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Yacht prices-where are they going?

Discussion in 'General Yachting Discussion' started by John Hatswell, Mar 11, 2022.

  1. John Hatswell

    John Hatswell New Member

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    I am in the market for a motor yacht of about 50ft about 10 years old, and have to make an offer on one, so have to try and at least make a guess where things are going. My friendly broker said of course its too early to call, but did give me an example of a buyer who had made an offer before the this terrible war, but has now reduced the offer by 15%. Does anybody know of any other such examples, or how current sales enquiries compare with the same period last year?
  2. JadePanama

    JadePanama Member

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    I haven't seen any change here in the PNW. Market still strong as ever.
  3. Pascal

    Pascal Senior Member

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    I think it’s too early to tell. Fuel prices will scare some buyers and inflation, which started a year ago way before Ukraine, may make people think twice about their spending. That probably wont affect big boats but it will have an impact on smaller older boats under 60’

    I think there will be a adjustment from the crazy prices we ve seen over the last 2 years
  4. motoryachtlover

    motoryachtlover Senior Member

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    Of course no one knows but I would make decisions based on prices boat prices coming down. I think supply and demand will be a stronger influence on price than inflation. My guess is demand will wane. But I sure didn’t see the pandemic induced spike in demand for boats coming. So what do i know
  5. LuvBigBoats

    LuvBigBoats Member

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    I'm not in the market but keeping my eye out for a certain boat. May be wishful thinking but seems to me like boats are staying on the market longer. I don't know what they are selling for so hard to tell what's actually happening price-wise, but if they are on the market longer you have to think prices are coming down at least some.
  6. gr8trn

    gr8trn Senior Member

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    And you broker boats right?
    bayoubud likes this.
  7. olderboater

    olderboater Senior Member

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    They're going down and up or up and down but none of us know which or when. It's when you convince yourself you know that you really mess up. You wait and miss a great boat or you buy a boat that's not idea out of fear.
  8. wiredup

    wiredup Member

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    I am making an offer on a boat now. I have locked in rates in the 3.5%. Don't think they are getting lower, most likely higher. Who knows on the rest. Fuel prices are skyrocketing, but is that short or long term? Is this Ukranian war going to escalate into a NATO country? The large boats demand is still nuts as told to me by viking dealers that say it's 2 years to get a new one.

    I feel like I am making a decision without having all the information necessary, but I feel waiting may or may not be beneficial. Tough decision!
  9. rtrafford

    rtrafford Senior Member

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    Meh, whatever the outcome of the war and its possible spread and subsequent impacts, the value of the dollar is going down. It simply won't buy tomorrow what it can buy today. I don't think future valuation should be a driving concern beyond the cost of the maintenance and upkeep of the current boat's standards. Yes, invest in a quality boat, and don't do so thinking it will appreciate or provide any sort of positive ROI beyond the intangibles that come with its use and enjoyment. While owning, maintain it with pride, not neglect. If you can't do this, think twice about doing anything other than chartering.
    wiredup likes this.
  10. jason fifield

    jason fifield New Member

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    If fuel prices stay elevated, the fed hikes 10 times between now and mid '23 (as Powell alluded to today); I do not see them creating a soft landing and sliding into a mild recession. Hopefully a mild recession will take 5-10% out of some of the yacht prices or will encourage more people to list their boats for sale which will drive prices down a bit.
  11. RER

    RER Senior Member

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    Equivalent costs will go up. New boats. Late model brokerage. Nobody is going to stop this inflation train.

    However my guess is the value for old boats will drop. Most buyers just don’t want them and won’t consider them. Regardless of fuel prices or war or inflation or anything else.

    A boat is an expense. What’s going to happen to the cost of vacations? Same question. Same answer. Up, Up, and Away …as far as the foreseeable future.
    bayoubud likes this.
  12. gr8trn

    gr8trn Senior Member

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    Regarding old boats, what do you consider an old boat. Let's make the huge assumption that deferred maintenance is not a huge issue, what would be old. Or is old assuming always tons of deferred maintenance?
    I wonder too, an old Oyster is different than an old Catalina, I happen to understand sailing boats a bit better.
  13. RER

    RER Senior Member

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    Pre common rail. So, that’s older than model year 2003 or 2004 approximately. Referring to non electronic diesel power boats.
    Last edited: Mar 17, 2022
  14. JWY

    JWY Senior Member

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    But for those who might have EMP concerns, those "old" engines could become extremely valuable.
    chesapeake46 and bayoubud like this.
  15. RER

    RER Senior Member

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    There will be some, sure. But in my experience that group of buyers is a small fraction and getting smaller every year.

    You can see the frustrations with Detroit Diesel in multiple threads right here on YachtForums for example.
  16. rtrafford

    rtrafford Senior Member

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    I have zero interest in re-powering. I take terrific pride in the mechanical diesels. In fact if you handed me the cash and told me that I must change, I'd replace in like kind.
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  17. RER

    RER Senior Member

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    That’s fine. In fact, personally I disagree with a lot of the negative comments from buyers. I’ve been more places on boats than I can remember and mechanical diesels took me there and brought me back for decades. But the current market doesn’t value them much. Try going though pre purchase mechanical surveys on 1980’s and 1990’s marine diesels. Any brand. It’s a nightmare. It’s getting to where the odds of closing that deal is not even 50/50. Buyers want new technology. Even when they can’t afford it.
    SplashFl likes this.
  18. chesapeake46

    chesapeake46 Senior Member

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    My boat is old.
    Still winterized which means the fuel tanks are full.
    I believe , as fuel prices rise, my old boat is gaining in value .
    Might be worth more now than when I bought it.... LOL.
  19. MBevins

    MBevins Senior Member

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    Especially if you calculate the increased value of the fuel on board. :D
  20. rtrafford

    rtrafford Senior Member

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    I agree. The vintage of a boat that would still have mechanicals installed will turn off that buyer more so than the brand and style of the iron. I suppose I'm a flawed individual for conversations such as this, as the vintage typically enthuses me more than dissuades, but in the sale it's all in the presentation.

    "Hey, good luck with Pantropic. I can buy my parts at Napa and repair them myself."