Dealer sentiment on current conditions declined to 33 in April (from 36 in March), while the three-to-five-year outlook declined to 45 (from 47 in March), according to the recently released Pulse Report. A figure of 50 represents neutral sentiment.
For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas asked 48 retailers to assess recent trends in North America.
In April, 42% of dealers surveyed reported new-boat retail growth compared with 35% who reported declines. Dealers reported stronger trends in used-boat retail, with 55% reporting growth and 21% reporting declines.
One dealer noted, “Good used and brokerage product that is competitively priced is flying off the shelf.” Another added, “New-boat prices are too high. Spread between price of new versus used drives buyers to used.”
Dealers reported less comfort with inventory levels in April, as 67% reported new-boat inventory was “too high,” up from roughly half in March and February. In used boats, dealers reported lean inventories, with 60% calling used inventory “too low” versus 21% who reported “too high.”
One dealer commented, “Let’s hope manufacturers do not try to load us up with 2027s when the ’25s and ’26s are still on our lot.”
Overall, Baird’s dealer feedback suggested that affordability, inflation, interest rates, fuel costs and geopolitical risks are all pressuring retail activity. To that point, one dealer commented, “The war with Iran and its influence on gas prices is hurting sales of new and used inventory. [As is the] uncertainty of tariffs and their effect on the overall economy.”
When asked what was working, one dealer said, “We are seeing our market in a really interesting place. Demand is still there and increased slightly with the warmer weather, but the buyers are more cautious, slower to make a decision, and more research-focused prior to buying. The old model of running ads, get a lead and sell has transitioned to educate, nurture, sell and retain.”
Echoing that observation, another dealer commented, “Sales are down — but not dead. There is definitely less foot traffic, longer sales cycles, more price sensitivity with buyers and a lot more research prior to making a decision.”
When asked what was not working, again this month, many dealers noted that price increases across the board have discouraged purchases.
“The uncertainty of the economy (specifically gas prices) has a lot of new and existing customers worried about the cost of boating beyond just the sticker price,” one dealer said.
Another said, “Inflation is taking a huge toll, especially in our local, rural economy. People are staying home, pinching pennies. Service and parts are down for all local dealers as well for this time of year. We are going to be very cautious going into the summer months.”
One dealer pointed to higher costs at marinas plus another factor: “Cost of shipping has skyrocketed — now nearly 20% to 25% of the cost of the entry-level units.”
The survey also asked dealers about their onboarding process for first-time boat buyers. The greatest number of respondents said their dealerships have standardized processes. The next-most-popular response was that dealers have an informal process only. Far fewer dealers said they have a process that varies or no process at all.
Another question to dealers was: “What are the most common issues first-season owners experience?” Most dealers cited a lack of confidence on the water. Equipment and feature issues ranked next-highest. “Maintenance confusion” was third, just above “difficulty operating a boat.” The least-serious common issues, according to dealer responses, were “storage challenges” and “service delays.”
Baird’s report suggests a choppy environment heading into the prime selling season: “We expect demand for both boats and boat stocks to ebb and flow with market and geopolitical volatility,” the report states.
