everything.

 

[Canuckjetboater]

I'm so lucky to have bought when I did back in February. I got a free Yamaha Premium Cover, free spare tire, free spare tire mount, free safety/Coast Guard required stuff, discounted YES extended warranty, installation of my SIMRAD GPS chartplotter for free, free 10 hour service and the winterization for this offseason done for free, dealer prep $0.00., shipping $0.00. I wasn't charged for the anchor kit (did that come with the boat?). Timing is everything.

@bigwaves ..... AWESOME. I got the Yamaha trailering cover included, the snap on bow and cockpit covers at dealer's cost with free installation, spare tire and rim at dealer's cost plus some maintenance gear. Now, around here, a request like that would likely result in an outburst of laughter at a dealership.