A Boat Market Slow Down

[dtmackey]

Based on recent events in the world and the ever increasing cost of fuel, curious on what the feeling is when the boat market will slow down.

I've been in awe with the demand over the past 2 years and number of new boaters, but in the back if my mind I always wondered if they were payment shoppers or understoof the bigger financial commitment boat ownership costs:

- Gas - big cost adder this year
- Slip fees (if applicable)
- Insurance
- Off season storage - space and heat shrinking
- Spring prep and winterization
- Damage - in the event
- Outboard maint
- etc, etc...

For people that jumped into boating and realizing they only get several good days on the water a year, I see those poeple reevaluating the overall boating experience after costs are itemized and evaluted. I'm hearing predictions of fuel dock prices in the $7.50-$9 range per gallon and boats are not known for good mileage (relative to cars).

Thoughts?

D-

[floater]

I'm already noticing an increase in boat sales on Kijiji here in Ontario. Prices have come down a bit. I just bought a tandem-axle trailer with white pine bunks, two keel rollers, great tires, and new brakes, for only CA$-1,900. I was expecting to pay around CA$4000 for a good trailer.

[dtmackey]

There is seasonality in the colder climates that happens no matter the economy. Same with snowmobiles and other seasonal toys.

It's a weird time. A friend just signed a P&S on a 47-foot powerboat. He was lucky since he was talking with the broker 30-minutes after it listed and he jumped on it last Fridat. Broker told him on Monday that he has 12 backup offers if he decides to back out.

I'm predicting we see a slowdown, but sales still continue, just not at the hyper rate of the past two years.

D-

[Phil T]

My estimation: after three or four months of fuel cost at the dock of $5 to $6 per gallon, used classic Boston Whaler boats with two-stroke=power-cycle engines will not sell for a premium due to gasoline prices.

New boat purchases are already made for the year; no change.

[jimh]

I bought highway retail 87-octane unleaded gasoline on Friday (six days ago on March 4, 2022) for $3.50-per-gallon. Today, March 10. 2022, the same gasoline was $4.60-per-gallon. I can only imagine what marine fuel at a fuel dock will cost by August, 2022.

Typically for the past two years I have only consumed about 100-gallons of fuel, so even a $3 increase won't stop my boating. Compared to my fixed costs of boating, an extra $300 is nothing significant. However, I won't be planning any 400-mile cruises. It will be another Summer of just trips around the local waters, just to get out on the water.

I have already paid $6-per-gallon for marine fuel at a fuel dock, but that was in a remote area of Canada, and the currency exchange was favoring the Canadian dollar.

[Oldslowandugly]

Some of the best fishing I ever experienced was the last time gas prices went crazy. Houses on the water with docks were vacant of boats. Boat traffic was minimal. Fishing was absolutely terrific. My best fishing is within sight of my dock. I have a 15-footer with only a 48-HP engine. If gasoline were $100 a gallon, I would change to my 15-HP engine and still be able to go out. Perhaps it will be a quiet summer on the water this year.

[dtmackey]

Typically for the past two years I have only consumed about 100-gallons of fuel, so even a $3 increase won't stop my boating. Compared to my fixed costs of boating, and extra $300 is nothing significant. However, I won't be planning any 400-mile cruises. It will be another Summer of just trips around the local waters, just to get out on the water.

I agree with that Jim, but others that were payment buyers and didn't consider all the other costs are the ones I think will reevaluate boat ownership and I'm sure some will be up-side-down on equity.

Jim - you're are the example of what I think most of us here are - moderate usage, self reliant on keeping expense down and probably own our boats outright and not racking up huge fuel bills.

There are of course the ones that will just absorb the extra cost, as I was reminded of today when a friend shared this pic from the fuel dock in FL fueling up to take his Viking back to New England. He will see several more of these fill ups on his way.

Fig. 1. Fuel Dock pump showing fuel at $6.829 per gallon, 1,560.6 gallons dispensed, at a cost of $10,657.76.

fuelPump.jpg (25.22 KiB) Viewed 1575 times

D-

[jimh]

I presume that the fuel purchased was diesel. That one fill-up probably cost more than my lifetime of boat fuel purchases. But, heck, if you have the boat, if you enjoy the journey, and if have the money, then you can have fun.

[Jefecinco]

There are always people who live beyond their means including people who have some serious resources. They may find themselves unable to afford the fuel to "play" with their boats.

Speaking for myself, I was never influenced to spend less time boating by the cost of fuel. Of all the costs of boating the cost of fuel is not at the top of the list unless one is a very avid or non-recreational boater. Add up all the costs of boating from the initial purchase to those mentioned by D. Calculate the cost of fuel as a percentage of the whole and it may seem slightly less significant. It certainly seems awful and makes us cringe at the pump but it too shall pass.

[Oldslowandugly]

A recent article in BoatUS magazine said the pandemic resulted in a huge increase in boating sales, because boating was seen as as a way to socially distance and still have some fun.

The Coast Guard released statistics that showed accidents, injuries, and fatalities rose significantly as well. The USCG statistics also showed the increased amount of people on board resulted in the increased number of injuries per any single incident.

The top five contributing factors in accidents:

• operator inattention
• operator inexperience
• improper lookout
• excessive speed
• machinery failure

The chaos I witnessed on the water last Summer bears out those statistics. I saw many inexperienced boaters in overloaded boats flying around at WOT with no idea what they were doing. I am hoping that since the pandemic restrictions are being lifted, and the fuel prices are so crazy, the ignorant boaters will quit and find something else to do.

[andygere]

Fuel costs are not even close to the top of my boating expense list, and won’t keep me off the water. I suspect many folks will continue to enjoy their boats, but take shorter trips and boat closer to their home ports to save a bit of money.

In terms of the buying frenzy, I think it will slowly taper off as the new boater demand eventually gets filled. I think it will be at least another year before dealers have unsold inventory on their lots, and that will tend to keep prices high in both the new and used markets.

In perhaps three years, we may see the used market somewhat flooded with inventory and some bargains to be had.