(Published, April 03, 2023)
Boat sales in different markets are very active…
Outlook
It is obvious that the sales market is bearish (many sellers and few buyers) for both new and used products. This is particularly true in the southern U.S. and Europe, where there is a significant supply.
The Canadian market is reacting more slowly, as the supply is much less abundant than in the United States, and prices tend to remain at the same level as last year. If you want to sell your boat, you should not delay in advertising it on all possible websites for maximum visibility, especially YachtWorld, the #1 site in the U.S., but also the #1 worldwide.
April being the most active period for buyers, they are searching on major websites especially for boats over $100,000.
It is certain that the market for small boats is slowing down considering the number of acquisitions that took place during the Covid-19 (2020 and 2021 and early 2022), however the market for larger boats is still very active.
There is also the play of currencies that greatly influences prices. The Canadian dollar sometimes has a hard time competing with the American currency. One moment, it is close to $0.70 cent and the next, it is back to $0.73 cent. It is difficult to predict its evolution up or down as it depends on many factors such as the interest rate in effect in Canada compared to the United States.
Today April 03, 2023 :
1 CAD = $ 0.74 USD
1 CAD = € 0.68 euro
1 CAD = £ 0.59 pound sterling.
Therefore, new boats from Europe for sale here in America such as Azimut, Ferretti, Absolute, Prestige, Beneteau, Jeanneau or from England (UK) for example, Sunseeker, Princess, Fairline are more expensive. This helps you to understand the price structure of imported boats according to currencies.
The used boat market is less sensitive to currency, it is mostly the current market conditions that influence the asking prices for the used category.
The market is fluctuating, but for the moment, the real bargains are mostly for recent and very recent boats. For example, 50 to 60 ft yachts from the 2020s and beyond are trading very well.
The reaction of the manufacturers is status quo and even for some of them, higher prices for the 2023 models. They are anticipating lower sales, some prefer to maintain or even increase prices to maintain a level of profitability for manufacturers comparable to 2021 and the beginning of 2022.
Canadian context with the new luxury tax
Now more than ever, it is important to make solid comparison before purchasing to identify the real bargain. For us Canadians, there is also the luxury tax which adds a new variable.
Fortunately for the used boat, it is only necessary that the boat was registered before September 1, 2022 to exclude it from this new luxury tax, whether the boat comes from the United States, Canada or Europe.
Consult us to learn more about the application of this new luxury tax in Canada. The Canada Revenue Agency has issued specific guidelines on this subject.
In short, there are always buyers on the market, but it is important that your boat be as visible as possible on websites dedicated to the sale of boats (professional websites with complete information on the boat) and this for the Canadian and American market.
The importance of a broker
A professional broker will make a big difference in the steps surrounding the sale as well as the purchase. The boat market has its own characteristics, it is completely different from the car market. The criteria of the offer to purchase, the inspections (complete), the verification of titles, in short, the conclusion of a transaction requires a thorough knowledge of the market. There is no room for improvisation. Everything must be done to avoid the “I should have” after the closing.
The brokers at Ita Yachts Canada are at your disposal for all transactions. In addition, our fees are generally free for you when you are in buying mode. We are present during inspections, no matter where the boat is located. All the files are worked in team (3 brokers in the office), you will be in very good hands.
Two websites at your disposal:
(Bilingual sites permitting the display of prices in CAD or USD):
http://www.propriobateau.ca for boats from $5,000 to $1.5 million (Canada and USA)
http://www.itayachtscanada.com for boats over $1.5 million (Canada, USA, Europe)
