is Nada boat valuation acurate?

[Prophammer]

First- happy new year everyone ! and now, I've been thinking about making an offer at a local boat sales lot for a Trophy walkaround fishing boat. I looked that boat up on NADA with every possible option it came in lower than boat dealer's asking price. Can I trust the Nada valuation or is the dealer asking way too much ? The dealer is about 3000 over what Nada says its worth. Any constructive coments are welcome - no spammers please !

 

[roscoe]

You can’t trust NADA or the dealer.
Nada is based on reported dealer sales and possibly trade-ins , so a very small data sample for any particular boat model, with likely inflated values
The dealer uses the inflated values to justify their price.

Boat prices fluctuate greatly from season to season, from state to state, region to region, good economy to bad, and during event like the COVID mess, which drove prices sky high.

Actual condition of the hull, stringers, transom, engine , and local market pressures will determine the value and price.

 

[tpenfield]

NADA can be accurate . . . or not.

I have found NADA to be more reflective of a depreciation curve than a market assessment. There is some market input, but not all that much . . . so it seems.

Try bucvalu.com as a second source (I think you can get a free membership which allows 3 price checks every 3 months.)

FWIW - on my previous boat, ( a Formula 330 SS) which I owned for 9 years, I tracked the 'market value' listings on NADA and BUC every year or so and kept the data in a chart. see below . . .


The blue line is NADA and the 3 similar lines are Bucvalue figures for high, mid, and low.

The pink line is what I bought and sold the boat for . . . over the 9 year span. Not much of a correlation . . .

NADA tended to be lower and show a more steady decline in value as the boat aged. None of the pricing models seemed to be able to keep up with pricing in the past 2 years.

NADA tends to be lower on older boats and higher on newer boats.

The current values (2022) of 'my' boat (even though I don't own it any more) are. . .

NADA = $24,000 (avg retail)

BUC = $33,700 - 37,400 (range)

The BUC figures are more 'accurate' as to what the boat sold for last year.

EDIT: here is an updated chart

So, NADA is just one data point and you probably need some other comparisons to see if it is high or low vs. what a typical selling price would be for the boat you are interested in.

 

[tpenfield]

On my 'new' boat . . . it was the reverse situation . . . NADA was high and BUC was low vs. 'the market'.

 

[mr 88]

If you like the boat , make them a cash offer of 3,000 less than asking price . Be prepared to walk , if your in a northern state the odds are they will call you back after they rejected your offer and accept it . No explanation is needed to be given to dealer , like , this is what NADA has it for . I would start by saying my wife is allowing me this much to spend on a boat , take it or leave it . They might make a counter offer , stick to your guns and walk !!

 

[Earl Cordova]

What percentage of the overall price is the $3000 difference ?
If it is small and you really like/want the boat, just purchase it.

 

[cptbill]

A boat, (much like other things) is only worth what your willing to pay for it. Make an offer your willing to pay, if they take it great if not move on the the next one

 

[bruceb58]

I have found it to be very accurate for boats that actually sell.

 

[Prophammer]

Thanks for all the replies and especially the data charts , I have more ammo in my tool box now!

 

[Prophammer]

What percentage of the overall price is the $3000 difference ?

Boat dealer is 27% higher than NADA's highest retail valuation

 

[airshot]

Most dealers won't care what your charts and graphs show, they know what they have in it and what they want to get out of it. Find other boats in your area and compare condition to asking price. As mentioned, be prepared to walk away !!! Most dealers know how to read body language, they will see how bad you want it, gotta play your role well. Another trick that often works is to have a good chunk of cash in hand, and if you really want the boat...lay the cash on the table with your low offer!! Many dealers get itchy when they see a chunk of cash laying there waiting to get picked up.

 

[Prophammer]

Many dealers get itchy when they see a chunk of cash laying there waiting to get picked up.

That last sentence really makes me smile , my big problem is backing out when I see them squirming - that's when I know I the product has a major defect!

 

[Scott Danforth]

NADA can be accurate . . . or not.

I have found NADA to be more reflective of a depreciation curve than a market assessment. There is some market input, but not all that much . . . so it seems.

Try bucvalu.com as a second source (I think you can get a free membership which allows 3 price checks every 3 months.)

FWIW - on my previous boat, ( a Formula 330 SS) which I owned for 9 years, I tracked the 'market value' listings on NADA and BUC every year or so and kept the data in a chart. see below . . .
View attachment 374035

The blue line is NADA and the 3 similar lines are Bucvalue figures for high, mid, and low.

The pink line is what I bought and sold the boat for . . . over the 9 year span. Not much of a correlation . . .

NADA tended to be lower and show a more steady decline in value as the boat aged. None of the pricing models seemed to be able to keep up with pricing in the past 2 years.

NADA tends to be lower on older boats and higher on newer boats.

The current values (2022) of 'my' boat (even though I don't own it any more) are. . .

NADA = $24,000 (avg retail)

BUC = $33,700 - 37,400 (range)

The BUC figures are more 'accurate' as to what the boat sold for last year.

EDIT: here is an updated chart
View attachment 374036
So, NADA is just one data point and you probably need some other comparisons to see if it is high or low vs. what a typical selling price would be for the boat you are interested in.

Ted..... your inner geek is showing.....

 

[tpenfield]

Boat dealer is 27% higher than NADA's highest retail valuation

So it is about a $14k asking price and NADA is about $11k

 

[airshot]

Never be afraid to make a really low offer, worse they can say is No...been told NO so many times, I began to believe that was my name!!

 

[roscoe]

Be it nada, kbb, or but, accuracy of their numbers will also vary greatly depending on the age and price range of the boat.

I have seen some ridiculously off numbers for 35-40 year old boats, way low, or way overvalued. Or 25 year old boats in the $5000 price range. Then take a look at 5 year old boats in the $60k price bracket.

And now that the covid bubble is about to burst, prices will likely be scrambled even worse. Lots of boats were bought in the last 3 years by people that probably won't stay in boating very long. Couple that with inflation pressures, interest rates, and continuing increases in energy prices.

Could be lots of boats for sale in the coming years.

 

[bruceb58]

And now that the covid bubble is about to burst, prices will likely be scrambled even worse. Lots of boats were bought in the last 3 years by people that probably won't stay in boating very long. Couple that with inflation pressures, interest rates, and continuing increases in energy prices.

Exact same thing is going to happen with RVs. Problem is, people still think prices are still high so they are asking too much. In a few months when there is a lot of competition and they are having trouble selling their RVs and boats, prices will come down.

 

[909]

Dealers have overhead and payroll so you'll always be paying a premium.

Everyone is just a worker and no one cares.

Buy private and expand your search.

Your willingness to drive 4, 5, or 6 hours can save you thousands of dollars on the perfect boat for you.

 

[Beagleville]

Last year I was looking for an aluminum bow rider that had seats (not a platform) in the bow area, not the most common. I found the best guide for determining values was to shop my brains out online. I did this for two months last summer and in August found a used 1997 Lund Pro Sport 17 with a 2013 Suzuki 70 4 stroke. The price ($10,995) was about in the middle of the pack (and about the top of my budget) but when I discovered the motor had less than fifty hours on it I grabbed it. The boat also had a new floor, another plus. I never consulted a price guide but I had a pretty good idea on the price just by shopping hard (which I enjoyed). Plus, the boat had everything I was looking for.