Will boat prices go down in 2023? Though you may be disappointed with the answer, we’re going to be honest with our boating industry forecast: boat prices will most likely not drop in 2023, if not increase.
The aftermath of the pandemic has caused prices for mostly everything, not just boats, to increase rapidly in the past two years.
Let’s break down the underlying factors as to why boat prices so high and find out a solution for those who wish to own a new boat in 2023. Stay tuned!
Table of Contents
Boat Prices Trend in 2023
1. New boats
By the end of 2022, several concerns have been made regarding the sales of new boats as the lack of customer interest was reported.
When asked, 67% of the 96 dealers predicted that the new-boat retail sales would fall, whereas 21% reckon the opposite; the rest 12% suppose that the sales will level off.
Even if the demand goes down in 2023, shipyards will still fail to bring back the mass production capacities prior to the pandemic, which explains why the new boat price won’t drop in the near future.
Will new boat prices go back to normal soon? We don’t know that, but hopefully, with the global effort of overthrowing the dilemma of higher interest rates and inflation, the boat market slowing down is something worth looking forward to.
2. Used boats
If you’re wondering whether used boat prices going up or down, here’s our used boat market forecast for 2023.
As expected, the unprecedented demand for used boats doesn’t seem to cool down in 2023. A used 20-foot fishing boat can cost up to $15,000; even though this is not a small amount, this price of used boats can still help you save up a considerable percentage compared with the initial cost of a new vessel.
The reason for this continuous surge of demand for used boats is the lack of accessibility to new boats due to COVID-19. This forced consumers to buy used boats instead, as they were the only options available.
Not to mention, some people bought boats during the pandemic and now wish to sell them as the trade is gradually opening again; additionally, some cannot afford the maintenance of the boats.
Will used boat prices go down? It appears that the used boat prices trend is forecasted to set a boom again in the upcoming year. As for 2022, the used boat sales outstripped new boats twofold.
Factors Affecting Boat Prices Trend
Whether you plan to buy or sell a boat in 2023, it’s best to understand the underlying factors affecting the current boat price trends.
- The pandemic: Ever since the pandemic hit in 2019, the boat market has been flourishing as the demand for boats exceeded the supply provided.
- Supply chain: Massive supply chain disruption in 2020-2021 caused essential boating materials like aluminum and steel to become sparse. Even though the price of these components has started to stabilize, boat prices will still likely increase.
- Inflation: Inflation is an ongoing problem that, though stable in the last few months, perpetually impacts boat costs. It is said that manufacturers tend to lever out a 5-10% rate addition when making pricing decisions in 2022.
- Demand – supply gap: Though limited, the significant gap between supply and demand contributes to the price variations of vessels. Boats are not a commodity; they’re handmade regardless of size and purpose.
- Oil price: Because of the Russian war in Ukraine, oil prices witnessed a spike in 2022; currently, they seem to have leveled out but can rise unexpectedly again in these turbulent times.
- Recession: It has been predicted that a recession will occur in the fall of 2023; however, it won’t have much impact on the wholesale price of new boats.
- Personnel: The boating industry isn’t like any other business. It is a labor-dense employment and the hourly rates for personnel are rising by the day due to inflation and a change in work ethic after COVID.
Best Time to Buy and Sell a Boat
The best time to sell your boat would be between February and June, whereas you can buy a boat for a good deal when fall begins – between September and October.
By now, the boat you’re seeking to buy should be available at most showrooms, so inspect it slowly and completely before writing the check. Also, look for discounts and don’t forget to negotiate. There will be savings, even as little as hundreds, to be had.
Frequently Asked Questions
Is 2023 a Good Year to Buy a Boat?
It depends on your budget as well as the model you want, but overall, 2022 was not a good year to buy, but rather sell. From the data we collected, there was a great demand for used boats in the past two years.
Manufacturers failed to meet the demand for new boats, which meant you likely had to pay a fairly high price for the boat you wanted. The bad news is, these boating industry trends will likely continue throughout 2023.
How is the 2022 Boat Market?
Overall, the boat sales for 2022 succeeded in thriving stably the entire time, both new and used boats; it is expected to be prosperous still in 2023, with consumer interests remaining unchanged, if not increased.
Is Now a Good Time to Buy a New Boat?
If you’re not in a rush, carefully inspect your dream boat. Make sure you get to run a test drive before signing the paper; don’t make an expensive mistake that can be avoided in the first place, and don’t forget about the best time to buy a boat which we’ve mentioned in the previous part.
When you’re buying a boat, especially a used one, you’re putting yourself at a huge financial risk. Test drives are needed to ensure the vessel is in good condition.
Conclusion
By now, you should have the answer to the question we raised in the beginning, will boat prices go down in 2023? Boats aren’t just commodities; they’re complex crafts that require precision in every detail. Though many expect to see boat prices drop in 2023, they will most likely not go down, but rather flatten out. Check out the price of the cigarette boat and fishing boat now!
Ten years of enjoying countless trips on boats never made me love them any less! So I am here to put all those experiences into good use for other boaters who want to have a safe and fun trip with their friends and families.