Pacific Asian Enterprises, Inc., (PAE) manufacturer of Nordhavns, is celebrating its biggest year ever in brokerage sales, bolstered by a booming fourth quarter that included the sales of a dozen pre-owned Nordhavns. When the year closes out in a couple weeks, the company will boast an estimated $50 million in sales from 38 brokerage Nordhavn transactions, by far the best showing in the brand’s 24-year existence.
A number of factors can be attributed to the bullish brokerage market; most obviously the improving US economy and resulting swell in consumer confidence. This combined with buyers not wanting to put their dreams on hold any longer made this year the perfect time to buy, notes Nordhavn Yachts Sales senior broker Larry Gieselman. “People are realizing time marches on and they’ve got to get on with their lives.”
2013 also saw the rebound of boat values. Even Nordhavns, which notoriously retain their values after market, suffered drops in valuations during the recession. Prices finally stopped sinking - although, there were good deals still to be had, Gieselman asserts. Nonetheless, “buyers recognized that they could stop holding out for the ‘rock bottom’ in pricing. It’s come and gone.”
The perception of boats’ rising worth was also a signal to sellers who have been able to wait out the sluggish yacht sales market. This mindset allowed Nordhavn Yachts Sales to enjoy the largest inventory of pre-owned Nordhavns in its history. But the large stock of used vessels can also be credited to the volume of trade-in Nordhavns (used toward the purchase of a new build) taken. Brand loyalty is evident in the number of trade-ins and it carries double impact – on the new boat side and the brokerage segment. “Obviously with a bigger inventory comes more opportunity to make sales,” said Gieselman.
While there are several brokers around America and around the world who specialize in used Nordhavn sales, it’s apparent that PAE’s brokerage arm is the recognized leader in pre-owned Nordhavn purchases and sales. “Our performance in 2013 backs up that claim,” says PAE president Dan Streech. Nordhavn Yachts Sales consists of 17 experienced sales people at seven offices worldwide, who have access to all of the original records and history of each and every Nordhavn built, and who have direct contact with the designers and project management teams, mentions Streech. “That’s an invaluable advantage and figures prominently in our brokerage efforts. It’s why we are the natural place for both buyers and sellers of used Nordhavns to conduct business.”