The Good Life Was Never More Affordable

Last winter we wrote that 2009
would be the best year in history for boat buying. Events over the last three months have
proved that prediction true, and it has become, in fact, far better than we ever
imagined. As the president of one boat company told us last week, “Be careful what
you offer for a boat, you may own it.” Prices of new and non-current boats are pretty
much at dealers’ invoices and in some cases are even lower.
Some companies are selling
boats just to raise cash, and discounts are jaw-dropping. On the used boat scene,
prices have been dropping every month and there are lots of boats for sale in nearly
every size, type and price range. If you ever planned on buying a boat, or getting
a larger one, or a better one, now is the time to act.

Memories with family and friends are what boating is all about. Now is the best time to go for that boat you have always wanted.

1. Don’t wait for the bottom. In the long
run, whether you wrung the last 5% out of a deal won’t matter if you didn’t get
the boat at all.


2. Suck it up and take courage. Just like buying stock when the
Dow hit 6547 on March 9th, it takes courage. Now, just 60 days later the Dow is
29% higher at 8418. How many people got the great deals on stock? Our guess is some,
but not most. To do that took courage most people didn’t have.


3. Don’t wait too long. We are reminded that Bernard Baruch was
once asked how he got so rich and his answer was, “By selling too soon.”
A converse
of that advice is, “Don’t buy too late.” The reason is that if you wait too long
the good deals will be picked over like fruit in the afternoon at your local market.


4. Don’t be shy about taking price. Once you have zeroed on the
boat or boats you want, you need to make an offer and start the negotiation process.
Let the seller know you like the boat and are serious and it is just a matter of finding the right deal.
Then deal in good faith.


5. Leave something on the table for the dealer. If the dealer can’t
make a few dollars he might as well let the bank or the builder take over his stock.
He doesn’t need you in order to lose money; he can do that quite easily without you. But if you own a boat, we guarantee you that sooner or later, you’ll need the
dealer.


6. Don’t assume that you can find a great repo deal. If a dealer
goes out of business, the bank gives the stock back to the builder, in most cases,
and the builder moves it to another dealer. The builder will hold the price somewhere
above his cost so as not to devalue his other product. Repos of used boats from
consumers are usually not in good condition.


7. Don’t be a “bottom feeder.” Right now there are many “bottom
feeders” and they are waiting for an even lower price. It is sort of like waiting
for the Dow to hit 5,000. It could briefly go there, but what if it doesn’t, or
what if it is
only there for a day or two? Our advice is don’t be a “bottom feeder”
because we guarantee you will get bitten on your bottom.


8. New boat prices will go up next year. Boat prices that have
been announced for new 2010 and 2011 construction are higher than today’s MSRP prices.
They have to be. Engine prices have not gone down, labor has not gone down, and
many component and material costs have not gone down. But what has gone down are
the number of units across which a builder can spread his fixed costs. Since he
is now predicting lower sales, he must spread those fixed costs over fewer boats.



What all of this means is that now is the time to go for the boat of your dreams.
It will never be cheaper than now. If you’ve always wanted a big boat and you have
never cared much about the brand, now is the time to buy it. If you have always
had your heart set on a prestigious brand that you never thought you could really
afford, now is the time to make an offer, you might be pleasantly surprised.



Good hunting!