Tuesday, September 03, 2013
ACCORDING TO TOM
There are a lot of mixed messages out there on boat sales going up or down. Many wonder about the impact of US lawmakers ending the second residence tax deduction for boats equipped with accommodation. We are seeing good value used boats move here in Canada at a faster pace. You couldn't say things are on fire though ... and it appears that it is still a buyers market, although the giveaway deals on good boats ended a long time ago.
One of our US broker friends Tom Jenkins of Allied Marine is very optimistic on the boat sales market. He is experiencing folks that come out of nowhere that want instant showings and go for quick sales. Tom said this in his last newsletter “As I explained last month, the market is poised to break loose and it looks more and more likely that the Fort Lauderdale Show may be the spark that lights the fuse to a blowout season”. Tom sells a lot of boats – not runabouts but leaning more to high end inventory like Bertram, Perching & Ferretti in the 40 – 120 foot range. Economically things are moving along in the US ... and money is still cheap. I think Tom may be on to something. I also get the sense that the market may be ripe to break out and good used boat sales could turn the tide from a buyers market to a sellers market by next year. Time will tell.
One thing I am told repeatedly is that the bigger yacht owners are not worried about the tax credit ending. Most of them are registered offshore and are not claiming the credit anyways. The small boats without accommodation don’t qualify and the mid range 34 – 50 foot boats are they only target group that may feel the pinch. It is also said that boaters shop on emotion ... and if the moneys there, then a tax deduction won’t make or break the market. So like the Jimmy Buffet song says, “I don’t know, I don’t know” but indicators from the big US brokers are that things are likely to look a lot better sooner than later.