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Friday, May 12, 2017

PUTTING OFF BUYING A NEW OR USED BOAT?

If you like many have been putting off buying a brokerage yacht waiting for the dollar to recover so that great selection of used boats in the USA is available to Canadians you may have a long wait. With several US bank rate increases coming including this coming June it will drive the Canadian dollar even lower against the US greenback. Canada probably won’t see any Bank of Canada increases until spring of 2018 and the world is awash in oil and the OPEC pumping agreement could dissolve if the USA keeps commissioning new shale gas rigs and pumping at peak capacity. Bottom line is until oil gets back at near $100 a barrel and until the Canadian economy sheds debt and our economy heats up our loony is destined to languish. Our predict is look for a 65 – 69 cent Canadian dollar by late fall of 2017. That means if you don’t want to wait for 5 years or more to get that boat now is as good a time as any.

Here’s some more detail from a previous story we did:

{US brokers have figured out that with our Canadian dollar being so low, there are bargains to be had for fresh water, low hour yachts. Canadian yacht brokers are getting lots of calls right now as prospect buyers push their brokers to Canadian inquiries. It's funny how quickly the tables turned. Not many Canadians are shopping for boats in the US right now. The US economy has had a robust recovery in the used and new yacht sales departments ... to find real bargains in brokerage boats, the place to shop is Canada. Our short Canadian boating season means low operating hours, less wear an tear, and of course many boats are stored in indoor heated storage which puts a lot less stress on the boat. And if a boat is coming from Ontario, it is likely that it has never seen anything but fresh water. Combined with a 20% plus discount on the currency, and it's a hard to beat scenario for US boat buyers shopping in Canada.The phones are ringing for Canadian brokers offices from US brokers and it's only a matter of time before US private boat prospectors eliminate the middle man and start calling directly to brokers in Canada looking for bargains. It works out well for Canadian boat sellers as well because if they bought a used boat in the US when our dollar was high post recession, they stand to make a good profit on selling their used boat back into the US market providing that the boat is a sought after brand and model. In some cases, as raw materials have risen in the US and as the economy has improved manufacturers prices on popular new boats has risen in the US and this has compounded the need for good quality low hour used boats. The right model used boat bought at a good price in the US two years ago could yield a 30% profit selling the same boat two years later back into the US market. Low fuel prices are further heating up the boat market in the US and depressed oil prices in Canada are likely to push our Canadian dollar even lower making the prospects even sweeter for US buyers and Canadian sellers.}

Now what has changed since we wrote this above is it’s getting harder all the time to find good used Canadian yachts with low hours at the right price. It’s supply and demand. The selection is there but it’s for the most part in the US. With our dollar going lower in the next year, now is the time to buy that US boat of your dreams through your Canadian broker. Otherwise you may we waiting a decade for our dollar to recover. Same thing for new boats built in the US. They won’t be getting any cheaper in the foreseeable future.

Posted by at 2:14 PM
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