How to Price a Boat for Sale

By portaladmin@onlyinboards.com
6 min read

Whether you are thinking about selling a boat online for the first time, or you are concerned that your current listing has not been getting any interest, you are likely wondering how to price a boat for sale to maximise your return without waiting an age. In this article, we will share our insights on used boat pricing, highlighting the factors you need to consider to ensure your valuation will attract customers without compromising your potential return. 

 

Factors that Affect Boat Resale Value

From the condition of your boat and its additional features, to where you are located and the time of year you are trying to sell it, there are numerous factors that you need to consider before pricing your boat for sale. These include:

  • NADA Guides

For over a century, the National Automobile Dealers Association (NADA) has conducted studies and analyses on the sale price of automotive and marine vehicles to provide industry benchmarks for the wholesale, trade-in and resale values of boats, cars, motorcycles and RVs. Acquired by data analytics company J.D. Power in 2015, NADA Guides leverages data collected from over 1.5 million vehicle transactions each month to provide the Trade-In Value, Low Retail Value and Average Retail Value of different models of boats and cars. 

Due to the unparalleled amount of data at their disposal, NADA Guides are very useful at the start of the valuation process for gauging your market. However, its inability to account for vehicle conditions, customisations and emerging trends limits the accuracy of the tool. Rather than taking your NADA Guide at face value, we recommend using their analysis in combination with other factors to determine your new or used boat pricing.

  • New or Used 

The most important factor influencing the resale value of your boat is whether it is new or used. New or ‘like new’ boats with minimal hours and without depreciation typically fetch the highest prices, whereas used boats typically demand much lower prices depending on the hours, performance and condition of the vessel. That being said, the price of a used boat for sale could be increased depending on any refurbishments, modifications or competition for the model in the market.

  • Age and Condition

Whether your boat is from the previous year or the previous decade will significantly impact its value, with the resale value of boats dropping with each additional year it has on the clock. While the exact age of boats that are 10 years or older is less important to your valuation, the condition of legacy models is critical to ensure you maximise the value of your vessel. This includes the state of the hull, deck and the superstructure, the function of your navigational and onboard equipment, as well as the cleanliness and quality of its paintwork.

  • Engine and Hours

The condition of the engine and the number of hours it has been in operation will similarly impact the price of a used boat for sale and will be one of the first questions asked by any potential buyers. The cost of replacing an engine to upgrade it from the base motor can be in excess of $20,000, while boats with more than 1,000 hours on the water tend to have lower performance; these factors reflect heavily on the price. 

  • Resale History

Knowledge of previous ownership and the value of previous sales is an effective way to gain the confidence of potential buyers, as it gives them more insight into the service history of the vessel and how it has been valued in the past. For this reason, OnlyInboards includes sales history information in our listings and requests that our boat sellers report their sales price once a boat has been removed from our site, such that we can support other sellers with their valuations. 

  • Size and Capacity

Generally speaking, bigger boats that can accommodate more people onboard are valued higher than smaller boats with less capacity. However, there are instances when the size of a boat might depreciate its value. This is typically the case for older boats, which are less fuel efficient, more expensive to maintain or restrict their storage options due to their increased size.

  • Make and Model

Sometimes, used boats with similar ages, conditions, sizes and capacities can be valued at disparate price points because they are from different manufacturers or are alternate models with certain specifications. On the surface, very little separates the 2012 Malibu VLX from the 2013 Malibu VLX. However, due to the inclusion of the Surf Gate on the 2013 model, this boat is much more desirable than the 2012 model and has higher resale values.

  • Options and Customisation

From surf systems and cruise control, to towers, racks and bimini tops, any additions to your boat could increase its resale value in the eyes of certain buyers, while depreciating its worth for others. While having towers and racks already installed on your boat could make it more appealing to someone intent on participating in water sports, these additions could be an inconvenience to someone looking for a base model to customise to their liking. Furthermore, custom colors and decals could narrow the number of buyers who may be interested in your boat, with more neutral color schemes having the most success with average buyers.

  • Location

Even when you are selling a boat online, the demand for boats in your area can impact how much potential buyers would be willing to pay. Analyzing our own sales data, we found that boats on the West Coast sell at higher prices, while the best deals are found in the Midwest. 

  • Market Conditions

Checking the price that similar used boats have been listed or sold for can be useful when deciding how to value your own, but without an understanding of broader market conditions, you could be misled by this kind of data. Depending on the time of year, there may be higher demand or fewer boats listed online, which will influence what buyers will be willing to pay. As some owners are unwilling to pay storage fees over the winter, they list their boats in the fall, creating an abundance in the market and lowering valuations. 

The economy similarly influences the resale value of boats, with national and geopolitical events having dramatic effects on the demand and availability within the market. During the COVID pandemic, boats sold at an incredible rate, resulting in a period during 2021 when there was a record low number of boats listed for sale. While the number of listings has been increasing in recent years, we are seeing a decline in pricing due to rising interest rates.

  • Personal Circumstances 

Ultimately, the value of your boat is decided by the amount you are willing to accept for it. While you may be happy to have your boat on the market for a while in order to get a higher price, conversely, you may need to lower your valuation to facilitate a faster sale.

 

Sell Used Boats Online at OnlyInboards

Settling on the right price for your used boat is by no means an exact science, but by considering the factors highlighted in this article, you should be able to come up with a reasonable asking price. 

Once you have done your research and are ready to sell, we recommend listing your boat a little higher to begin with, then waiting a few weeks before making any changes. With a bit of patience, we are confident that you will be able to sell your boat online with us at a price that satisfies you and its new owner.

For more information about used boat pricing, or for help creating the listing for your boat on OnlyInboards, feel free to contact us or review the numerous guides available through our blog.