12 Reasons Why Now is the Time to Buy a New Boat

Recognizing the best time to buy a new boat to get the lowest price is a little like trying to figure out when the stock market has bottomed. For most people buying stocks, trying to divine the bottom and then invest cold, hard cash takes courage, and a lot of self-confidence. The market can always go lower. Ditto for boat prices.

Lessons of the Past

Many boat dealers went out of business in the Great Recession 16 years ago, and the survivors learned a great lesson: don’t get greedy and over-inventory. The pre-2007 boom, with its “you can’t sell from an empty wagon” philosophy, led to massive over stocking and widespread business failures. It literally took years to sell off the non-current inventory.

This time around, most surviving dealers learned to keep their inventory down, and builders have monitored their dealers’ inventories more closely than before. Likewise, dealer flooring institutions became more conservative about how much line (in both senses of the word) they would throw to their borrowing dealers.

All of this is to say that boat inventory levels for the most part are nowhere near what they were during the Great Recession. Nevertheless, there is an overstock of inventory for many brands and many dealerships, so we are in a situation advantageous for the buyer. 

Caveat: This phenomenon is limited pretty much to small and mid-size boats and for the most part does not exist for large, premium boats with strong reputations long build lead times. In fact, many prestigious brands still have full order books for next couple of years. 

Why It’s Time to Buy

1. Currently, heathy discounts are available from many dealers. Generally speaking, dealers with excess inventory are eager to sit down at the bargaining table. They need cash to pay off their floor plan financing, before it burns through any profit they may have made. Robust discounts abound, just look around.

2. Builders are now more likely to help make a deal happen. Generally, builders are loath to step in and help the dealer consummate a sale, but now we are seeing indications that some are willing to do it. This is somewhat unusual, and it means you have a better chance than ever to cut a good deal. Builders want 2024 inventory cleared so they can begin shipping long over-due 2025 models—and 2026 models are due to ship in just 3 months or so.  

3. Only the quick will get the truly good deals. Thousands of potential buyers are sorting through deals available right now, so those who wait will find the offerings picked over, with the least desirable boats remaining. The window of opportunity may only last a few months. Waiting, as you’ll see below, will probably not bring any better opportunities.

4. Some engine and boat companies are extending warranties. Some of the premium brands have long had robust warranties, but now other builders are extending stem-to-stern warranties. Historically, outboard engine companies have extended warranties in times of slow sales. You need to ask about this. Extended warranties on boats and equipment are valuable.

5. The clock is ticking: boat loans may cost more for non-current boats. Many lending institutions charge a higher interest rate, or require a higher down payment, or shorter term for loans made for new, but non-current boats. For example, 2024 boat models (check the HIN number for model year) are considered non-current even though they are identical to a 2025 model. The difference in rates can be .25 to .75 basis points. 

6. There is no assurance interest rates will go down. As the chart below indicates, over the last 50 years, interest rates have been above where they are now about half of the time. Don’t assume they will go back down, particularly with a tariff war underway. 

7. Boat prices are going to go up, up and away. Once the current inventory is sold off -- the timing of which will vary by dealer, brand and model -- watch prices soar. The tariff war that is just getting under way will automatically add a certain percent to the baseline 5%-10% boat-price increase that we’ve been seeing the last 25 years. So, in the future it will be, say, 7% +X (tariff related) = 12% or more. If you can just financially squeeze into a boat now, you probably won’t be able to in a year or so.

8. Today, the dollar is relatively strong vs foreign currencies. The U.S. dollar is stronger than it has been for most of the last 25 years vis-a-vis the Euro. Further, it is particularly strong against most countries’ currencies that build boats and sell them in the U.S. such as Turkey, Mexico, Australia and Brazil. Buying with a strong dollar gets you more value. While there is a global cost of hard goods and commodities, labor costs are discounted.

9. The US dollar will never again have the buying power it has today because of inflation. The dollar you spent buying a boat in 2000 is worth $0.55 today in purchasing power according to the U.S. Bureau of Labor Statistics inflation calculator. At an average annual inflation rate of 2.75%, your dollar will be worth $0.76 in 10 years. 

10. Now is the time to get more for your purchase than just a discount. In many parts of the country today, slip space is hard to find. Dealers have contacts and can help you. If you want to join the local yacht club, chances are your dealer can ease your entry. Why not a promise that when you bring your boat in for service, he puts you at the top of the list? Be creative, because you’ve got leverage, and it won’t cost the dealer anything out of pocket.

11. Chances are your health will never be better than it is today. According to the CDC, depending on the individual, noticeable changes begin to impact people over 60 with both small and large changes in health. One’s significant other also will encounter the same problems, making it twice as likely that health issues will curtail your boating experience in the future.

12. You’re not getting any younger. Mortality rates among men 50 to 70 by both accident and natural causes is only 2.5% according to the CDC, but one should think of their children and grandchildren. Time spent with loved ones is precious. Your children and grandchildren are growing quickly, and their interests will naturally lead them elsewhere. 

The Bottom Line

Regular readers know that we often say be careful when aggressively trying to get a ‘good deal,’ because you’ll often get a good deal less. By that we mean, don’t go bottom fishing – you’ll usually discover the hard way why a boat is at the bottom after it’s too late. 

Boat dealers have remarkably high overhead due to property taxes and the cost of their on-water or near-the-water facilities, to say nothing of the interest they’ve paid the bank on a boat waiting for you to come along and discover it. 

Don’t try to squeeze every last dollar out of purchase because that approach will hurt you in the long run. You need the dealer just as much as he needs you. Boats are complex and the marine environment is tough on them. You’ll want them to fix your boat -- and with alacrity -- instead of putting your name at the bottom of the list.

Navigating your way around the waterfront is not as easy as you may think, and having a business friend to ask for help will pay off. You may even become social friends.

It’s just good business for you to make a fair deal for all concerned.

Boating will always be expensive, but we think there’s no time like the present to bite the bullet, and start enjoying the good life aboard.