Boat sales are way up!

[grads2112]

I guess it's not just my business that is down in the last year.
http://moneycentral.msn.com/investor...&DisplayForm=1

[SOCALDETAIL1]

Got this email sent to me from a friend.
I have been reading as of late that boat sales are expected to once again be slower this year due to falling housing prices and a number of other influences yet I see this as an opportunity for detailers!
Why opportunity? The say the happiest two days of a boat owners life is the day they buy their boat and the day the sell their boat yet for those I know that are boating enthusiast they would never part with boat ownership!
If people are concerned about the economy yet they love boating this means a great number of boat owners will not upgrade this year but hold onto their existing boat and if you are a pro detailer this should be music to your ears!
__________________
Renny Doyle
Attention To Details
High Performance Auto-Aircraft-Harley-RV Detailing
"Detailers of Air Force One"!

[brianthomas]

So what can the price of houses possibly do with boating? I built my house 7 years ago so I did not pay what it costs today. That is partially the reason I bought an expensive boat last year. If I had paid more for the house I possibly could not have afforded the boat. But if prices are going down in the housing market would it possibly free up some money for new home owners to put toward a boat?

[DCBDaytona]

So what can the price of houses possibly do with boating? I built my house 7 years ago so I did not pay what it costs today. That is partially the reason I bought an expensive boat last year. If I had paid more for the house I possibly could not have afforded the boat. But if prices are going down in the housing market would it possibly free up some money for new home owners to put toward a boat?
No. A majority of people buying $100k+ boats are using HELOCs...So as home prices deflate, less boats will be bought.

[HocusPocus]

No. A majority of people buying $100k+ boats are using HELOCs...So as home prices deflate, less boats will be bought.
thats my thoughts also, i know 2 people who did just that, one bought water toys the other bought toy hauler and sand toys... both are about to loose it all. it does suck, they are good hard working folks but just got caught up in the excitement and got in over their heads. just go look at the traders and such to see all of this stuff for sale, many of them just don't want to sell.. they have to.

[DCBDaytona]

thats my thoughts also, i know 2 people who did just that, one bought water toys the other bought toy hauler and sand toys... both are about to loose it all. it does suck, they are good hard working folks but just got caught up in the excitement and got in over their heads. just go look at the traders and such to see all of this stuff for sale, many of them just don't want to sell.. they have to.
Moreover, the American Dream of owning a home and eventually owning it free and clear has evaporated as well, especially in Ca. People are refinancing more than ever...most to pay off credit cards, buy boats, dirt toys, cars, etc. It's sad.

[widowmaker]

Moreover, the American Dream of owning a home and eventually owning it free and clear has evaporated as well, especially in Ca. People are refinancing more than ever...most to pay off credit cards, buy boats, dirt toys, cars, etc. It's sad.
Kinda tough to own anything outright when buying things with an interest only loans........

[brianthomas]

Whew! Can't quite get my mind around using unrealized house equity to finance a toy! If you sell the house and actually have the money it is a completely different animal. Could this spending of unrealized equity be common enough to make a dent in boat/rv sales? It sounds risky enough that I would think is would be only in isolated incidents where people were just not thinking past tomorrow. I know there are areas where housing values appreciated dastically but common sense says if it goes up very quickly it almost certainly will readjust at some point.
I spent just short of a quarter million on a boat last year and financed part of it but it was not using my house as colaterol, just the boat. Also have the loan value and then some in investment accounts. Took a lot of years of saving to get to the point of being able to do this but for me it was the only sane way. Maybe I'm older than a lot of people in these situations, 45 on Monday.

[HocusPocus]

Whew! Can't quite get my mind around using unrealized house equity to finance a toy! If you sell the house and actually have the money it is a completely different animal. Could this spending of unrealized equity be common enough to make a dent in boat/rv sales? It sounds risky enough that I would think is would be only in isolated incidents where people were just not thinking past tomorrow. I know there are areas where housing values appreciated dastically but common sense says if it goes up very quickly it almost certainly will readjust at some point.
happy early b-day, i will be 45 on saturday.
i think you may be surprised on how many people used over inflated home values to finance their toys or even buy homes in havasu.
I spent just short of a quarter million on a boat last year and financed part of it but it was not using my house as colaterol, just the boat. Also have the loan value and then some in investment accounts. Took a lot of years of saving to get to the point of being able to do this but for me it was the only sane way. Maybe I'm older than a lot of people in these situations, 45 on Monday.
we are looking at getting a new boat next year but it will be bought like yours, with money we have saved just for it and finance the rest.

[DCBDaytona]

Whew! Can't quite get my mind around using unrealized house equity to finance a toy! If you sell the house and actually have the money it is a completely different animal. Could this spending of unrealized equity be common enough to make a dent in boat/rv sales? It sounds risky enough that I would think is would be only in isolated incidents where people were just not thinking past tomorrow. I know there are areas where housing values appreciated dastically but common sense says if it goes up very quickly it almost certainly will readjust at some point.
I spent just short of a quarter million on a boat last year and financed part of it but it was not using my house as colaterol, just the boat. Also have the loan value and then some in investment accounts. Took a lot of years of saving to get to the point of being able to do this but for me it was the only sane way. Maybe I'm older than a lot of people in these situations, 45 on Monday.
In areas like SoCal where people have a ton of equity this is the story. 5 years from now people will be hurting...It's simple to evaluate the custom boat market and do an analysis compared to the SoCal housing market boom. Back in 1999-2000, prior to the boom...Very few people, and probably only those who could afford it had a $100k boat. Hell, that was when seeing a DCB was eye watering! Now in 2007 all the equity is built and$100k boats are dime a dozen. People have lost sight and will soon have to reprioritize. Soon enough they'll have to start saving for college tuition and the toys will have to go.