Selling Now?
How is the market less than a month away from ahead of the Cannes Boat Show and two months ahead of the Fort Lauderdale Boat Show (we’ll be there)?
It’s obviously a buyer’s market. In fact, there are many sellers and few buyers. Why is that?
Financing
Financing is now much more difficult. Financial institutions have become rather skittish about boat financing. They will now ask for collateral other than the boat. This approach is also called COLATERAL, i.e. securing the boat loan with securities that are safer for the institutions, such as the house or other investments…
Is it time to sell now: the short answer is YES. Industry professionals do not believe that 2024 will be a better year than 2023. Interest rates are likely to remain at or above current levels. Of course, from the perspective of selling to buy a boat again, you’ll be in a kind of equilibrium, i.e., less favored to get your selling price, but when you’re in buying mode, you’ll then be favored.
If you want to sell to take a break, do it now. Prices can only go down in 2024, as supply will probably far exceed the pool of potential buyers.
But we must never forget that there are still boaters on the market who want and need the most perfect boat possible, and who know that this comes at a price.
Indeed, not all boats (same manufacturer, same year, same size) are created equal, far from it.
The American market abounds in very advantageous offers, even with a very advantageous CAD/USD exchange rate. What’s surprising is the wide availability of 2020-2023 and even 2024 models.
The Canadian market is rather poor in terms of offerings, and asking prices are very often higher than those south of the border. In fact, scarcity is the name of the game.
Saltwater/freshwater
For those who are apprehensive about buying a boat in salt water, the case of a boat in the greater Quebec region (Tadoussac, Rivière-du-Loup) is always put to them. They’re in cold salt water, just like those that sail from Atlantic City to Maine via New York.
In general, 6 months a year out of the water and in cold water. There’s also the great Great Lakes market (Lake Michigan-Boston, Lake Erie, Lake Claire-Detroit), so there’s plenty of freshwater boating for those who want it.
So there are a lot of bargains to be had right now, especially in the U.S., but some sellers in Quebec are very open to negotiation, and what’s more, there are no taxes to pay if both seller and buyer reside in Quebec.
Taxes
Don’t forget that when you buy a boat in Ontario or outside Quebec, there will probably be no tax to pay at the time of purchase, especially if it’s a private seller, but as soon as you register it, a notice of assessment for GST and QST will arrive in the mail. For some, this will come as a complete surprise. Of course, it’s payable immediately if you arrive at a Canadian customs post.
In fact, just because taxes aren’t charged at the time of the transaction doesn’t mean they aren’t payable afterwards. Always check with a professional and honest broker…
A crucial inspection
In conclusion, you need to be on the lookout for bargains and the best time to sell, not forgetting that a professional inspection is always required for both new and pre-owned boats.
The choice of surveyor is crucial, so be careful and very selective. As after-sales service is tending to deteriorate, it’s best to know the condition of the boat before making a deal.
Don’t hesitate to contact us if you have any questions. We at Ita Yachts Canada and our Owner Boats division are always at your disposal to help you make an excellent transaction, both locally and internationally (USA and Europe).
DISCLAIMER
The article presented on this page is for information purposes only. This information is provided as editorial (i.e. opinion). The information presented in this article is presented in good faith and, while believed to be correct, is not guaranteed. Ita Yachts Canada does not warrant or assume any legal liability or responsibility for the accuracy, completeness or usefulness of the information and/or images displayed, as they do not suggest anything in relation to this article, indeed no association can be made with respect to the images and the article. All information in this article is subject to change without notice and is without warranty. It is the reader’s responsibility to verify the descriptions and statements contained in this article. The brokers at Ita Yachts Canada assume no responsibility for any conclusions the reader may draw. The purpose of this article is to promote boating in all its forms. It gives one point of view among many.
