Jun 1, 2016
When Is The Best Time To Sell Your Boat?
The time has come for you to sell your boat, but the only problem is you have no idea when to sell it! The general consensus is that spring is the best time to sell your boat—and in some aspects, this is true: people are just getting excited about summer, prospective buyers can take boats out for test rides, and warmer weather is on the horizon.
However, from a financial perspective, you should consider a fall sale. The spring market is flooded with inventory, summer is coming up, you can get stuck with your old boat, tire-kickers will be out in full swing, and you just incurred a full winter of expenses! Let’s look at why selling in the fall has its advantages.
Consider a Fall Sale:
If October rolls around and you make the call to hold onto your boat through the New Year, you just signed up for 4-5 months of expenses. Monthly payments, depreciation, winterization, and storage are just a few. You will also need to have your boat detailed after it has been in storage to prepare it for sale. This means that while it may seem like you will get more money in the spring, your boat is ultimately going to cost you more and you will receive less of a profit. Here are some examples of costs that can be avoided by selling in the fall:
- Average storage costs: $200 to $300 a month
- Winterization costs: $300-$2000+ for full service and shrinkwrap
- Detailing cost: around $25 foot
- Holding costs: payments, insurance, registration, etc.
To a buyer, waiting until spring means that technically the boat is another “year” older, which hurts re-sale tremendously for anyone who needs to finance. The fall market is going to allow you to stand out easier to potential buyers.
Why Wholesaling Can Be The Right Option.
Let’s take a look at an example of why wholesaling is a good option for many sellers.
Joe Boater has a boat that retails for 55k and only needs 45k as his bottom line. Instead of wholesaling, he decides to hold on until spring in hopes he can get his full 55k. Spring rolls around and he just incurred $1000 in storage, $500 in winterization costs, $500 engine service pre-winter, 4-5 Monthly payments, and now has to detail and get ready for resale. His boat now retails at 50k in a flooded market which drives prices even lower and he just paid for thousands in holding costs. As you can see, expenses add up quickly and a wholesale offer would have been a good option as he would have had cash in hand.
Here at Off the Hook, we are able to make an offer and close within days. No more carrying costs, monthly payments, or upkeep expenses. We help thousands of boaters a year free up cash flow to purchase their next boat and often times are already carrying their next boat! Want a free quote on your used boat? Submit your boat here and we will contact you to discuss options.