Weak boat sales in Sweden this year as strong economy diverts peoples' attention to other things


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Saturday, 25 June 2011
Boating is the anticipated activity of the Swedes when summer starts creeping in. As such during these periods, when the Swedes see a rare glimpse of good weather, boats sales are usually brisk business as shown in the past years. But this year is deviating from the traditional trend.

Boat sales is so slow this year as people rather put their money in  up-grading their homes rather than buying boats, according to some sellers and experts. But for used boats, the market looks good explaining the view that money worried could be the reason rather that the love to own a new boat.


It is not the lack of money that drives down the whole issue. It is the control put in lowering the astronomical Swedish household debts where by getting credit is now very expensive. 
The rising interest rates, concern for economic development in the future and a cold winter followed by a late spring are all part of the explanation for the sluggish sales of new recreational boats this year, explains Mats Eriksson, President of Swedish boating Association, Sweboat.

“There is a lot of caution out there. We see that the interest is still high but it is hard to close a deal,” he said.
Marine Depot Group, which sells both new and used powerboats in the Stockholm area, confirms the picture.
“We are about at the same level as last year, which is very disappointing given that we had expected a rise of between 10 and 25 percent this year,” says CEO  Bj�rn Sandhaag on new boat sales.
The beginning of the year looked promising. But since March, which is the most important months because of boat shows, sales have fared much worse. Bjorn Sandhaag believes that:

“We have a big problem with tax relief. If you talk to people in the kitchen and bathroom dealerships, it is possible to determine that builders have much to do. I think households’ money goes there.”

The hope however is that the season could still be saved if the weather is good after midsummer.
On the other side, supply of used boats sold by private individuals was unusually large.  Advertisement site blocket has noted 26 percent more boat advertisement so far this year compared to last year. But second-hand sales still seems to have done relatively well in the boat department.
By Team

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