Buyer’s market befuddles megayacht owners

Author:
Updated:
Original:

What is tougher than having one sleek megayacht for sale in a glutted market? The answer: having two megayachts on the market.

In boom times, yacht enthusiasts would order a new dream boat and keep their old one for the two or three years the builder needed to complete the new boat. Then they would sell the older yacht to new millionaires and billionaires eager for their requisite status symbols, The New York Times reported.

But that equation changed with the financial crisis two years ago and took the superyacht market down with it.

"It was a fool's paradise," Malcolm Maclean, editor at BoatInternational.com, a website that tracks the yacht industry, told the newspaper. Now, he said of the owners who cannot get rid of their boats, "They have caught very bad colds."

By one estimate, 300 new megayachts were sold annually worldwide from the mid-1990s until the 2008 collapse, when sales dropped to about 100 boats.

The industry has picked up a bit in recent months, although many buyers remain on the sidelines.

"The inquiry level is picking up," William S. Smith III, vice president of Trinity, the largest custom yacht builder in the United States, told The New York Times. "And there is more activity in the used-boat market. But there is still a lot of inventory, and as long as that is the case, people are keeping their hands in their pockets."

Click here for the full article.

Related

Future Sales Focal Point

This month’s Pulse Report survey asks if inventory levels and other concerns will be a factor in boat-show participation. Take the survey here.

ABYC Releases ‘Largest Update’ of Standards

The 61st supplement of its Standards and Technical Information Reports for Small Craft includes electric propulsion and electrical systems.

Fort Myers Tech Receives Training Support

Yamaha and the Marine Industries Association of Southwest Florida and Tampa Bay donate to the college’s new maintenance certification program.

LCI Reports Record Q2

The parent of OEM supplier Lippert Components saw a 108 percent increase in net sales to $1.1 billion.

Cox Marine Addresses the Supply Chain

The diesel outboard manufacturer brings all sub-assembly production in-house to obviate delivery issues.

Boat Shows and Dealer Week Are Calls to Action

Shows are one of the best ways to connect face-to-face with customers, and MRAA’s signature conference can give insights into achieving retail success.