To Trade or not to Trade?

[Savage]

I’ve traded lots of cars, but never did that with a boat yet. Is it similar to trading cars, or are there additional “gotcha’s” that I need to be aware of? I would imagine it has a lot to do with who you buy from. I’m not sure if we will buy new or used (but more than likely it will be used to avoid the first depreciation). What are your thoughts?

 

[HookedUp]

Looking forward to other's answers. I bought a new boat and had to sell my old boat. I sold it through my dealer so I wouldn't have to do all the work to sell it (answering calls, ensuring buyer is qualified, sea trials, etc.). They required compression tests and their own tests before they would sell it. It went up for sale and sold quickly. I could have gotten more money selling it myself, but I had decided it was worth the money to have them handle it.

The buyer had a problem a few months later and called me up - I think looking for me to cover part or all of the repair costs. I directed him back to the dealer since they had tested and done all my maintenance on the boat or his marine surveyor since he had it surveyed before purchase.

So, it may be an unusual situation, but I figure it ended up being a good decision to sell through a dealer.

As for buying used, I'd have the same kind of recommendations - compression tests, marine survey, sea trial in choppy water. On my new boat I waited to do the sea trial during small craft warnings. The dealer was very hesitant to bring it up to cruising speed, but he did and the ride, although wet, sold me on the boat.

 

[Savage]

Definitely will do compression and survey etc.. on next boat. Did the same on my Baja.

Is there the tax trade credit same as for cars (I’m in Florida)? I’m assuming the trade is similar to cars where there is a wholesale price (minus obvious repairs etc..), plus some kind of “fee” list..

So far, it doesn’t sound like any “gotchas”

 

[Edgewater]

Hello. This is Emile Petro...we are Ranger Tug and Cutwater dealer here in Florida. I would be happy to discuss your trade and also invite you to our location in Pensacola, FL where we have over 20 new Ranger Tugs and Cutwater Boats ready to demo. Is there a certain model you had in mind? We can have more than one in the water to test drive. My contact info is below.

Thank you,

Emile T. Petro, III
CEO, President
850-341-1105 Cell
13700 River Road
Pensacola, Florida 32507
http://www.moderntugs.com
http://www.moderntugspreowned.com
http://www.edgewateryachtsales.com

 

[Savage]

Hi Emile,

Thanks for the info. I sent you a PM (not sure if it worked - never used it from here before).

Gary

 

[FWTMD]

Trading up to newer / bigger periodically would be great.

The biggest barrier to that is taxes. Not just sales taxes. Some states have excise taxes on top of sales taxes. In MD the excise is about as much as sales tax. Forking over 11% in taxes is hard to swallow. You might not want to do that too many times in your boating career. Rather, research carefully and be sure what you buy will fit your needs for quite a while.

 

[BB marine]

Know the value of the 405 Baja. NADA gives a base line. Used boat values are not apples to apples. Condition, equipment, hours, area the boat was used in, and area the boat is being sold in all play a part in the value of the trade-in. I have seen boats that value low in NADA sell for 20K more because of condition, and availability. When you find the boat you want and your at the table negotiating have a knowledge of the realist value of your boat and compare it to what the dealer is offering. Also have a realist value of what the new or used boat's true cost that you are considering purchasing is. Compare real numbers to real numbers. With that information make a decision to trade or not to trade.

Typically a dealer wants numbers to look like 10% to 12% margine on the sale of new boat and 30% gross profit on the trade-in netting 10% to 12% margine on the trade in. Doing your homework helps you from leaving money on the table. Everyone needs to win.

Trade-in verse selling to private party. Many States deduct the trade-in value of the boat from the total cost of the purchased price. Example 210,000.00 purchase price 100,000.00 trade-in, 6% sales tax, tax collected on 110,000.00 instead of 210,000.00 savings of 6K in sales tax. Keep this in mind when making your decision. Good luck in your search for the Ranger Tug.

New or used ? That depends on the availability of the boat in the used boat market that you are looking for. It also depends on how long you plan on keeping the boat (depreciation). The new boat has a warranty but honestly that doesn't mean much. Most likely most of the small things you will be fixing yourself. If you buy new or used have it surveyed by a good reputable marine surveyor, boat equipment, hull and power plant. Any issues noted have them repaired before closing the deal and taking delivery. The used boat will be less cost, less sales tax. New or used purchases are usually a personal preference.

Going from a 405 Baja ,predecessor 38 special (Nice boat) to a Ranger Tug (Nice boat) is quite a change. I would highly suggest a sea trial with your family on board. The water and sea's you are accustom to cruising at 40 mph in your Baja you will be cruising in at 10 mph in the Ranger. You probably will not be cruising at 30 mph in a 27 ranger with your family in 2' to 3' sea's. It can, but it's not going to be comfortable. Completely different boats + 13' longer (405). Don't take that statement as the Ranger is not a sea kindly boat. It is, just considerably different from what you have now.

 

[Savage]

BB: Sounds like its very comparable to trading cars. I’m in Florida, 6% also. I will have to weigh the tax credit on trade-in plus the fact that I wont have to pay a broker’s commission. And compare that to the offer on a dealer trade. Why cant someone just gift me an RT?!

I do understand there is a big difference between our Baja and an RT. At the time we bought the Baja, I was honestly completely unaware of Ranger/Cutwater. My concept of “Tugs” were very old-school and too big to trailer. So, when I “discovered” these gems, they opened up some probable better solutions. Yes, they would be slower for sure. But they lend themselves better to family comfort and overnights. It sounds odd, but when the kids are in the Baja’s cabin, I feel a bit isolated! If i get a CB, then that could be my “getaway space” if needed... Anyway, your point about a sea trial with the family will be an absolute requirement.

Thanks for your thoughts!

Gary

Know the value of the 405 Baja. NADA gives a base line. Used boat values are not apples to apples. Condition, equipment, hours, area the boat was used in, and area the boat is being sold in all play a part in the value of the trade-in. I have seen boats that value low in NADA sell for 20K more because of condition, and availability. When you find the boat you want and your at the table negotiating have a knowledge of the realist value of your boat and compare it to what the dealer is offering. Also have a realist value of what the new or used boat's true cost that you are considering purchasing is. Compare real numbers to real numbers. With that information make a decision to trade or not to trade.

Typically a dealer wants numbers to look like 10% to 12% margine on the sale of new boat and 30% gross profit on the trade-in netting 10% to 12% margine on the trade in. Doing your homework helps you from leaving money on the table. Everyone needs to win.

Trade-in verse selling to private party. Many States deduct the trade-in value of the boat from the total cost of the purchased price. Example 210,000.00 purchase price 100,000.00 trade-in, 6% sales tax, tax collected on 110,000.00 instead of 210,000.00 savings of 6K in sales tax. Keep this in mind when making your decision. Good luck in your search for the Ranger Tug.

New or used ? That depends on the availability of the boat in the used boat market that you are looking for. It also depends on how long you plan on keeping the boat (depreciation). The new boat has a warranty but honestly that doesn't mean much. Most likely most of the small things you will be fixing yourself. If you buy new or used have it surveyed by a good reputable marine surveyor, boat equipment, hull and power plant. Any issues noted have them repaired before closing the deal and taking delivery. The used boat will be less cost, less sales tax. New or used purchases are usually a personal preference.

Going from a 405 Baja ,predecessor 38 special (Nice boat) to a Ranger Tug (Nice boat) is quite a change. I would highly suggest a sea trial with your family on board. The water and sea's you are accustom to cruising at 40 mph in your Baja you will be cruising in at 10 mph in the Ranger. You probably will not be cruising at 30 mph in a 27 ranger with your family in 2' to 3' sea's. It can, but it's not going to be comfortable. Completely different boats + 13' longer (405). Don't take that statement as the Ranger is not a sea kindly boat. It is, just considerably different from what you have now.