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how accurate is nadaguides.com

Old 09-16-2020, 07:16 PM
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Default how accurate is nadaguides.com

Hi, I recently sold my dingy for a fixer-upper and was wondering how accurate the nadaguides are for appraising a specific brand/model of boat? It's interesting that price estimates don't take into consideration hours on the motor in the same way that Kelly's blue book considers odometer reading for appraising cars.

Thoughts?
CF
Old 09-16-2020, 07:27 PM
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“Everybody” says not accurate at all.
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Old 09-16-2020, 07:32 PM
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Unless it's near new, not even a little
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Old 09-16-2020, 07:38 PM
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Originally Posted by Vollymall View Post
“Everybody” says not accurate at all.
I'm guessing they over estimate? Or is it just all over the map?
Old 09-16-2020, 07:47 PM
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Originally Posted by ChronoFish View Post
I'm guessing they over estimate? Or is it just all over the map?
It’s a good starting point, but just like KBB, they don’t write a check.

I remember talking to an owner of a car dealership a few years back and he told me an interesting story.

He got all of his sales team and managers together and had them all look at a used car. The challenge was each person had to come up with a “value.”

All the “experts” came up with vastly different numbers.

He then responded “if we can’t even agree on what a used car is worth, you think our customers have any clue?”


How dealerships value trade ins today is pretty simple: The look up what car X is going for at auction (i.e. what they could buy one for or sell one for).

Nothing like that exists for boats. It’s worth whatever someone will pay for it. NADA does their best, but no way to account for everything. Not enough data/volume.
Old 09-16-2020, 08:06 PM
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Generally speaking there are not enough recorded transactions for boats for the NADA pricing system to work. The number of boat sales even in a booming year is miniscule compared to the annual sales of even one car model. For instance, annual sales on just the Toyota Corolla is over 1.3 million units.
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Old 09-16-2020, 10:00 PM
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dont waste a second looking at nada for boats
Old 09-16-2020, 10:01 PM
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Originally Posted by ssobol2533@aol.com View Post
Generally speaking there are not enough recorded transactions for boats for the NADA pricing system to work. The number of boat sales even in a booming year is miniscule compared to the annual sales of even one car model. For instance, annual sales on just the Toyota Corolla is over 1.3 million units.
if you know how nada works, it has nothing to do with recorded transactions.

they take manufacturer's self-submitted MSRP and do straight line deprectiation

Old 09-16-2020, 10:06 PM
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Originally Posted by mystery View Post
if you know how nada works, it has nothing to do with recorded transactions.

they take manufacturer's self-submitted MSRP and do straight line deprectiation
Source?

Heres what I found:

Where do NADA Guides get their information, and how accurate are the figures they pass on to boaters? According to Lenny Sims, vice president of the company, “NADA Guides obtains monthly sales figures from auction sales reports, private party sales reports, as well as sales transactions from dealers. NADA Guides also reviews new and used historical pricing trends and the popularity of category offerings. The industry and marine enthusiast wants and needs change, and pricing follows this model. What's hot today could be a fad or a trend, and the experts at NADA Guides monitor this behavior. NADA Guides’ goal is to be within five- to 10-percent of the reported sales.”
https://www.boats.com/boat-sellers-g...h-nada-guides/
Old 09-16-2020, 10:32 PM
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Most HT members kind of dismiss NADA as a waste of time but I find it useful. They seem to apply a percentage depreciation each year to come up with a value. I know sellers will frequently reference NADA values on boats/motors they have for sale. I recently sold a 2001 Yamaha that was within their value range. Who else are you going to use?
Old 09-16-2020, 10:43 PM
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not even close, its a joke
Old 09-16-2020, 10:54 PM
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Originally Posted by 69Mach390 View Post
Source?

Heres what I found:

Where do NADA Guides get their information, and how accurate are the figures they pass on to boaters? According to Lenny Sims, vice president of the company, “NADA Guides obtains monthly sales figures from auction sales reports, private party sales reports, as well as sales transactions from dealers. NADA Guides also reviews new and used historical pricing trends and the popularity of category offerings. The industry and marine enthusiast wants and needs change, and pricing follows this model. What's hot today could be a fad or a trend, and the experts at NADA Guides monitor this behavior. NADA Guides’ goal is to be within five- to 10-percent of the reported sales.”
https://www.boats.com/boat-sellers-g...h-nada-guides/
I asked them directly. They flat out said the boat builders submit their [made up] msrp number and they apply a depreciation schedule to arrive at the value shown on their website.
Old 09-17-2020, 07:23 AM
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"NADA GUIDES"
It's exactly what it says it is - A GUIDE. Not the gospel. NADA does not buy or sell boats. Once you come up with a suggested value, market comes into play. Type of power, brand of power, brand of hull, age, hours and then and then. You have to be in the biz to really know where to be, but even being in the know, market dictates otherwise. We have to pay more for trades during times like these, hence so will you.

Tier one boats will dance above book.
Mid tier boats bring pretty close to book.
Low tier boats aren't worth book.
With exception to every one!

Good Luck! I am available for "Coaching" for a $500.00 retainer, unlimited inside info!
Old 09-17-2020, 07:40 AM
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If you are buying it is accurate, if you are selling it is way off
Old 09-17-2020, 07:40 AM
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Originally Posted by mystery View Post
I asked them directly. They flat out said the boat builders submit their [made up] msrp number and they apply a depreciation schedule to arrive at the value shown on their website.
Hmm..... I’m not sure who “them” is, but for now it seems a direct quote from the company President is probably a more accurate source.
Old 09-17-2020, 07:46 AM
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they are terrible, other similar boats are your best guide
Old 09-17-2020, 07:50 AM
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Originally Posted by oldlymer View Post
If you are buying it is accurate, if you are selling it is way off
^^^^^ this ^^^^^ At least right now. Should the market come to a screeching halt and collapse, then it's the opposite of this.

Having said that, and I'm shocked no one has mentioned it, but there are still several lenders that use NADA to base their loan-to-value ratios. They, if nothing else, use it to ballpark loan amounts.
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Old 09-17-2020, 07:53 AM
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Just for fun I wanted to test the “straight line depreciation theory.”

I looked up avg retail for a 2013-2015 whaler outrage 250 with a single 300.

Values were 64670, 69310, 73510.

2015 to 2014 change is 4200, 2014 to 2013 is 4640.

Thats not “straight line depreciation” no matter which way you look at it.
Old 09-17-2020, 07:56 AM
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Originally Posted by eman6501 View Post
^^^^^ this ^^^^^ At least right now. Should the market come to a screeching halt and collapse, then it's the opposite of this.

Having said that, and I'm shocked no one has mentioned it, but there are still several lenders that use NADA to base their loan-to-value ratios. They, if nothing else, use it to ballpark loan amounts.
Because while it’s not perfect it’s the best starting place we’ve got.

Heck I’ve seen lenders for houses use Zillow!

And Zillow is terribly inaccurate! But it’s a starting point looking at price per sq ft etc.
Old 09-17-2020, 08:27 AM
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Even though NADA can be significantly inaccurate or not even list some boats at all, many banks use it to determine what they are willing to loan. My experience is that with low-volume, desirable hulls they grossly under-estimate the market value. Jet skis and high-volume production boats are going to more accurate.

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