Shortage of Yachts? FLIBS

Hi,

This will hopefully mean more serious punters for those that are available.

I know how much it costs to have a big one there so having to eat a few must have some brokers sweating.

Every once in awhile I swing by the Mikelson Yachts site and they usually have a pretty decent inventory of used boats....I looked yesterday and with the exception of a few boats their entire inventory has been sold out. Go figure.

There have been a lot of yachts shipped overseas this year. Still there are more than enough in South Florida to sell. I think some brokers may have shortages, especially of boats they consider worthy of the show. Now, I think in returning spaces, you simply have a case that everyone has the space they wanted and no desire to add additional costs at this point. What happens generally is a broker well in advance plans which boats they intend to take. Then one of those sells and they have to see if they have a suitable replacement. Maybe the boat that sold was 100'. They have nothing suitable between 70' and 110' other than the 90' that they are already showing.

Just in Fort Lauderdale, without considering Miami or West Palm, there are currently 2,176 boats for sale listed on Yacht World. So, I wouldn't say a shortage of boats to sell in total.

Perhaps the boats are over valued,

or the potential buyers are under funded.


Why bring a dead horse to a race?



Don't you just love an economy that is doing well?!

Note too that FLIBS is really more a showing, building image, relationships show than a selling show. Now dealers have Miami which is geared toward selling. Then they also have West Palm which I understand to have been very nice last year. All that within 50 miles of Fort Lauderdale. So then expand and add the world. Most budget shows very carefully and haven't built in the ability to add additional slips and costs.

I agree there is a vast shortage in South Florida of used yachts. I have loaded 100's and 100's of them that foriegn owners have bought and shipped out of the country, never to return. I now see these buyers, buying them further and further away from where they are getting shipped out of. I see many of the smaller SF coming out of Destin-Alabama because there aren't any here for sale. I know one owner that bought a 50' trawler in Seattle, just to ship it to Ft. Lauderdale and run it to Texas. If you look at the marina's, up and down all of the canals, there are very very few boats around compared to before, and it's not because they're all up North for the summer.

The trend since 2008 has been that the local owners are selling their yachts and trading down to much smaller stuff like center consoles. None of the owners bought a new yacht or bigger yacht to replace the 40-70' they just sold.

I've even found that on a 60-70' you rarely even have to make dockage reservations ahead of time anywhere, unless it's one of the very busy holidays.

I also believe with the internet and worldwide availability of the internet, the show is not as necessary for used boats as it used to be. Buyers can look at boats from the privacy of their own home and see really good pictures of each boat inside and out and rule out many boats without leaving home and maybe narrow it down to 3 and go visit those.

While I think the show is great to just see the marketplace, I can't imagine ever actually buying in that atmosphere. I can't deal just with all the asking if I'm looking and what kind of boat interests me. Now I know it's my social anxiety kicking in but it's a bit claustrophobic to me. And I don't do New Years Eve in Times Square either...lol

I have noticed here in south Georgia & north Florida. There is nothing to brag about in quality or value in late model local listings. In a quick search on the popular yacht listing, there is not much quality listings out there. Bunch of #@$%%^ and old stuff the banks have not delivered yet and listings still near upside down mortgages.
AND from the crunch, lack of proper maintenance.
My thought is, maybe the ugly crunch is over, those with quality craft that could not sell, the owners have found a way to keep them.

This may be a good sign.

Why bring a boat that is at cut rate and pay even more to display it.

Too funny.


How quick some forget.

Reminds me of a 2006 - 2007 state of mind.


Wonder why the prices continue to be reduced (cut rate)?


Why reduce prices if there is a shortage of supply?


Hmmmmmmmm.

I'm thinking the same on the market. There may not be the quality/value this show to justify the show cost. Folks with quality may just hold/hang on a while longer. Mid elections in a few months and junk of like.

Still questioning if this is a good signal,,, other than the humming..
Ah, humming on the market,,, Ah the PIs...

Because what's left is close to junk at this point. It's been sitting since the crunch, not really maintained since the crunch, and well it's been 5 years since the crunch......Many many of the boats for sale that are left need LOTS of work, and were overpriced to begin with......There is a shortage of good boats on the market and when they pop up, price appropriately they sell fast.......

I have one I manage that the owner has not used the boat for 3 1/2 years. It's for sale at about 40% over market value. It's not a very big MY, an aft cabin MY. I'm guessing they owe close to what they're asking......The strataglass was so shot, the owner asked for quotes, then never wanted to replace. I threw the entire enclosure in the trash, there was only 1 piece out of about 20 that was good and see-through. The refrigerator broke "Ohhh, well wait on that, we aren't using the boat right now" ohhh this just broke "wait on that as well" and now you have 12 major items that need attention.......what do you do......count it as 1 of the 2600 in south florida that won't sell.....LOLOLOL

There is no question that brokerage inventory is down from the last four or five years, because they were greatly inflated. Compare it to the pre-economic collapse though and it is right in line if not higher.

That, and the bowel clenching cost to put a boat in the show keep many out of the running.

That's why when one broker says they have a space available another doesn't want to jump on it. Lots of boats, lots of shows, lots of dollars. Not that I blame them necessarily but companies like Show Management have gotten greedy and continued to add more shows. Large brokers tend to try to go to all as defensive moves (If you're not there it gets noticed and pointed out repeatedly). But they also cut back on the number of boats they take. If it follows the trend it did on inland shows, you may start seeing more just split out and have their own show at a marina or elsewhere.

Look at all the Trawlerfests too when thinking shows. So now many of those showing trawlers are trying to back down from the other shows since they tend to get better results from the trawler shows.