Strong's Marine - Lifestyle

Top Reasons to Buy a Boat Now

Written by Strong's Marine | Sep 2, 2024 2:00:00 PM
Curious about the current state of the boating industry? When is the best time to get onboard your dream boat?

The Current Boating Market

During the period from late spring 2020 to spring 2023, the boating industry in the United States experienced unprecedented growth. This surge in demand, fueled by the need for socially distant recreational activities, led to a frenzy in the market, with inventory flying off the lot like never before. Not only was the demand high, but the prices were even higher. Some dealerships inventory was wiped out entirely and many manufacturers were unable to replenish their inventory quickly.

Many of the manufactures took this as an opportunity to build new factories, make larger facilities as dealers couldn't order boats quick enough to expand their supply. Fast forward to today, and you'll find a plenty of boats in stock, providing a diverse selection to choose from. Therefore, some dealers have more inventory than they have had in the past 5 years which means more choices and better prices! Learn about the reasons to buy a boat now so you can get out on the water.

New Boats, New Discounts 

The current market is offering significant discounts from manufacturers, with some dealers also providing additional discounts on top of that. The magnitude of discounts that customers are seeing now only happens once every 10 years! While pricing is often one of the biggest factors to purchasing a boat there are so many others as well.  The big discounts reduce the magnitude of depreciation, particularly during the first three years because of the dealer's markup. Every dollar less in dealer margin is a dollar less you’ll suffer in depreciation.

   

Dealers will not have Surplus next year

With dealers scaling back on ordering new boats, it is expected that there will be a shortage of boats in the upcoming year and possibly the following year, resulting in a potential increase in prices. This limited window of opportunity for buyers may not remain open indefinitely.

Do NOT miss out on the deal
Don't miss out on seizing a great deal - because opportunities like these don't linger! This trend was evident post the Great Recession of 2008-10, where the most desirable boats with the biggest discounts were swiftly claimed in the initial year. Latecomers, waiting for restored consumer confidence, found slim pickings in inventory, left only with boats that savvy buyers had passed over.

Biggest Savings on Non-Current Models

Customers can find the most significant savings on new non-current models, which include boats from the model years 2023 and 2024 that are brand new and unused. These discounts surpass those of the current model year, which is 2025. Dealers with 2023 or 2024 models in their inventory offer even greater savings, presenting an excellent opportunity for buyers looking for a great deal.

   

   

The Presidential Election

The upcoming 2024 presidential election has caused many potential buyers to pause their purchasing decisions, not just for boats but for various products. As the election draws near on November 6th, history suggests that the stock market tends to rise post-election, prompting a resurgence in consumer buying. This creates a prime opportunity for buyers to make their purchases before November 6, maximizing their chances of securing a great deal.

Potential Tariff Increase

There is always the possibility of a tit-for-tat tariff war, making imported boats more expensive. This situation leads to an increase in the cost of foreign boats, relieving the competitive pressure on U.S.-made boats. Consequently, prices of domestically produced boats, especially in categories like large motor yachts, are likely to rise due to minimal local production capacity. 

We are NOT getting any younger

As time passes, both you and your loved ones age. Purchasing a boat is often motivated by the desire to create memorable outdoor experiences with family. There are certain stages in life when children and grandchildren cherish moments spent with parents and grandparents the most. However, as they grow older, their interests and activities may shift, making it all the more special to seize the opportunity to bond on the water while you can.

The Rising Price of Boats

Boat prices are on a steady incline, with a 29% average increase in the U.S. from 2019 to 2022. Even after the current surplus of inventory is depleted, don't expect boats to become more affordable. History suggests that prices could rise another 5 to 10% as the market finds its balance, driven by factors such as raw materials, labor costs, and economic conditions.

Strategy

It's time to make a strategic move. Imagine those who have weathered the storm of a declining market, watching their supposed profits vanish in a blink. They might now be wishing they had invested in that dream boat instead of enduring the market downturn. Unlike the volatile stock market, boats tend to hold their value more steadily. So, why not seize the opportunity to invest in the boat you've always wanted, especially with enticing boat discounts at play?

 

There are many compelling reasons to invest in a boat now! With the current discounted pricing, abundant inventory options, and the projected steady increase in boat prices in the coming years, there has never been a better time to fulfill your dream of hitting the water. By seizing this opportunity, customers can not only enjoy significant savings but also secure a vessel that will provide endless adventures and cherished memories for years to come. Don't wait for prices to rise further or for inventory to diminish - now is the perfect moment to make your boating dreams a reality.

Reach out to Strong's Marine at 631.791.6113 to explore the possibilities with our knowledgeable sales team.