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NADA Pricing vs. Real World Pricing

Discussion in 'General Yachting Discussion' started by Humbucker427, Jul 24, 2007.

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  1. Humbucker427, Jul 24, 2007
    #1
    Humbucker427

    Humbucker427 New Member

    Joined:
    Jul 20, 2007
    Messages:
    1
    Location:
    Chattanooga, TN
    Hello all,

    First post here. I'm a little perplexed right now, and am hoping someone can shed a little light on the subject.

    I'm looking at purchasing a 1999-2001 Carver 406. We've been looking at several different models in our area (Santego 380, 430 CMY, etc) and noticed the asking price for these models are WAY higher than the NADA average retail. I did a bit of price checking throughout the country and found it holds true everywhere.

    For example, we found a 1999 Carver 406 for the asking price of $179k. We thought this to be a very fair deal since it was priced below the national average for the same boat. When we went to the NADA price guide, this boats average retail was around $135k. Most of the 406's around the nation are priced at closer to $200k. We also checked the pricing for the Santego and other models and found the same type of thing.

    Is this common in this industry, or is there something I'm missing? Help! :)
  2. Loren Schweizer, Jul 24, 2007
    #2
    Loren Schweizer

    Loren Schweizer YF Associate Writer

    Joined:
    Apr 20, 2004
    Messages:
    1,352
    Location:
    Coral Gables/Ft. Laud., FL
    The price guides-- all of them--are not current: they use numbers from the past and merely extrapolate new ones based on some wishful algorithms.
    To get a better idea of what the selling prices are, call six different yacht brokers who have sold or are offering for sale the boat of your choice.
    Then, with the six different answers, write your own algorithm and extrapolate, interpolate, and cogitate to your heart's content.

    You'll be a lot closer than the so-called 'price guides'.

    But, you say, that's work. OK, bunky, call your favorite local yacht broker and have him/her do it for you. It'll take, maybe, an hour to give you your number. Then, as a test, have him/her represent you in the purchase.
    Might save you a few bucks if you chose well.
  3. J. Dunbar, Jul 24, 2007
    #3
    J. Dunbar

    J. Dunbar New Member

    Joined:
    Jan 26, 2006
    Messages:
    15
    Location:
    Ft Lauderdale
    Loren may be a lot of things but a liar is not one of them.
    I obsess on finding the values of a these pieces of floating fiberglass or aluminum we call yachts. When I see a boat of interest has sold, I pick up the phone ask the broker what it sold for. Sometimes you get the right answer and other times….well you get what they wished it sold for. There is a common courtesy of information sharing that exists via years of cooperation between many brokers.
    When you have a wide range of selling prices, I have found using the “6 or more” boat average that Loren recommend very useful, but I usually remove the highest and lowest selling price from the equation; this helps zero in on a FMV. And could be influential with the seller
  4. yachtbrokerguy, Jul 25, 2007
    #4
    yachtbrokerguy

    yachtbrokerguy Guest

    The price guides are extremely limited in being accurate for any boats over thirty feet, often there are not enough of them sold to make a statistical analysis, and are only marginally accurate for particular smaller models that have a larger number sold.

    Unlike cars, there are just not enough of them sold. Go with Loren's suggestion, call your local broker and ask him to do the research for you.

    Tucker Fallon