Yacht Auctions

Real World...

Lots of Boats... few buyers

I know of no yacht that is a necessity... unless someone has a very very rare handicap of land allergy... but I do know lots who have water phobias.

That last reminds me of does anyone else remember the days that hull thickness, thicker being better, was an advertising virtue? Or is that too far off subject?

Anyway, I its seems to me the interest in yachts is down or maybe the buying interest. Now there are getting to be lots of every bigger yachts built but seems fewer buyers in the reasonable or smaller than a cruise ship sized category. A couple weeks ago we had lunch with a lady who had very recently sold her on-line web business and was new minted billionaire. She had been trying to horn in on an investment I was involved in. My thought was why bother with her because I assumed she would be too busy spending to be investing. This turned out to be the case... though she would not admit to my candid suggestion. Anyway, I asked if she was thinking of buying a boat... and the replay was basically she was currently involved in redoing two tony houses and was looking for a vineyard in Tuscany next.... not boat on the radar.

Many of their auctions are taped and broadcast on NBCSN and sometimes on ESQ and they also indicated in the documents related to this auction that it might be recorded. Perhaps they decided boats weren't of sufficient interest.

Certainly these boats mentioned like most boats of that size advertised for sale have a market value significantly below market price. In fact their reserve would appear to me to be what they feel is a reasonable negotiated retail price. They'd, in fact, be willing to sell Charisma for $3.5 today, probably for less. Which brings to the point that with the reserves set at full retail, the auction held little to no advantage to a buyer over just buying through conventional means.

I think there is one major difference between this boat auction and their car and collectible auctions. On the cars and collectibles, we're talking items that are hard to find, that collectors are searching for, that they want to add to their collections. Here we were just talking boats for sale. There weren't collectible or otherwise unique or special in any way.

Mecum does know what they're doing in putting on such events. But the boat auction was outside their normal business. As someone mentioned, we can't be sure the two sold actually close, but even if they don't Mecum gets the deposits as commission. So I wouldn't call the auction a big success from the sales point of view, nor would I label it a failure. Just, ok. I personally don't like the method with the reserves and the shill bidding to try to push you toward the reserve. I think the majority found just as you did, I'll bid and buy if I can get an exceptional deal. Otherwise I'll just keep looking around.

On the Hatteras even a reserve equal to half the listed price would have been fairly aggressive if truly committed to selling the item at auction.

Don't step on a pop top.

Cyclos III sold @ auction ?

SY Cyclos III apparently sold in a blind bid auction. Any info published on interest generated/number of bids, and pricing?