Over the past few weeks, I've received the following question several times in various forms: With the economy in the shape it's in, is now a good time to buy a boat?
Most of us feel the pinch of a shrinking economy. In 2007 (the most recent data we have available), new powerboat retail sales decreased approximately eight percent. While 2008 numbers have yet to be calculated, the general feeling is that the industry will experience another decrease. Much of this projected decrease can be blamed on the present consumer credit crisis and rising unemployment.
However, there is also good news if you look closely at all the numbers. Boating participation by U.S. adults increased 10 percent in 2007, to 59.1 million. Fewer boats may have been sold, but more people are actually out boating. Personally, I've seen this come to pass, as I've had more friends and family spend the weekend with my wife and me out on our boat than ever before. We even had some friends forgo a Florida theme-park vacation this past summer and join us for a weekend of boating and fishing on our 23-foot center console. Maybe this slow economy is driving people to get back to basics and crave additional family time. Most long-term boaters will tell you that quality time spent on a boat is one of the best ways to build relationships.
A recent consumer study by RBC Capital Markets found that 80 percent of people plan to purchase a recreational product at some point in the future. Consumers seemed most desirous of a boat (27 percent), followed by an ATV, motorcycle, tow-able RV, and motor home. To me, it's evident that more people are boating – and more people want to own a boat as opposed to an ATV or RV. This is all in spite of a decreased number of boat sales.
I mention all these stats and trends to provide a basis for my answer to the above-mentioned question: Yes, this IS a good time to buy a boat! For me, the rationale behind "why" it's a good time to buy boils down to two major points.
The first: Boat sales are down, and many manufactures and dealers have addressed this unfortunate trend in their pricing and other incentives for the buyer. I was recently talking to folks at a major dealership, and they told me they've lowered prices on some brand new 2008 models to levels that have not been seen in almost a decade. In some instances, it is possible to buy a 2008 model boat at 1998 prices.
Second: With the growing trend of more boaters hitting the water, and with more and more families looking for activities to participate in as a unit, I believe the demand for boats will only increase in necessity and strength over time. With low prices available now and a potentially high demand in the foreseeable future, now's definitely the time to make a purchase. I believe that 2008 and 2009 model boats are being sold at reduced rates and that they will retain their value in the years ahead as America emerges from this challenging economic time.
If you're in the market for a boat or you've been boating with your neighbors recently and think you might want your own in the next couple years, now is truly the best time to buy. Inventories are up, prices are down and boats purchased today should hold their value.
If you're very serious about buying and buying now, I urge you to consider purchasing a boat at a boat show. You tend to get the best price at the show, and you can shop around for the boat, dealership and the price that best suits your needs. Visit www.BoatShows.com to find a show near you!
