A survey conducted recently by BoatTrader revealed that 49% of the “for sale by owners” (FSBO) who purchased boats during the pandemic plan to upgrade, 40% of millennial buyers plan to upgrade, and 73% of those planning upgrades or downgrades are cash buyers.
The study performed by BoatTrader on its For Sale By Owner (FSBO) platform, found that out of all the private sellers that purchased boats within the past one to three years, close to half (49%) of the participants expressed a desire to upgrade, with millennials being the largest generational group.
Two in five (40%) of millennials that purchased their boat during the pandemic boating boom reported intent to upgrade their vessel.
The survey’s additional findings, which asked participants if they were first-time boat buyers, further reinforced that millennials are strongly motivated to upgrade their boats. Out of the 2300 respondents who stated this was not their first boat, 68% were identified as millennials.
“It’s been exciting to see younger generations showing a strong interest in the boating lifestyle. The continued growth and success of the boating industry depend on attracting new and younger customers,” said Courtney Chalmers, vice president of marketing at Boats Group, the parent company of Boat Trader. “With millennials comprising such a large portion of the population, their interest in boating presents a significant opportunity for the industry.”
Normalization of Boat Buying Continues
According to the latest report by Boat’s Group, buyer interest shifted last year, leading to a normalization of the industry. As a result, the total number of boats sold worldwide decreased for the first time since the pandemic-induced boom. “We are actively observing the market for any trends that may emerge following the peak in boat buying over the past few years,” said Chalmers. “The baby boomer generation has been a key demographic for the boating industry. Still, it is equally important for us to capture interest and retain younger buyers in order to provide a stable foundation for the industry’s future.”
Rising interest rates may be top of mind for most, but not for private boater sellers looking for their next vessel purchase. Close to three-quarters (73%) of sellers who plan to upgrade or downgrade intend to pay for their next boat in cash. Out of those cash buyers, 64% are millennials.
In addition to private sellers searching for their next vessel, respondents reported lifestyle changes, including moving and health reasons, no longer using their boat, owning multiple boats and downgrading as reasons for listing their boat for sale.