According to IBI magazine, there are “hopeful signs of new boat loan activity.” This is great news for those in the boating business, including sales companies, as well as those looking to purchase a boat propeller or other yacht parts. The increased sales activity and credit availability of boats should help smooth market prices and free-up the credit needed for large-scale purchases.
The President of National Marine Bankers Association, Karen Trostle, confirmed speculations that prices and credit will be more reasonable in 2011:
“We believe this is another recovery point in the cycle of availability of credit from lenders and interest in borrowing to buy a boat by consumers. If we can move these forces in tandem and away from the malaise of banks’ very strict credit guidelines and buyers low desire to finance or refinance a boat purchase, it could signal a return to stronger activity by all involved in the transaction. For consumers especially, this could be the ‘sweet spot’ of best interest rates and boat prices for seasons to come.”
The National Marine Bankers Association handles loans for boat purchases, upgrades and renovations. They closely follow trends in terms of available financing, interest rates, and overall sales.
This news is being heralded as the best announcement in boating since the recession began. Sources of boating news seem to be in agreement of this turning of the tides, as more than 50 NMBA conference attendees reported used and new boat sales up as high as 35% for the year.
The 35% increase in used boat sales over last year will greatly boost the need for boat repair and parts replacement service sectors. This boost should include propeller sales, propeller repair, and propeller sizing.
As the economy recuperates, every sector will recover the gains they lost during the last two years, and a 35% increase in sales in the boating sector will have sales numbers back to pre-recession levels. Boating-related industries such as fishing should see a proportionate rise in sales.