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CHICAGO — New non-current language has been added to the NADA Marine Guide, published by NADA Appraisal Guides, which a number of marine industry groups say offers a more accurate value on listings of new non-current boats.
The addition of new language specifically calls out a more accurate value of new non-currents and comes in response to the issue of banks de-valuing new non-current boats as a result of consulting pre-owned listings in the NADA Marine Guide, according to a release from the National Marine Manufacturers Association (NMMA), Marine Retailers Association of America (MRAA) and the National Marine Bankers Association (NMBA).
“When determining the value of new non-current boats, banks have only been willing to finance these boats at an inaccurate pre-owned price, much less than the new non-current price,” the release states. “As a result, boat dealers and buyers have been unable to secure proper financing, ultimately deterring the purchase of new non-current boats by qualified buyers.”
Thom Dammrich, president of NMMA, said banks referencing pre-owned NADA Marine Guide pricing has been an issue in the industry second, in many cases, only to floorplan financing.
The new language reads:
The inclusion of this new language can be found in the January-April edition of the 2010 NADA Marine Guide, released December 2009.
“This new language should help insure that lending institutions will more accurately apply proper values on loans being made on new non-current boats,” Phil Keeter, president of MRAA, said in the release. “NADA’s response to this critical situation on consumer loan values should help dealers continue to move aged inventory and is greatly appreciated.”
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