Buy a boat now with this market, or wait?

[mrsrobinson]

I am curious to hear thoughts/opinions on buying/selling a boat in this bear market. I looked at 3 over the past 3 weeks, 2 last Saturday. I am a cash buyer (at least I was until last week). I was ready to make a cash offer on one when I lost all of that plus more in the market.

I asked a broker I trust, yes, there is one out there , what he's seeing. 10 days ago he was seeing buyers are still buying, but they are no longer cash buyers, rather they are getting loans. With the Fed possibly lowering rates even more a loan is more appealing now. I keep my cash, buy into the market with it, market rebounds in 3-4 years, pay off the loan then.

My 2nd thought is should I wait to buy because the supply may exceed the demand and prices may start to drop. I never buy a boat I don't think I can at least break even on in 1 - 2 years in case I have to get out of it for some reason. So far I've been lucky on that. I don't want to pay $100k for a boat next week that is worth $60K this time next year because we are still in a bear market.

 

[glenncal1]

Well one would certainly think that demand would ease off non-essentials like boats (see that 1980 Economics degree is sometimes valuable) and you would see prices lowering. If I was you (easy to spend your $$$) I would keep looking and if you find your dream boat make an offer that reflects the softening market.

 

[swaterhouse]

I also worry a bit about your second concern, but life is too short to wait. If you find something you like at a price you feel if fair - go for it. That is my plan.

 

[GypsmJim]

OK, y'all can tell me now what a poor investor I am. I don't believe in the stock market, and I don't believe in debt. The only loan I ever had was for a house and we paid that off in 11 years with a 15 year bi-weekly mortgage.

My investments are worth more today than they were yesterday. If I was ready for a new boat, I would buy it.

 

[Blueone]

I wouldn't look at the current economic situation as a typical recession. I have a feeling this is a 3 to 6 month decline and it should recover to about 75% of the high. Just my opinion.... So I don't see boat pricing dropping all that much

 

[Golfman25]

I wouldn't look at the current economic situation as a typical recession. I have a feeling this is a 3 to 6 month decline and it should recover to about 75% of the high. Just my opinion.... So I don't see boat pricing dropping all that much

I don't know. A lot of boat owners are small business owners. Biz owners are going to get creamed the next few months.

 

[boatman37]

I am very active in the stock market (day trade options and futures). I expected a 10-20% correction but this is a little more than I expected and with all the small businesses closing I can see it pulling back further. I only trade my own money and am not a licensed advisor so this is just my opinion but wouldn't be surprised if it pulled back more at this point. Since I am a day trader I don't look at the bigger picture either and mainly focus on a 3 minute chart. I can make money whether it goes up or down so I don't fret over it but know it is hurting others and the overall economy so hoping we find a bottom soon

 

[El Capitan]

Supply is going to be abundant right around June. I’d wait and then hold your cash.

With these rates they’re giving money away.

 

[M Prod]

I wouldn't look at the current economic situation as a typical recession. I have a feeling this is a 3 to 6 month decline and it should recover to about 75% of the high. Just my opinion.... So I don't see boat pricing dropping all that much

I wish I shared in your optimism. I feel this is going to lay the smackdown on a lot of financially vulnerable people. I suspect it's going to be a long road back.

 

[Golfman25]

I wish I shared in your optimism. I feel this is going to lay the smackdown on a lot of financially vulnerable people. I suspect it's going to be a long road back.

My feeling too. It will make 2008-09 look like a picnic. They are wiping out just about every small restaurant, cafe, bar, and retail establishment. This will happen in the next few weeks. There will be several big retail and restaurant chains that bite the dust. And congress is talking about paid medical leave if you get sick (only a tiny percentage will get sick) -- what a bunch of fing morons. Local economies will be over by the time they figure it out.

I'm still looking for a boat, but not willing to jump at this point. Prices need to come way way down now.

 

[dcpringle]

I think that while the markets have dropped quickly, it'll come back just as quickly. China's numbers of new cases has dropped off pretty quickly after a fast spike. 2 months and they are now to the point it's burning itself out. I'd expect here in the US, we might see this even shorter due to the fact that we'll learn from everyone else's mistakes. I'd say if you can find a deal take it. I own a business and also work for another company too. I have enough in reserves for my business to go over a year without any income to the business... i'm not looking to spend that, but i'm prepared in case... just my 2 cents..

 

[RBB]

I think that while the markets have dropped quickly, it'll come back just as quickly. China's numbers of new cases has dropped off pretty quickly after a fast spike. 2 months and they are now to the point it's burning itself out. I'd expect here in the US, we might see this even shorter due to the fact that we'll learn from everyone else's mistakes. I'd say if you can find a deal take it. I own a business and also work for another company too. I have enough in reserves for my business to go over a year without any income to the business... i'm not looking to spend that, but i'm prepared in case... just my 2 cents..

 

[RBB]

I think that while the markets have dropped quickly, it'll come back just as quickly. China's numbers of new cases has dropped off pretty quickly after a fast spike. 2 months and they are now to the point it's burning itself out. I'd expect here in the US, we might see this even shorter due to the fact that we'll learn from everyone else's mistakes. I'd say if you can find a deal take it. I own a business and also work for another company too. I have enough in reserves for my business to go over a year without any income to the business... i'm not looking to spend that, but i'm prepared in case... just my 2 cents..

I screwed up. I hope your thoughts r
Spot on.

 

[DWABoat]

In some twisted logic, this may be the best time to buy a boat. When the economy is weak and sporadic, you are unlikely to overspend due to overconfidence in income streams.

Set your budget for a worst case scenario like this. If you can still afford it, then your boat will not cause you stress.

This is exactly why I bought the boat I did a few months ago. She’s old, 19, she’s not real big, 280DA, but she is beautiful, everything works, runs great, and completely 100% paid for.

I can ride out this storm in peace.

 

[Golfman25]

In some twisted logic, this may be the best time to buy a boat. When the economy is weak and sporadic, you are unlikely to overspend due to overconfidence in income streams.

Set your budget for a worst case scenario like this. If you can still afford it, then your boat will not cause you stress.

This is exactly why I bought the boat I did a few months ago. She’s old, 19, she’s not real big, 280DA, but she is beautiful, everything works, runs great, and completely 100% paid for.

I can ride out this storm in peace.

it will be but we have to hit bottom first. At least be able to leave the house and buy toilet paper.

 

[boatman37]

Need to find a bottom and see some consolidation before we bounce back up in my opinion. Consolidation builds confidence in the big money firms. A sharp V bounce doesn't build confidence so not everyone will get in. Just my opinion and experience being a 7 year day trader. I don't think the market will be what hurts the most, it will be the small businesses that are forced to close that will leave a bigger mark

 

[Golfman25]

Need to find a bottom and see some consolidation before we bounce back up in my opinion. Consolidation builds confidence in the big money firms. A sharp V bounce doesn't build confidence so not everyone will get in. Just my opinion and experience being a 7 year day trader. I don't think the market will be what hurts the most, it will be the small businesses that are forced to close that will leave a bigger mark

Yeah. I’m not really talking about the bottom of the market. Rather the bottom of our economy. Drove thru town today where on the past five years several restaurants opened up. Revitalized the whole town. Only two had a sign for pick up orders and no customers. All others closed.

 

[JVM225]

I’m thinking that this will have little effect on boat prices.
Production of new boats will slow as employees are sent home to practice social distancing. Inventory will be low when things get back to normal. The interest rates will be low too. Prices will be stable.
The market will bounce back within a year keeping interest in used boats high. Used boats may see a brief decline in value, but it will be short lived.
Some boat owners may be small business owners who will be hurt financially if they don’t see the benefits of pent up demand when this is all over, but they have the option of refinancing at lower interest rates.
Lots of bigger boat owners around here are old coots like me who view peaks and valleys in the market as mostly just numbers on a page. Those numbers have no bearing or impact on boat ownership for people like that.

 

[Golfman25]

I’m thinking that this will have little effect on boat prices.
Production of new boats will slow as employees are sent home to practice social distancing. Inventory will be low when things get back to normal. The interest rates will be low too. Prices will be stable.
The market will bounce back within a year keeping interest in used boats high. Used boats may see a brief decline in value, but it will be short lived.
Some boat owners may be small business owners who will be hurt financially if they don’t see the benefits of pent up demand when this is all over, but they have the option of refinancing at lower interest rates.
Lots of bigger boat owners around here are old coots like me who view peaks and valleys in the market as mostly just numbers on a page. Those numbers have no bearing or impact on boat ownership for people like that.

I love the optimism. But I think demand will dry up. They just shut down US and Europe auto manufacturing. My biz is toast. This is going to leave a mark.

 

[RBB]

No doubt things look bad, but I always
Have had the glass is half full vision.
Optimistic!
One announcement in the future being positive will make a dramatic change.
I just hate pessimism. It spreads quicker
Than the virus.

if you have the money and want a boat buy it. Life is to short.