Boating and the Economy

[hoopykat]

This article was not written by anyone at MSNBC; it appeared in our local newspaper last week from an AP reporter, and it also included some photos of abandoned boats strewn about the Delta. Our version also included interviews with local waterway people, as well as marine unit folks from the Sheriff's Department. It sucks to see so many wrecks and abandoned boats throughout the Delta...people just leave them at their slips and walk away...sad.

-Mike

[jwanck11]

Interesting read.

Warren Buffet motto ... buy when people are nervous, not when they are arrogant.

This is a great time to buy about anything if you are in teh right situation except homes that have not properly depreciated.

[teachercop]

Do you think, you could buy some of these boats for the UNPAID slip fees.

Typically the vehicle gets impounded and goes to a public auction. A title search is conducted and if the vehicle/vessel is legally owned by a finance company they will repossessed. A lien will be placed on the vessel/vehicle against the legal owner (bank). Often a agency will broker the vessel and unpaid fees will be owed to the marina.

I suspect the process varies slightly from state to state but they probably follow similar process.

Although I like your idea, if you find a way to get the boat for slip fees only, it probably won't be much more than a canoe...

[ragboy]

Its funny, because now is such a great time to buy. My business has been doing good still, but I am nervous seeing lots of crumbling around me. My biggest client depends on giving credit to people, so I thought they were going to crash and burn. But believe it or not, they are doing great right now. They give credit to marginal credit targeted people, and I think there are a lot more now. I also have several clients that depend on budgets from the state of california, and they are also pushing forward, with money in the budget now through next year. I thought they were gonna freeze too. Weird.

All that to say, I don't have the balls to buy something right now. I want a river boat, and I have found these great thunderjet boats, at this dealer, where MSRP is $57k, and they are selling the boats ADVERTISED on their site, to try to get them off of the lot, for $37k. I keep checking their inventory and they are not selling them. Maybe in the spring I will feel better about it, if business is still cranking.

[dogbert]

I would guess they would sell for 80% of dealer cost, maybe lower??

Let Obama redistribute the wealth

[skyski_tige]

Jake - Have you asked the MC owners about this? I say sink the MC's

[jake]

Lets keep in mind that the article source is MSNBC....a totally emotional based (Obama love'n) media outlet that is not intereted in facts, just your reaction. However, the age old truth still holds that boats are pure luxury item. Second, if MC has over 4500 08's (and some 07's) in their national (US) inventory (which equates to 4+ years of inventory based on current sales figures), whats going to happen to all these boats (and dealers)?

My guess it the dealers will abandon ship as well. MC gives 6 months, then the dealer pays interest to floor plan. I believe MC offered a deal sweetener and gave out 12 months free to the priveleged dealers to help boost factory sales.

It is my best guess that these boats will end up at the auction. Probably in the 10 to 20 per month range. I would guess they would sell for 80% of dealer cost, maybe lower??

If I were a MC dealer, I would unload FAST!

What would you do?

[tsnowflake72]

Do you think, you could buy some of these boats for the UNPAID slip fees.

[Domsz06]

Ouch, good read.

[da.bell]

Nothing compares to having two homes. That would suck more than two boat payments. The economy has to change and people need to make the change before we will finally see light at the end of the tunnel. Right now, someone turned out the lights.

[Carter13]

I feel for you Da.
My wife and I went through the real estate wows from May 07 to May 08.
If you think having two boat payments sucks try having two house payments totalling $6000 a month plus electric and gas for the home you are trying to sell. My wife and I lived it for a year and I would not ever want to go through that again. That scenario is what caused us to sell our 06 22V. I love our home on 5.5 acres but it took a toll on our finances in a big way. If you were to ask me was it worth it I would say on the financial end YES but on the emontional end NO.
I really feel for the guys losing their jobs which leads to losing their toys and eventually their homes.

[da.bell]

^^^

Totally agree and I wouln't want to get caught in an insurance fraud case either. Have heard some horror stories over the internet regarding this... I am sure we all have seen them. Reason why I'm going to keep my 24Ve and rent it out next boating season. Yes, I am taking a risk but again, no one wants to purchase it.

[Carter13]

Timmy,

The problem with boats is the fact that the water destroys the evidence.
The news made it sound like the insurance companies had their hands tied with this one.

[Carter13]

Da,

I bet you would.
I saw an article that said the insurance companies were seeing an insurge on claims, especially on high price boats in the $500,00 plus price range. The news reported on the story saying that it is really hard if not impossible to say there was illegal activity happening with these boats burning and or sinking due to the economy.
These guys are sinking their boats to get out of them because they cannot afford to keep them, or are upside down or can't sell them due to the economy.
What that spells out for the rest of the boat owners out there is increased insurance costs for 09 thanks to these dirt bags.

[Timmy!]

What that article doesn't say is that there are some people that are setting their $100,00 boats on fire and collecting the insurance money.

That won't go on for long, the insurance companies are pretty smart and they will start denying claims just like they did last year when people's SUV's "magically" caught on fire.