Discount Off MSRP For New Boat

BruinSG17

Cadet
Joined
Jul 26, 2011
Messages
27
Hi Everyone,

I'm wondering what kind of discounts I should be looking at for a new boat.

I've been quoted nearly 17% off Bayliner, 20% off Larson and 25-30% off Stingray. This includes freight, prep, options, etc.

According to the "seedealercost" website, the places would still have $3-6k profit.

My two cars were both purchased under listed dealer cost due to promotions, kickbacks to dealer, etc. This allowed the high volume dealer with hundreds of new cars in its inventory to clear inventory for the upcoming models year.

Not sure if boats work the same way.

I've never been to a boar show either, are prices better?

Thanks!
 

DuckHunterJon

Lieutenant Junior Grade
Joined
Apr 19, 2010
Messages
1,082
Re: Discount Off MSRP For New Boat

I'm not 100% sure as I've never purchased a new boat - but bear in mind that the quantities are much smaller. Toyota sells around 400,000 Camry's in the US alone each year. Most boat manufactureres would be lucky to do 1% of that business. The dealers get a portion of that profit, and as such the boat dealers have to charge a larger margin than cars. Really apples and oranges when it comes to the economics.

As for boar shows, I've heard they are just for looking at a bunch of pigs! :D (sorry, couldn't resist)
 

LMM1967

Cadet
Joined
Jul 25, 2011
Messages
21
Re: Discount Off MSRP For New Boat

Pick a dollar amount you are willing to spend, pick out a few boats you like and decide which ones you like best. Then offer the dealers what you are willing to pay for the boat you want.

We just did this and I'm happy to say we are picking up our brand new Cobalt 210 with dual axle trailer etc, out the door, for about $18k less than MSRP.

Boat dealers are making great deals on some boats - do your homework and you can find excellent deals out there right now.
 

Bamaman1

Lieutenant Commander
Joined
May 15, 2011
Messages
1,895
Re: Discount Off MSRP For New Boat

I'm the guy the banks sent when dealers failed to meet their obligations--often to close or liquidate the business. I also worked closely with problem businesses to teach them how to analyze their businesses, read financial statements and make the changes required to be successful.

Auto dealers and boat dealers are apples and onions. Auto dealers have 12 month per year businesses, where boat dealers' business is done essentially from March to August--6 months. Both dealers have 12 month expenses: floorplan expenses, employee expenses, occupancy expense, company trucks, salaries, social security/FICA taxes, etc. Auto dealers live by high volume and manufacturers' rebates. Both auto and marine dealerships don't have forever to sell their inventories--they mature and the dealer must pay part of or the full balance on the aging inventory.

Both an auto dealer and a boat dealer must run a profitable business, or they'll be out of business next year. The owners deserve a salary for their time, and a separate profit that's a return on their investment. Working capital to run one of these businesses would scare you--just to pay their day to day expenses.

If a car dealership is not successful, you can go down the street to a different brand, or drive 10 miles to the next franchise. Boat dealers are increasingly few and far between. I don't want to deal with a dealer that's not going to be there to do warranty work and support me.

Simply put: Boat dealers have relatively low sales volumes, and thus cannot sell boats @ $100 over cost and stay in business.

When you decide what kind of boat you would like, don't just narrow it down to one manufacturer and model. Boats are rather generic, and narrow your search down to 3-4 brands and comparable models. Many boat franchise dealers just have one or two dealers in a state, or even in a region. If you'll widen your horizon, there's something out there to suit your needs.

We now have the best tools ever to get the best deals on boats--the internet. Every business is driven by competition, and it's not hard to get into EBaymotors.com, Boattrader.com, Craigslist.com, IBoats.com and other websites to figure out who a dominant dealer is in any area. Also, sometimes it pays a lot to drive a little. Another place to buy boats is at the Boat and RV shows usually in the winter--where again dealers get competitive with each other.

Good luck in your search. Remember: MSRP is a joke. Educate yourself to the retail market, and you'll be in the driving seat to make a deal that's right for you. There are great values out there in a retail market that sucks as badly as it does right.
 

BruinSG17

Cadet
Joined
Jul 26, 2011
Messages
27
Re: Discount Off MSRP For New Boat

MSRP means nothing for boats.

It is some sort of starting point. I bet there are a lot of people out there who don't do their research and buy at the price listed on the Cobalt website. Now I know if I decide to buy a Cobalt I will start at about 40% off and work my way to an agreeable price. If I started at $10k under I wouldn't be getting a good deal.

I'm buying a new boat that depreciates quite a bit in the first two years, I am looking for as much of MSRP as possible so if I have to sell I can tell the next person how great of a deal I am giving them.
 

BruinSG17

Cadet
Joined
Jul 26, 2011
Messages
27
Re: Discount Off MSRP For New Boat

@Bamaman

Thanks for all the information.

When you say MSRP is a joke, you say this because prices are much lower right. The problem I am having is I immetietly rule out more expensive boats like Cobalt because I see $46k sticker, but if they really sell for $30k it's back in the mix.

I think I am going to go the the Boston boat show in Feb. Should I be offering 50% off list, 40%? 5%?

After seeing the deep discounts I may wait another summer and save up the cash instead of financing most of it.
 
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