If not NADA what then?

[rhvi]

Hi:

Noticed a thread about NADA pricing and how poor it is in determining boat values. If the NADA pricing is a poor indication, what's the average guy's alternative?

Thanks

 

[superpop]

Re: If not NADA what then?

NADA is simply a starting point. It is also what most banks use to determine how much to loan on a boat or car. Keep in mind that NADA typically does not include the cost of the trailer in its valuations so that need to be added as well. A boat like anything else is worth whatever someone is willing to pay. Sometimes NADA is high, other times I have found it to be low. The condition of the boat typically determines what it is worth, coupled with features and maintenance history. Use it as a starting point and go up or down based on the other factors involved.

 

[pine island fred]

Re: If not NADA what then?

Actual selling price is reported by dealers. Private sale price declaired by buyers or sellers is a different matter. Price paid to dealers is often higher because they can finance where a private sale requires cash. Same with used cars, people will pay a big premium over a private sale because they can finance. FRED

 

[arks]

Re: If not NADA what then?

I think one of the most realistic ways to determine what people will actually pay for a boat is by using ebay. Enter a boat's make or model, then under search options, click "completed listings". Any boat sold within (I think) 30 days using your parameters will come up.
I've found it to be useful for all sorts of things I sell, not just boats.

 

[Mark42]

Re: If not NADA what then?

I think one of the most realistic ways to determine what people will actually pay for a boat is by using ebay. Enter a boat's make or model, then under search options, click "completed listings". Any boat sold within (I think) 30 days using your parameters will come up.
I've found it to be useful for all sorts of things I sell, not just boats.

I see that items on ebay often sell for more than they are actually worth. I am still amazed at how people pay high prices on used merchandise that can be bought new at a retail store for the same or less. Its the "I have to win it at all cost" mentality. People get caught up in the bidding. So I believe that prices on ebay are artificially high.

 

[arks]

Re: If not NADA what then?

I disagree with Mark42 concerning ebay and used boat prices, but yes, some people have no clue, particularly about parts and accessories.
My attitude is this: ANYTHING (a boat, car, accessory) is worth whatever someone is willing to pay. if they're stupid enough to overpay, it's their own fault! Ebay is a great resource for finding those people.
As far as establishing the value of a used boat, I still think ebay is worthwhile.

 

[tashasdaddy]

Re: If not NADA what then?

NADA is decent for boats 5 years old and newer. older it is not worth the paper it is printed on. but NADA is not current when it comes to this economy, and market, so it is basically useless right now.

it is a buyers market, and the market is flooded with used boats, people trying to get out from under payments.

 

[kaferhaus]

Re: If not NADA what then?

NADA does NOT get their information from gov't agencies. They get it from dealers. That information is not very reliable and gets reported in a less than scientific manner.

For depreciation they simply use a formula based on age and what little re-sale information they are able to obtain which isn't much.

There is no mechanism in place like there is with automobiles to at least have some confidence in the information provided to the NADA (national AUTO dealers association).

Banks used to use it as somewhat of a "bible" as to loan values, many stopped doing this several years ago and started requiring rather large down payements on boats to bring the loan amount down to well below the projected resale value of the boat at 2yrs of age.

Boat loans can still be had by the average joe but they require huge down payments. Folks with an established line of credit aren't having that problem as the loan is not tied to the boat.

Residents of states like mine that do not title boats or motors are having even more problems as there's no "title" to encumber with a lein which makes it harder for the banks to track the boat for repo-ing it