Has The US Recession Affected The Luxury Market

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All of us who are remotely aware about America, understand that the U.S is facing a tough financial crisis. What happens to the Luxury boat market when the worlds most powerful country is under recession?



Things don’t seem to be going on well in the luxury market of USA, Porsche has reported a 25% decrease in sales. From the luxury markets perspective. Higher fuel costs seem to be one of the main reasons for the slow down, not to forget the housing bust, the credit crunch, & most recently, a weakening labor market.


But to my surprise I came across this article which said that there were no signs of the yachting market slowing down. According to this article in the recent 35th annual Newport Boat Show, one of the fanciest yachting get-togethers on the West Coast there were no indications of the yacht market being affected with the slowdown of the American economy. In fact this particular boat show witnessed the biggest yachts ever as compared to all their previous shows.

Yacht shoppers "are not worried about the payments on their house," said Duncan McIntosh, who produces the event and publishes several boating periodicals. "They're not affected by what us mere mortals have to worry about every day."


"People that are prepared financially to take advantage of that are getting good deals," said J.R. Means, owner of Bayport Yachts in Newport Beach. He also mentioned business had been booming, and although slightly fewer people are expected to visit the boat show this year, he anticipates more serious buyers.

Just as the housing industry in US there has been news of the yachts prices falling which is sort of becoming a buyers market but the demand has not been affected.


What about Europe?

According to this article and many more which I am sure we all have come across in our daily newspapers, Europe will be the next victim of recession. Europe which boasts of the most beautiful and elegant yachts (also expensive) in the world may also see a price cut in the boats. Around 70% of the high end luxury yachts in Asia come directly from Europe.

Does this mean we can expect a drop in the prices of the famous European brands?

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