Boat registrations drop YoY in May amid limited inventory

Boat registrations fell year over year in May as lack of inventory continues to be the primary headwind for the retail boating industry. Registrations dropped 17% YoY, according to preliminary estimates from Statistical Surveys (SSI) released Monday, which has gathered data from 28 states, or 68% of the market. Registrations are down 23% when compared with May 2020, and 17% when compared with May 2019. Unit volume was not disclosed in the report. On a sequential basis, total registrations increased 21% “owing to normal seasonality,” according to a research note from BMO Capital . “Lack of inventory continues to be the main headwind for boat industry retail and is the primary reason the industry has transitioned from a ‘sell what you have’ to a ‘sell what you're getting’ business model,” the note stated. In fact, many boat orders can take anywhere from six months to two years to fulfill, depending on the model and manufacturer, Mike Hanna, general manager at Dare Marina and Yacht Sales in Virginia, told Auto Finance News . “We're selling 2023 models now because we couldn't get them in 2022,” he said. “That's going to fill up the 2023 model year faster than before.” [caption id="attachment_56409449" align="alignnone" width="2560"] © Can Stock Photo / Kesu [/caption] New inventory on dealership lots is improving from last year, however, according to a BMO analysis of Boat Trader data. Inventory is estimated to have improved 40% YoY but remains 51% lower than in 2019. The report comes ahead of one of the busiest weekends in the boating industry, three separate finance managers at boat dealerships in California, Florida and New York, told Auto Finance News . Propped up sales volume in line with normal seasonality, the holiday weekend will likely continue to squeeze inventory as manufacturers struggle with supply chain constraints. Looking closer, pontoon boat registrations dropped 16% YoY, but remained only 5% below registration volume in 2019, largely due to “improving weather in Northern markets following cold and rainy weather to start the boating season,” according to BMO Capital. Meanwhile, saltwater outboard registrations dropped 16% YoY and 17% over 2019; ski and wake boat registrations declined 17% but improved 4% from 2019; and sales of personal watercraft declined 17% YoY and 19% over 2019, according to BMO Capital. May U.S. boat industry retail registrations *Data source: Statistical Surveys (SSI) Additional reporting by Amanda Harris. Powersports Finance Summit, a premier event for companies involved in recreational vehicle financing, returns October 25-26 at the Wynn Las Vegas. To learn more about the 2022 event and register, visit www.PowersportsFinance.com .

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Registrations declined 17% YoY, according to Statistical Surveys

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