Timing is everything

We purchased Phoenix Hunter from Washington State in June, 2013 when the Cdn$ was $0.973 US. Today the Cdn$ was $0.7368 US. Assuming the original purchase of $185,000 (USD), it would cost us an additional $75,000 (Cdn$) after duty and taxes at the current exchange rate, an increase of almost 33%. In other words, we could not afford to buy the vessel we currently have.

Vessels listed in the US are of course priced in USD (as are many in Canada) but Canadians usually purchase them in Cdn$. The good news is we could mostly likely sell our boat for a profit because of the $ but also with the turn around in the US economy. Also, fuel prices have declined. The bad news (for us north of the border) is we must pay more for electronics and most upgrades.

Jim

Yes Jim, timing is everything. Heading South after the first of January. Fuel at Top Rack in Norfolk, VA is $1.83 per gallon. Looks like a great time to buy 5 or 600 gallons.

Ted

O C Diver said:

Yes Jim, timing is everything. Heading South after the first of January. Fuel at Top Rack in Norfolk, VA is $1.83 per gallon. Looks like a great time to buy 5 or 600 gallons.

Ted

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Push 'em up!

I don't recall such a swing between Canada and the US before. The strength of the dollar is reducing the price in US $ on many new builds and used boats. It's working against US built boats at the moment.

BandB said:

I don't recall such a swing between Canada and the US before. The strength of the dollar is reducing the price in US $ on many new builds and used boats. It's working against US built boats at the moment.

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The $C has seen many periods in the low 60 cent range in the past 30 years. 1998 was 62 cents. Current 75 cent range fits in with indices and labor productivity metrics. A really good indicator is the price of copper and a few other key exports, such as oil and coal.

But, why have not the fuel prices at the pump dropped like in the US. Good old C taxes are so high I would guess.

I know the feeling. I paid my deposit in early 2012 when the A$ was 1.0599. And did extensive refit at parity or better. At the time boats and houses were 'keenly priced' in the USA as well. I saw it as a once in a generation opportunity to buy and import to Australia. Another driver was the range available and condition for age, both superior in the USA compared to our local market.

Now the A$ is sitting at 0.7228. To do it now would be 46% more in A$ terms. Assuming a suitable boat could be found locally there would be no point in importing from the USA - costs of purchase and materials for refit would be about the same locally.

However, European boats would be worth a look. Back in early 2012 I felt they were overpriced compared to the USA, but now it might have reversed. In early 2012 A$ bought E 0.8033. Now the Euro is 0.6638, so 'only 21% more A$ needed now compared to early 2012.

It's a flip around from just 3 years ago. Canadians were purchasing US boats with the strong Cdn$ and the crash in boat prices state-side. Now the situation is reversed, although I don't think prices have declined in Canada...yet. I have noticed that there is less product available in the US in the raised Pilothouse category, 40-45 foot, $175-400k, and what is available is on the higher side of the price range. I feel very fortunate to own our KK42. With all of the upgrades by the former owner, she's a very fine vessel for her age.


Jim
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JDCAVE said:

It's a flip around from just 3 years ago. Canadians were purchasing US boats with the strong Cdn$ and the crash in boat prices state-side. Now the situation is reversed, although I don't think prices have declined in Canada...yet. I have noticed that there is less product available in the US in the raised Pilothouse category, 40-45 foot, $175-400k, and what is available is on the higher side of the price range. I feel very fortunate to own our KK42. With all of the upgrades by the former owner, she's a very fine vessel for her age.
Jim
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The availability of trawlers and similar in cream puff or even very good condition is very limited in the US right now. There are plenty of abused and poorly maintained available. There are also a lot of listed boats for sale where the owners are not really serious about selling. They overprice hoping to hit the winning ticket. Even had one friend this week to whom the seller committed but then the seller decided he wanted to not sell, wanted more.

Jim if you ever travel north up Howe Sound I'd love to have a look at that beauty in person!

Boydster said:

Jim if you ever travel north up Howe Sound I'd love to have a look at that beauty in person!

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If not, you could always travel to Steveston and arrange to look at her there. ;-) I'm always like a show and tell.


Jim
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Gawd I love pilothouse boats!

Boydster said:

Gawd I love pilothouse boats!

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I love a low CG too.

Jim, the wife & I lucked into the same good fortune as you. We bought at the time of the US housing crisis when you couldn't give boats away but also the CDN $ was "above" the USD$. Like you, we saved tens of thousands. The icing on the cake for us was I also took 100K of our retirement savings & bought US$. Why I didn't buy more or buy some real estate in Fla was sheer stupidity on my part. It was a once in a lifetime opportunity lost that our generation will not see again.