Gas up Used Boat Prices Down?

[dfunde01]

If gas goes to $4.00 a gallon and holds will the resale value of our gas guzzeling toys go far South 40% 50% or 60%? Those that have notes on their boats may be trapped while those that own free and clear are forced into a fire sale situation. What do you guys think. This is not looking good.

[TuxedoPk]

I don't see where whether someone has a note on their boat or owns it outright has to due with them being "trapped" or in need of a "fire sale" based on the price of gas. The carrying cost v. opportunity cost remains constant reguardless of the price of gas.

As for values dropping by 40%-60% if gas were to pop up another $1/gallon- I can't believe that would have anywhere near such a dramatic effect. That didn't even happen when the economy turned to crap a few years back.

Playing economic devil's advocate, with help from Katrina there are now fewer used boats around and at $4/gallon those with the big multi-engine toys who would be hit hardest a "fire sale", our 16-22' single engine toys could more sought after then before...

[dfunde01]

I don't see where whether someone has a note on their boat or owns it outright has to due with them being "trapped" or in need of a "fire sale" based on the price of gas. The carrying cost v. opportunity cost remains constant reguardless of the price of gas.

As for values dropping by 40%-60% if gas were to pop up another $1/gallon- I can't believe that would have anywhere near such a dramatic effect. That didn't even happen when the economy turned to crap a few years back.

Playing economic devil's advocate, with help from Katrina there are now fewer used boats around and at $4/gallon those with the big multi-engine toys who would be hit hardest a "fire sale", our 16-22' single engine toys could more sought after then before...

I was refering to those that would be upside down in their boats, with the payoff being more than the resale value. They would in effect be trapped with the boat and the note. I agree that the boats that have a low GPH will become more desireable that one using 25+ GPH at cruise. I also think that the guzzlers in the sub $150K range will take a big hit in used value as these owners are likely to be more squeezed by $4 to $6 gas.

[gcarter]

I remember the last time this happened ('79-'80) sailboat sales went way up for a time.
Who says you can't wait it out?
Nothing is permanent, not even oil prices.
Think of it as owning an underperforming stock.
Do you love it?
Keep it!!!!

[Cuda]

I remember the last time this happened ('79-'80) sailboat sales went way up for a time.
Who says you can't wait it out?
Nothing is permanent, not even oil prices.
Think of it as owning an underperforming stock.
Do you love it?
Keep it!!!!

I love your thinking G! :)

[GKricheldorf]

If i could afford a $150k boat i don't think the price increase of gas would matter that much.

[gcarter]

Situations like this will always shake out the posers, the folks that are stretched anyway, and the timid.
I agree it might be a buyers market for awhile.
It could be a time to keep your eyes open.

[onesubdrvr]

Situations like this will always shake out the posers, the folks that are stretched anyway, and the timid.
I agree it might be a buyers market for awhile.
It could be a time to keep your eyes open.
I Know mine will be open!! :biggrin: , I'm sure you'll see more "deals" out there than normal, maybe not %40-60%, but I agree with G,....some will shake loose.

Wayne

[florida gator]

Have 1 paid for and am shopping for 1. If the preices are forced down I will by right and sit on the other until the rebound.

[Jraysray]

Situations like this will always shake out the posers, the folks that are stretched anyway, and the timid.
I agree it might be a buyers market for awhile.
It could be a time to keep your eyes open.

George just seems to have the right answers most of the time. Time to get in the political ring George?

Nah, common sense seems to fall by the way side at that point.

We need you here.

[Jamesbon]

I'm sure the rising gas prices don't help boat sales, but one who can afford a nice boat, can also afford the fuel. It just hurts a little more... :(

The last couple months have been typical for us as the end of summer nears, but international sales are strong, even with the cost of fuel in Europe double what it is here...

I'd love to see what would happen if gas went down to a buck a gallon....probably would clean out our inventory... :D

God Bless everyone affected by the storm...God's Speed!

[joseph m. hahnl]

i don't think the resale will be hurt by the cost of fuel being to much to put in your boat. but more that if sales drop for new boats then the manufacturers will have to lower there prices so as not to have inventory.what would happen is the new boats would be sold for less than what the used boat had owed on it.
"did that make sense" case in point. about 5 yrs ago the machining industry went into a recession. it lasted roughly 3 yrs. it was a buyers market where machine shops were doing jobs @$48.00 an hour and most of the jobs where break even or at cost most places did it so they could keep there doors open.
any way i friend of mine bought a cnc machine center called an Okuma.
it is an excellent machine. he paid $80,000. for it .now here he is struggling to keep his doors open. a year later because sales were down Okuma flooded the market with the same machine for $55,000.00 . so as you can see the value dropped up to 50%. but he hung in there and we came out of the recession prices returned and the machine regained it's value. it is predicted gas will come back down. but remember when coffee was a $1.00 a brick and then there was a coffe frost and it went up 100%. well coffee never came back down in price because people were willing to pay that much for it.
i fear the same with fuel. once we start paying these prices they know we will keep paying them.


joe

[dfunde01]

Regular gas peaked at $5.85 a gallon today in Atlanta. I can afford a nice boat. But damn if I am going to pay almost $6.00 a gallon, 25+ GPH to go play in it. My 45' motor coach gets 8 mpg at 55 mph, about 7 GPH, so I will still use it, but on much shorter trips. If these prices hold our economy will crumble.

Folks are already calling into their jobs around Atlanta saying they can't get in every day because they can't afford to fill up and eat in the same week.

Dave