Boat prices- NADA vs what people are asking

I'm looking at boats and doing comparisons between asking prices and NADA values. There's quite a difference. Is NADA unrealistically low or are owners valuing their boats too highly?

Re: Boat prices- NADA vs what people are asking

NADA prices are way way lower then the prices I have been seeing. Maybe location? I'm in Washington State.

Re: Boat prices- NADA vs what people are asking

In my opinion NADA is a pretty good starting point for what a boat is worth. Take NADA and adjust up or down based on condition, demand for that type of boat in your area, hours, etc. Also the local market plays in and is not accounted for in NADA. Is the local economy booming, in the dumps, etc. There are several boats out there that are worth more than NADA, but not 50-70% more like you see a lot.

Re: Boat prices- NADA vs what people are asking

Simply put , a boats value is What someone is going to be willing pay at any given time . Alot of people look at the boat they have toiled over and they want to get their "return on investment" but their is realy little value . You can see this with custom cars / trucks too ... A 4x4 datsun 210 could be fun , well built , and have awsome paint but how many want one ? I love my old boat , It gets a lot of compliments , but the value is very subjective . care and condition are aces to a better price . hope this helps some. peter

Re: Boat prices- NADA vs what people are asking

The problem is usually what the owner owes on the boat...they are upside down on the loan. The guy I bought my boat from had to write a pretty sizeable check to the bank. There are those who realize it and write the check...others are stubborn...until the bank takes it away.

Re: Boat prices- NADA vs what people are asking

it isn't just boats, people always overestimate the value of their crap!

local classifieds has an ad for a '96 4 cylinder toyota 4x4. 100k miles, nice shape, kbb private party book value is around $3500 to $4000 in showroom/excellent condition. He was asking $8500!!

Re: Boat prices- NADA vs what people are asking

If you are in washington check out marinelendersservices.com and remember one word NEGOTIATE. I bought my current boat from them for 30% of surveyed value. lots of repo boats in good shape thats why NADA isn't worth the paper its written on. When people quote NADA values in this market I tell them to ask NADA to write them a check and I go find another boat.

Re: Boat prices- NADA vs what people are asking

Noob82 said:

I'm looking at boats and doing comparisons between asking prices and NADA values. There's quite a difference. Is NADA unrealistically low or are owners valuing their boats too highly?

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a little of both IMO

Re: Boat prices- NADA vs what people are asking

some are try to get the balance of their loan paid off.

Re: Boat prices- NADA vs what people are asking

I think it's a middle ground to start, Boats depreciate fairly quick. But beauty is in the eye of the be-holder, If you found what you were looking for,and it was very well taken care of , clean low hrs, and maintenance records ect., you'll pay a little more for it. Also ,supply and demand. I just sold my boat for a little over nada,guy who bought it fished with me alot in it, knew what he was gettin. Almost 8 years old, less than half what i paid, but in excellent shape with a few extras.

Re: Boat prices- NADA vs what people are asking

Boat values, just supply and demand, like stocks or a sack of corn, only worth what you can get for it. Find a buyer who's in love with your boat and the price goes up! Probably good advice to not buy a boat that costs more than you're willing and able to write a check for. Spring's just around the corner and "boat people" will find a way to get in a boat. I know that's what I plan to do!

Re: Boat prices- NADA vs what people are asking

Here is what I have surmised over the past couple of years. There are very substantial regional differences in asking prices for boats from coast to coast and from north to south. When I bought 2 years ago offering NADA for a boat would have likely resulted a lot of laughter and 'are you kiddings' I tried offering southern new boat prices to northern new boat dealers and they told me to pound sand. Now go figure my exact boat of which there are not many around went up for sale on Craigs List a couple months back. It was 32% less than I paid and was priced insultingly low not high. I called the seller up to try to buy his bow filler cushion from him and also inquired about why the price was so low. He said he had been trying to sell it for 6 months and had to continually lower the price. Point is he sold it for NADA which previously I would have thought never possible to see. I would love to be in the market for a boat this year.

Re: Boat prices- NADA vs what people are asking

Thanks for the posts everyone. There probably are some regional issue affecting boat prices which NADA doesn't reflect, but I wouldn' know how much different they might be.

Is there a ball par offer price one might present to a dealer (I'm in the south), like a certain percent off list price for starters?

Re: Boat prices- NADA vs what people are asking

robert graham said:

Boat values, just supply and demand, like stocks or a sack of corn, only worth what you can get for it. Find a buyer who's in love with your boat and the price goes up! Probably good advice to not buy a boat that costs more than you're willing and able to write a check for. Spring's just around the corner and "boat people" will find a way to get in a boat. I know that's what I plan to do!

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Aint that the truth.

Re: Boat prices- NADA vs what people are asking

In Wisconsin I think the prices are quite inflated. I had said before I am looking for a bowrider and most prices are 2-3000 dollars over NADA. It's kind of frustrating because I was serious about a couple boats and talked prices with owners and everytime I would bring up NADA prices the response always is "well you can't go by that this boat is clean with low hours." Same from dealers they look at you like your speaking a different language when you tell them about NADA-almost get mad at you, or say this boat comes with a trailer and motor. Well every boat I have looked at has and NADA takes that into consideration. Well hopefully closer to spring things will get better.

Re: Boat prices- NADA vs what people are asking

I always thought NADA values were in collataral, like what the bank would be willing to loan out for, not good for sellers great for buyers.

Re: Boat prices- NADA vs what people are asking

IMO Nada is a guide of average sales prices and while it might be a tool in negotiations and might be used by insurers / lenders it all boils down to what a seller will take and a buyer will pay. Negotiation is the key. And don't be afraid to insult a DEALER with a low opening offer. Worst that can happen is they say no and refuse to negotiate. Best that can happen, they counter with more reasonable offer and negotiations continue. Harder to play hardball with a private party but still think of it as business and your money is at stake. Good luck.

Re: Boat prices- NADA vs what people are asking

As stated above, its the eyes of the beholder.
I searched for over 6 months for a particular style boat...a Beachcraft 20' cabin cruiser by Reinell and other mfr like Marlin made similar a model. The search stretched up to Wa and as far east as Tx. I found a few within a 150 miles from me which were either in rough shape or the sellers were asking too much...NADA was not in their vocabulary. Then I finally found one in great condition a couple of weeks ago in Phoenix and bought it. Even factoring the fuel and lodging to drive there I paid 50% less of what others here were asking for.

Re: Boat prices- NADA vs what people are asking

a70eliminator said:

I always thought NADA values were in collataral, like what the bank would be willing to loan out for, not good for sellers great for buyers.

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NADA lists average retail sale, and various trade-in conditions. This is regionalized if you use their website pricing tool- they ask for your zip code. Kelley Blue Book does a similar thing.

Bubba1235 said:

...(Now, do people lie about the sales price in order to lower their sales tax bill? Ummm, possibly....

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In Vermont the Dept of Motor Vehicles uses NADA for tax purposes. (or maybe Kelley- doubting myself now) You pay taxes on either your invoice from a registered dealer or you pay "Good" "Retail" sale- no cheating in Vermont. That's reserved for politicians.

My opinion of NADA? When I needed a new 40hp for my Niagara, I was willing to pay too much for a pretty ugly junk boat, but the motor was what I wanted. The boat without the motor? I wouldn't have given you $100 for it, but previous owner loved it and had a lot of sweat equity into polyurethaned plywood. After off'ing the boat, the motor actually cost $500 after the end deal. Probably too much for the motor but it was worth more to me cuz I wanted it! Value is subjective.

Sooo, I personally have found NADA numbers to be a lot more than what I would be willing to pay- KBB can be higher. Generally. But as the price and desirability goes up, it shifts, and the NADA seems to be a little low. Bad for the seller, cuz newer boats cost a lot when new and the owner remembers that. But that's not the real world.

Cheap or damaged boats sell for way too much because people see boats like theirs selling for x-dollars. But those boats had nothing wrong...and sold quick. So said owner of cheap boat thinks he can sell his for close to that price- but said owner's boat needs transom work or a new floor; and we know how much effort and expense that can be!

NADA is a tool, and nice for comparison of price variances between different used vehicles or boats, but doesn't always reflect real dollar values.

These are examples of the Vermont boat market (actual sales or purchases by people I personally know):
1986 Mirrocraft 19', 125hp Merc $2600 (perfect boat)
1985 Sylvan 18', 70hp Yamaha $1800 (average used condition, needed floor)
1994 Blue Fin 17' 70hp Force $350 (pretty good condition, extras)
1975 Starcraft Holiday 18.5' 85hp Johnson $400 (100% functional, well cared for)

I really do think it is a buyer's market.