Tuesday, January 10, 2017
2017 YACHT SALES
So here are my 2017 predictions on boat sales:
- Our dollar will weaken further as US interest rates climb and that will mean more US bargain hunters coming to Canada for yachts. Great for the brokers and Canadian sellers, but maybe not as good for Canadian buyers as inventory dwindles.
- New US built boat prices will rise in Canada while new European built boat prices will fall.
- The Toronto Boat Show would actually be a good time to lock in a new boat purchase before more US interest rate increases take hold affecting our dollar in Canada.
- Higher fuel prices due to carbon taxes may soften first time boat buying prospects, but not to the same extent higher fuel prices hurt the market a few years ago.
- As boomers grow older some are forced to sell their boats, but as a counter, boomer wealth gets passed along to the next generation and some of that wealth may go to boat purchases for younger longer term buyers.
- Canada’s economy should improve as the residual affect of the US economy heating up takes hold up here – employment and wages will rise and disposable income will lead to sales increases particularly in the multi outboard centre console market which has been a hot boat sector for several years.
- New boat buyers will favour outboards at the expense of stern drives for boats under 40 feet.
- Both US and Canadian boat enthusiasts will use their boats increasingly as a domestic tourism substitute for travel outside the country ... just like what happened in the US after 911.
- Increased utilization of boats and engine hours will go up meaning more repairs, accessories and boat turnover.
- Canadian boat brokers biggest headache will be finding listings of low hour, high quality boat inventory - sales prospects won’t be the issue.
Overall my prediction is that used boat sales will be very healthy in Canada in 2017 and new boat sales will lag somewhat but will still be up from 2016 new boat sales stats.
Edited on: Tuesday, January 10, 2017 11:35 AM