Interesting (but sad) article on the boat industry and pricing

[Paxford]

http://www.boattest.com/view-news/5617_sea-ray-boat-company-for-sale

I bought my first 11k new boat in 2006 and sold it for $1000 less in 2013. That's $125 depreciation per year, not bad. I bought my second 20k used boat in 2013 and sold it for $800 less than what I bought it for in 2016. That's $200 depreciation a year. Again, not bad. Who wouldn't want to own a boat for less than $20 a month? Each time I went to buy my wife thought we would be wasting money. When we sold she was happy I bought in the first place.

The article below spells out the market forces of supply and demand that have influenced pricing. I hope this helps someone convince their significant other that a new or used boat is not throw away money ... as long as they buy a good one.

Disclaimer, in no way is boat maintenance or fishing gear considered in my comment about "throw away money" :-)

[Fisherdv]

I had my last boat (all welded aluminum) for 17 years. I just sold it this year and got $200 MORE than what I paid for it 17 years ago

[Yachter Yat]

   No doubt I could sell my Arima for what I paid.......perhaps even more.  That said, I could also wander down to any number of marinas here in the Northeast and pick-up a forty foot "Something or Other" for about half price (or less) right now.  Seems like smaller boats may indeed hold their value to a greater extent than their bigger brothers. 

Yat

[croaker stroker]

I have spent too much on upgrades.   

[Threeweight]

I'd offer a somewhat different take than that article.  To me it reads like complaining that cars don't have tail fins anymore, and that GM nearly went bankrupt.

There is a reason old Sea Rays, Fiberforms, Carvers, Bayliners, Trojans, etc... are a dime a dozen used, and it's not that different than why no one wants Chevy Monte Carlos and Chrysler Cordobas anymore. Build quality on many of those boats was crap, they used tons of non-encapsulated wood for structural support because it was cheap, and they stuck to unreliable, short-lived inboard long after the Japanese manufacturers brought modern 4 stroke outboards to the US.  Brunswick Marine is the worst offender when it comes to gobbling up smaller companies, then running so many brands they end up competing with themselves.  They also bet heavily on 2 strokes (Optimaxes) and short-lived supercharged engines at a time when Honda/Suzuki/Yamaha were rolling out better and better products.  So even where they offer quality, out-board powered products (like Boston Whaler) they lose market share to competitors (like Grady White + Yamaha) just because people don't want their engines.

Contrast that to brands like Grady White, Parker, Arima, which still command strong resale value even for hulls made back in the 1980's.  Or tin-can builders... Hewescraft has been a family business since 1948, Wooldridge since 1915.  Hewes and Wooldridge don't make ski boats.  Or yachts.  Or wakeboard boats.  Or whatever the latest fad is.

Boat builders who understand they are building a luxury item, focus on a clear market, build quality products, and don't over-extend themselves have survived the ups and downs of the market pretty well.  To me, using Sea Ray and Brunswick examples of really bad business plans!

[croaker stroker]

Threeweight, you are absolutely right. Builders have to be quick on their feet and fight to stay alive.

The US is a hostile invironment for manufacturers. We are unable to compete with other manufacturers because of high indirect costs like insurance, regulations, taxes, and air quality controls. California is the worst.

Funny thing about NAFTA....manufacturers are allowed to "step over the border" and avoid most of these restrictions.   

[Dhil12]

I have a freind who applied and may be going to work for Cutwater boats(the same owner as Ranger tugs ) I dont know anything about their quality but they are selling lots of boats. For me I chose Arima and couldn't be happier. My boat constantly exceeds my expectations

[GregE]

I talk to a lot of Arima owners-  mostly of used ones.  Most are great folks and nearly all are enthusiastic Arima owners. 

The value of well made boats does not decrease greatly after the initial depreciation.  The boats I've sold haven't been big money makers but I get back the money I've spent.  What's Not recovered is the man hour/ sweat equity-  but that's part of taking care/ upgrading as needed our boats.

Marine 40 may disagree with my last statement but his Upgrades/ labor efforts have been huge.   :biggrin: