From BoatTEST.com: http://www.boattest.com/Resources/view_news.aspx?NewsID=4018

Interesting article. I see a lot of truth in there as far as dealers/manufacturers going out of business, manufacturers eliminating the dealer network, etc. I suspect there were comparatively very few boats built in 2008 & 2009 and probably in 2010. This will probably keep the resale prices on those boats higher as people who want to buy "nearly new" are going to have a lot smaller inventory to select from. It's the old law of supply and demand.

Boat sales are still in the toilet and that's not likely to change any time soon. Right now the supply of new and used boats far exceeds demand. I suspect the "good deals" on used boats and leftover new boats will continue through this year. Only time will tell what happens going into 2011.

After the wild goose chase we just went thru with all the local financial institutions, I suspect demand for boats isn't nearly as low as the amount of money banks are willing to lend.

Now, this here is one scary sticker. After putting 12-1/2 big ones down to start, you're still looking at 6 bills a month for 20 years... It's not like there's no demand for a Cobalt 242, but try to get a loan to buy one...

ouch.

As an example of the inventory situation, my wife and I went to an open house at the local Marine Max / SeaRay dealer. They had 9 boats on display from 18' to 58', however the only 2010 was the 18'. Most were 2009's, the 47'er was 2008, and 2 of them were brokerage boats, a 2008 280 Sundancer and 2006 58' flybridge model.

They didn't even have price stickers on the boats, just spec.s sheets. But they must have been trying hard to move boats cause we saw at least 2 deals being worked on, paperwork was out and being filled out and price discussed.

Somebody must have some money.

That's more than a Formula

BTW, at the New England Boat show (this week) the Formulas seemed to be seriously discounted.

At 6.5% over 20 years financing $81,550 for the payment of $608, it works out to total interest paid of $64,372. So this discounted $92,242 2010 Cobalt 242 ends up really costing $156,614. Wow!

Good luck trying to raise prices when demand for your product is at a very low level. I think somebody needs to revisit Econ 101.

Hasn't Formula moved a lot of boats in the past by using heavily subsidized interest rates? Given today's lending climate, discounting may be their only viable option. Probably better for buyers in the long run who don't end up seriously underwater on their boat loan.

Great link AT
Many good points within.

I keep going back to FR's post on the show price of the 242. I'm reasonably sure it's a very nice boat, but if I was in the market for a new boat, there is not a single number on that sign that would peak my interest enough to even start talking a deal. Is the market in Utah that much better to support those numbers? Compared to what we paid for our 246 new, those prices seem way out of line. With that kind of appreciation in prices, I should be able to sell my like new 246 for 80K, make a hefty profit and the buyer would get a great deal. We should all buy new boats, sit on them for a few years then sell them for a better return on our money than anything else out there. Of course I know it wouldn't work that way. If Formula is discounting their prices, I applaud them. Maybe other manufacturers should take note.

There was an interesting article about inflation and boat prices in this week's boat test newsletter.

Inflation and boat prices

I bought a used 2003 cobalt 246 last july for 10k less than the asking price with the Dorsey trailer. 90 hours were on the boat. I put a chunk of change down on it as well.

With lower volumes prevailing in the boating industry over the next few years, I think you will see boats selling go much more to the 'make-to-order' model rather than 'stock-to-sell'.

Boat buyers will have to rely more heavily on boat shows and the like in order to see the boats first hand rather than being able to see them at a dealer. In this way, dealers will not have to have much investment in inventory and have a better chance for economic survival.