I like your analysis on new boats. Makes sense that they will increase in
price, beyond inflation, as demand/volume goes down. There doesn't seem to
be any great 'productivity' gains being applied to building new boats that
would drive the prices down like desktop PCs. Proucdtion has already been
moved overseas. So what does this really mean for the used boat market? Less
new boats coming on the market, prices go up, less overall demand, prices go
down. ???
Paul
www.jcruiser.org
"Peggie Hall" wrote in message
...
wrote:
I think that simple demographics dictate that boat prices *must* go
down. The majority of potential boat buyers...esp. distance
cruisers...are getting older fast, and while they may have the money,
they don't have the time or energy in many cases.

Great logic, but unfortunately it doesn't work. More than 2/3 of the
boats sold today are used boats...a reflection of a market that's
becoming saturated. However, instead of driving down the prices of new
boats, this actually drives prices up...because boat builders have fixed
expenses...and the more units they can build and sell, the more units
their fixed expenses can be amortised over, driving prices down...but
the fewer units they can sell, the more they have to sell 'em for just
to stay in business.

So the net result: instead of prices going down, fewer choices at higher
prices...and a market that just keeps on becoming more and more
saturated...until there may not be ANY market for new boats at all.

My last boat was 16 yrs old when I bought her....21 when I sold her (at
a small profit, btw). She was most assuredly a "project" boat--nothing
on her worked...but she was sound. I paid $25k for her...spend another
$20k replacing/upgrading everything on her...evening adding a bunch of
things--like an icemaker. Total investment for a boat that, except for
the hull, WAS a new boat that had every "bell and whistle" any 'floating
condo' buyer could want: $45k. Comparable new: $175-$195k. So why would
anyone buy new when they have it all for 1/4 the price?

I'm not the only person to figure that out...which is why more than 2/3
of all boats sold today are used boats...and why the prices of new boats
can only keep going up to keep the boat builders in business.

Peggie
----------
Peggie Hall
Specializing in marine sanitation since 1987
Author "Get Rid of Boat Odors - A Guide To Marine Sanitation Systems and
Other Sources of Aggravation and Odor"
http://shop.sailboatowners.com/detai...=400&group=327

http://www.seaworthy.com/html/get_ri...oat_odors.html