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New York - As Americans cut back spending on life's necessities, Europeans and Canadians are taking up the slack by buying some of life's luxuries including yachts.
Yacht sales, especially previously owned vessels that sell for more than $300 000, are selling quite strongly, several boat brokerages say.
"It's definitely a buyer's market," said Mike Goff, owner of Chicago Yacht Brokers, which only sells previously owned or used boats.
"Most of our business comes through the internet these days, and I think that's true for most of the brokers. And because the dollar has weakened, we've been seeing the international market pick up," Goff said, adding that he had quite a few Canadian and European clients.
Glenn Walters, sales and marketing director at Eastern Yacht Sales in Portsmouth, Rhode Island, said the market for sail and motor yachts was strong.
Walters said the used yacht business was up significantly from last year while new boat sales were slightly down.
"It's no secret. It's a buyers market, especially in the $300 000 to $500 000 range. There's definitely good buys and good value," Walters said, adding, "We're also seeing a lot of brokerage demand from Canada."
US retail sales declined 0.1% in July, led by a sharp drop in auto sales, according to a US commerce department report issued last week.
Just as automakers are offering US car buyers steep discounts to stimulate sales, boat manufacturers are being aggressive in offering incentives to customers and brokers on new vessels, the boat brokers said.
And the values spill over into the used boat market.
Richard Merritt, owner of Merritt Yacht Brokers in Fort Lauderdale, Florida, who has been in the boat business for 40 years, was busy preparing his fleet for the arrival of Tropical Storm Fay.
"I've never seen a market like this one," he said. "There are some boats that have some sellers that must sell. Those are the smaller boats. The bigger boats are in strong hands."
He has a 130-foot mega-yacht on offer for between $8m and $10m.
"The guy's not hurting for money, he just wants to sell it. It's a great boat," Merritt said, estimating its replacement value at between $28m and $29m.
"Anybody who is a seller out there, who is committed to selling, will give you a good deal."
- Reuters