In the case of offshore built products, changes in exchange rates have a dramatic effect in the U.S. At Passport we have monitored this for the last thirty years. There have been rare periods when U.S. buyers had the advantage due to exchange rates, but those have been short lived. In general currency exchanges rates have put the U.S. buyer at a disadvantage. With the current debt in the U.S. it is a pretty good bet that exchange rates won’t be favorable anytime soon. This will add to the cost of new boats in the future.
The bottom line for the new boat buyer is that now is probably the best time to buy a new boat if they have the desire to go forward with their dream. Prices are at an all time low, financial institutions are offering the lowest rates ever, inflation and exchange rates are still low and technology is at an all-time high.
Some of the same things that make it a good time to purchase new boats apply to used boats as well. Low interest rates and low prices for new product, which drive to some extent prices in the used boat market, both help. But there are additional factors in the used boat market that are unique to that market.
Because there have been fewer individuals purchasing new boats in the past three years there are fewer used boats in the marketplace. Those that are available are well priced and are aggressively for sale.
The downturn in the economy has caused many owners to hold on to their current boat. So good, well maintained, used boats are not as plentiful as in years past. You would think that would be the formula for a seller’s market, but because of the economic environment it simply means that things are neutral. Sellers who are savvy can find a buyer if they price their boats well and keep them in good shape.
As always happens, the best priced boats that are the best maintained and the best equipped sell first. Essentially the cream-of-the-crop sells first to knowledgeable buyers, leaving boats that are not as desirable for those who hesitate.
Lastly, because of the factors making a new boat purchase attractive right now, there are owners that are anxious to purchase a new boat. But to do so they have to sell their current boat. That usually results in a good buy for the person who can take advantage of that opportunity.
All of these factors point to a window of opportunity for both buyer and seller of previously-owned yachts. As we progress into the year the opportunities become less advantageous for both as the cream-of-the-crop gets sold and other factors such as rising interest rates come into play. As I mentioned at the outset there are many factors involved in determining when is the right time to invest in your dreams and your future. Whether it is a new boat designed and built just for you or a previously owned boat that fits your criteria, given the factors above now could be that perfect time. In all the years that we have been actively involved in helping our clients attain their goals and fulfill their dreams the current window of opportunity is unparalleled for those that believe in the future and have the foresight to act on their beliefs.