Marine retailers, lenders conflicted on 2026 outlook

As marine consumers face pricing headwinds, marine lenders and retailers are conflicted about whether the Federal Reserve ’s interest rate cuts will be enough to strengthen sales in the new year. U.S. powerboat sales are expected to drop 1.5% year over year in 2026, while the value of sales is expected to rise 1% YoY, according to a BMO Capital Markets note published Dec. 9. Consumer demand for less expensive boats is uncertain, while “demand for premium and larger boats remains solid,” according to the note. Affordability is a growing concern for first-time marine purchasers, Martin Rusin , vice president of sales at powersports lender Source One Financial Services , told Auto Finance News . Petroleum-based materials, a shift to outboard engines and more expensive batteries have contributed to soaring vehicle prices during the past two decades, he said. “Twenty years ago, I was selling a 21-foot-boat for about $23,500. … That boat was just discontinued last year at close to $100,000,” Rusin said. Dealer sentiment mixed Despite affordability concerns, some dealers are optimistic about sales in the new year. Marine retailers’ current outlook ticked up to 36 in November from 35 in October, according to the Marine Retailer Sentiment Index , which records retailers’ outlook on the industry currently and looks to the next three to five years. Sentiment is measured on a scale from 0 to 100, with 50 providing a neutral outlook. The three- to five-year outlook also ticked up to 51 in November from 48 in October, according to the report. The index is part of the November 2025 Marine Retailer Pulse Report , which surveyed 70 marine retailers and was released Dec. 9. [caption id="attachment_58357449" align="alignnone" width="1293"] (Courtesy/MRAA)[/caption] Many dealers are optimistic that the Fed’s interest rate cuts could result in lower APR financing options on marine vehicles, easing some affordability concerns, Rusin said. “ If rates become any bit more reasonable , that’s ultimately going to drive more consumers into the boating lifestyle,” he said. However, other retailers believe dealership closures may be inevitable. Dealers need to adapt and offer personalized service from their finance and insurance and sales teams, Jeremy Anderson , president of marine retailer Walstrom Marine , told AFN . Walstrom has seven locations across Michigan. Without an adaptive sales team, marine dealerships may need to consolidate for the sake of the industry’s health, Anderson said. “2026 for us is going to be a good year ... It will be the year where there’s more shakeout. There’s going to have to be some consolidation.” — Jeremy Anderson, Walstrom Marine Most dealers say new inventory too high Marine retailers continue to want less new-vehicle inventory , as 2024 and 2025 models stay on dealer lots. Around 58% of surveyed marine dealers said new boat inventory was “too high,” with 4% of dealers reporting inventory was “too low,” according to pulse report. [caption id="attachment_58357451" align="alignnone" width="1305"] (Courtesy/MRAA)[/caption] Marine dealers want to stock fewer new vehicles due to seasonality and broad consumer concerns around high interest rates and broad market uncertainty, Anderson said. Any new inventory dealers want is not urgent due to sale slowdowns in winter, so they may wait until spring to purchase more, he said. Meanwhile, around 33% of surveyed dealers said used-boat inventory was “too high” and 26% said it was “too low,” according to the pulse report. [caption id="attachment_58357450" align="alignnone" width="1295"] (Courtesy/MRAA)[/caption] Dealers can sell used inventory retail or wholesale, offering greater flexibility, Anderson said. “People will probably say that you can never have too much used because you can always sell used and you can sell it anywhere,” he said. Dealer lots have had an excess of 2024 and 2025 boats due to slower demand, Source One’s Rusin said. “There’s a lot of holdover inventory, which I hope is going to be cleaned up in 2026,” he said.

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Marine retailers, lenders conflicted on 2026 outlook

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