Wayzata Marine's 2020 Reflection: Why to buy a boat in the off season?
Calling a year in the marine industry unusual is nothing new, and this year is no exception. There was the year an earthquake in Japan hit, making it nearly impossible to get a Yamaha engine. Or the time there was a high luxury tax on boats, nearly killing the entire marine industry overnight. Then, the time when tariffs kicked in and stereo component prices went through the roof, since China is one of the only countries to manufacture specialized stereo components. Now we face a new “unusual”: Availability.
2020 quickly turned into a standstill due to COVID-19 and government lockdowns sending shockwaves through the national economy. Those shockwaves hit the marine industry exceptionally hard. The season just began when factories were ordered to shut down, ceasing all production. Boats in the middle of assembly stopped moving altogether and started collecting dust. As soon as the plants were back up and running, there was another problem: Parts. Some suppliers were forced to close and some were not depending on the state they were housed in. Some of those boats collecting dust continued to do so until the parts kit was completed weeks later, delaying the final product, leaving a first time boat buying family hanging.
Then, in late April, the phone started ringing off the hook and people were flooding into the showroom. Everyone was after the same thing: FREEDOM! Freedom from the monotony of quarantine. Freedom from ZOOM meetings and boring online classes. Everybody had an abundance of time since nobody was going to the office, traveling for work or attending in-person meetings or classes. The question was what to do with all of this newfound time; the answer was boating. Fortunately for us, the government cannot shut down nature, making boating a great way to spend time outdoors. Demand escalated so quickly that our boat inventory, along with our slips, were flying out the door.
Now that we are all caught up on how we got to this point, it’s time to address the elephant in the room: Why to buy right now?
1. Product Availability
Boats are available NOW. If you wait to purchase, there’s little assurance that your boat will be ready for the boating season next spring.
2. Prices are at their best
Every quarter, boat companies make adjustments to their prices based on their supply chain, raw materials and demand. Prices do not generally go down from one quarter to the next, so waiting won’t change the price tag.
3. Demand is increasing
The industry has seen dealer inventory levels at an all-time low, while demand for the product is at an all-time high. This means that as time goes on, the difficulty increases for families to obtain their dream boat.
4. Lead times are increasing
Lead times on orders are already longer than any recent time in history and they will only get longer as time goes by and demand grows. Build times that are usually 3-5 months, are now extending into 7-9 months.
This boating season is drawing to a close, so if you want to be ready to hit the water next season, plan ahead and stop in today to start building the boat of your family’s dreams!