NADA ?????

[nickwilson]

Ok, I'm confused....(not that that's hard to do)...Anyway, just got back from a local used boat store. On the lot there were 3 used boats I was interested in, all similar makes, models, year(1994-1995), engines, ect. Before I went in to seriously discuss purchasing any one of these boats, I got all the specs on each and looked them up on NADA.com. When I looked them up I accounted for all the options included on each boat... engine size, trailer, everything. After doing my research I felt I was prepared to make reasonable offers on each of these boats. The first thing I noticed when I went to the boat store was that the sticker prices were all about$2000 - $3000 higher that what I had expected based on my NADA research. I wasn't terribly surprised, however, as they do this with cars as well. I assumed that when the salesman figured out that I was serious customer ready to buy that we could negotiate down to a reasonable price. Boy was I wrong! I focused on one boat in particular (a 95 Celebrity 180 Status) and stated that I did not believe that what he was asking was what the boat was worth (he was asking $9500, boat was in average condition). We then went in circles where he stated how he just goes by the "book price" and that this boat was actually bargain. I explained how I reached my figures(on NADA.com) and all the salesman did was shake his head and tell me that the website is wrong. I even showed him a printout I made! I then asked if he could show me how he came to his figures. He agreed, invited me inside, and he got out the "big yallow" NADA book. I could see the front and verified that it was a current edition (may 2004). Then, right before my eyes, he looked up the boat in question, did the math on his trusty calculator, and actually came to a price higher than he was asking (almost $10,000)!!! Of course he then restated that his boat was an excellent value. What am I missing here??? Could this really be possible? I was able to notice that his book had some extra colums in it with information that the website did not have. But I can NOT understand the crazy price difference. The crazy thing is he did he funny math on the other two boats too, with the same results. Even common sence would tell you that a 1995 18' bowrider in average condition could not possibly be with $10,000! <br /> Can somebody tell me what the difference between his NADA book and the NADA website prices are (if there are any). Is this guy as crooked as I suspect? Did I do the right thing by basing my offer on the NADA wabsite price? Anyway, I left the gentleman my phone number and told him that if he would like to sell the boat at a reasonable price to call me. I then left skidmarks out of the parking lot! <br /><br />You input is appreciated....<br /><br />Nick

 

[JB]

Re: NADA ?????

I think NADA uses a depreciation formula to calculate the numbers on their website and calls a private sale an average retail sale. They are often way off the real market.<br /><br />The NADA Book, however, lists retail by a dealer.<br /><br />Neither is seasonally or geographically adjusted as far as I know, and prices of the same boat vary a lot by season and location. This is the season of highest prices everywhere, but I wouldn't think Lubbock would be a high price location.<br /><br />If you can find similar boats on eBay, you can get a feel for the real market value.<br /><br />Good luck.

 

[TPD211]

Re: NADA ?????

You're right JB, when I bought my deckboat, I used NADA and the other loan calculator from boat trader online to guestimate its value. My credit union used the Nada black book for the loan value. A boat broker I talked to said that the books can tell you a value for a boat but your local area will ultimately set the price for the given boat value based on demand and what the buyers are willing to spend.

 

[nickwilson]

Re: NADA ?????

Hmmm, this is frustrating. Sounds like NADA is useless! However, my local credit union told me that they will loan 100% of "book value" on whetever boat I choose to buy. When I asked them what book they used they stated they go to NADA.COM like the rest of us and determine the loan value that way. What is this "black book" you are refering to?

 

[Solittle]

Re: NADA ?????

nick - A good place to get prices for comparison is here:<br /><br /> http://www.boattraderonline.com/ <br /><br />They also have a pulp magazine called Boat Trader that is available at many convenience stores. I have never bought a boat from a dealer (and never would) so I can't help with NADA.<br /><br />$10K is a tad high for a 9 year old 18'er in my view no matter what reference you use.

 

[nickwilson]

Re: NADA ?????

I've been to boattrader and it is very helpful. However, that only tells me what sellers are asking, not what the boats are actually selling for. I just don't want to pay to much, and can't see spending more than the bank thinks its worth or will loan me.

 

[Jack Shellac]

Re: NADA ?????

I've always thought NADA was on the low end of prices myself. There are too many questions about how they get their data and how they massage it. A boat is worth what it's worth in your area. A lot of looking and pricing is the best way to find out what your areas boats are selling for. This takes time but is the best way to go about it. Who knows? You may run across a real bargain if you look enough [probably won't be at a dealer, though].

 

[rsfeller]

Re: NADA ?????

there is only one way to properly price a used boat...see what they are selling for in the real world. NADA means nothing to me from cars to boats...<br /><br />traderonline.com<br />iboats.com<br /><br />for similar year model (which is not always easy to find!)

 

[nickwilson]

Re: NADA ?????

Yeah, I hear you guys. Not alot of boats sold in my area (as compared to larger cities) so it's tough to compare. I guess bottom line is it's worth whatever I'm willing to pay for it!