Anyone here buy a Sea Ray through Costco?

I can't answer all your questions, but my dealer told me about the Costco incentive. He filled out the paper work and lowered the price. I also received a $500 Costco giftcard in the mail about 3 months later. Doesn't get any easier than that.
 
As noted above, it's a Costco incentive, you're not really buying through Costco. They just refer you to the dealer and you get the advertised incentive. I don't know if the dealer eats the cost or not. They might treat it as commission to Costco or a finders fee.
 
My dealer was recently telling me this program offers great discounts although we were talking about the Boston Whaler program through Costco at the time. I can't imangine the SR program is any different since they are both Brunswick companies. From what I understand, they go to an internal site, enter the Costco ID number and the HIN of the boat you are buying and it spits out the discount which varies widely but I was told is very good. It seems the discounts are handled at the manufacturer level. It sounds like if you are purchasing a boat new, it is well worth it just to go sign up at Costco to get the discount.
 
My boat was a Costco deal. The Costco price was about $2000 less than the boat show advertised price. The buying experience was easy and the incentive included all the trimmings offered to non costco deals. It was a contributing factor in making my new boat purchase.

As to the dealer making money on the deal. Well their in business to make a profit and the increase in volume from the costco customers probably makes up for a lower margin.
 
Something to think about.....The Costco deal or a boat show deal means you're buying a NEW boat, and new boats depreciate very fast....to the tune of about 15% per year for the first 4-5 years. (No, I don't want to get into a debate about that 15% figure. I realize it varies depending on your location and the type/size of boat you're buying, but it's pretty close to reality prices)

Possibly a better choice is to find a similar boat in the used boat market that's 3-5 years old and has already taken the big depreciation hits. Generally a boat will have somewhere around 50-75 hours per year so a 4 year old boat could be expected to have a couple of hundred hours on it. When you divide the depreciation cost by the number of hours on the boat, that amounts to quite a hefty sum per hour of usage.

My first 330 'Dancer was 6 years old when I bought it, only had ~200 hours on it, and I got it for less than half the price of a new boat's boat show prices. Those hours the prior owner put on it cost him a bundle.

Just saying........
 
The Costco deal worked for us a couple years ago. But the salesman told me the price was firm and he couldn't negotiate or throw in any extras. Supposedly Costco audits some of the sales to verify the price.

Then there was some confusion on the gift card. I had to respond to a phone survey before I could get the card. Well I missed the 1st call so I called them back since they didn't call me again. Somehow that got me into there system twice and I ended up with 2 cards. When they call and ask for it back I will send them a check :)

Good luck.
 
We got ours via the program. No wiggle room on the base price but you can haggle on any options that were not already installed. My only regret was that it was only from dealer stock which had the Bravo 1 drive and not the Bravo 3.
 
I concur. For what we spent,we could have gotten larger boat a few years old......
 
We got the Costco incentive, too. It was very easy, and we did not have to buy from our local dealer stock, we got the boat we wanted with all the extras shipped to us. As far as buying new and depreciation...I reason that I have always bought my cars used, so I'm willing to suck up some depreciation on a shiny new boat with a long warranty! We are planning to keep it for about ten years anyway before trading up. It's going to have a LOT of hours on it by then...every one of them worth every penny paid!
 
Gofirstclass said:
Something to think about.....The Costco deal or a boat show deal means you're buying a NEW boat, and new boats depreciate very fast....to the tune of about 15% per year for the first 4-5 years. (No, I don't want to get into a debate about that 15% figure. I realize it varies depending on your location and the type/size of boat you're buying, but it's pretty close to reality prices)

Possibly a better choice is to find a similar boat in the used boat market that's 3-5 years old and has already taken the big depreciation hits. Generally a boat will have somewhere around 50-75 hours per year so a 4 year old boat could be expected to have a couple of hundred hours on it. When you divide the depreciation cost by the number of hours on the boat, that amounts to quite a hefty sum per hour of usage.

My first 330 'Dancer was 6 years old when I bought it, only had ~200 hours on it, and I got it for less than half the price of a new boat's boat show prices. Those hours the prior owner put on it cost him a bundle.

Just saying........
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I agree with you basic point that in many cases a used boat is a much better value than a new one. That was certainly the case with my recently departed 320 which had 55 hours on it when I bought it 3 years old. The only true repair I had to make was replacing the Systems Monitor. However, with even a pristine used boat, you are going to suffer or benefit from the previous owner's attention to maintenance and you have no warranty to fall back on if there is a problem even on a boat that has been surveyed.

This time around I bought a brand new boat ordered from the factory with only the options and color I wanted with a 5 year warranty on everything. I can break the boat in properly for the first 20 hours and then properly maintain it after that point. I don't do any of the maintenance or repair on my boats and thus have to rely on a $100/hr+ mechanic so this is a bigger item for me than most here that do a lot of their own maintenance and repair. If I decide to sell the boat in 3 years I probably will take a haircut on depreciation but if I keep it 5 or more years I don't think that will be nearly as much of an issue. The other important point is I bought a new 26' bowrider not a 45' express or bridge boat that would have cost perhaps 7-10 times more new. My point here is if you can afford it, buying new or "newer" may be a better deal resulting in lower overall ownership costs.
 
320Bob said:
I don't do any of the maintenance or repair on my boats and thus have to rely on a $100/hr+ mechanic so this is a bigger item for me than most here that do a lot of their own maintenance and repair.
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That is cheap. I have seen it in the $130-$150/hr range now. Glad I do my own work and it keeps the admiral happy so she can buy more fishing poles..
 
Most people don't have a clear understanding of just how much depreciation really costs them. Using the numbers on the 2012 330 Sundancer from the boat show pricing thread, here's how that works out....

MSRP..........$326,104
Show Price..$255,918

Using that show price as a starting point, at the end of one year your 2012 330 Sundancer is going to be worth....

1 year old....$217,530
2 year old....$184,900
3 year old....$157,165
4 year old....$133,590
5 year old....$113,552
6 year old....$ 95,619....this is only 37% of the new boat selling price.

Those numbers aren't going to be perfect, but they're close. In 2002, I bought a 1996 330 Dancer with about 240 hours on it for $75,000. I figure those 240 hours cost the prior owner somewhere in the neighborhood of $90-$100K, or about $400 per hour of engine time. That's pretty expensive cruising.
 
Gofirstclass said:
Most people don't have a clear understanding of just how much depreciation really costs them. Using the numbers on the 2012 330 Sundancer from the boat show pricing thread, here's how that works out....

MSRP..........$326,104
Show Price..$255,918

Using that show price as a starting point, at the end of one year your 2012 330 Sundancer is going to be worth....

1 year old....$217,530
2 year old....$184,900
3 year old....$157,165
4 year old....$133,590
5 year old....$113,552
6 year old....$ 95,619....this is only 37% of the new boat selling price.

Those numbers aren't going to be perfect, but they're close. In 2002, I bought a 1996 330 Dancer with about 240 hours on it for $75,000. I figure those 240 hours cost the prior owner somewhere in the neighborhood of $90-$100K, or about $400 per hour of engine time. That's pretty expensive cruising.
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GFC I think your numbers are a bit too agressive on the depreciation. Take my recently departed 2006 320 as an example. The MSRP on that boat was around $267,000 and I got $110,000 in trade this week or 41% of the MSRP. I paid with $120K for it two years ago. Assuming the PO got the same 22% discount and had he traded it in instead of me he would have gotten 52% of his purchase price back after 6 seasons. With lower new boat production over the past few years, I believe that supply and demand will reduce the depreciation curves on new boats because fewer and fewer good used boats with be availble to compete. Significantly reduced supply with a somewhat diminished demand will likely lead to higher prices for used boats making them not as attractive to new boats as is the case today. My view, right or wrong, is that boat economics over the past 15 years are not likely to match those over the next 15 years unless the Feds put new taxes on boat purchases or fail to get our fiscal house in order.
 
320Bob, I think we're both right. Here's my thoughts....I calculated the depreciation figures above based on the boat show price of that boat. You based yours on MSRP. That accounts for part of the difference. You said you got 41% of MSRP after 6 years as a trade in on a new boat. Having worked as a manager in the RV sales business for many years I know how easy it is to overinflate the amount given for a trade in when dealing with a new RV. It's the same in the boating industry.

I'm not saying you're wrong with your figures, and I could definitely be off in my 15% per year number, but I bet I'm not off by much.

I do think you're on the right track with your analysis of the future in "new vs used" pricing. Part of the pricing structure of what a used RV/Boat/Car/Truck is worth is based on what new RV/Boat/Car/Truck prices are. If huge discounts and rebates are being given on new trucks (as an example), the price of year old used trucks is going to be pushed down. That, then, pushes down the pricing of two year old trucks, which pushes down three year old trucks, etc. Let's face it, nobody is going to buy a one year old truck for top dollar when he can get a brand new one for just a little bit more.

That works the same way with boats, RV's, etc.

Supply and demand do play a part in the pricing structure, but not as much as one might think. Look at the "Cash for Clunkers" program from a couple of years ago. The Talking Heads on TV said that with all those older cars and trucks out of the available inventory that prices of the remaining vehicles was going to skyrocket. It didn't happen because rebates and low interest rates kept it from happening.
 
Talked to a guy with frequent inside SR dealership onfo; he indicated dealers get about half the margin on Costco deals as they do on retail deals. For what it is worth.

MM
 
MonacoMike said:
Talked to a guy with frequent inside SR dealership onfo; he indicated dealers get about half the margin on Costco deals as they do on retail deals. For what it is worth.

MM
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Mike, I have to think something is off with what you were told. For no other reason that I just cannot believe for a second that my Sea Ray dealer would advertise this program in their showroom, effectively encouraging people to join the program just so they can get 50% knocked off their profit margin? Something just does not add up. Maybe they get money back in other dealer incentives? I have no idea but I have to imangine the dealer profit margin is not affected much at all. I just can't see dealers agreeing to participate in any program, and especially recommend it, if their margins were negatively affected by 50%. Maybe your source is comparing a Cosco deal to if they sold a boat at MSRP, which I can't imangine happens often anyway?



As for GFC's numbers on new boat depreciation, I am really not sure he is that far off, at least on cruisers. It does seem though that after 4-5 years the curve lightens up drastically. I don't think sport boats are as bad either. When I was told what "bottom dollar" price was on a new 2010 330DA and compared it to what was being asked for double digit hour used 2009 310DAs which are the exact same boat, the facts were, "eye opening", to say the least. There are a number of reasons to buy new and I don't fault people for doing so. I know a guy who buys a new boat about every 14 months and moves up 2 feet at a time. He just likes new boats and change, he can afford it and it is his money to spend so more power to him. He keeps his boats in tip-top shape so some great boats enter the market every time he trades. I also have a couple friends who have done pretty darn well on new boats because they bought right. I can't see myself ever buying a new cruiser personally, but either way, I am glad new boats are still selling! I do think that with the inflated cost of new boats, since the market has calmed down, will do nothing but good for used boats. A friend of mine sold a 26' (non Sea Ray) last year for about an 8K profit after owning it for 1 year. All he did is tell the buyer- "Hey, this is a '02 model that runs good in good condition. Check around and see what a comparable new boat in a 2011 model would cost."
 
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Depreciation is a real cost of owning something, but it's not a cost that is usually included with the "cost of ownership" calculations. Most people include a monthly payment, taxes, insurance, licensing, gas/oil and maintenance.

When my clients would come to me to ask about buying a new vehicle my comment was usually along the lines of "Think if it this way...if you had to write a check for $450 for your monthly payment and another for $450 to your depreciation account, that's about what the depreciation costs you on that new ride."

It was a real eye opener for most of them because they'd never thought about the cost of depreciation.

I bought GW's 2008 Infiniti G35X at invoice in 12/2008 and paid somewhere around $33,000 for it. Today it's worth about $21,700 as a clean trade in and $25,000 as a clean retail car. A grand of those prices comes from the low miles so if you take that off, and use the clean retail price, it's lost $9,000 in 3 years, or just about 27% in slightly over 3 years. And that's using the invoice pricing as the starting price. The MSRP on her car was somewhere around $37K. If you use that as the starting price, it's lost about 35% in 3 years. That's better than most cars so I don't feel too bad about it, but it's still a $13,000 loss over that three years. OUCH!!!

And that's on a car that was chosen in 2008 by Consumer Reports as the top rated luxury sport car of the year.
 
Gofirstclass said:
Depreciation is a real cost of owning something, but it's not a cost that is usually included with the "cost of ownership" calculations. Most people include a monthly payment, taxes, insurance, licensing, gas/oil and maintenance.

When my clients would come to me to ask about buying a new vehicle my comment was usually along the lines of "Think if it this way...if you had to write a check for $450 for your monthly payment and another for $450 to your depreciation account, that's about what the depreciation costs you on that new ride."

It was a real eye opener for most of them because they'd never thought about the cost of depreciation.

I bought GW's 2008 Infiniti G35X at invoice in 12/2008 and paid somewhere around $33,000 for it. Today it's worth about $21,700 as a clean trade in and $25,000 as a clean retail car. A grand of those prices comes from the low miles so if you take that off, and use the clean retail price, it's lost $9,000 in 3 years, or just about 27% in slightly over 3 years. And that's using the invoice pricing as the starting price. The MSRP on her car was somewhere around $37K. If you use that as the starting price, it's lost about 35% in 3 years. That's better than most cars so I don't feel too bad about it, but it's still a $13,000 loss over that three years. OUCH!!!

And that's on a car that was chosen in 2008 by Consumer Reports as the top rated luxury sport car of the year.
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You can actually add about 3% more to the loss of value due to inflation.
 
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