Oct 9, 2008 5:28 pm US/Eastern
Boat Show Sails Into Annapolis With Shaky Economy
ANNAPOLIS, Md. (WJZ) ―
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The Sailboat Show kicked off under sunny skies in Annapolis Thursday as a storm continues to brew over Wall Street.
CBS
The Sailboat Show kicked off under sunny skies in Annapolis Thursday as a storm continues to brew over Wall Street.
Suzanne Collins reports high fuel prices and tightening credit could put a crimp on boat sales.
About 100,000 people will converge on Annapolis to see the Sailboat Show that started Thursday. The Powerboat Show begins next weekend.
But Wall Street is in turmoil, and boats are a big ticket item. Boat dealers at the City Dock say that has led to a decline, but it isn't a death blow.
"People are saying gloom and doom about the industry, but there's still one heck of a lot of boats being sold. A little bit less than last year, but in our market, it's really off maybe 10 percent," said Jay LeBow, Annapolis Sail Yard.
The sale of powerboats has been more severely affected due to the price of gas. It costs $400 to fill up a 21-foot fishing boat. Brokers of loans at the Sailboat Show say money is available.
"There are cases where they're going to require verification of income. It depends on the circumstance, but like I said, they are actively lending," said Lisa Didemenico, Trident Funding Corp.
A boat dealer says if you buy a boat that's big enough to live in, the tax benefit is not that much different than buying a second house, and there's no real estate taxes.
"A lot of people who have smaller boats now want to use their boats as a summer cottage or a condominium, and mamma wants a bigger kitchen. They're trading in their smaller boat for a bigger boat," said Ed Hartman, boat show owner.
After selling some real estate and not wanting to reinvest it in the stock market, a couple from the Midwest is trading up.
"Actually because of the economy, we think this might be a really good time to buy. We think boat dealers are going to live up to their name and deal a little a little harder now to get a sale," said buyer Kurt Flock.
Annapolis also gets a boost from the boat shows. The company pays about $375,000 to rent the City Dock.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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