The situation of the new boat market and the outlook for the second-hand market.
Manufacturers cannot meet the strong demand for new boats in the USA therefore, causing a ripple effect for second-hand boats.
In the United States, with demand far outstripping supply for new boats, boat sales in recent months have entered a predictable pattern, that is, into the negative in terms of percentage of sales. The same pattern is showing in new car sales due to the lack of inventory at dealerships (decline from May to September 2021).
Even without available detailed statistics in Canada, the situation is much the same as in the United States.
Customer demand for new product has remained stable, but global supply chain issues mean that the boating industry believes inventory replenishment cycles will last until next year, possibly even until end of 2023.
Proof, some boat dealers say they have availability for 2023 but availability for summer 2022 are pretty much closed.
The president of the Brunswick company, a very big player in the United States which owns the following brands: Mercury, Sea Ray, Bayliner, Princecraft, Boston Whaler, Harris, Lund, Lowe, Crestliner and Heyday says that the gross demand is extremely high and that the supply is currently very limited. But this strong demand allowed the Brunswick group to publish the fifth consecutive record quarter, unheard of for the Brunswick company.
The president of Brunswick Company believes that the balance between supply and demand is likely to take 3 years to achieve.
The product shortage is reflected in the data. Preliminary figures from Statistical Surveys, a Michigan company that tracks new boat registrations, confirm that September continued the trend of restrained sales for the fifth consecutive month (May to Sept 2022).
So, it is easy to predict that if they cannot buy new, many boaters will turn to preowned.
Of course, the most recent year of vessels will be in high demand but not excluding 2010s and up.
As the Canadian market is much smaller, it is easy to predict that the used boat listings will naturally be very limited.
An interesting option would be to turn to the second-hand market in the United States. Of course, this market will also be greatly in demand by the Americans themselves, but since the availability on the used is far greater in the US, there will be a very substantial choice.
Of course, there will be Canadian taxes payable when bringing the boat back into Canada, but these are the same taxes that are payable when purchasing a boat from Ontario, for example.
To avoid the famous 9.5% duty, you would have to select mainly boats built in the United States or leave the boat in American waters.
Don’t hesitate to contact us and have all of your options explained to you by an experience broker.
In addition, if the Federal Minister of Finance Ms. Freeland implements the luxury surtax on new boats as of January 1, 2022, we anticipate an increase in demand for second-hand boats.
A GOOD TIP, IF YOU HAVE A PLAN TO ACQUIRE A BOAT FOR THE NEXT SEASON, START LOOKING NOW.
The brokers at Ita Yachts Canada are at your disposal and they are specialized for purchases in the United States as well as in Europe. They have over 18 years of experience in the brokerage business that involves importing or exporting, so don’t hesitate. They have a perfect understanding of the CANADA / EUROPE free trade treaties and the new CANADA / UNITED STATES / MEXICO (ACEUM) treaty without forgetting the ASIA-PACIFIC treaty regarding boating.