If someone has a boat they no longer want, they can consider selling it. Doing so will help the owner save on unnecessary boat maintenance and recover some money from the sale. When putting the used boat on the market, it’s important first to determine its correct value. Setting a higher price can leave customers uninterested, while setting a price that’s too low can reduce the owner’s profit margin from the sale.
Determining a boat’s current value
There’s no single fail-proof method to estimate the selling price. Boat owners must use a combination of methods and assess several factors to arrive at a figure.
1. Look at NADA boat values
National Automobile Dealers Association (NADA) is a trade organization representing the interests of local auto dealerships and their employees and customers. It provides several resources on its website, including a vehicle valuation tool. This tool helps people estimate the value of their new or used vehicle, whether a car, truck, boat, or something else.
When using NADA’s tool, one must choose the kind of boat they have (powerboat, sailboat, etc.), its make, year of manufacture, engine size, and other attributes. Based on the details entered, the website will offer three different values: current low retail, average retail value, and suggested list price.
While NADA is a good starting point, it’s not the ultimate tool to find the current values of a boat, as it doesn’t consider all the metrics. For instance, it doesn’t account for real-time market trends and local factors. Nevertheless, sellers can use the NADA values to get a rough idea about their boat’s cost. They can increase or decrease their asking price later based on the boat’s condition and regional demand.
2. Browse online listings
Another way to determine a used boat’s value is to look at the prices of similar boats listed for sale online. Many websites list boats for sale, so finding them shouldn’t be difficult. That said, one must remember that the values on the internet are often inflated. Sellers usually list their boats for a high price and then offer a discount when a customer approaches them to make the deal seem lucrative.
Understandably, navigating online listings takes work. To make things easier, owners can filter out the results and compare the prices of only those boats that are similar to what they have. It’s also important to note that not all boats will be listed online, so it might also help to look into local listings.
3. Check out local listings
Found in newspapers and magazines, local listings present accurate pricing data based on prevailing market conditions and trends of a particular region. One will find that the price is usually higher in locations with a high boat demand and limited supply. On the contrary, a location with a higher supply of similar models will have a lower price because of a lack of competition. By comparing the local listings, sellers can understand the boat’s positioning in the market.
Factors affecting a boat’s value
Online guides and listings only help estimate the value of a boat based on its make, model, demand, etc. But they do not consider factors like the boat’s condition, the location where it’s being sold, and its features.
1. Condition
The boat’s condition is a top factor influencing its price. When speaking about the boat’s condition, it’s important to account for both mechanical and cosmetic conditions. The former involves assessing whether the boat and its components are strong enough and function well. A boat with a faulty engine will not sell at a high price. In fact, its value may not be more than 50% of that of similar boats in excellent condition. To increase the boat’s value, one can repair it before putting it up for sale.
Likewise, boats that look good sell better. To make the boats aesthetically pleasing, sellers can take a few measures, such as applying a fresh coat of paint or performing a thorough cleaning. Though buyers desire a fully functional boat, they want it to look good. A well-maintained boat with an excellent interior and exterior can fetch a higher price.
2. Location
The location also affects the price. In areas with a low population density or locations where boating is not popular, the values may be 10 percent lower than in areas where boating is a cherished activity. The location also impacts transportation costs. The price will be higher if the boat has to be delivered to a place that’s far away.
3. Accessories, electronics, and upgrades
Many boats have expensive marine electronics, which will naturally reflect in their value. The precise value would depend on how well these accessories work and whether they are dated. The most recent and updated systems can raise the price by up to 50 percent of the original cost. Trailers, covers, and docking gear are standard accessories that add to the price. An upgraded engine can increase the value further.