Boat Prices increases in 2022

Back in 2020, directives to stay at home caused a rise in boating interest that is still going strong today. For the second year in a row in 2021, more than 415,000 people purchased their first boat, hitting levels unseen since before the housing meltdown of 2008.

What leads to the increase?

Like most other companies, the recreational boating industry encountered a brand-new problem when the pandemic first hit in early 2020.

Elders in the sector remarked, “We have been through this before, and we will go through it again in the future,” referring to economic downturns. There is a cycle! Smart and innovative businesses will know how to navigate the situation and emerge unscathed. Additionally, as with all the other equipment categories we monitor, low supplies and rising prices are used to meet high demand.

“The epidemic was different because no one knew how to handle it. People were told by “experts” how quickly we would finish it. On was overheard in April 2020 indicating that he had done some “modelling” and that by June [2020], everything would be OK, which was garbage!

In addition to the so-called specialists, another group was still agitating against the situation.

Many refused to acknowledge the problem’s existence. The interstate was busy with business the day before the lockdowns in mid-March 2020, and I recall that several industry members commented, “It’s a scam. I hope that neither the business world nor the residents of the eastern states fall for this.

The elements that lead to the increase

The storm of the increased boat and yacht prices can be attributed to a few happenings worldwide. These are the elements of this perfect storm:

  • Covid-19

The first and foremost element that led to the increase was the pandemic we experienced in 2020. There is still an induced pent-up demand for boats that outpaces supply. Most purchasers, who lock in a price when they sign a contract, anticipate delivery.

  • Russia vs Ukraine war

Due to Putin’s War, energy costs are increasing, which also affects fertiliser and basic food staples, including wheat, corn, rapeseed, and sunflower oils. It has contributed a lot to the inflation that we are now experiencing.

  • More demand

Supply-chain problems that led to cost increases because of alternative workarounds and the dynamics of supply and demand owing to scarcity continue to be a problem.

  • The oil prices

Increased expenses for petroleum-based goods, transportation, power production, all forms of industry, heating, etc., all contribute to higher inflation due to rising oil prices. While the oil price is fungible and typically declines after spiking, some of the subsequent commodities may not.

  • Fed fund interest rates

When inflation rises over Fed-set benchmarks, higher Fed Fund interest rates are unavoidable, making all borrowing more expensive.

The bottom line

In our opinion, the price of new boats will never be lower than it is now. There has never been an ideal time to purchase a boat for your children. A boat loan might also help in this situation.

The conditions may be uncertain, but there’s always a solution.

FMT Yacht Transport is here to make your worries go away! We are the ones to contact if you want to move your boat or yacht. The cherry on top is the fantastic offer we have for you. Yes, you heard it right, an offer.

Get a free yacht transport estimate if you already have a boat or request a yacht breakage service to help get your new boat.