Using NADA to valuate a boat

Discussion in 'Boat Tips' started by JRA, Apr 17, 2006.

  1. JRA

    JRA New Member

    Messages:
    77
    State:
    Kentucky
    I am trying to sell a boat and am using the average retail price of the boat, motor and trailer as the initial asking price. What do you guys think of using this as a basic guideline? I am willing to negotiate, but I have to start somewhere. The reason I am asking is that I am getting some rediculous offers from people. I have recived three offers on the boat and the highest was $1000 less than the wholesale value of the boat (which I could get right now from the dealer). Is this a bad year to try to sell a boat or am I just getting some people who are looking for the buy of the century? Maybe I am advertising in the wrong place (local newspaper classifieds). To be honest, I would keep the boat and let it rot in a shed before I would sell it for what these guys are offering. I would appreciate any advice that you can give.
     
  2. Knoxcats

    Knoxcats New Member

    Messages:
    57
    State:
    Knoxville, TN
    I just recently sold my Carolina Skiff 16DLX, which was only 1 year old. When I ran it in the local paper, I got two calls from the ad in two weeks. Once was a gentleman who offered my $7,500.00 sight unseen. The other was a girl from the local Bargain Mart paper wanting me to run the ad in her paper for another $45.00!

    It took a couple of months, but I did sell the boat from a web advertisment for $9,500.00. That was approximately 15% less than the cheapest price I found for a new boat rigged the same way.

    Be patient....you will sell it. Just be reasonable.
     

  3. JRA

    JRA New Member

    Messages:
    77
    State:
    Kentucky
    My boat is a 2003 Crestliner 1860 VC with a 50 hp outboard, and I am pricing it less that 50% of what a new boat would cost today. And this boat is no "fixer-upper". It is in top shape and has lots of extras. Either these people have no idea what the boats cost or are worth or they know and are trying to take advantage of an ignorant person. I am planning on trying the local boat trader publication. Maybe I would get some more reasonable offers.
     
  4. loanwizard

    loanwizard Well-Known Member

    Messages:
    3,297
    State:
    Coshocton,
    Welcome to my life! I am a used car dealer and get it from both sides. I never offer enough for a trade in, and I always want too much for what I have. The difficulty is that no 2 used vehicle, boat etc... is identical and the general public has no idea what a fair price is. Couple that with a seller that may have emotional attachment which they try to convert into cash value and buyers that are conditioned to expect a "Great Deal" and you have your situation. All you can do is be sure of your bottom dollar, and if it sells you're happy. If you are not happy you can rethink your bottom line, or as you say let it rot in the back yard. Just remember that depending on age it depreciates a little bit each month until it hits that static age where it will always be worth that amount, as well as you insurance cost interest payments if applicable etc...

    Good Luck!

    Have you listed it here on the BOC?

    Shawn Dostie
    www.coshoctoncars.com
     
  5. WylieCat

    WylieCat Well-Known Member

    Messages:
    7,177
    State:
    NC
    If you are wanting to get top dollar for your boat then you need to be willing to sit on it for months to sell it, I am sure loanwizard can tell you about that! If you are in need of cash then you can get rid of it fairly quickly selling it $1500-$2000 below what it is listed for.

    As for your question of is it a bad year? Well, a local repair place told me he has never had as many people coming in looking for SMALLER motors as he has this year. Gas prices are starting to bite people a little harder and a little earlier than last year so expect to see some folks getting rid of their gas guzzling toys.

    I am dealing with a guy now who wants to sell his six year-old boat for $12,000 and he paid $14,800 for it new. Well, it don't take a rocket scientist to figure out that he is WAAAAAAAY over priced on the boat, but he does have that emotional attachment to it, and he probably honestly can't come to the reality that he financed way too much of the boat.

    I offered him $7500, but its book value was about $8500-$9000 and I intended to go up to that. He flat out told me there was no way he was taking less than $10,500 for it. He was convinced it was worth that. So, we wait... I told him to take some offers, visit a dealer, and call me if he wanted to talk about it.
     
  6. JRA

    JRA New Member

    Messages:
    77
    State:
    Kentucky
    My original inquiry was whether the NADA book value is a good gauge of the value of a boat. According to NADA, my boat lists (average retail) for $6480 for the hull, motor, and trailer. I listed it for $6500 but am willing to come down some. The NADA for this boat does not include any extras: spare tire, two bank batter charger, bilge pump, trolling motor, two batteries, gas tank, depth finder, and carpet. The motor looks like it just came off of the show room floor, and the boat and trailer are in great shape. I was actually thinking that the boat is worth more than the average retail. I found a similar 2006 model with a leftover 05 50 2 stroke for $11,999 but was a bare bones hull, trailer and motor; that's what I meant when I said about half price. What has concerned me is that the highest offer I got was $4000, which is $1000 less than I could have gotten for trade-in. One guy offered me only $2000. The dealer said that he would still take it in as a trade-in or would sell it on consignment for a 5% commission. I may do one of those two but think I am going to try a little longer.
     
  7. Mr.T

    Mr.T Active Member

    Messages:
    2,554
    State:
    MO
    A. Folks buying your boat generally don't have a clue what it's worth, unless they've looked at the NADA book. Very few have. Your boat is worth exactly what someone will pay for it, no more and no less. The NADA value is a good place to start, but you have to temper it with the local market -- are boats similar to yours selling for similar prices? More? Less? Adjust your price accordingly. Finally, if you're satisfied selling it for whatever price you're asking, it doesn't matter what the boat is really worth.


    B. The "extras" on your boat don't really translate into a higher value. A bare-bones boat just like yours (same year, same engine, same condition) might sell for as much as yours, or maybe only a little bit less, even though you've got $2000 worth of accessories on your boat.

    If you want to get the most possible money for your boat and all the stuff on it, take all the stuff off, sell the boat with the motor and trailer (and spare, I guess), then sell all the other stuff piecemeal on eBay. The parts are worth more than the whole.
     
  8. WylieCat

    WylieCat Well-Known Member

    Messages:
    7,177
    State:
    NC
    Mr. T has a good point about add-ons. They translate out to about 50 cents on the dollar and create more emotional value for the seller than the buyer. If anything they are an incentive to buy you boat over an equally priced boat without the add-ons.

    Mt. T is also right about it being worth what someone will pay. Some folks don't have a clue about what they are buying, and if they have a pile of money and something catches their eye, then they will fork out the money.

    I think selling a 26 center cosole fishing boat boat in Palm Beach is a lot easier than selling the same boat in Asheville, NC. Market does play a part in the price, but it varies greatly with a 250 mile radius. A lot depends on the lakes, rivers, or oceans that are near by.

    As for the price to ask; use the book value as a guide and then figure out WHAT WILL YOU TAKE FOR IT. Add 10%-15% for negotiation pad, and put the ad out there. If your bottom line is $10,000 and you ask $11,500, then you have plenty of room to come down and make the buyer feel like they are getting a deal.