Boat U.S. - March 2008 - (Page 44)

boatsmart CONSUMER PROTECTION BUREAU Soft Market, Solid Bargains These days, it seems like everyone — TV pundits, wannabe presidential candidates and even the guy next door — has something to say about how bad the economy is getting. For some boat buyers, however, the present economic conditions have a silver lining. Now could be one of the best times in years to find great deals on new 2008 and even leftover 2007 models sitting in dealer showrooms. To say that boat dealers are eager to get rid of their inventory is an understatement. In November 2007 alone, at the lead-up to the winter boat show season when traditionally almost half of new boats are purchased, sales of fiberglass boats were 20% lower than the previous year, according to industry analysts. Boat sales for all of 2007 are expected to be 10% lower than in 2006. Brunswick, owner of Bayliner and Sea Ray boats among others, announced that, in terms of unit sales, it was their weakest year since 1965. And in 2006, sales were 5% lower than 2005. Deals on boat loans may also be possible. As this issue of BoatU.S. Magazine 44 BoatU.S. Magazine March 2008 went to press, the Federal Reserve had just cut interest rates to stimulate consumer spending. While there is some question about whether this move will really benefit the economy because it can lead to inflation, there is no doubt that it presents short-term benefits for anyone who can afford to take on some additional debt. The used boat market for several years now has been favoring both current owners who want to upgrade and novices hoping to enter the field. Used boats accounted for 72% of all vessels sold in 2006. Again, analysts are predicting this trend will continue. Why is this perfect economic storm hitting the marine industry? Well, a recession is looming, troubled housing and credit markets are sapping consumer buying power and the cost of the petroleum products used to build and propel fiberglass boats has skyrocketed in the past year. How the industry weathers the storm and how well boat owners keep the faith could affect boating for years to come. A recession is defined as six months of reduced or constricted economic activity. Many economists predict that the nation as a whole is headed for recession in 2008,

Table of Contents Feed for the Digital Edition of Boat U.S. - March 2008

Boat U.S. - March 2008 Contents Behind the Buoy BoatU.S. Reports Member Forum Cap'n Drew Sailing the Sidewalk Aviators Ahoy Docking and Duffing Waterfront Living: Charleston Waterfront Marketplace Grady Right 2nd Time Around DIY: Keeping the Water Out Hot Tips Boat Smart Ask Chuck Foundation Findings Tangled Line At Your Service Good Foundations BoatU.S. Exchange Behind the Boat Where Our Flags Fly

Boat U.S. - March 2008

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