End of season discount?

S

ski2moro

New Member
Aug 25, 2009
8
Upstate
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All the boats I look at are being sold before I can make my offer! If the economy is so bad, why are these boats selling so well? Hmmm.

Here's my noobie situation.

The dealer has a never-been-commissioned 2008 260 Sundancer in stock. I was looking for a gently used 2001 240 Sundancer when this one came along.

We haven't owned a boat for 25 years, but now is our time!

Question 1. When you buy a new boat from a dealer with no trade in, what is the usual and customary discount? Considering no trade, I know that the dealer has a markup to account for that. In the RV industry, a new motorhome with no trade has a 30-40% discount off the bat. Boats too?

Question 2 Considering question 1, AND the 260 is a 2008, AND Sea Ray is offering their end of season rebate/discount, what percentage off the MSRP is a reasonable discount?
 
You are going to get answers all over the map on this one..........

You are looking at a year old boat so normal discounts off MSRP won't apply. To cocmplicate that further, Sea Ray offers incentives at various times in various amounts. Those incentives change and even disappear completely.

For a dealer to stay in business he has to make money. Normal profit margins are usually about 15% under list price. As business conditions warrant a dealer will take less than his formula profit to move a boat. Those business conditions are susch things as local demand (how many qualified buyers walk in his doors), his particular inventory position (how many comparable boats does he have for sale), how long he has had a particular boat (affects his floor plan), his overall profitability, his cash flow needs (he pays employees, insurance, interest, taxes, etc with cash.....sometimes getting cash by selling a boat at any cost is necessary).

Since I don't know where the hell "upstate" is, I'm not going to address local markets.

In this particular boat, be sure you are working from a 2008 price, ask what incentives are offered by Sea Ray then I would offer the dealer 70% of list less the incentives. But, I believe that you need to be "in the money" for you to be considered a serious buyer..........others may offer less but have to negotiate more only to end up at the same out the door cost.

Don't forget the throw-in's.......ask the dealer for a free 100 hour service, free storage, free CG safety kit, anchor and rode, etc.

Finally, I understand that the fund for rebates is used up and the current incentives expire on 9/27 and are the last that Brunswick will allow Sea Ray to do until market conditions change.......better go buy a boat this afternoon!
 
No less than 40% off MSRP. Here's why:
The demand is not there on that boat or it would have sold by now
It is 3 months away from 2010. You are looking at a 2 year old boat
The 260 has been replaced by the 270, so it is also a discontinued model
You can get 30% off a 2010
 
fwebster said:
Since I don't know where the hell "upstate" is, I'm not going to address local markets.
Click to expand...

Dave S said:
Are you in the upstate of South Carolina? (This is a common term used here)
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It’s common in many states. He knew when he was completing is profile what he was doing. I have stopped helping new, low post count forum members who do this.
 
Aw, please don't stop helping me just because I wanted to remain a bit vague.

Upstate New York, ok? Still pretty vague, as residents of Buffalo and Albany refer to themselves as residing in the Upstate region of NY. In fact, pretty much anyone who lives outside of New York City considers themselves upstaters.

I wanted to know things like you mentioned: 30% off a 2010, ask the dealer to throw in some add-ons, no more than 40% off MSRP, etc.

I want to be fair to the dealer, as I will be returning for service for a long time. OTOH, I don't want to pay too much. I can wait for the Spring deals, too.

Yes, I was considering purchasing this afternoon. I have looked at used boats for a long time this summer, and if this deal works out, I'm in.

Anything else to consider?
 
In upstate NY, when you go in this afternoon, the dealer is thinking: It was 40-something degrees this morning, if this guy makes me an offer, I need to make a deal happen. some how some way. But I stick with my 35% number being in the money.

40% is below cost...the dealer will think, its just a month, 2 months before show season, an '08 is old, but when the 2010 prices hit, the price difference will make the extra year meaningless. Dealers have to pay for their boats before they are unloaded, so their cost is fixed. The variable is the interest cost for floor planning. The difference between 40% and 35% is about $4K (I'm guessing; look it up); the interest cost to carry the boat until spring is about $3000. Taking a 40% offer is $4K less cash flow plus the dealer is losing money which means he has to come up with the amount he loses to clear the bank (negative cashflow, just the opposite of what he needs).

The idea of "being in the money" is critical to making a deal work. By now, even in this econcomy, the dealers have worked out their pressing credit issues and have liquidated the inventory they needed to. They have laid off deadbeat salesmen, and excess personnel in their operations to conserve cash and are lean and mean. Some multi-location dealers have temporarily closed stores.....some have no salesmen and are using their salesmanager as salesman during the off season. I may be wrong, but I really doubt we are going to see many dealers selling below cost at the end of the boating season.
 
Thanks Frank. Yes, we had frost this morning.

Just got back from the dealer and I don't have a boat. Yet.

I made an offer and he wants to run it by the owner. We are about $8,000 apart.

I'll know more on Monday.
 
We are still in negotiations.

Today, dealer offered a 42% discount, winter storage and deliver in the Spring, anchor, + USCG package.

What do you think?
 
Ask for an anchor and line and some dock lines. And do not do this deal unless you take title now.........no promises for the spring. Close now and get the title work done now. You don't want to be caught up in a dealer going bankrupt or losing his franchise. With the boat titled to you, there is no question of ownership in the spring.
 
The dealer wants to get this off his floor so I have to take title (start making payments, too) for this deal to work. They will put it in their storage until Spring. Then, they will take me out on the lake and teach me everything I need to know to get started. Warranty will start when it's in the water.

He mentioned the anchor, I'll ask about the lines.
 
ski2moro said:
Warranty will start when it's in the water.
Click to expand...

Get that little detail there in writing on the purchase agreement...To me, that would seem difficult once the boat's ownership is transfered. I would want those registration cards in my hands in the event the dealer were to go bust.
 
Stray Cat said:
Get that little detail there in writing on the purchase agreement...To me, that would seem difficult once the boat's ownership is transfered. I would want those registration cards in my hands in the event the dealer were to go bust.
Click to expand...


Every little detail Exactly spelled out in writing....
And signed by both parties ~!!!!
 
You have a great deal going. Jump. Good luck.
 
I think Frank is going merciful on the dealer :)

But. . bottom line. . .. .are you spending "happy money"? Are you cool with blowing this amount of cash on a depreciating toy?

If so. . YEEEEEHAAAAWWW!!! You just bought a boat, and life is really good! Congratulations! You are going to love it! Buying in the fall is a smart time to buy.

Oh. . and if you are planning to tube with the boat, see if they will throw in "decent" life vests (as opposed to the orange $5 crap) and a tube! Plan on spending several hundred dollars (like, $1500!) at the boat store in the spring for everything else!

Boating is a lifestyle. . . .and it is a fun lifestyle. Even if you only can do it 4 months a year. .it's cool.

If you are overnighting: Think about a Magma Grill :)
 
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