[jmloy]

Hi folks!

I realize that all things are negotiable but I was curious about the purchase of new boats. Just out of curiosity and please someone with real knowledge respond: Do manufacturers and brokers actually haggle(negotiate) on the price of new boats with potential buyers similarly to automobile purchases? Is there a rule of thumb here?

Thanks for reply. Any help would be appreciated.

Mike

 

[TSOJOURNER]

Boat buying should be an enjoyable experience and the word "haggling" conjures up ugly pictures. As with anything that is for sale there is a difference between cost price and asking (list) price .. this is often known as "profit".Sometimes, where a dealer has been carrying a boat in inventory for a long time, his actual cost (the boat plus all his carrying expense) may equal the list price. At this juncture, the seller may very well be unwilling to negotiate with you, but if he has incentives to "unload" the boat, perhaps you and he could work it out. If a dealer is ordering a boat for you and he has buyers stacked up outside his door, no way will he be prepared to give you money off the boat - he might,however, share his discount at a local store so that you can outfit the boat less expensively - merchandise in lieu of dollars, not a bad exchange. Also, his boat builder may be giving him incentives that he could, if he likes you, pass along to sweeten the deal. It depends on how hungry the dealer is as to what he will/will not do, and also, how well you get along. Remember, keep it light and respect the dealer - this is his livelihood we are talking about. If it is a Seller''s market don''t anticipate too much dickering, but in a Buyer''s market you might find willingness to negotiate either boat options, equipment, or possibly some money off for a straight cash deal.

Good luck with your negotiations!
Remember, you can''t get it if you don''t ask!

 

[jmloy]

Hi Jill:

Thanks for the info and wise words. As one very wise man has stated many times, "you don''t get what you deserve, you get only what you negotiate". (or something like that<g>).

Regards,

Mike

 

[hamiam]

Dear Mike:

Please be advised that Jill is a yacht broker and her opinion and viewpoint as a seller/broker may not be totally in line with that of your''s, a buyer. While I agree that boat buying SHOULD be an enjoyable experience, oftentimes it is anything but. As with all big ticket items, their is an expectation on both sides that a price negotiation will occur. Jill is simply incorrect regarding aged items in inventory; dealers are much more willing to negotiate on inventory that is not moving. Take, for example, the car industry where some of the best deals can be had at the turn of the model year. I would suggest that following: First, if possible, do not have your heart set on a single model from a single manufacturer or at a single dealer. If you have some flexibility, you are in a better position to negotiate as you can walk away from one deal and take another. If this is not possible, use competition and timing to your advantage. Dealers will compete with one another and make be more willing to do so in, say, that fall and winter rather than the week before Memorial Day. Bid low and nibble like crazy. Once you get to the point where the dealer is unwilling or unable to negotiate purely on dollar price, take Jill''s advice and negotiate for discounts off products and services and other soft items. If the dealer is also a marina owner, you make be able to get something like free hauling and storage which will save you hundreds (or thousands) and cost the dealer much, much less. Same for parts which carry a high mark-up. My last bit of advice would be to be ready to buy on the spot. Bring your checkbook or cash for a deposit and have any financing in place when you walk in the door. Good luck.

 

[TSOJOURNER]

I don''t think new boats are that good of a deal. I would much rather have a boat that has been "adjusted" and the defects have been shaken out.

An exception might be if you know exactly what you want and have a boat built to your particular specifications.

Better to get a stock boat direct from an owner and to eliminate the broker. What good can a broker do you the buyer? Lie to you so it''s an "enjoyable experiance".

When you ask questions to a broker about a particular boat they never know anything. Has she been hit? How hard?

Talk to the owners they, are more informed.

 

[jmloy]

Hi Mike:

Thanks for the tips. I usually take anything anyone tells with a grain of salt and such was the case with Jill''s advise(and yours<ggg>).

I am 42 years old and nothing I have ever bought(high dollar items) has ever been a pleasurable buying experience. In my mind, a pleasurable buying experience simply doesn''t justify the extra bucks I might have to spend in the process.

Also, excellent points on used boats. And I agree totally. I have thought of that often and really don''t want to buy new but I may simply have to due to the availibility of what interests me in the used markets.

All in all, I rather enjoyed your posting(and Jill''s) and look forward to any others by other folks out there.

Regards,

Mike

 

[hamiam]

Perhaps you could tell us what you are considering buying new and we can offer some alternatives in the used boat market?

 

[TSOJOURNER]

Hello Mike,

I am a Yacht Broker, and have sold new boats. To answer your questions. Yes buying a new boat is like an Automobile Purchase. The rule of thumb is the dealer will mark up the boat 20 to 25%. Most dealers will accept a 10% offer. Pending on the demand on the boat, how long it has been in inventory, and the cost of storage will determine purchase price. Keep in mind that a new boat dealer is not a yacht broker. He has to sell you what they have in inventory. The professional yacht broker WILL find the right boat for you, and will continue to be a source of information for a long time to come.

 

[jmloy]

Hi Hamiam:

I am not sure at this point what exactly I want. I do want something that will be relatively easy to handle just a few crewmmembers(or possibly single-handed). As far as size, I am looking in the 36-42 foot range.

The trimarans are particularly intriguing but I don''t really know if I will go that route due to the cost factors associated as compared with monohulls of the same relative size. I do particularly like the shallow draft capability of these designs. On the other hand, those types of boats seem to suffer quite a bit when it comes to fresh water and fuel loading capabilities.

I expect that I will continue to study my options for many more months before finally committing to a course of action.

In the end, what I want is something that will due lots of coastal cruising(read carribean) with possibly some true bluewater voyages.

Am I asking for too much here?

Regards,

Mike

 

[jmloy]

Hi there:

Thanks for pointing out the differences between a dealer and a yacht broker, as well as, the other points in your message.

Regards,

Mike

 

[TSOJOURNER]

The difference between a dealer and broker is a mute point. Many dealers also sell brokerage boats as well and can service a customer very well. As far as Brokers or Dealers not knowing anything, thats a harsh statement. I have been in the business for 19 years and I like to think that my knowledge of boats is extensive and has helped many find a used boat suitable for their needs as well as having new boats built for buyers. Last thing is that lately the used boat market is a bit bare and a new boats might be a better pick for a buyer looking for a particular model. My .02

 

[jmloy]

Thanks for the reply.

>>As far as Brokers or Dealers not knowing anything, thats a harsh statement. <<

With regard to that statement, I never said any such thing and furthermore, am not stupid enough to make such a statement.

But again, thanks for the reply.

Regards,

M