F. Todd Warner: Wow, that’s just as tough a question as when the housing market will turn around! It’s not so much “hot” or “cold”, it’s that consumer confidence is lacking in general. It’s as if all purchasing has stopped cold, in many different industries. There isn’t enough activity right now to judge whether values are rising or falling. We find that the “logjam” is loosening somewhat, as we write this in February 2009. We have interested and able parties contacting us again, and we look forward to a “normal” spring season.
We still believe very strongly in the value of vintage boats, both as family heirlooms and as investments. As far as boats versus other investments, it appears that there will be a significant amount of currency infused into the U.S. economy soon. History says that has to lead to inflation, and, as we have seen in past times of inflation, money tends to move to tangible assets. Vintage boats certainly qualify, and have proven to increase in value over time, as well as providing invaluable family enjoyment.
A vintage boat is unarguably more fun than a gold bar! Comparing values in other collectible markets leads us to conclude that boats are still undervalued. Bugatti built 8,000 automobiles, Riva built 4,000 wood boats. A Bugatti Atalante, like the original recently found in a garage in England, cost $6,500 in 1936. A 27’ Chris- Craft triple cockpit runabout cost $5,000 in 1936. If the unrestored Bugatti is valued at $4.8 million today, what should the custom be worth?
Peter Mellon: One area of the market that we do find cold is in the category of cruisers. In an era where we have less time to ourselves, these boats have suffered as they typically were too large to keep inside during the winter months, too expensive to have someone other than yourself restore and too large to ever really finish the various projects that were required for the boat each season.
We all remember someone scraping the bottom of a large cruiser when we visited marinas years ago and these people simply do not seem to be entering the boat market today. As such, cruisers seem to be our weak spot in the market with no real improvement seen in the future.
Lou Rauh: We have experienced a definite “softening” of sales of our typical boats during the last half of 2008, and the first part of 2009. December and January are usually slow months for us in the selling of boats, but the past two months have definitely been tougher. That said, we also are beginning to see more inquires and offers as the weather warms up. Is this going to continue and increase? Our crystal ball is only working slightly, and we see sales increasing, but not at the rate of previous years.
Capt. Jim Shotwell: I don’t feel that it is a matter of hot and cold spots but a softening of the market in general. Much more time passes from the time of initial interest to the time of placing an order and we find this all across the product line. One note of interest is the fact that James Craft is seeing a strong demand for the kits finished at the boat shop instead of by the do-it yourselfer. We believe that is because the factory finished kit boat is a great value in a new vessel in both cost and serviceability.
Chris Schmaltz: We see valuation holding its own so far. In economic times like these there will always be some “fi re sales”. Those sales are great opportunities and not true market indicators. We see growth with smaller runabouts being acquired by first time wood boat owners, as they are easier to maintain and operate. The new people entering this segment seem to be better educated about what they are getting into than in the past.
We feel that overall, the mahogany boats are very undervalued, compared to other collector sectors. Of course there is a direct correlation in regards to the overall popularity of the collectible, but when you look at valuation in the collector car world, collector boats still have huge potential to increase in value. We feel the further appreciation in value will only continue to increase, regardless of economic valleys, for this reason.
The boats that are truly suffering not only as cause of the current economy, but because of the required continual commitment, are wood constructed production cruisers in the 30’ to 50’ range. This is a segment that with few exceptions, could literally disappear in the next 10 years. Because of their very nature, they typically are not considered to be a collectible entity.
We still believe very strongly in the value of vintage boats, both as family heirlooms and as investments. As far as boats versus other investments, it appears that there will be a significant amount of currency infused into the U.S. economy soon. History says that has to lead to inflation, and, as we have seen in past times of inflation, money tends to move to tangible assets. Vintage boats certainly qualify, and have proven to increase in value over time, as well as providing invaluable family enjoyment.
A vintage boat is unarguably more fun than a gold bar! Comparing values in other collectible markets leads us to conclude that boats are still undervalued. Bugatti built 8,000 automobiles, Riva built 4,000 wood boats. A Bugatti Atalante, like the original recently found in a garage in England, cost $6,500 in 1936. A 27’ Chris- Craft triple cockpit runabout cost $5,000 in 1936. If the unrestored Bugatti is valued at $4.8 million today, what should the custom be worth?
Peter Mellon: One area of the market that we do find cold is in the category of cruisers. In an era where we have less time to ourselves, these boats have suffered as they typically were too large to keep inside during the winter months, too expensive to have someone other than yourself restore and too large to ever really finish the various projects that were required for the boat each season.
We all remember someone scraping the bottom of a large cruiser when we visited marinas years ago and these people simply do not seem to be entering the boat market today. As such, cruisers seem to be our weak spot in the market with no real improvement seen in the future.
Lou Rauh: We have experienced a definite “softening” of sales of our typical boats during the last half of 2008, and the first part of 2009. December and January are usually slow months for us in the selling of boats, but the past two months have definitely been tougher. That said, we also are beginning to see more inquires and offers as the weather warms up. Is this going to continue and increase? Our crystal ball is only working slightly, and we see sales increasing, but not at the rate of previous years.
Capt. Jim Shotwell: I don’t feel that it is a matter of hot and cold spots but a softening of the market in general. Much more time passes from the time of initial interest to the time of placing an order and we find this all across the product line. One note of interest is the fact that James Craft is seeing a strong demand for the kits finished at the boat shop instead of by the do-it yourselfer. We believe that is because the factory finished kit boat is a great value in a new vessel in both cost and serviceability.
Chris Schmaltz: We see valuation holding its own so far. In economic times like these there will always be some “fi re sales”. Those sales are great opportunities and not true market indicators. We see growth with smaller runabouts being acquired by first time wood boat owners, as they are easier to maintain and operate. The new people entering this segment seem to be better educated about what they are getting into than in the past.
We feel that overall, the mahogany boats are very undervalued, compared to other collector sectors. Of course there is a direct correlation in regards to the overall popularity of the collectible, but when you look at valuation in the collector car world, collector boats still have huge potential to increase in value. We feel the further appreciation in value will only continue to increase, regardless of economic valleys, for this reason.
The boats that are truly suffering not only as cause of the current economy, but because of the required continual commitment, are wood constructed production cruisers in the 30’ to 50’ range. This is a segment that with few exceptions, could literally disappear in the next 10 years. Because of their very nature, they typically are not considered to be a collectible entity.
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