As president of Passport Yachts I am often asked what I think will happen in the boating world over the next few years. I don’t have a crystal ball, but if I use all of the information available pertaining to the yachting industry and the general economy, and add to that a good measure of common sense that comes from over three decades of experience in this business, one can come up with a reasonably good picture of what will likely happen in the near future.

 

My conclusion points to a current window of opportunity for buyers of both new and previously owned boats, as well as sellers of quality used boats. Here is why.

 

If you are considering purchasing a new sailboat the time is probably right. 

• It is no secret that there are fewer quality boat builders today than there were ten years ago, which narrows a buyer’s choices for high quality cruising boats.  In an effort to attract new buyers, the manufactures who have continued without interruption through this recession have kept their prices at artificially low levels and their technology at all-time high levels. As the economy recovers and inflation and other factors set in, costs will begin to rise. With limited supply in the marketplace, prices will rise.
• Right now interest rates are at an all time low. As the economy recovers inflation will increase; that in turn will force interest rates up. History tells us that it is not a matter of if this will happen it is just a matter of when. This will affect both the manufacturer and the buyer who chooses to finance their new purchase.  Rising debt cost will force manufacturers to raise prices.  Additionally, rising interest rates will add thousands, if not tens of thousands, to the buyer’s overall purchase cost. If you pay attention to the economists you will learn that this is predicted to start in the near term.
• In the case of offshore built products, changes in exchange rates have a dramatic effect in the U.S. At Passport we have monitored this for the last thirty years. There have been rare periods when U.S. buyers had the advantage due to exchange rates, but those have been short lived.  In general currency exchanges rates have put the U.S. buyer at a disadvantage. With the current debt in the U.S. it is a pretty good bet that exchange rates won’t be favorable anytime soon. This will add to the cost of new boats in the future.

The bottom line for the new boat buyer is that now is probably the best time to buy a new boat if they have the desire to go forward with their dream. Prices are at an all time low, financial institutions are offering the lowest rates ever, inflation and exchange rates are still low and technology is at an all-time high.

 

Some of the same things that make it a good time to purchase new boats apply to used boats as well. Low interest rates and low prices for new product, which drive to some extent prices in the used boat market, both help. But there are additional factors in the used boat market that are unique to that market. 

All of these factors point to a window of opportunity for both buyer and seller of previously-owned yachts. As we progress into the year the opportunities become less advantageous for both as the cream-of-the-crop gets sold and other factors such as rising interest rates come into play.

 

As I mentioned at the outset there are many factors involved in determining when is the right time to invest in your dreams and your future. Whether it is a new boat designed and built just for you or a previously owned boat that fits your criteria, given the factors above now could be that perfect time. In all the years that we have been actively involved in helping our clients attain their goals and fulfill their dreams the current window of opportunity is unparalleled for those that believe in the future and have the foresight to act on their beliefs.

 

With all of the above in mind, I hope you'll consider joining us at the two yacht buying opportunities listed below.