Fuel Prices and the big boat market

[redfish955]

Typically when fuel prices in the past have been low for a while and go back up to the $4-$5 a gallon range and hold steady for a year or so the market for used 45-70 foot boats will crash. You will find boats that were listed for $750k going for $250k. Boats such as a 55 foot sport fisher will use close to 100 gallons of fuel to move thirty miles. When fuel is cheap you can run 20 miles off shore, fish a few wrecks, and return back home for less than $600. When fuel prices get high this amount becomes closer to $1500 and a lot of the people with these boats flat out can't afford to take them out every weekend. Prices aren't expected to get there in the next couple of years but if they do return that is the best time to purchase a boat like this.

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[TMP-SMX]

Find a friend with a boat it's a waste of money to own one yourself. Fuel is just one portion of the costs maintenance and storage are also expensive.

 

[Apollyon]

The old saw - "What are the two best days of your life? The day you buy your boat, and the day you sell it!"

 

[redfish955]

If you have a house with a lift on the water they aren't too bad. Another thing that fluctuates a lot are multi million dollar luxury homes. Most of the people able to afford these have a lot of money in stocks and may be retired. When the market crashes a lot of the time there are people who are forced to downsize and these houses market will crash. They are definitely one of those toys once you have already built your retirement fund and taken care of your kids if your going to take care of them.

 

[Mman]

The old saw - "What are the two best days of your life? The day you buy your boat, and the day you sell it!"

the best boat is somebody else's boat

 

[NITRAS]

I'm going to say there are other factors here.

The price of gas usually isn't an issue with half million dollar toys.

EDIT: I suspect the overall economy will effect demand more. When times are good, the demand for these luxury goods go up. When times are not, then the demand declines.

 

[BigRedBeta]

The price of gas usually isn't an issue with half million dollar toys.

While maybe not to the extent of the OP's point that people sell, I certainly have met some people who dramatically decrease their usage due to gas prices. In Chicago, where the nice harbor spots on Lake Michigan are very pricy, I had some acquaintances (as @Mman said: best to use someone else's) who were content to have people hang out and party on their boats but refused to fire up the engines and actually leave the harbor citing the cost of gas. Since you technically aren't allowed to have alcohol on the beaches (part of the Chicago Parks District), people, myself included, were still very happy to come hang out on a boat even if if was just docked in the harbor when the weather was nice.

 

[redfish955]

These 50 ft. boats use around 2.75 to 3.25 gallons of fuel per mile traveled. When fuel is $1.80 a gallon you can travel around fishing off the coast for a day for $600. When fuel is $5 a gallon your going through close to $1800 for an 8 hour fishing trip with the buddies. $1800 20 times a year is a lot of money. At $600 you can take 6 people out and fish for a day for less than a round of golf per person. The chartered boat business also suffers greatly and many of these guys go out of business and have to sell as well. A $2500 trip with a $500 profit quickly turns into a $5500 trip with a $500 profit. Now, someone who likes to go 60 miles offshore and fish for bill fish and tuna is in a completely different category. Take the boat from Miami to the BVI for a vacation, and ect.

 

[atomi]

The old saw - "What are the two best days of your life? The day you buy your boat, and the day you sell it!"

How do you make a small fortune in boating?

Start with a large one.