What's a fair price?

[capt chris]

Grady Friends,
Let me hear from you! What do you all think a fair price would be to pay for a brand new 2007 Sailfish w/ twin F250s, companion seat, and anchor windlass? The boat is a new leftover. It is not a demo and comes with full factory warranty on the boat and motors.
Let me know what you all think. I value your opinions. Thanks!

 

[megabytes]

Here is a forumula.

MSRP
- 15% 2007 discount
- 20% 2008 first year depreciation
- 5% 2009 additional year depreciation
+ 10% premium for new boat

If MSRP is say $140K

150 * .85 = 127.5 * .8 = 102 * .95 = 96.9 (price of well kept 2007 boat)
-
96.9 * 1.1 = $106,590

The rule of thumb as I have alreadys read is 20% first year and 6% thereafter although observations confirm GW holds value better then average (much like Lexus, Acura, etc). I would price this is a used boat and then add a premium for the fact it is new.

The key is to ensure you could sell as a 2 year old boat should that need arise and also that 5 years or so down the road the value is competitive with similar boats should you trade up or down. Remember - when you sell the boat WILL be used and 2 + x years old by model year.

The 10% premium for new is just my guess and is the primary point of negotiation. The current economy is another big factor in YOUR favor.

 

[capt chris]

Thanks Megabytes,
I'm told the MSRP on this particular boat is ~ $164,000. I agree with all you have said. My greatest concern in even thinking about this is what will the boat be worth if I did buy it. Right now the depreciation is the dealer's risk. I would not be willing to pay much more than what a comparable 2007 was worth plus a small premium for the boat being "new" with full warranty and no hours on the motors.
It doesn't make sense for me to assume the depreciation risk. That is unfortunately the dealer's problem and I would not want to assume that liability.
On another topic, I'm sorry to hear about Crocker closing all their stores. It must be more than just a slow economy. I assume that maybe they just got tired of fighting it. I always heard and read great things about them.

 

[BobP]

If you want new, then new it is. Dealer needs to tell you the price, when he tells you, cringe immediately, and say what's your rock bottom price?
That will drop it another $5K or more.

If you can consider previoulsy owned, a 2 yr old boat is new to me, I bet many for sale on boatraderonline with little 60 hr usage. If motors had 3 or hopefully extended 6 yr warranty, you have some motor coverage. That's the only risk I see, is in the motors, presuming boat is not a salvage or commercial used job.

Then you compare the dealers rock bottom price to the used price.

I don't know how MegaB is doing depreciation, since economic times effects resale not just new price. Supply and demand indicates today the buyer rules. Different if 20 guys are looking for one avaliable model for sale, it's the other way around today.

I use a different gauge, when does the boat reach 50% of it's new price out the door, in how many years? 3 , 5, 7 , etc.

It wasn't long ago the guys with new Marlines figured they could sell in two yrs for what they paid for them. True reality in those boat shortage / high demand times - just a few years ago.

You have your 20 footer just a year or two, you will get pummeled equally on the sale, although the 20 footer has always been in heavy demand even more so lately with people cutting back. Cutting back means down sizing.

I don't know if the dealer will work a deal on the trade in, if so, one advantage to the dealer new option. If you have room to keep the 20 footer around, it will sell and sell better than I bet the trade in can do.

So the only downside for you is the used motor risk and unload value on the 20 footer!

 

[capt chris]

Bob ,
Thanks for your insight. I guess when it's all said and done I look at it from the standpoint of what do I have invested in the boat vs what it is worth. If I buy a 2007 now whether it's new or used it's only worth so much as soon as I take delivery. Paying a huge premium just because it is "new" just means I have subsidized the dealer's financial risk. Owning a boat soon to be 3 model years old at the dealer's cost is the dealer's dilemma. It's his decision to take the loss or not. My experience with outdated product is to take your lumps and move on. It only gets worse the longer you wait. In other words, your first loss is usually your best loss. But that is totally the decision of the dealer who as an independent business man makes his own decisions on what he is willing to do.

 

[BobP]

Excuse me, 22 footer.

Since the dealer had the Sailfish for three sales seasons, you know he's been asked I bet two hundred times for a price.
If he wanted to deal to sell it, he would.

Since the Sailfish was discontinued, I bet he's counting on the desperate buyer who is looking for new Sailfish and he comes to find this dealer has the last new one for sale, dealer is king on price then. 2007 Sailfish is same as 2008 RIP Salfish. The Sailfish is a popular model, it's replacement Chesapeake, I don't know if even one has been sold. If it has, owner never found this site. And it was released 2 yrs ago?

Just like cars, the wow factor of a never owned virgin is worth it to some, not to me. I prefer the used models, women too !
So just like left over cars, the buyer gets the short end of the stick, not the dealer, only because its new. Your position I agree with but it doesn't play out that way as I see what's going on.

However, if you buy the boat or car new even if 2 model yrs old and keep it a lot longer than your 2 yrs old 22 footer, it doesn't matter and you make out, and get the virgin to boot and save in the leftover model vs current year model.

Beyond that, you will save much more on the previoulsy owned 2007 Sailfish especially out of the south where boats are plenty and cheaper, the hauling costs home are a bargain. This is the biggest cost avoidance option non-virgin upside over every other choice, make sure motors are good is downside. Pay more if extended warranty is in force - then no motor downside.

Don't know what to say more about the 22 footer unload.

 

[megabytes]

Bob and Chris.

I just used normal depreciation figures as a starting point. The tough economy and lack of demand obviously affect the price you should pay.
Since the boat cost the dealer 60% of MSRP there isn't room to make much profit on a 2007 model. He very likely has it floor planned so selling near cost will save him money.

I agree with Bob you should NOT pay more then a similarly equipped 2007 plus a bit for newness. Note a used 2007 will likely have electronics and other rigging included. The dealer has a chance to make money on rigging so he very well may sell at cost. It is indeed a buyers market.

PS: The rule of thumb I have heard is that a boat is worth somewhere around %50 of the selling price at 10 years. Of course brand, model, economy, condition, etc can affect this so it is only a starting point.

 

[armauro]

For a comparison I am selling or trying to a 2006 with 200hps 4 strokes with excellent electronics and ONLY 22 HOURS on motors and all other options except AC for 80K.

 

[Bob Coco]

For a comparison I am selling or trying to a 2006 with 200hps 4 strokes with excellent electronics and ONLY 22 HOURS on motors and all other options except AC for 80K.

Where were you a month ago? LOL I just bought my 04 w/200 hours. The boat is in perfect condition and has 225's but an 06 w/ 22 hours for 80k sure is a good deal.

 

[Frank]

This boat probably would have gone out the door for $145-150K or so in 2007. It is now three years old (Grady model year changes July 1). I would be looking to pay around $110K. After you put electronics on for $10-15K and ran it for 20 hours, you would be hard put to get $110K back out; it probably will be less.

Thus, at $110K purchase price, you probably will lose 10-15% if you try and sell it next year (unless gas prices shoot up, in which case ?).

Like others have said, I would try to estimate the purchase price of a 2007 (not the asking price), give a bump of perhaps 10% for new, and then subtract $10-15K for electronics.

 

[armauro]

The only buyers I have seen are wannabes or people with 10k and think they can finance the balance in this economy. The boat was listed with Anglers Edge for months.

 

[Fishtales]

I would offer 30% off the $140K list, the following are included:
- All safety equipment
- Bottom paint
- Electronics installation (you supply and buy on the net)

Basically you want the boat out the door at $100K. If they don't take it, wait till December and then move on. My guess is they call. The boat is another year old in the spring if they sit on it.

 

[Bama96]

You would be better off buying the 06' that Armauro has for sale. Low hours and new electronics. Save 40K and get his.

 

[moklodge]

Don't mean to be rude, I just hate inaccurate info.

The Chesapeake was introduced in Sept. 2009. Not 2 years ago.

 

[fishie1]

I believe the Chesapeake was introduced in model year 2009 which would have debuted in July of 2008.

Saltwater Sportsman had a review in its October 2008 issue.

 

[Capt Bill]

I believe the Chesapeake was introduced in model year 2009 which would have debuted in July of 2008.

Saltwater Sportsman had a review in its October 2008 issue.

That is correct. I'm pretty sure there was one in the marina at the Chesapeake Grady White Palooza in August 2008.

 

[GulfGrady]

Don't mean to be rude, I just hate inaccurate info.

The Chesapeake was introduced in Sept. 2009. Not 2 years ago.

Sept. 2009 was last month.

 

[BobP]

The 2006 above is same boat as 2007/2008, Sailfish deal of the decade!

 

[ocnslr]

Don't mean to be rude, I just hate inaccurate info.

The Chesapeake was introduced in Sept. 2009. Not 2 years ago.

I agree with you about inaccurate information.

The TGWC toured the GW plant in April of last year - 2008. Hull #1 was completely prepped and went out for her photo run the next day.

The photos were on the GW website in May, if I recall.

As Capt. Bill noted above, there was a 290 at the Grady White Palooza at Solomons Island in August 2008.

Brian

 

[magicalbill]

Interesting reading..
Chris, are you trading or selling your Tournament?? You haven't had it long...