Blue Book Prices---Real or Not?? - SailNet Community
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post #1 of 12 Old 07-09-2008 Thread Starter
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Blue Book Prices---Real or Not??

I was wondering if the prices you can find on the NADA website for boats is a good, accurate price for used boats? They give you a low price and a high price. They allow you to put options in and then it prices the boat. Can you really use these prices if trying to buy a boat from a broker?? I find most boats with dealers or brokers are at best priced at the high end, with most being much higher then the book prices.
Any brokers out there that can answer this?
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turf
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post #2 of 12 Old 07-09-2008
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I'm not a broker. But I asked a trusted broker the same question a few years back. He told me that he has no idea where or how NADA comes up with their prices. He had found that the NADA prices have virtually no correlation to the market value of the boats he sells. He demonstrated this to me by showing the "Sold" prices from two years of historical listings for a certain make of boat, and it was readily apparent that the NADA prices were markedly lower than the market prices -- for this particular make it was 25-30%.

He speculated that NADA gets their numbers from databases of registered boats, and that perhaps many owners underreport the purchase price of their boats to avoid sales tax. ???


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post #3 of 12 Old 07-09-2008
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It is mostly 30% soldboat.com, 20% BUC, and 50% Vodoo. No one but banks that do little true yacht lending look at NADA, IMHO.

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post #4 of 12 Old 07-09-2008
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NADA gets their prices for resale of both boats and RV's from using a factor. This is based on the original retail value using a depreciation factor each year to estimate the new value. Does not take into effect market conditions and product desirability.

In the auto business the Nada number is based in the actual sales from auctions. More realistic.

The problem with on-line Nada is that they take the book value and allow you to add everything the boat has including standard equipment. Thus inflating the price unrealistically. You should only add options that the boat has that where available.

In short it's useless.
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post #5 of 12 Old 07-09-2008
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Turfguy, Here in Florida, I'd bet $10 to a donut those market prices are falling to the low side of the NADA. IMHO, it's due to the loss and high prices of available slips(Condo Mania) along with fuel prices. Therefore I think the NADA is on the high side of reality. Though I don't pay too much attention to the high end sail boats, it seems they are only slightly effected by the pinch most of us are feeling. Must be nice!

Anyway, I'm real close to putting that opinion to the test...we'll see.
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post #6 of 12 Old 07-09-2008
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NADA Prices

I watched several boat sales sites for several years before buying my boat a couple of months ago. You should not pay more than about half what NADA says a boat should cost. Certain time's of year are better then others. The beginning of sailing season and the end of season seem to be the best times to get a deal like I did. Just don't get in a hurry, and find a good Surveyor!
PS--I offered 5000.00 less then asking price and to my surprise and delight. He took it! I was going to pay asking price with out a quibble, because asking price was a deal!

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post #7 of 12 Old 07-09-2008 Thread Starter
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WOW half?? I would love to get it for half. But I am sure the broker would just laugh at that offer. They are asking $100,000 and the book value at NADA says low of $94,000 and high of $102,000. I thought about trying the low end as it does need some minor cosmetic work and the engine has a little over 1000 hrs on it.
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post #8 of 12 Old 07-09-2008
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Nada

OK, What kind of boat and how old, size etc. Look Here too, Boats.com, Sailboats Oodle.com. Always get a survey on any boat you are considering. Yes it costs, but not if it gives you ammo to get the price reduced, and I mean a lot, also money is tight,sales are down. At the end of the month that broker might be in need of rent money etc. What if the guy who owns the boat has 2 boats and really has to get rid of one. The latter worked in my favor.
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post #9 of 12 Old 07-09-2008
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There are far too many factors involved with any individual boat to accurately access "value" from NADA, BUC, IUD, AFL-CIO, EI,EI-O.
Equipment, use, economic factors/considerations, upgrades, routine maintenance, sail inventory, electronics, engine all factor into the equasion.
Blend in the mix the owners observations, concieved perceptions, biases, the "need" to sell, plus the brokers time of the month, pressure from the managers, and wheather it rained last thursday...there you have it... that and a dollar will get you a newspaper.

Can you get an idea of what a particular brand or style of boat given class, or size range from one of these sources? sure.
Will it be worth much?... nope.

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post #10 of 12 Old 07-09-2008
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The baffling question, the secret secret, what is a boat really worth?

A average new boat has 36 to 45 percent mark up from cost depending on the Dealer/broker. Banks will typically finance 90 to 110 percent depending on various factors.

When one takes delivery the value drops 45 to 50 percent. Dealer/ broker can buy one for 55 to 60 percent of what you paid therefor reducing the value. Thats why most dealers/brokers don't take trades. Instead they offer to broker the sale for you for a fee, usually a percentage. They sell your boat based on what the lender will finance, usually based on what the boat is surveyed for by a reputable surveyor. Plus the amount of down payment available from the buyer. Usually 10 to 20 percent depending on ones credit worthiness. And what the market conditions are at the time. That is why you usually have to re-negotiate the final sale with the broker.

With all that said, if I was buying a boat I would have it surveyed. I would then contact several lenders to determine loan value. This should give you an idea of it's financial value. From there i would consider market conditions. Right now it's a buyers market. (you can negotiate a new boat purchase for less than cost) Then I would determine how much I want this boat and what it means to me. That has a value. Then I would contact the owner, easy to do through registration if broker will not offer. Then I would make a low offer and anticipate a counter. Come to agreeable terms or move on.

A boat is only worth what it is worth to you.
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