Supply and demand for boats in 2022.
The situation
It is easy to see that supply is very low in Canada and has been for several months. Those that are available for sale are taking advantage of the Covid effect, which allows them to maintain a higher price. In fact, when supply is low and demand is high, sellers are favored and prices rise.
New boats will be much more expensive in 2022, the major manufacturers have decided to increase their prices significantly (from 10 to 20%). Dealers have also followed given the scarcity of supply. This will create pressure on the used boat market. The supply is also clearly down for used boats.
So, if you are planning a purchase for the summer of 2022… shop early!
Interesting alternative :
Buying in the U.S. with experienced brokers!
It is quite normal for many boaters to look at the used boat market to maximize their bets and the abundance of supply is mostly on the American side of the border.
Even with the exchange rate, the American market offers excellent opportunities compared to the Canadian market. If you do the math, you’ll see that it’s worth it!
There are several large markets south of our border. Of course, Florida, the East Coast (from Boston to Annapolis) but also the great freshwater market that is the Great Lakes. Lake Michigan is the 2nd largest market in the US.
But the freshwater boat dealers always give a price premium to those who want absolutely nothing else but a freshwater boat.
To those people I offer the following thought,
Only a thorough inspection can reveal the condition of a boat. Photos are good, but clearly insufficient. We need to know the history of each boat.
The detractors of salt water
Beyond this adage, all factors must be taken into account. For example, where does the boat sail? In cold salt water, 6 months per year out of the water, a bit like the boats that sail between Quebec City and Tadoussac or Rivière-du-Loup? They are generally well accepted by boaters. So, why not consider a boat that sails in the Boston, New York or New Jersey area.
As in Quebec, they are also out of the water 6 months a year. Factors such as these must be considered before rejecting a boat just because it has seen salt water.
And for those to the south, we think of the Carolinas, Florida, the Gulf. Only a sharp inspection will give us the condition of the boat. There are boaters who are very careful with their boats in the south.
So, don’t hesitate to take a step back from those who “reject” all boats that come from the United States.
The prehentive approach
There are some real bargains out there! You need a structured approach first, the same as for a purchase made here.
A process with an offer that always allows you an unconditional withdrawal, the deposit kept in a secure manner (in trust) and that you can recover without penalties, professional surveyors, an examination of the property titles including of course the presence of a loan. Shortly said, a process that is always to the advantage of the buyer in order to avoid the famous quote: I SHOULD HAVE
The brokers at Ita Yachts Canada Inc. are at your disposal for any purchase or sale of your boat, here or abroad. We are familiar with the American market and depending on the nature of the transaction, we are present during the inspections and don’t worry, the taxation has no secret for us including an eventual return of the boat to Canada. More than half of our transactions are done outside Canada.
A professional accompaniment makes the difference and generally, our services are free for you when in purchase mode. The American market works like real estate. Buyers have their own brokers who represent them.
So you don’t have to worry about your broker’s compensation since he shares the seller’s compensation.
