New Boat Market Bubble?

[Jimmy Buoy]

It would be interesting to see what any manufacturer's cost of Liability Insurance adds to the bottom line selling price. With stories of large settlements awarded to no-mind plaintiff's (like the recent story of a teenager that had his leg chopped up by the prop) this coverage must be a major cost to any manufacturer.

Also, it is likely that the total liability insurance payouts/yr have increased at a faster rate than the boat's MSRPs.

 

[highslice]

Okay, so what price do I use to calculate my depreciation. MSRP for our boat was in the $115,000 range. Bought it for more than $30,000 less than that, lets say 30%. So is the high depreciation you talk about measured from MSRP or purchase price?

 

[Tonka Boater]

Okay, so what price do I use to calculate my depreciation. MSRP for our boat was in the $115,000 range. Bought it for more than $30,000 less than that, lets say 30%. So is the high depreciation you talk about measured from MSRP or purchase price?

Purchase price because anyone could theoretically get a new one for the same price you paid. 30% is the artificial margin.

 

[Chris R]

I didn't read you article yet but I think it's worse in the marine industry. Brunswick (Sea Ray at least) has had a history of inflating their prices by 30-35%. I've shopped other brands and everyone in my experience tends to be at least 20% over the eventual purchase price.

I think they get away with it because people are more accustom to buying cars so boat salesman love it when I guy gets them down 5% from MSRP. Huge win for the dealer and the unsuspecting dupe overpays.

Question: Do other brands inflate their prices like this? For example, if an Ocean Alexander 60 foot Trawler is listed at 1.6 mil. Does that mean that they "really" list/sell it for 1.3? I really don't know. Funny thing is when I go to boat shows, you don't see big placards on the backs of new boats like these with "Boat Show Special! 300,000 off list price" .