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Boat sales down following Covid-19 boom

Global boat sales have decreased following the sales boom that was driven by the Covid-19 pandemic.

The global boating market began to normalise last year as buyer interest shifted and the total number of boats sold decreased for the first time since the pandemic-driven boom.

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Boats Group, a specialist in online boating marketplaces, announced findings from its latest annual market report, analysing 2022 while comparing the pandemic-induced surge and trends in consumer interest.

The change towards more typical market conditions emerged in 2022 as the total number of boats sold dipped by just 4.3% compared to the same period in pre-pandemic 2019. By comparison, boats sold in 2020 and 2021 were down 15.9% and 11.8%, respectively, compared to 2019.

Additional factors of increased boat value, lack of inventory and softening consumer demand also impacted market fluctuation.

“For the first time in three years, we’re seeing consumer demand soften. However, our marketplaces’ share of voice is the highest it’s ever been, which is a very positive sign for the health of the industry,” says Courtney Chalmers, vice president of marketing at Boats Group.

“The effects of the demand and supply chain disruption during the pandemic are also still very apparent. Boats continue to move off the market faster and sales remain higher than before the surge.”

The overall value of vessels dropped below 2021 by roughly 16%, inching closer to values seen in 2020. However, 2022 total values remained higher than before the pandemic boating boom, totalling more than $11 billion in sales. The global average boat price was 29.5% higher than in 2019 and was comparable to 2021.

According to marine lending company Trident Funding, boat loan applications were up by 80% in 2022 compared to 2021. Trident reports loan amounts were smaller than in 2021, primarily driven by rising interest rates.

“Borrowers are feeling the elevated boat prices and rate increases, yet are looking to continue their adventures on the water, just in a more affordable way,” says Mark Breeden, president of Trident Funding.

“The substantial rise of applicants last year shows boaters’ dedication to their lifestyle and is encouraging for the industry as we transition from the boating boom that occurred during the pandemic,” he says.

“As the supply chain and inventory levels normalise, we look for the market to provide increased ways for consumers to enjoy their time on the water.”

Inventory levels also made a significant comeback last year, as listings were a mere 4.5% below 2019, driven by new boats coming to market. This considerable growth is yet another signal that the industry is nearing more balanced supply and demand conditions.

Find boats for sale in NZ.

Photography: Getty Images

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