Dealer sentiment on current conditions declined to 33 in August (from 36 in July), while the three- to five-year outlook dropped to 45 (from 47 in July), 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 126 marine retailers to assess recent trends in North America. Dealers reported continued retail declines in August: 56% reported a decline, compared with 22% that reported growth. In used-boat retail, the ratio of growth-to-declines deteriorated compared with recent months, as 44% of dealers reported declines and 29% reported growth.
Dealer comments suggest affordability remains a key challenge. One noted, “We’re asking a lot of the retail consumers in today’s financial environment. It’s difficult for a first-time buyer to get into boating given rising boat prices, potentially rising interest rates and declining access to credit.
New-boat inventory remains higher than dealers prefer. Sixty-five percent reported new-boat inventory was “too high” (up from 63% in July), while 12% reported “too low” (up from 10%). Baird noted that at this time last year, the ratio was 73% and 5%. One dealer commented, “We are discounting now to get rid of a few ’26s we have left so we have another winter with low interest payments.”
In used boats, dealers reported mixed inventory levels, as 34% reported used inventory was “too low” versus 24% that reported “too high.”
In the survey response section, one dealer said, “Buyers do not feel good about luxury discretionary purchases. There is a lot of anxiety out there, and this is the hardest part to overcome.” Another commented, “I’m very concerned about the price increases I’m seeing on the 2027 product and what effects it’s going to have next season. We are simply pricing too many people out of boating.”
Dealers were also asked about their inventory strategy for new boats. Fifty percent chose the response “selectively reducing inventory in specific categories,” by far the highest response rate. The second and third responses were “maintaining current levels” and “broadly reducing inventory exposure.” A little more than 10% said they were “actively increasing inventory,” and fewer than 10% said they were “taking a wait-and-see approach before committing.”
Asked what was working, dealers pointed to higher-end boats, discounts and aggressive follow-up. One dealer said, “The premium end of our new-boat sales has been great in August. We’ve sold several units at the very top end of our range, including tritoons.” Another commented, “Premium has seen activity maintain. Expensive preowned and mid-$200,000 new boats have been difficult to get consistent activity.”
Yet another said, “We are staying busy at or above historical levels for this time of year with less overall staff than I am comfortable with. We need to add some talent and replace a couple of people, but I am proud of the key employees that are maintaining a high level of service and productivity.”
About the use of discounts, a dealer commented, “One thing that we do this time of year is an end-of-season liquidation sale on all leftover new boats in stock. We do a selective discount on particular models in an effort to sell them before the end of the year. This worked very well last year and has led to a few boats being sold this August, as well.”
On what wasn’t working, one dealer cited the difficulties of marketing: “Everyone keeps saying how digital marketing is mandatory, but I hate how the spend is unlimited and the tracking is so fuzzy and frankly not credible. As far as sales go, fiberglass runabouts are still our slowest segment, while tritoons and aluminum fishing boats are carrying the load for us.”
Another expressed strains with manufacturer relations: “Financing is a problem with high rates over 20 years. Promotions from manufacturers are terrible unless you have your quota up to date for the year. Manufacturers making you take more percentage of orders sooner in the year.”
Another offered this take on the current market: “Waiting for buyers that might offer more. Holding on to aged inventory does not bring you new customers. We are in a negative market. Stop thinking defensively; be aggressive and sell.”
