Doc of the Bay - 11/9/2006 4:45 PM |
I can only speak for some auto dealers, maybe the boat dealers are different. Doc of the Bay
They're different alright...
Due to the overall lower sales numbers, and the tighter cash flow, quite a few marine dealers frown on taking trades. They'll do it to make a sale, but it'll cost you.
Most would rather that you leave the boat with them on consignment while your boat is being built (if that is the case) or at least until it sells and then you can buy the new one. Of course, they'll get their cut, unless you negotiate the sale of your old boat at no charge as part of the deal (hint-hint). The dealer can still make money off of the new buyers financing (there's that word again) and other aftermarket items, so they won't get hurt.
Trade-ins can be a great source of extra income for a dealership. When they are handled properly.
When I ran a dealership, we had a "cashflow fund" of 200K to cover trades and other revolving occurances. That way, the dealer can keep his flooring account clear for the new boat inventory. When the trade sold, those funds would be replaced. It worked for us.
Not all dealers work that way though.