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telecam 04-21-2012 06:46 PM

Price negotiation on a new boat
 
Hello,

I am in a market for a new 40' sailboat (in the US) and I am wondering how much room there is for price negotiation on MSRP and commissioning.

Any advice would be greatly appreciated.

Thanks.

Faster 04-21-2012 09:36 PM

Re: Price negotiation on a new boat
 
I'd guess anything's negotiable, and the dealer must have some wiggle room if they're interested in sealing the deal. Perhaps add-ons like canvas work, electronics etc might be the area where more haggling can happen, though many dealers prepackage a lot of that stuff too.

But we've never been in that situation so this is just guessing anyhow.... give it a go and see what happens?!?

tomperanteau 04-21-2012 10:16 PM

In this market? Lol! Plenty of wiggle room.

creedence623 04-21-2012 11:13 PM

Re: Price negotiation on a new boat
 
I came VERY close to buying new, and did a lot of homework on this one. Here's what I've found. (This was back in 2010)

Hunter seems to offer the best incentives. They were ready to offer $60,000 for my 1987 Catalina 36 as a trade (this was even before I put in the new engine, new electronics, standing rigging, etc). They then went on to offer an additional $20,000 in factory incentives on a Hunter 36 from the factory (there seems to be even more wiggle room on a previous year's boat that they still have on inventory)

Beneteau offered some solid incentives totalling $30,000 on a Beneteau 37, and $45,000 off of a First 40. They offered $38,000 on my trade. They indicated prices were going to go up on the following model year.

Catalina seems to have the fewest incentives. They were going to knock off about $8,000 on a Catalina 350. I would later find out that Catalina is investing quite a bit into the quality of their new boat with some lines designed to compete against Tartans and Sabres (look up their new 5 series)!!! The catch to this increase in quality is that they were operating with lower margins so they couldn't afford to compete when it came to offering incentives.

So to answer your question, there is some wiggle room, but most of it by in large seems driven by the factory, not the broker. Incidentally, I read that brokerages will be carrying less inventory which may reduce the 'firesale' deals on last years stock.

chuck53 04-22-2012 11:38 AM

Re: Price negotiation on a new boat
 
You have to remember that boat mfg's offer different profit margins. Some may only have 15% margins and others may offer 25%.
I don't know what they are but just don't assume all dealers are working with the same "wiggle" room.

hellosailor 04-22-2012 04:39 PM

Re: Price negotiation on a new boat
 
"Hunter seems to offer the best incentives."
DANGER WILL ROBINSON. There's another thread about Hunter right now, the entire company apparently is way behind on taxes and maybe in big financial trouble. It would be imprudent to put any money towads a Hunter unless it was "that boat over there" and there was no risk of having it go away during a bankruptcy or tax seizure. Bid, pay, close, take title without delay.

As for wiggle room, I think the OP is asking what is the markup on new boats. Onceuponatime the market on electronics was as high as 100% so you could get 40% off retail. But the markup on a new car may be as low as 9%, so there's no "wiggle room" beyond about 8 of that.

Markup on a new boat? Anyone?

creedence623 04-22-2012 05:11 PM

Re: Price negotiation on a new boat
 
Quote:

Originally Posted by hellosailor (Post 861896)
"Hunter seems to offer the best incentives."
DANGER WILL ROBINSON. There's another threa abot Hunter right now, the entire company apparently is way behind on taxes and maybe in big financial trouble. It would be imprudent to put any money towads a Hunter unless it was "that boat over there" and there was no risk of having it go away during a bankruptcy or tax seizure. Bid, pay, close, take title without delay.

As for wiggle room, I think the OP is asking what is the markup on new boats. Onceuponatime the market on electronics was as high as 100% so you could get 40% off retail. But the markup on a new car may be as low as 9%, so there's no "wiggle room" beyond about 8 of that.

Markup on a new boat? Anyone?

I heard, once apon a time, that a new boat can be built for about one third of the sales price. That is second hand information, and I can't even remember the source, so take that with a pile of salt. With that said, even at 1/3 of the sales price they may not be able to move much when you factor in their overhead and advertising, etc.

telecam 04-22-2012 05:49 PM

Re: Price negotiation on a new boat
 
Thanks guys. In my price research, I noticed that most of the price difference is buried under the commissioning and freight line items. All options such as electronics, etc... are usually sold at full MSRP which I think should take care of the "commissioning" to install them.

creedence623 04-22-2012 06:15 PM

Re: Price negotiation on a new boat
 
Quote:

Originally Posted by telecam (Post 861917)
Thanks guys. In my price research, I noticed that most of the price difference is buried under the commissioning and freight line items. All options such as electronics, etc... are usually sold at full MSRP which I think should take care of the "commissioning" to install them.

Oh, there's a whole separate can of worms! Commissioning costs are a HUGE factor in the purchase price of a new boat. I don't know how much is varies from brokerage to brokerage, but I've seen prices from $28,000-$50,000 for comissioning. Definitely de-incentivizes buying a new boat. I'm also not sure how much of that can or cannot be done by the buyer.

Jd1 04-22-2012 07:40 PM

Re: Price negotiation on a new boat
 
What exactly is involved in 'commissioning' to warrant that kind of a charge????
Isn't it just a matter of tossing the boat into the water and sticking the pole up ???
Yeah, obviously I have never done this but this seems way out there in terms of costs.


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