What the Historic Boat-Buying Surge has Meant for Buyers and Sellers

Bluewater partner Earle Hall agrees with the analogies to the housing market, “It’s just like what they say in real estate; ‘if you sleep on it, you’re not going to get to sleep in it.’” Another result of the demand is a big backlog of new “retail” orders placed with manufacturers. It’s been no secret that boat dealerships and manufacturers have struggled to maintain inventory and meet demand while facing erratic materials costs and parts delays. But that’s where the used boat market is getting its time in the sun.

Many builders saw the demand quickly rising last Spring, but few found themselves in a position to capitalize—their production lines frustratingly hamstrung by state or local shutdowns at the time. At many Northeastern factories such as Viking and Sabre Yachts, after looking out for the safety of their employees, the priorities shifted to keeping furloughed workers retained for a swift return. All of Bluewater’s new boat brands are now fully back to work and eager to meet demand but face new and unique challenges. The foremost issues are delays in acquiring both people and parts, according to Bluewater General Manager, Wyatt Lane.

While he is understandably hesitant to forecast the future, Lane is ecstatic with how the marine industry has fared so far through the pandemic. “It is a relief when something so terrible happens and an industry can come out the other side with wins—for both the workforce and our customers. It is a huge jolt of goodness, which doesn’t happen often for us.” Squarely a discretionary spending activity, recreational boating has been one of the sectors often affected first, and most deeply by economic downturns in the past. Thankfully, this global shakeup and recovery is largely turning up roses for the marine sector.

You Only Live Once

Over the last year, buyers have exhibited an extreme commitment to getting a deal done. Prospective buyers that were previously on the fence, jumped all-in. Deals that had been in lingering negotiations for months, quickly firmed up. Folks who had been watching from the sideline, started pulling the trigger on in-stock boat models. The sheer determination of some buyers has been remarkable, according to Lane. For example, customers traveling hundreds of miles to purchase new or used boats before local lockdowns went into effect last spring. Many customers feel they’ve invested in a hobby and lifestyle that returns incredibly meaningful dividends to themselves personally. “If anything positive came out of the pandemic, it’s that we all had to pull the throttle back and focus on what really mattered,” says Hall. “It helped more people realize that their time is precious… family time is precious,” he adds. Indeed, the pandemic seems to have highlighted the fact that we only have so many trips around the sun to work with.

Minefields Managed

In 2020, despite all the schedule shuffling due to COVID exposures, banks reinventing their operations and constant improvisation by state and federal governments, the Bluewater team worked through deal after deal, overcoming each challenge as they arose. For example, U.S. Coast Guard documentation and state vessel registration operations were either slowed or shut down completely for multiple stretches; a constant minefield for the Bluewater closing and documentation team to navigate. Day in and day out however, their diligence demonstrated Bluewater’s commitment to getting customers on the water and realizing their boating dreams, no matter the bureaucratic difficulties.

Over the past year, both new and used boat dealers met many new customers seeking solace in boating, and other old friends return to the water too. Boats that were unloved or under-used got fired back up again or put on the market to capitalize on the newfound demand.

Fortunately, thanks to serving commercial and government vessels, Bluewater’s service yard operations in North Carolina and Virginia were able to get back to work quickly after being declared essential services. Hall reports the Hampton service yard has experienced a similar surge in demand as the sales division over the last year. “We’ve never had a winter season with as many major refits at one time. I think every quality yard has the same story to tell.” Randy Ramsey and Tate Lawrence confirmed that from their vantage point leading the Jarrett Bay Marine Park in Beaufort, North Carolina. “Our yard has been at capacity for years really,” says Lawrence. He adds that the most important tip is to plan ahead without any pause, or you might be out of luck. “If you want something done to your boat, get on the list now!”

Despite workforce and component uncertainties, experts say because first time buyers have appeared in good numbers, the long-term forecasts indicate the yacht market’s recent rise should continue. Eyeing the changed landscape of remote work across the U.S., it’s easy to imagine families having a greater amount of flexibility in their schedules and a larger appetite for making extended boating trips. Hall concludes, “The proof is in the pudding. Sales activity across the board has been unprecedented. From small boats to large yachts, people want to enjoy family time in a safe environment, and boating provides that.”

Lane notes that the events of the last year have resoundly proven one thing, “the recreational activity of boating or fishing really is a safe haven in a storm. It provides an escape and joy. It puts families back together one-on-one without any outside noise. People truly find comfort in being on the water and enjoying the outdoors.” Hallelujah to that.