Question for the Searay Salesperson

[Mr Salt]

Alex

You have applied the math correctly. The key assumption is how much more than $71,700 can the old boat be sold for----that difference is benefit that is in your math. You see an $8,000 benefit that is the $80,000 selling price of the old boat less the $72,000 for the trade plus sales tax. To the extent that the boat can't be sold for $80,000 the margin comes down dollar for dollar.

There is one other issue that you have correctly pointed out. He how walks in with cash in hand is king and can get the best price.

Mr. Salt
2001 540 CPMY
Caterpillar C-12s
Cape May NJ

 

[Southpaw II]

Sales tax in Mississippi are a bit different.......when trading, you pay tax on the difference. If buying from an individual, there is no tax. So, when I recently bought the 380 DA in FL, I worked through a broker, but actually bought from an individual. No sales tax!

 

[searay495]

This all makes very much sense, and is very helpful. Right now my problem is that I can't get the salesperson to budge on the price. This is unfortunate because this will be the 3rd boat that I have bought from them, and at the asking price the boat is just out of reach for me. Sales tax in CT is 6%. They are now claiming that Sept. 1 started a new quarter and thus trade in values dropped 10%??!! Go figure. I am still working on him, (pretty much driving him crazy, but we have that kind of relationship). Any suggestions, as I really want the boat, just a bit out of reach.

 

[quality time]

Have you looked at many other boats? A quick Yachtworld search turned up 5 for under $119k in FL. Granted you'll spend $5k to truck it home but that's still a pretty big difference. Not to judge, but if the price of the boat is borderline out of reach than you may want to keep looking. Remember, paying for the boat is the easy part, it's the unexpected costs that can really add up.

 

[Woody]

This all makes very much sense, and is very helpful. Right now my problem is that I can't get the salesperson to budge on the price. This is unfortunate because this will be the 3rd boat that I have bought from them, and at the asking price the boat is just out of reach for me. Sales tax in CT is 6%. They are now claiming that Sept. 1 started a new quarter and thus trade in values dropped 10%??!! Go figure. I am still working on him, (pretty much driving him crazy, but we have that kind of relationship). Any suggestions, as I really want the boat, just a bit out of reach.

I'm curious. What's the magic number for you, what works?

 

[searay495]

I am hoping to get in to the boat for my trade ($70,000) plus cash out of pocket $60,000. totalling a ball park range of $130,000. Seem fair??