Is NADA worthless?

[RobDar]

I wonder where NADA guide comes up with their numbers...or maybe I should wonder where Marine sales come up with THEIR numbers...because the two are not even close alot of the time.
Do marine sales places even use or watch NADA or are they getting their boat values from somewhere else?

My logic tells me that if NADA can be considered a fair baseline number for the value of the boat...once you add in accessories/option values and allow a little bit up and down for local demand ( ie. around me marinas will sell more ski boats than fishing boats so the ski boats will typically be higher priced and the fishing boats closer to their actual NADA value) that you should come up with a kind of fair and consistant value for a boat...

...but that is not that case

the same boat with the same options varies as much as $3-6000 and is almost always WAY OVER what NADA says the boat is worth...
so am I making a mistake in watching NADA values while boat shopping?

 

[tommays]

Re: Is NADA worthless?

There is to much difference in location

Fresh VS saltwater is a BIG thing


There was just a post about a 33 year old 9.9 johnson outboard


Really worth money in some states with 10 HP lakes on Long Island it would just be a salted out 33 year old motor

Tommays

 

[CalicoKid]

Re: Is NADA worthless?

I think NADA bases it's value on hurricane damaged boats. The guide undervalues boats by half or more I've found at least for smaller MIdwestern boats that are a few years old or more. Maybe boats are dirt cheap in the rest of the US?

 

[waterinthefuel]

Re: Is NADA worthless?

Yea, I agree. It's based on an average. If you live in an area that you have many places to use a boat, the boat prices will be higher, than say, in the middle of Arizona. The same boat could easily vary a few thousand in price from one place to another.

I do agree though, the NADA does have some low numbers, but I also live 20 miles from the largest freshwater swamp in the world and 10 miles from the Gulf, so finding a cheap boat here is very difficult.

 

[dvan1901]

Re: Is NADA worthless?

I have found that people look at NADA values based on what position they are in. Meaning; if they are selling a boat and you walkd in and say "the NADA value is 'x'" then they say "well, NADA is always low, this is a great boat". If you are selling your boat, or trading it in then they always go "I can't take that much for it, the NADA value is only 'x'". I've had this happen in both way in the last few months. Just depends, but it should at least give you an idea and starting point as to values.

 

[burroak]

Re: Is NADA worthless?

NADA is irrelevant in the sale/purchase of a boat or motor. Since the guide neither buys or sells marine products, what it says is meaningless. The only price point that matters is what the buyer and seller agree to.

The only time NADA guide prices are referred to is when someone thinks they can quote it and "steal" a boat or motor.

 

[tashasdaddy]

Re: Is NADA worthless?

boat prices are extremely hard to predict. location, fresh/salt. design, Bling, condition. Brand name vs off brand. thus predicting is next to impossible.

there are some really good boats around that are built by small companies, that only have a local following.

 

[AguaSki]

Re: Is NADA worthless?

Yea, I agree. It's based on an average. If you live in an area that you have many places to use a boat, the boat prices will be higher, than say, in the middle of Arizona.

Hey, I live in the middle of Arizona and we have great boating lakes. It is true that central Arizona is not a coastal area, but Phoenix is now one of the largest cities in the U.S., and the city could not survive without an extensive network of reservoirs storing water. This reservoir network makes for a chain of several large lakes less than an hour away from Phoenix. Also, boating is big here and boat prices seem higher in the Phoenix area than other areas I have visited. Our higher prices may be due to the boats being used in fresh water, and the dry climate is good at preventing rot in older boats. I don't even look at NADA, and give condition the highest priority when I value a boat.

 

[Silvertip]

Re: Is NADA worthless?

Up here in the tundra -- the best time to buy a boat is in the late summer, fall and even into the winter months. The worst time is in the early spring. It used to be NADA did a good job of determining the pulse of the marine, bike, and auto business. But those markets are now far to volatile and therefore their values no longer have any significant value in my view. A better method of determining value of used boats is to check your local classifieds. While you may not find two or three identical boats, you can at least find a few in the same category. Throw out the highest and lowest price and average will be in the middle. Go from there. For new boats, shop, shop, and shop some more whether that's by internet or personal visits. Compare apples to apples and you will get an idea what that boat will sell for in your area. Go 300 miles away and that same boat may be higher or lower depending on market.

 

[JB]

Re: Is NADA worthless?

I think NADA values are based on a slide-rule depreciation formula and have nothing at all to do with market activity or actual sales.

They are probably closer on outboard engines than on boats, but not close enough to be useful.

 

[QC]

Re: Is NADA worthless?

Hey, I live in the middle of Arizona and we have great boating lakes.

Yeah, we'll just have to get waterinthefuel out for a little party on Havasu. Then he'd get it

 

[jtexas]

Re: Is NADA worthless?

NADA isn't completely worthless.......they list boat and motor weights..........

 

[burroak]

Re: Is NADA worthless?

NADA isn't completely worthless.......they list boat and motor weights..........

Touche!

 

[burroak]

Re: Is NADA worthless?

I think NADA values are based on a slide-rule depreciation formula and have nothing at all to do with market activity or actual sales.

They are probably closer on outboard engines than on boats, but not close enough to be useful.

You must own new stuff. No one will sell the 9.5 Johnsons for the NADA average price listed. They will scrap for more than the $60.

 

[bassboy1]

Re: Is NADA worthless?

I think NADA values are based on a slide-rule depreciation formula and have nothing at all to do with market activity or actual sales.

They are probably closer on outboard engines than on boats, but not close enough to be useful.

There you go. How else would they be able to find the good/bad in each boat? And, how long a particular item is gonna last? All they have to do is find MSRP, and divide it by a magic number every year. Otherwise they would never have such an extensive variety of boats being listed.

 

[Tail_Gunner]

Re: Is NADA worthless?

There is to much difference in location

Fresh VS saltwater is a BIG thing


There was just a post about a 33 year old 9.9 johnson outboard


Really worth money in some states with 10 HP lakes on Long Island it would just be a salted out 33 year old motor

Tommays

Pretty much a Bingo there, while i am not in the boating business i am in the automotive ind. Nada is a guide line used in the midwest quite a bit and does have some value there, car's there are live in a heavly salted enviroment and generally after a few years say 8 there in pretty bad condition. If you were to compare a car that came from a salted enviroment to a car that has never seen salt you'd be amazed.

It generally reflect's the bottom of the market or the well used portion, so if you use the guide and appraising a vehicle that has been run hard and put away wet, it's probaby spot on.

Personal opinion and observation it's about 1500-2000 low on a 12000 dollar car. And then there's the true market place, ever try to find a nice 5000 dollar car for yourself or kid...... there as rare as rare can be, putting a lot of pressue on both the buyer and the seller making it a very subjective topic.........

Now boat's are a luxury item and that is a whole nother topic......

 

[BoatAddiction]

Re: Is NADA worthless?

I have found many boat dealers and brokers like using BUCValu rather than NADA. Automobile dealers aren't much different since I'm convinced they have some little secret black book that always overprices what they're selling and underprices what you're trading.

The real use of NADA: many banks and credit unions use it when deciding on the loan value of the boat one may be wanting to finance. My credit union is almost religious about using NADA (for vehicles and boats) to determine loan value. Amazingly, at least to me, they actually use the higher figure (average retail value) to determine loan value.

 

[Tail_Gunner]

Re: Is NADA worthless?

I have found many boat dealers and brokers like using BUCValu rather than NADA. Automobile dealers aren't much different since I'm convinced they have some little secret black book that always overprices what they're selling and underprices what you're trading.

The real use of NADA: many banks and credit unions use it when deciding on the loan value of the boat one may be wanting to finance. My credit union is almost religious about using NADA (for vehicles and boats) to determine loan value. Amazingly, at least to me, they actually use the higher figure (average retail value) to determine loan value.

That is because NADA is woefully under the market and they know it...
Ok here come's a fast one dont assume your credit union or banker actually know the value either, after all most of them are recent college grad's twirling a degree and have very little working knowledge of a real working market place........


umm i guess i should explain that a bit, if credit union A,B,C and D all use NADA and one day credit union's A,D use say another guide line ( say Kelly or what ever) and start taking market share from from B and C guess what B and C are no longer going to use NADA..........trust me there.. Thing's are not just that black and white, NADA is just there and not a blanket statement by any mean's........

 

[BoatAddiction]

Re: Is NADA worthless?

Gunner: I don't disagree. Another way to look at this is to consider NADA a tool, along with Kelly, BUCValu, or whatever. An individual, whether selling or buying, should become familiar with those tools so that he/she can be in a better position to negotiate with a buyer/seller, dealer, and/or bank.

 

[RobDar]

Re: Is NADA worthless?

NADA is irrelevant in the sale/purchase of a boat or motor. Since the guide neither buys or sells marine products, what it says is meaningless. The only price point that matters is what the buyer and seller agree to.

The only time NADA guide prices are referred to is when someone thinks they can quote it and "steal" a boat or motor.

now come one...if this was true Kelly Blue Book for cars would be worthless as well...and it is typically a failrly accurate baseline for pricing cars nationwide.