What can we expect in the near future for the Canada/US/European boating market?
It is always difficult to try and predict the future, but there are certainly some trends to watch.
The U.S. New Boat Dealers Association is rather pessimistic. They think that the end of 2022 is going to be very disappointing and that 2023 will most likely be a very bad year for new boat sales.
In Canada, you have to take into account the application of the new luxury tax on boats in 2019, 2020, 2021, 2022 and 2023, which will certainly slow down the market very strongly.
So, in Canada, we will be in a buyer’s market over the next few weeks, which is already present in the United States. In fact, the rather pessimistic economic climate will always be to the advantage of the buyer.
It is believed that there will be a lot of boats for sale in the next few months, so when the supply increases significantly and the buyers are fewer in number, it causes a substantial price drop, and this type of market is called a buyer’s market.
So, if you are thinking of selling, do it now and if you are thinking of buying, the market will greet you with open arms.
With the USD higher than the EUR (as of 27 Sept 2022, the EUR was down against the USD, 1 USD = 1,04 EUR), European opportunities are becoming more and more interesting especially since 26 September. Indeed, the election in Italy has caused a downward movement of the EURO currency. There is more and more talk of the EURO falling sharply against the USD. So, already the European market was in decline, which led to significantly lower prices, the situation will generate real bargains in Europe compared to the US market.
Already we are seeing very substantial discounts especially on very recent yachts (2015 and up). It is common to see savings of more than 1 million on a yacht sold in America over 3 million USD in Europe (similar yacht) for about 2 million.
Of course, you will have to look into the installation of an electrical transformer so that the boat can be connected to the electrical terminals in North America in order to convert the 230V-50 HZ to 220V-60 HZ but this is done at a reasonable cost. Depending on the power of the transformer, we are talking about costs of $20k to $40K.
There is also the cost of transport via a container ship (Mediterranean to the East Coast of the USA), we are talking about an expense of $40,000 USD to $60,000 USD approx for a 40 to 60 ft boat (for example Genoa-Italy to Fort Lauderdale).
There can be some real bargains in Europe! The market for 80′ and under is down sharply.
Here is a concrete example: comparison of two Princess Y78, 2021 yachts with less than 350 hours, one in Greece and the other in Florida:
The one in Florida $5,395,000 USD and the other one in Greece $3,557,533 USD, it’s quite striking as a price difference.
Therefore, a professional broker with international experience, a thorough knowledge of the applicable tax system, the steps of an import/export as well as the Canada/US/Europe markets is an asset of choice in order to take advantage of the best opportunities according to your needs.
Moreover, taking advantage of your boat in the Mediterranean a few months or even a few years before its delivery in America, remains a very interesting possibility.
To sell your boat or to buy a boat, regardless of its location, consulting a broker from ITA Yachts Canada, is the right choice.
