MSRP Discount in today’s economy?

[Rob02655]

Hi everyone! First time caller. After many years of benefitting from the generosity of “friends with boats,” I am considering the option of buying a new 215 Freedom from a dealer who has five 2022 boats in stock with 2023 models starting to arrive. The sticker prices I am being shown (without trailer - which I will want) are between $113K and $117K. Accounting for the state of the economy, what discount from MSRP is reasonable to seek? Might I be better off to wait until winter or early spring before dealers have even greater motivation to move 2022 models? Thank you in advance?

 

[Fixit]

not many people buy boats in the winter, and with rising interest rates id either look for a really good deal or wait them out til they drop some more

 

[seasick]

Ask yourself how you feel the economy will be in 6 months. Maybe confidence will be high and so will boat prices, so buying now may be better. Remember that next season, your boat will have depreciated another year though.

A lot of folks made some poor financial decisions on getting into boating during the pandemic and are more likely to be selling now that they see what is costs to maintain there purchase.
Keep an eye on what 'used models are asking asking and not how long they are on the market ( an indication that price is high or demand is lower)
In general figure that in a normal market, brokered boats will often sell for somewhere around 5-10% below listed price ( this number probably was a lot smaller during the Covid buying binge).

It is important also to make sure you know exactly what you are getting in a quote. Options are expensive and some things you think should be included may not be and can be costly.
The more information you have, the better.
To make matters harder, some manufacturers stopped publishing MSRPs. Some dealers may share their price lists if you ask.

 

[seasick]

I forgot to mention that in the last couple of years, a lot of boats were selling at more than MSRP

 

[Rob02655]

Helpful insight @seasick
The pricing on seedealercost.com seems pretty informed on both base costs and options. I’m very open to the pre-owned market, and agree that the combination of maintenance costs and an economic downturn could add significantly to boats coming onto the market soon.

 

[Hookup1]

A month ago I walked into MarineMax the local GW dealer. Cavernous showroom completely empty! Out front were two used boats. Given that all the dealers sold everything they could get I would imagine you are not going to find a “deal”.

 

[Pat Hurley]

Reality check is pulling in the station now. If financing is not one of your contingencies for buying you will be in the driver's seat, both new and used.

 

[Rob02655]

A month ago I walked into MarineMax the local GW dealer. Cavernous showroom completely empty! Out front were two used boats. Given that the all the dealers sold everything they could get I would imagine you are not going to find a “deal”.

I wonder if this might reflect market differences. I’m in New England where I’m told entry boats (would a 215 Freedom qualify?) are sold to vacation home owners who will use them 3-4 months of the year. The dealer sent me 5 listing sheets and 4 of them were noted as being in stock at one of their yards.

 

[PointedRose]

I’m in New England where I’m told entry boats (would a 215 Freedom qualify?) are sold to vacation home owners who will use them 3-4 months of the year.

it’s not just vacationers and not just New England that boats are used 3-4 months of the year… that’s the typical season for much of the country. In New England, the earliest you can go comfortably is probably May and by October you’ll want your boat out - earlier if hurricanes come up the coast in Sept. so typically 5 months max, 4 is more typical.

if you look for used, check the NH lakes region.

 

[Fishtales]

I’d wait. If things tighten non-current boats will be discounted.

 

[PointedRose]

Not sure I agree - new boats will be shipped to FL for quite a while. It’ll take several years for supply chain, interest rates, and labor issues to get back towards normal to help the industry with manufacturing efficiency.

 

[Rob02655]

Not sure I agree - new boats will be shipped to FL for quite a while. It’ll take several years for supply chain, interest rates, and labor issues to get back towards normal to help the industry with manufacturing efficiency.

I was wondering about the same thing myself @PointedRose. Do you think the used boat market will similarly by influenced by replacement of boats lost to Ian? Has there been any estimate of how many boats were lost?

 

[Mustang65fbk]

I live just north of Seattle and actually bought my boat just over a year ago back in Maryland because the boats on the east coast are oftentimes half the price or less from what they sell for out here. I paid $26.5k for the boat, motor and trailer, then rented a U-Haul truck and drove it the 3,009 miles back to where I live. I've also seen two almost identical boats to mine but that had radar and a kicker motor on them, mine don't have either of those, that sold out here in Seattle on CL for $55k and $65k. My point being that prices are very dependent on location as well as the time of year, how many potential buyers there are and so forth. The GW dealer that I bought my boat from was asking $28k for it, offered $26.5k and they said sure. I personally wouldn't ever buy a boat or a car brand new as the value drops considerably even after the first couple of seasons. I was more than willing to spend $26.5k on my boat as my budget was $35k and I couldn't imagine spending what I'm assuming would've been over $100k for my boat brand new back in 2004 to now have it be worth half that price or less, depending on where you live. I'd personally wait for a nice used boat that checked out mechanically, have a surveyor inspect it for you and save a ton of money. Winter is a great time of year to buy since there aren't as many buyers and it's not peak season like it is during the summertime. As stated above, when I bought my boat last year the GW dealer had a huge showroom that was almost completely empty. They were also a Parker dealership as well as a few other boat brands, and had a couple of those boats but I don't think they had any new Grady's at the time. Just a few used ones like mine and a couple others, which makes me think they probably aren't going to give you any great deals on a brand new one.

 

[PointedRose]

I was wondering about the same thing myself @PointedRose. Do you think the used boat market will similarly by influenced by replacement of boats lost to Ian? Has there been any estimate of how many boats were lost?

It’s hard to say. I’ve seen a lot more used boats being posted in recent weeks. Just still sky high prices, not reflective of the overall market correction.

In SF a 20’ 1973 Boston whaler with a 2000 or so engine will be listed for $20k. Not realistic and I think those listings will sit and start to drop prices. then I look in Boston listings and seeing similar trends (boats that 3-5 years ago would be $5k or less are listed for $10-15k).

But Ian is kind of a wrench. Any boat in Maryland or south Atlantic will be bought up by Floridians once some insurance claim dollars come through. And a lot of Floridians go between the northeast and FL seasonally so people will buy up north and bring south.

such a weird few years for boating industry

 

[Fishtales]

Most that were impacted have a lot more pressing things in front of them than replacing a boat in the short term.
Id see how the ejection and economy play out on the next 90 days and then make your move before spring.

 

[seasick]

I think that the demand from Ian will not be great in the near-term. First of all a lot of folks lost their homes as well as their boat. Secondly, many marinas were partially or totally destroyed. It will be a while before those get back to normal if ever.
There is another issue that is hard to judge and that is the effect on any exodus from flood prone areas. Some people will have had enough of the flooding and are more aware than ever that the flooding is not as rare as once thought.

There are also major insurance issues especially regarding coverage and deductibles. Up north on the East Coast, this week is the 10th anniversary of Super Storm Sandy and there are many properties that still have not been rebuilt. NY lucked out in a weird way since Sandy was not officially a hurricane and therefore the much increased deductibles for hurricane damage did not kick in.

 

[paydaze77]

It’s funny my friend literally just asked the other day in a regulator Facebook page about percent of a Msrp as he was looking at a new regulator. And like this he got 150 comments on hurricanes, supply chain and economics lolol. Not one person actually talked about a recent deal.
I too am wondering what discounts are being cut as I would like to upgrade my boat.
But not to hijack this thread like others. I ordered my freedom 307 Nov of 2020 and got 17 percent off Msrp. Pricing was just starting to heat up so I’m sure I got a better deal than had I bought Nov 2021.

 

[seasick]

It's all about supply and demand and buyer sentiment has a lot to do with demand. Heck, if I could predict the market, I wouldn't have to worry about price.
A boat is worth what someone is willing to pay for it

 

[PointedRose]

@paydaze77 interesting take. Sounds like you don’t have any recent actual information to offer either! Good luck finding your new boat in the empty showrooms.

 

[seasick]

@paydaze77 interesting take. Sounds like you don’t have any recent actual information to offer either! Good luck finding your new boat in the empty showrooms.

Dealers are still taking orders. It's about 5 or 6 months till spring!