Should I my sell my boat now or wait until spring?
Our clients find themselves asking this question every fall/winter. While many boaters decide to wait until spring in hopes of more money…the real answer is counter intuitive! Below, we will explain why trading your boat in the fall/winter can actually net you more cash and give you more buying power in the spring when you decide to purchase your next vessel.
The Wait Until Spring Trap: Understanding Expenses
Let’s say you decide to winterize your boat and wait to trade in your vessel in hopes of a similar offer in the spring. You are going to encounter extensive obvious, and not so obvious, expenses that will cut directly into that extra money you planned on pocketing. The first is the cost of winterization itself. Having your boat pulled, shrink-wrapped, and stored for up to 5 months can end up costing thousands.
The next, and not often considered, expense is depreciation. The moment the calendar turns over to January 1st, your boat is officially one year older and any offer you receive will be lower. In some cases, boat valuations can drop by 7% or more! By selling in the fall/winter, you will receive that years valuation of your vessel and will save big.
Still owe on your vessel and/or trailer? A common mistake we encounter are boaters not taking into account their payments as the boat sits through the winter. If you owe any money on your vessel and are planning to sell in the spring…you must calculate the 3-6 months of payments that you will be making and subtract this from your spring totals. Even if you must sell for a loss, after the years depreciation and other expenses explained in this post, it is often much less of a hit than trying to wait until the spring market.
Time Value Of Money
Would you rather have money tied up in an asset that is not being used or have that money invested until you are ready to put it towards another boat? This is a major expense to consider if you decide to hold on to your boat. While markets can be tricky, and we are not offering investment advice, there is an obvious downside to having your hard-earned money tied up in a boat that is just sitting in storage. Selling in the fall/winter will put that money back in your pocket to be used however you like, including investing for potential profits.
Buying Power In The Spring
Say your dream boat just hit the market in the spring and it is a “cash-only” deal. If you decided to hold onto your boat and have money tied up in your current vessel, chances are you will miss out on that deal. Having the ability to approach a private seller, or dealer, with cash in hand is the only sure-fire way to lock down that boat you always wanted. Also consider that EVERYONE will be trying to sell in the spring and your boat ads will be buried among the crowd.
Other Factors That Add Up
Not convinced to sell quite yet? A few other expenses to consider that will affect your wallet include:
- Fully detailing your boat in the spring
- Mechanical expenses before sale
- Dealing with private boat buyers in the spring
- Losing out on your dream boat due to current vessel not selling
- Waiting on a broker to sell in the spring
- Any economic turns which could hurt the selling market
- Warranties expiring
Why Selling Now To Yachts 360 Is The Best Option
As you can see, the expenses explained above can quickly add up into the thousands. Yachts 360 is well aware of the experience that private sellers face when trying to sell their vessel. This is why we have perfected the buying process and promise a quick and comfortable close on your vessel. We know true boat values and aim to offer the highest offer possible.
Selling NOW is key to holding buying power in the spring and we are here to help. To get started, simply click the link below or call the office nearest to you!