Adrian Seiffert, Principle of Marine Auctions & Valuations believes that Used Boats (Grey Imports) being imported to Australia is the major reason for the 1000s of job losses in the marine industry over the last three to four years and also the closure of many business associated with the Marine Industry.
A cautionary tale about buying ’grey imports’
'Grey Imports have reduced the value of most type of vessels in Australia to a record low level with the value of many second hand boats declining around 50% in the last 12 months,' he explains, adding that many used boats now sold in Australia are considerably cheaper than those purchased by Australians from overseas.
Of the estimated 2,500 used vessels imported into Australia over the last few years, Adrian believes around 75% of the Australian buyers could have purchased better quality boats in Australia for around the same value or cheaper if they purchased boats that were originally sold new in Australia.
One of the major reasons why many Australians are purchasing off shore is that many boats that are advertised in Australia are advertised at considerably higher prices than that of similar vessels advertised for sale in American and Europe.
'Many Grey Boat Importers find out too late that by the time they launch their Grey import in Australian the vessels owes them double what they paid offshore. Many of the Grey Imports arriving in Australia especially from the USA are significantly different from those sold new in Australia.
'The supply of replacement parts is often a problem, and in some cases repairers are very reluctant to undertake repairs. Also some insurance companies may not cover boats that are not Australian compliant. Another issue with Grey Imports is that some maybe encumbered or stolen.'
Adrian says now is a good time to purchase any type of vessel in Australia as he believes that prices have hit rock bottom. He believes many potential buyers have realised this and he has seen an increase in buyer demand over the last couple of months.
For further details please contact Adrian Seiffert on 0418 783 358.