buy USED but lock-in a trade in price for NEW

unklbuck

New Member
Mar 4, 2007
211
Pittsburgh - Charleston
Boat Info
2009 Regulator 32
Engines
Yamaha 350s
Never bought a new boat, always used.

But, this weekend going to visit the dark side and see some Tiaras.

The new boat has just been released from production and the dealer offered me this deal.

Lock in a price for the new boat and then get in line and wait for that production release (summer or early fall 08), but in the meantime, buy an 06 model from him (on the market >1 year) and he will guarantee me 93% of the selling price as a trade in value for the new one. (would have to order within 18 months).

1. not a big fan of locking myself into a plan that could change within the next year.
2. boating season has about 5 weeks left on the GL.
3. Never bought new and told myself i would only get the next boat if one of the 3D's were involved....death, debt, or divorce.
4. all the signs say wait to next year, but we all know logic smells, and emotion sells.

Anyone buy new with this type of trade in involved or know of anyone who had done a similar deal? thanks.
 
John, Searay of Knoxville does something very close to that. What will you do with your 450 DA? JC
 
Boats are not selling well and this winter looks to be as slow as last. I'm not sure I'd want to make a committment on a boat as much as a year in advance. A lot can happen to your demand, your financial situation, the economy, boat prices, etc. in that length of time.

I would only consider it on a custom; certainly not a production boat.

The other observation if you are selling the 450DA is that you could easily be caught owning 2 boats at the same time and have the fuse lit on a 3rd which puts you under a lot of pressure to dump one or the other boat at way under market money.

I don't care who the maker is, I'm not an early adopter of a new boat designs. Frequently changes and improvements based on the first year's production models make subsequent years much better boats.

Why trade boats with a built in 7% loss only to get a partial year's use out of it? I don't know your sales tax structure, but it may be substantially more than 7% if all the sales price is taxable. If the '08 is such a hot deal then the dealer may be willing to guarantee you no loss if you sign up for this trip. 7% out of his margin on a new Tiara s till leaves him enough profit to make this deal.

But, I'm thinking the smart move would be to take your time and sell the 450DA, not do the '06 deal and save the 7% depreciation + sales taxes, then go shopping.......so what if you watch TV some next summer instead of boating . By next fall with winter approaching you may find an even better buying climate if you are stuck on a new '08.
 
Tend to agree with Frank.

WAY too many variables.

Also, this "trade in" deal. How well written is the contract? Is it a contract, with the money's to trade hands well defined? Or is it a verbal promise? I can just bet that that the "93%" turns into a much lower number next year. And the "price" on the new boat is much higher than the price you can buy it for anywhere else.
 
After putting this down and seeing the responses makes me see reality in a much clearer light...as in fahget about this manuever.

Thanks Dr Frank and Coms....still going on Saturday though... never drove anything with IPS and look forward to seeing how they handle and work. Will take pics

All the best
 

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