Margins on new boats

[dhays]

First, I have searched.

We are mildly considering buying a new boat, although chances are we'll buy a used boat. The question is, does anyone have a rough idea of the dealer margins on new Catalinas? We are looking at the 400 and 445. MSRP for the boats, with the factory options we want, plus shipping and commissioning, is about $306k and $321k respectively.

Dave

[kd3pc]

Firstly I am surprised the difference is so little between a 40 and a 45 footer....

that being said, I have been told by a Beneteau/Jeaneau dealer that there is less than 10% margins in their boats. I have heard similar numbers on the hunter/catalina boats, perhaps as high as 15% for some dealers who add their own gear and services.

All the best in your search.

[sailingdog]

I'm not surprised by the small difference. The boats are probably pretty similar in terms of labor....and the additional materials is pretty minimal.

[svHyLyte]

These daze margins are razor thin. Many of the builders are working just above break even to keep their core staff employed and cover fixed costs--waiting out the recession. After the ill-considered luxury tax kicked in back in the '80's, many builders were forced into stasis but found that once the tax was repealed and activity began to pick up, the skilled labor they had laid off had moved on and could not be replaced and they ultimately failed. The prices you quoted are very reasonable all things considered. Where you might be able to negotiate a "deal" is with the add-ons such as electronics et al. These are high margin items, in some case as much as 100% from wholesale to retail, hence the periodic "40% off" sales. As for the basic boat prices, however, there doesn't seem to be much room unless a broker is on the verge of collapse and needs to move his "floor" inventory but few are carrying much of that at this point.

IMHO...

[JimsCAL]

Some of the mfrs were offering some pretty attractive rebates to the dealers to get rid of leftover inventory this spring. Couple that sold me their Cal 33 bought a leftover Hanse 400 for under $200k. Amazing price for a new 40 footer.

[dhays]

Thanks for the feedback. Decided to make an offer on a 2005 Catalina 400. Unfortunately, it is in CA and I'm in WA. Doubt if they will take it, my offer was 12.5% below their asking price. The boat has only been on the market since April.

[davidpm]

Originally Posted by dhays

my offer was 12.5% below their asking price.

Congratulations on your new boat.

[manhattan08]

In this market, they should take it.......

[dhays]

Originally Posted by manhattan08

In this market, they should take it.......

We'll see. The sellers broker implied to my broker that my offer is a bit under what they actually owe on the boat. A lot of boat owners are upside down with their boat loans just as many homeowners are. OTOH, moorage (or "slip space" for the non-West Coasters) is probably around $800/month in the sellers location. I would think that with boat payments, insurance, moorage, etc... they would be anxious to get it sold. It has already been 4 months.

Dave

[sailingdog]

Brokers imply a lot of things...most of which aren't necessarily true.