Is NADA undervaluing Sea doo's?

[CTdoo]

Just curious what other peoples take is on this. Do you think the NADA guide is undervaluing Sea doo boats? As I mentioned in another thread we are looking at getting a new leftover 08 Islandia and one of the problems we have ran into with financing is that the 08's are valued at like $19500 trade in value so no one is wanting to loan anything near the actual cost of a leftover 08. We have pretty solid credit and our bank is willing to go 115% of trade in value but that still would leave us with about a 15k down payment.

It just seems hard to believe that a 45k boat is only valued around $20k after just two years. Talk about depreciation. I can see why there are still quite a few new 08's around unless Sea Doo is financing a lot higher that what normal lenders are I don't see how dealers are moving these things.

 

[CTdoo]

The other thing I notice is that almost every Sea Doo boat that I see for sale the sellers are asking anywhere from 15-25% above NADA avg retail.

 

[Phildoo]

AppRently they aren't moving the 08 models for some reason. This is the third post about that year. If you really want it then take advantage of it and call the dealers bluff.
I would sell your trade in outright and offer a cash deal on it.
The longer they sit on it the less it's worth, nommatter if it's seen water or not.

 

[RFoster130]

If you have access to a credit union, try that. They are more lenient than most banks. My buddy got 2 brand new 08 GTI skis and the credit union still went off the MSRP. Not what they would be valued at as 2 year old models.

 

[pro10is]

The recent recession is mostly to blame. The price of used boats took a major hit. The price of new boats wasn't as affected as much as this is set by the manufacturer and the dealers and not by NADA.

That said you'd be very hard pressed to actually find a late model, good condition used Sea Doo for NADA value. Hardly anyone seems crazy or desperate enough to sell them that low. A quick check using Craig's list Helper will show you what the actual asking price is in your area. The undervalued NADA price can be a real annoyance to anyone financing a used boat, and when you insure it you will have to be certain you inform the insurance company what you actually paid and insure it for that value or else they will use NADA. Some insurance companies like Progressive will work with you on this others will not.

Hopefully NADA will adjust the used values back to where they should be but I wouldn't bet on it.

 

[timhood]

Your post brings up several points. First, NADA guides for boats are weird. They show you low book and average retail. They don't show "high book" unless you're a paying customer. Average retail allows for "moderate wear and tear and will be in sound running condition. The buyer may need to invest in either minor cosmetic or mechanical work."

So, you should make your bank/credit union aware this is a new, unused boat and see if they would loan off of high retail. By the way, I pulled the value on an '08 Islandia and got $22,910 average retail.

Next, when the bank/cu specs out the boat, list all of the features it has, like bimini top, depth sounder, stereo w/CD & 4 speakers, porta potti, swim step w/fold-down ladder, fuel injection, transom shower, etc. Those options will help bump that loanable value and most of the time the person pulling the book value won't know what's included in the base book value. I clicked those options and got average retail up to almost $26K. If your bank will loan 115% of that, you would only have to come up with taxes, title & license.

Finally, if you want a great deal on an Islandia, check out Corona Motorsports. I was thinking of buying this boat but I wasn't sure if it would fit in my garage. http://www.boattrader.com/listing/2008-SEA-DOO-ISLANDIA-SE-96727753 $29,999 for a brand new '08 model.

I believe I spoke to Mike--very helpful, non-pushy sales guy. I'm not sure where you are located, but if California is too far to go pick up the boat and you don't want to ship it, you could always use that price to negotiate a better price locally, maybe even get a price match.

Good luck with your hunt. The Islandia has some nice features.

 

[unclejay]

eBay

Also check eBay. I recently bought a 2009 left over Speedster 255, list around 23K for 18,900. it would have been about 1500 to ship it with UShip but I went and got it.

Just make sure you buy from a dealer (check sea doo web site for real dealers)
Then make sure the phone numbers match as a phony eBay site could be put up under the dealer name. You are protected as a buyer on eBay under some circumstances.

The flood of 08-09 models repoed from failed dealers and now being sold by remaining dealers is starting to wind down, that is what's depressing NADA.

 

[CTdoo]

Well we are getting a bit closer,

I contacted another dealer with a leftover 08 who said they have some creditors that they work with that do mainly boat financing so they are pretty sure they can get it financed for close to the sale price. We should know something in the morning.

 

[RFoster130]

good luck!!! I am sure there are places out there who will do the loan.