Who Buys New

W

Woody

Well-Known Member
Nov 20, 2007
9,455
N. Wisconsin/Lk Superior
Boat Info
2005 420DA
Engines
Cummins 6CTA8.3
From time to time the question pops up, who is buying the new boats? Here's some interesting information.
Top 10% of households have an average net worth of 8.1m and an average of 1.29m in retirement accounts.

If you feel like reading....
Changes in U.S. Family Finances from 2019 to 2022
Evidence from the Survey of Consumer Finances October 2023
 
I only skimmed through that PDF, but I came up with vastly different numbers then what you posted. What page was that on, I probably missed what you were referring too? Very interesting read, but I came up with what I am seeing, businesses charging more and people making that same and not keeping up with inflation.
 
Top 10%? I think you only need to make $160k to be in that bracket. They aren't buying the new big boats.

I also think median would be more appropriate when comparing net worth. The average American making $160k per year doth not have $8.1M net worth. That data is being massively skewed by the top 0.1% income earners...
 
Stee6043 said:
Top 10%? I think you only need to make $160k to be in that bracket. They aren't buying the new big boats.

I also think median would be more appropriate when comparing net worth. The average American making $160k per year doth not have $8.1M net worth. That data is being massively skewed by the top 0.1% income earners...
Click to expand...
It's top 10% of households by net worth.
 
I will change the perspective slightly, if net worth and cost was not a factor - I would still NOT buy new.

The concept of a new boat from the manufacturer having fewer issues than one that was previously owned is no longer a safe assumption. A new boat off the show room floor so to speak does not come without issues, and it seems its getting worse.

We are in a small marina - 8 slips total.

In the group of boats, we have 4 new from the manufacturer boats come in.

Of the 4, one was a very knowledgeable/experienced boater who decided he wanted a new Viking.

The other 3, 2 Galleons and 1 Azimuth were all first time boaters (all boats over 60 ft). Those 3 boats have had significant first year problems, heavy warranty work across all systems on the boat.

The 4th one still has had issues, but not as much. I would attribute this to the manufacturer (Viking) rather than the owner. Talking with the boater, he chose the model he did because he knew enough to select a model which was known to have fewer problems.

My preference would be a 2-4 year old boat, low hours, good maintenance, etc.
 
If this report is accurate, and I am reading it properly, it wants you believe that the average household net worth on America is over $1 MM.

Not buying it.
 

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Woody said:
It's top 10% of households by net worth.
Click to expand...

Meaning the top 10% of the US, still doesn't make any sense and still put's you around $170K. You need to be the top 4-5% to buy a boat and higher for new. JMO.
 
Stee6043 said:
Top 10%? I think you only need to make $160k to be in that bracket. They aren't buying the new big boats.

I also think median would be more appropriate when comparing net worth. The average American making $160k per year doth not have $8.1M net worth. That data is being massively skewed by the top 0.1% income earners...
Click to expand...
No one said a person with a 160K income is buying 2 comma boats. No one said a person with 160K income has 8.1M net worth. I just posted the average of the top 10% of wealthiest households, that's all.

For those hung up on income...if the highest 10% of income earners were also the highest 10% in household net worth(they're not), then we'd be talking about 15+million households.

The whole point in my post was to show there's a shitload of money out there to buy boats with.:cool:;)
 
Woody said:
No one said a person with a 160K income is buying 2 comma boats. No one said a person with 160K income has 8.1M net worth. I just posted the average of the top 10% of wealthiest households, that's all.

For those hung up on income...if the highest 10% of income earners were also the highest 10% in household net worth(they're not), then we'd be talking about 15+million households.

The whole point in my post was to show there's a shitload of money out there to buy boats with.:cool:;)
Click to expand...
The median net worth of the top 10% will be vastly different than the average of the top 10%.
 
Sua Sponte said:
If this report is accurate, and I am reading it properly, it wants you believe that the average household net worth on America is over $1 MM.

Not buying it.
Click to expand...
Agreed. This is in a population where the majority of people say they don't have enough money saved to afford a $1,000 emergency expense. There's a disconnect somewhere.
 
Back to the topic "who buys new". I know when it comes to boats, in my neck of the woods (Charlotte NC) there seems to be an unlimited supply of young wealthy people people who can afford (or at least are buing) new luxury cars, boats and houses. I won't even get into the cost of real estate on LKN. Three main dealerships around Lake Norman (SeaRay, Regal and Cobalt) seem to have no problem moving brand new boats. I think some of it is a generational thing - young professionals, big salaries, they just buy new cars, a boat etc and make a payment. They have the cash flow so a couple thousand $$ a month is no problem. Get tired of it in a few years, sell it trade it and keep moving. Unlike true boaters that enjoy owning and taking care of a boat, they just want the experience and are not really interested in true ownership. The good news is this type of boat/car owner puts a lot of nice used vehicles in the market for people like me that buy every 8-10yrs, want something nice, but not necessarily new and generally don't finance (I just feel better knowing I am not making a huge boat and car payment every month). The other side of these is the transfer of generational wealth that is happening right now - the boomers saved and invested for retirement, many did quite well - now they are starting to pass that wealth down to their kids (adults now) that like to spend it!

The cost of new boats and cars is crazy - I personally can't fathom spending 100's of thousands on a new boat these days. My Cobalt for example was just over $90k new in 2014, I was looking today at an R6 comparably equipped $192 k- I can't spend that kind of $$ on a toy and even if I could I don't think I would. I keep thinking there is an end to it, but I don't think there is - maybe a slowdown, but prices will never go anywhere but up. Meanwhile, I figure one of these young rich people is enjoying my next boat right now!
 
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