Need help buying a new 340 DA

[Quint]

My dealer in Las Vegas has an '07 340 DA with V-drives, and well equipped with:
- Stainless windshield
- Flexiteak stairs/ktchen flooring
- Underwater lighting
- Additional TV
- Bottom paint
- Ultraleather interior
- $10K in stereo upgrades
- Bowthruster
- Bottom paint
- C80 ensemble

He said the best I could get it for is $240K, which seems like a "reasonable" deal, but nothing like the deal JMPLAS got in a thread he started!!

I know that Sea Ray is offering some pretty high incentives, but can someone tell me:
1. How much their incentives are
2. How the incentive involves the dealer
3. What time limits there are
4. What happens to unsold '07 inventory (this is MarineMax we're talking about)

Best wishes

 

[barryg]

340

I'd go to websites like boattraderonline.com and do a nationwide search for 2006 &7 340's with similar power and options. Even though this is a "new" boat, it doesn't matter anymore once the 2008's come out, it is still depreciated and you should pay just about what you can find a used 2007 for. A good guy to talk to as a Sea Ray dealer is Jim Bennet of Jim Bennett Yachts. He always has some "leftovers" and is very honest about prices even if you don't buy one of his, but if he has what you need, he can ship anywhere and is a master Sea Ray Dealer. his # is 862-423-9999, and you can tell him Barry from Florida said hello.

Barry

 

[Red Stripe]

If my information is correct (I'm pursuing same boat) Sea Ray has a $20K incentive on the 340 this month - I'm told until the 15th, but even if that's the case, they have some ability to stretch that. That incentive returns in January & February. I'll be interested to hear how your pursuit goes - good luck!

 

[comsnark]

I really wonder what $10,000 in stereo upgrades looks like!


But I concur with the advice above: An '07 at this point is a left over. It is OBVIOUSLY not a hot seller, because it is still sitting there, right? Boat values drop quick as the model years go by -> negotiate accordingly.

 

[teekster]

I really wonder what $10,000 in stereo upgrades looks like!

PROFIT!

 

[waterlogged]

PROFIT!

Bingo. Probably costs around $2,500 to put in equipment that would blow the factory option away.

 

[masmms]

I thought ultraleather was a 08 option???

 

[Quint]

Thanks everyone!

I'm going to process this information, and more importantly, get my wife the "Rottweiler" into the negotiations. She's tough...

Thanks to Barry - I will call Jim Bennett and see what he has to say.

As always guys, I will keep you posted.

 

[Alex D]

He said the best I could get it for is $240K, which seems like a "reasonable" deal, but nothing like the deal JMPLAS got in a thread he started!!

That would become $180K in just onw year :smt009

 

[fwebster]

Some of the information you have been given is not correct concerning dealers and how they operate.

First, Sea Ray does periodocially offer rebates or incentives. When they do it is always for one of 2 reasons.....1. they need to balance production in a factory and giving a little money back, i.e. reducing profit, is a cheaper alternative than closing a factory since their fixed costs continue whether they run the factory or close it, or, 2. there are some leftover boats at the dealers in inventory and they know they have a problem getting the dealer to take and sell '08's when he's sitting on a bunch of '07's.........this ususally occurs when a model is being replaced by a new boat.

Rebates or incentives are between the factory and the dealer and are passed on to the buyer in reduced prices.......they don't happen unless the boat is sold.

How much on what boat is variable and can be changed by Sea Ray. Now days, they announce incentives and affix firm dates to them. There is no guarantee that incentives will be extended or that they will not be changed if they are. The only way to know the present incentives is to go ask your dealer. If your salesman can't tell you how much and how long the current program is for, then tell him to find out now; you'll wait on the answer.

As far as calling some dealer out of your area, that will not do you any good. Sea Ray requires dealers to stay in their territories and will not allow them to sell out of area. No dealer will risk losing his franchise over the profit he can make on a single boat, so unless the dealer you were referenced to is in your area, its going to be a wasted phone call. The only possible exception to this may be if you live in one area but keep and do your boating in another.

Irrespective of the above, it is critical that you buy your new boat from the dealer where you will get service. Sea Ray dealers are not like a Chevrolet dealer........they do not have to service boats they don't sell and most will not until they have completely caught up on all the service needs for the boats they have sold. Our dealer is glad to take other boats in for service, but they are up front and will tell you that it will be a long wait since their own customers boats come first....if you can't wait 8-10 weeks for a repair then you should take your boat to another dealer.

Your best course of action on the boat you are looking at is to go to the dealer and negotiate the best deal you can. No matter what people on a boating forum tell you, you never get the best price until you write a deposit check and make an offer......the trick is to make the offer low enough that you don't leave money on the table. You didn't give us the msrp on the boat in question, but a decent starting place is 35% off MSRP less incentives. There are some real expensive options on your list, so be careful, that may buy you a boat.

 

[Quint]

Some of the information you have been given is not correct concerning dealers and how they operate.

First, Sea Ray does periodocially offer rebates or incentives. When they do it is always for one of 2 reasons.....1. they need to balance production in a factory and giving a little money back, i.e. reducing profit, is a cheaper alternative than closing a factory since their fixed costs continue whether they run the factory or close it, or, 2. there are some leftover boats at the dealers in inventory and they know they have a problem getting the dealer to take and sell '08's when he's sitting on a bunch of '07's.........this ususally occurs when a model is being replaced by a new boat.

Rebates or incentives are between the factory and the dealer and are passed on to the buyer in reduced prices.......they don't happen unless the boat is sold.

How much on what boat is variable and can be changed by Sea Ray. Now days, they announce incentives and affix firm dates to them. There is no guarantee that incentives will be extended or that they will not be changed if they are. The only way to know the present incentives is to go ask your dealer. If your salesman can't tell you how much and how long the current program is for, then tell him to find out now; you'll wait on the answer.

As far as calling some dealer out of your area, that will not do you any good. Sea Ray requires dealers to stay in their territories and will not allow them to sell out of area. No dealer will risk losing his franchise over the profit he can make on a single boat, so unless the dealer you were referenced to is in your area, its going to be a wasted phone call. The only possible exception to this may be if you live in one area but keep and do your boating in another.

Irrespective of the above, it is critical that you buy your new boat from the dealer where you will get service. Sea Ray dealers are not like a Chevrolet dealer........they do not have to service boats they don't sell and most will not until they have completely caught up on all the service needs for the boats they have sold. Our dealer is glad to take other boats in for service, but they are up front and will tell you that it will be a long wait since their own customers boats come first....if you can't wait 8-10 weeks for a repair then you should take your boat to another dealer.

Your best course of action on the boat you are looking at is to go to the dealer and negotiate the best deal you can. No matter what people on a boating forum tell you, you never get the best price until you write a deposit check and make an offer......the trick is to make the offer low enough that you don't leave money on the table. You didn't give us the msrp on the boat in question, but a decent starting place is 35% off MSRP less incentives. There are some real expensive options on your list, so be careful, that may buy you a boat.

Thanks Frank - that's all good advice. First of all, I was toying with the idea of getting a Sea Ray from an out-of-state dealer who seemed very willing to supply a boat to me, but in the end, I don't wish to wait months to get my annual service, or worse, repair a warranty item that makes the boat unusable or unenjoyable. And we're not talking about a trailer boat here, I know. It can't just be pulled out of the water and repaired at a choice of service centers.

Knowing a little more about the incentives is valuable too, and also getting an understanding of how far the timing can be extended will be helpful to me. It turns out that about $5K worth of incentives are being offered with the financing side, with no pre-payment penalty, so if I go to the extra trouble of financing the boat, then that will actually save me money on the purchase price.

And I like your advice about having a deposit check: I can maybe write out a check for five grand while asking the dealer to think seriously about my offer. Those little gestures can be quite powerful to show intent.

I guess I just need to figure how much I am prepared to spend on this boat and go into the dealership with a hard & fast cut-off in my own mind!

I'll let everyone know how this proceeds...

 

[Bottom Line]

Quint...I thought you were buying a 40 Sundancer?

 

[barryg]

leftover boats

As far as Sea Ray dealers not in your area, I've dealt with and continue to get calls from Sea Ray dealers that I spoke to before I bought my 320 and NONE of them are restricted from selling a LEFT OVER or Used Sea Ray. A few of my friends who were looking for a boat called one of them that had a few left over 280's and a 300 and they have no problem shipping down here-or anywhere for that matter.

As for the service, yes, the local MM dealer here will do any Sea Ray service no matter where or who you purchased it from, but of course they do try to take care of their own first, and are so busy that whether you are "one of theirs" or not, it is a long wait to get in.

The best choice would be your own local dealer, but it is not the only option when it comes to pre-owned or leftovers, and any knowledge you can bring to that local dealer with regard to bottom line pricing you can get, can only make your negotiations that much stronger.

Good luck with whatever you do...

 

[Quint]

Quint...I thought you were buying a 40 Sundancer?

Jeff

I wanted to buy a 40' with gas engines, and everyone shot that idea down. I then started thinking, do I really want to ship in a 2nd hand diesel boat in, with all the problems I have with getting boats serviced at Lake Mead? There are no water-based service facilities here - every large boat has to get trailered back into town to get worked on. If you don't buy the boat from a local dealer, they don't have any incentive to service you. The wait, during off-peak times, runs to 6 - 8 weeks, and 10 - 12 weeks coming up to summer. That's a helluva long time to wait if you're boatless.

In the end, I thought: "buy new and buy as much boat as I actually need, rather than what I'd like". So, thus the 340 DA.

Make sense?

 

[fwebster]

On the deposit check, let me explain a little more......

When you make a dealer an offer, you will execute a buyers order or sales contract which says you will buy boat X under the conditions stated in the contract on a certain date. For such a contract to be binding on both you (buyer) and the dealer (seller) both of you must have or give some form of consideration. The seller's consideration is that he removes the boat from the market and will not sell it to anyone but you on or before the contract closing date. Your consideration is the deposit. Without consideration on both sides of the deal the contract is not enforcable and is worthless.

So the idea of giving a dealer a deposit while he thinks about your offer isn't in your best interest since the dealer isn't obligated or bound by an enforcable contract.

Decide what you will pay for the boat, then write a sizeable check for a deposit. Then execute a contract that shows the HIN# of the boat you are buying and specifically list all the added equipment or services the dealer is doing or is providing. Use specific, not vague terminology. For example, don't just say "dealer will detail the boat". To him that may mean dust off the deck with a dry coth. Instead, say "dealer will polish exposed gelcoat surfaces with a polishing compound then apply a good grade of marine wax or polish to all exposed surfaces". Be sure the contract is signed by someone with authority at the dealership and that you get a photocopy of the check and a copy of the sales contract.

Some dealers prefer to get a deposit with a credit card, but even that is subject to some vagueness. If they run the card and you sign a receipt authorizing the charge you are probably ok and have an enforcable contract, but what if they just hold the charge slip and never run it thru? Or, what if they put a hold on your credit card for the deposit but never really charge the card? I'm not sure you have consideration in the deal with either of those methods. For that reason, I prefer to use a check.

I can give you multiple examples of deals falling apart because the buyer didn't realize the princicples of contract law involved or because he just trusted a salesman or dealer personnel that was either misinformed, was mistaken or worse. This deal has some big numbers in the line so do your homework or get help from someone you trust.

 

[Bridog]

You didn't give us the msrp on the boat in question, but a decent starting place is 35% off MSRP less incentives. There are some real expensive options on your list, so be careful, that may buy you a boat.

Quint, on another post you said the MSRP was 338K. Take 35% off that =220K. Now take off the 20K in rebates=200K. JMPLAS( MSRP 328K) got his for 187K(10K less than your MSRP) so, you are real close now. CSR just saved you 40K :grin: Now..... go let Mrs. Quint get after em...

 

[Skip]

Quint, I followed fwebster's advice to the letter in my deal. I filled out the sales contract with my preferred numbers, wrote a check for 10% down, and walked away. The dealer (who had been sitting on the 420DA for 9 months) stewed for 4 days, then called me back and asked me to go up 10K on my offer; I agreed, but negotiated full service of the mains, gen set, trannies, all sales taxes paid, full USCG package, and all major survey deficiencies corrected. I then learned the boat had a spare set of props (news to the broker and sales manager) and the Onan gen set needed a new lift pump...nearly $600 in parts and labor. Also included in the deal, further eroding any profit the dealer made.
I got this done in February 2006; the dealership was being sold and the outgoing owner was on the hook for all used stock, so he was anxious to see the 420DA go.
Negotiate hard. This is even more a buyer's market than I encountered.

good luck with it.

Skip

 

[comsnark]

Frank is right.

Buying a boat is *just like* buying a house.

Very scary, because the dealers really do make it hard to do your homework. And I found it too hard to do my own homework on new boats -> I suspected the "35%" average discount, but didn't know.

As a result. . I went used. Because I had more confidence in the numbers. Also, those numbers were smaller. Easier to have confidence in smaller numbers.

 

[Quint]

Quint, I followed fwebster's advice to the letter in my deal. I filled out the sales contract with my preferred numbers, wrote a check for 10% down, and walked away. The dealer (who had been sitting on the 420DA for 9 months) stewed for 4 days, then called me back and asked me to go up 10K on my offer; I agreed, but negotiated full service of the mains, gen set, trannies, all sales taxes paid, full USCG package, and all major survey deficiencies corrected. I then learned the boat had a spare set of props (news to the broker and sales manager) and the Onan gen set needed a new lift pump...nearly $600 in parts and labor. Also included in the deal, further eroding any profit the dealer made.
I got this done in February 2006; the dealership was being sold and the outgoing owner was on the hook for all used stock, so he was anxious to see the 420DA go.
Negotiate hard. This is even more a buyer's market than I encountered.

good luck with it.

Skip

Skip

Thank you (again) for your words of wisdom. It always helps to get other people's experiences as a backdrop. And the story you cite about the outgoing dealer not wanting to be on the hook is typical of the fact that we almost never know exactly what is going on behind the scenes

You know what: I would REALLY like a diesel 420 DA, but I think that given the extremely limited service facilities in the lake, I could be saddled with a big, costly boat that becomes difficult to get services (nothwithstanding all the excellent posts you have made in the past about servicing it yourself). It's funny - I came from Melbourne, Australia where the service facilities were all dotted around the bay, and if you didn't like the service of one shop, you'd just scoot across the pond and use someone else. Now that I'm landlocked, it makes it really, really difficult. In the lead-up to this summer, I called every single boat dealer and boat service center in Las Vegas, only to be told that they could not fit me in for 8 - 12 weeks. The service center at my marina didn't even attempt to take or respond to my calls. I finally got the Cobalt dealer to service the engines but not the drives (he couldn't do the latter) - and this was after four attempts. I can say without doubt that the pathetic level of service in Las Vegas is the worst I have ever experienced in anything. Appalling.

So, if I'm to buy again, it will be new, it will be from the local dealer, and it will be a relatively straightforward config.

Thanks to all for the sage words.

 

[Skip]

For your circumstance and boating environment a 340 would seem to make a lot of sense. I would feel landlocked running a 420 diesel on a lake (great lakes excluded, of course) but this is a personal preference.

My larger point, though, is pick your price, write a meaningful deposit check, and walk away. Remove all emotion from the deal and be prepared to stick to your guns. Have in your hip pocket some things you would like if the dealer insists on negotiating you up (in my purchase, this was the sales taxes paid, servicing of the mains, gen set, etc. for the 10K negotiation)

This is a buyer's market, boat sales have been slow, and Sea Ray has incentive money on the table.

regards
Skip