Will Prices on boats go down EVER?

[GOTTA BIG SACK]

I'm sitting back and patiently waiting to see what happens with cash in hand ready to snap up a deal on the right boat.

I've got 10 rental houses I sold in a package deal this month that were paid for. I'm gonna try to patiently sit bit on it for the next 2 years and see what happens. May snap up several deals.

[Mcjenson]

If they didn't they wouldn't spend $100k.

I meant as in the competitors boats, not their own personal boat.

I didn’t spend near 100k for my boat, but it certainly was expensive. That said, I fish all the time, wanted a comfortable boat for big water, and was able to pay it off within a few years. Would it have been “smarter” to buy a cheaper boat and invest the money instead? Sure, but I’m not going to wait for retirement for something I love doing, and got tired of the getting the snot knocked out of my on my tracker lol.

[mastergun]

No

That’s the brief answer.

In the 2023 model year base prices for most 20’-21’ mid to upper tiered bass models, with a 250 engine, will run about $80,000 to $90,000 before, freight, prep and TT&L, up significantly from 2022. The component raw materials prices will not come down much, though possibly some fractional amount. The engines will not come down, nor will other accessory components that have jumped up. Todays list of those parts added is what crawls the retail price well over $100,000.

With things going up on labor and supply aspects we don’t see that changing. You can’t take away the $15-$20 hourly fast food pay scale that has exponentially increased, and no company is any different trying to produce in this climate. It becomes the new normal.

Going forward, as the demand is met, we will likely see a return of rebates and sales programs. Some companies are already doing that now, though most manufacturers are literally sold out and can’t get enough products to meet existing demand.

It will eventually stabilize and in 10-15 years seem more normal again.

This!! I often wonder if people actually don't understand the 2nd and 3rd order effects of increase minimum wages or if they are being purposely obtuse. The increase in wages have to come from somewhere. That's through increased prices, so their buying power doesn't really increase. The only org that benefits from this is the government through increase tax collection as these people move into the higher tax brackets and they no longer qualify for any of the low income tax credits.

[BroWhoop]

Lots of things are going to happen if/when recession gets going. Sales will slow on everything as people loose jobs because the public stops spending. So slow sales, higher interest rates, etc.

[josephsharpe99]

Well...People complain about 20year loans... But, a 20 year loan reduces your monthly payment ... AND it gets you a nice boat right away... AND for those that say you will be in a hole, there is something called paying more every month AND paying the boat off early if you can.. AND.. Refinancing if the market allows. What really kills you is financing for 20 years and waiting 20 years to pay it off.. Why not take advantage of the low payments and pay more if you can... That is how I look at it.. Someone proove me wrong.

[TroyBoy30]

nope

[WVBullet]

Even through these times, as long as people buy, they will remain the same in cost and only go up. Not saying they won’t give out a deal from time to time, but no.

[BMCD]

Funny we blame people who finance there stuff for high prices yet cash buyers buy at the same price. I doubt there are many that would pay on a boat for 20 years.

I have had a few 20 year loans on my boats. Did I do it wrong?

Many don't understand where the money is at, in cities a 100k salary is very low middle income. And even entry level pay for some jobs now.

When I look in the parking lot I see new jacked up trucks everywhere with these 80k+ boats. there is plenty of money out there.

[fishnfireman]

Watch out! That self stroking, back patting stuff will come back to haunt you.

[Highcentered]

You might be waiting a long time before you see these financed boats on the market at a reasonable price. A lot of these boatowners are buried in payments and will take years to catch up.

This has been my thought all this time. 15-20 year loans and so upside-down they can't see the light at the end of the tunnel. Gonna be hard to make that payment when the boat isn't looking so fresh anymore and a list is getting made every trip of stuff that needs to be fixed. I look at boats for sale every once in a while just to entertain myself and think "these people are out of their effing mind!" Last month I even saw a dealer in Searcy, AR trying to sell a '17 Tracker 175txw with a 60hp and dismal factory elactronics most people upgrade quickly priced a few thousand higher than it sold for new!

[Highcentered]

Well...People complain about 20year loans... But, a 20 year loan reduces your monthly payment ... AND it gets you a nice boat right away... AND for those that say you will be in a hole, there is something called paying more every month AND paying the boat off early if you can.. AND.. Refinancing if the market allows. What really kills you is financing for 20 years and waiting 20 years to pay it off.. Why not take advantage of the low payments and pay more if you can... That is how I look at it.. Someone proove me wrong.

I always wonder how many people are barely able to make the monthly payment on a 15-20 year loan. We have the same opinion that it's a good safety net if you hit hard times but busting your ass to pay off early is best. More OT at work than I care to think about made a huge difference. I paid my 10 year loan off in less than 6 and made just the minimum for a few years while pulling myself out of a different financial hole. Once I was able the boat balance went down fast and even saved a few grand on interest charges. Now working towards mostly paying cash for my next truck brand new in about 4 years.

[ChrisS22]

No with a capital NO! I retired January of 2022 at the age of 62. After owning 4 previous boats, I traded in my 2018 19ft glass boat, and purchased my forever boat a new Vexus VX 20 with all the options. No bank note as my prior boat was paid for and I paid the balance in cash The way prices have increased since I bought my new boat I’m glad I pulled the trigger when I did. I didn’t spend that kind of money to impress anyone, I bought it because all my life I wanted a loaded 21ft bass boat and I decided to buy one while I could enjoy it. Don’t be fooled there are more recent retirees with large nest eggs that can afford $100k boats than many think.

[sushi520vx]

Don’t be fooled there are more recent retirees with large nest eggs that can afford $100k boats than many think.

Your right, there are a lot of people who are sitting on a ton of cash and I mean a ton of cash

[OkieBud]

Nope Never

[mean_dean]

Yes, if everyone stops buying them. Then manufactures will have no choice but to reduce prices or close the doors.

[ThomasD]

Yes, if everyone stops buying them. Then manufactures will have no choice but to reduce prices or close the doors.

And yet there's a 6 month plus waiting list from most manufacturers. People that want them and can afford them will not stop buying.

[ChuckTR21]

I think the info Basscat Boats provided is certainly spot on and they, as a manufacturer, certainly know more about this than any of us do. Would not attempt to dispute anything they say as it's from the horse's mouth so to speak.
For thought though, consider what is happening in the stock market and with interest rates. This may have an impact on demand and ability to buy more so that any of us have seen in the last 15 or more years. I know a young man in his early 20's who just purchased a new Caymas 19 with a 200 that is nicely equipped. Interest rate from dealer was in the 4% range. Stretching him but he's making it. Now, bump that interest rate to 8% or higher and he's simply not capable of making the payment. Doesn't matter that the boat costs what it costs to manufacturer and the total price (including the dealers fair cut) is honest and fair, he still cannot afford what the payments will be at that interest rate. This, more than anything, may be what puts pressure on demand and possibly prices.

There will always be those who are independently wealthy and can truly pay cash for whatever they want but most of the folks at a boat landing on Saturday are not in that category. I know another man who is wealthy enough to buy the Caymas boat factory and he has a 15' Crestliner that he fishes from. Once you really DO have money, it's spent on items that are big ticket but likely not bass boats. The bass boat consumer is still predominately "working class folks" and the last 10 plus years of low interest rates for everything has made it possible to buy increasingly expensive boats on 15 year notes and keep things balanced. If the inflationary pressures continue and the Federal Reserve really does jump rates to counter it, I believe this will be the tipping point much more so than the cost of the boats hitting a ceiling.

I have no doubt that it costs what it costs to manufacture the boats and the price is reflective of that; however, if we get into interest rate ranges that many people buying boats have never seen, that may change things. Around 1980, it was not uncommon to have a 12-14% interest rate on a home loan and vehicles and other consumer goods where about the same, for much shorter time periods. It'll be best for us all if that doesn't happen again, but, if it does, that will change the demand for boats and vehicles no matter what the fair price is.

[xcoach]

Nope, the only way is to downsize from now on.

[D_Wade85]

Who determines the bank terms?

Do the banks decide length of term based on the MSRP price, or do the boat manufacturers reach out to the banks as prices increase and ask for longer terms? If banks only offered 5-6 year terms on bass boats there would be a lot less in production, or the banks parking lots would look like dealerships with all the repos.

This is a which came first, chicken or egg question, but it’s something I’ve always wondered. If the boat manufacturers know that banks will continue to lengthen the terms then are they not incentivized to continue to raise their prices?

Same argument can and has been made about college tuition and government loans. If colleges know the gov will subsidize it, then it creates a major incentive to continue increasing tuition cost whether warranted or not.

I have no problem with boat prices btw, and knowing what costs are involved in running a business first hand, I totally can relate. But when financing gets involved, there are factors other than pure production cost and cost of running a business, that can really muddy the waters when determining what the price of a product could be and what it actually is.

[ThomasD]

A banks terms are based on your good credit not a drug deal with the manufacturers.