2010 leftover

MM
The dealer was not an idiot he needed space for his new 370 invetory. He also had a balance on my 350 which is the same boat so he came to me I had a 300 I was happy with but told him in the beginning that at the middle of the season to let me know if he would deal in may my boat was 279000. At that time i could get it for 250000 plus my trade.Now keep in mind new boats have been ordered and scheduled for sept delivery bank value 249k to 300 k in July he called me and asked if I was interested at 180 and use my 300 as down payment I said I'd take the boat at 180 but wanted 3.75apr and I would do 150 note and sell my 300 outright he took it sold my 2002 300 for 80k. And the reason he took it for under book is that's all he had left on his not to sea ray or who ever he finances through.So I know why he did if you think about it he wasn't an idiot he just freed up working capitol.
 
JV II said:
The used boat market price is where you want to start your negotiation because that is what it will be worth as soon as you sign the papers.
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+1 ... look at used market for what the same boat is selling for (not asking) and start there or lower. The day you buy it and launch it - that is what it will be worth (less what you paid in taxes).
 
I'm not sure about MM but many Sea Doo dealers and such get thier inventory on consigment for X amount of months. Once they reach the date they have to pay the manufacturer for this item. Most will sell near cost so they don;t have to come out of pocket. Car dealers do the same. So as the manufacturer is requiring the dealer to commit to more "new" inventory they have to get rid of last years models. I bought my Pro-Sport and Aqua Sport this way (both from the same dealer). I ended up dealing with the owner and he showed me all the paperwork on the boat. I paid $100 more than his payoff.
 
On bigger boats, 50% is a good target - off season, over 2 years new (old, but new). I think the used boat value plus the value of new warranties plus whatever it's worth to you to have a "New" boat is the right price.

Depreciation is 30%, 20%, and then 10, 10, 10 for the first, second, and subsequent years. Just past 2 years, you hit the 50% mark. If they have another buyer, this may not work, but if they had another buyer, the boat wouldn't be there for over 2 years.
 
Make sure you check with whatever bank you use for financing to make sure they will consider it a new boat. I have been told that some banks are now considering a boat older than the prior model year used, from an Interest Rate and Term prospective, regardless of whether or not it has been registered previously.
 
If the title is transferred on an MSO (manufacturer's statement of origin) I don't see how anyone can consider it a used boat. What a lender is willing to loan for its purchase is a completely different matter since you can certainly see how the buyer could immediately find himself under water on the loan.
 
Bucit said:
I ended up dealing with the owner and he showed me all the paperwork on the boat. I paid $100 more than his payoff.
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That may be the case but don't believe for a second he only made $100. There is most certainly a manufacturer incentive for each boat sold that is independent of the [sale price] - [dealer invoice] equation. Depending on the size/value of the boat these incentives can be quite large. Plus if you finance the boat the monkey business that goes on between dealers, manufacturers, and finance companies would make your head spin. Also, I believe there is a holdback system in place for marine dealers that is similar to the auto industry. In addition to sales incentives there is likely also a holdback amount for each new boat the dealer takes on that the manufacturer will also pay the dealer upon sale. Now depending on how long the dealer had to hold on to the boat before he sold it - certainly much of that holdback amount may have already been spent on financing, upkeep, demoing, etc.
 
This isn't the car business.

All Sea Ray dealers must pay for the boats before that are unloaded at the dealer's store........whether or not they use a floor plan or cash is a dealer decision.

There are no hold backs.

It is very likely that a dealer will break even or even lose a little money on old inventory because the boat has costs if it is on the dealer's lot. Eliminating the cost for interest, if the boat is on a floor plan, routine maintenance if the boat is in the water, boat washing and insurance (since the dealer owns it, he insures it) all means reduced cash flow with the end of summer approaching. Therefore, losing a few thousand on a boat one time when it sells may well save the dealer a few thousand a month if he must winter the boat.

Boat dealer F&I is a profit center, but since the bank shake out in 2008-9, the finance picture is pretty straightforward to the point that a spread on the interest rate is about all dealer can do. Of course, extended warranties remain a high margin item.

As far a dealer incentives, Sea Ray only does incentives on a national basis and they are usually advertised. They do not cut individual deals on specific boats, however, if there are a total of say 4 left over 2011 310DA's in the country, they may offer the dealers of all 4 the same discount to help them move and none of us knows if there was such a situation on this particular boat.
 
Here's a question. How is the condition of the boat? A two year old boat could show considerable wear from weather, and lookers after two years? Was it stored indoors, covered, has it been waxed? Two year old uncovered cockpit upholstery can have a considerably shorter life. Out here in the SW I have seen couple year old "new" boat show specials, that I had routinely driven by uncovered, in the elements for the entire time. They have been cleaned up at the boat show, but if you look closely, you can see the difference.
 
Come on guys, give mainstream a break. He is contributing, that is worth its weight in gold. If we are complaining about punctuation life must be pretty rough eh? Best wishes.
 
Cash buyers may actually have some bargaining power. Credit buyers? Just the ones the banks and boat dealers can get to sign up for the debt. Don't believe me? Arm yourself with cash and see how low they can go.
 
A cash deal means 2 things to the dealer..........less profit because they make an interest spread on any deal they get financed, but a sure thing. So their decision point boils down to the perceived credit worthiness of the buyer and the risk that he can't get financed or a sure thing and cash on closing.

The truth of the matter is that there are still a lot more new boats at dealerships than there are new boat buyers, so they are going to take every deal, cash or financed, if it makes sense. Our dealer had a 2009 340SDA in 2011 and sold it 4 times before a qualified buyer showed up. The motivating factor was not profit but to get the boat off the floor plan to a credit buyer because it was preventing the dealer from investing in new boats and they needed the margin on the interest spread. The 340 was old enough that the floor plan lender had long ago required the dealer to pay off the floor plan on that particular boat and the spread on the buyer's interest rate was all the dealer made on this one.

It is a lot more complicated than "Cash talks".
 
fwebster said:
A cash deal means 2 things to the dealer..........less profit because they make an interest spread on any deal they get financed, but a sure thing. So their decision point boils down to the perceived credit worthiness of the buyer and the risk that he can't get financed or a sure thing and cash on closing.

The truth of the matter is that there are still a lot more new boats at dealerships than there are new boat buyers, so they are going to take every deal, cash or financed, if it makes sense. Our dealer had a 2009 340SDA in 2011 and sold it 4 times before a qualified buyer showed up. The motivating factor was not profit but to get the boat off the floor plan to a credit buyer because it was preventing the dealer from investing in new boats and they needed the margin on the interest spread. The 340 was old enough that the floor plan lender had long ago required the dealer to pay off the floor plan on that particular boat and the spread on the buyer's interest rate was all the dealer made on this one.

It is a lot more complicated than "Cash talks".
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+1 to what Frank says. My friend who works for the dealer I boaught mine from says the same thing it really boils down to how much they need to get rid of the boat to free up the floor plan, and how much they have into the boat in question.
 
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