Be careful who you give your hard earned to in these troubled times

I recently bought a new tinnie. Paid the deposit several weeks ago. Dropped into the dealer late last week and paid the balance so the boat could be collected from the factory ( it was convenient to do that as my new boat loader was being made by another business near the boat factory).

The next day the boat dealer (Satisfaction Marine on Gold Coast) went into receivership. I was lucky - I got my boat. I paid the dealer for registration, but it seems they had not followed through with the administration before the receivers took over. So I am probably out of pocket about $95 as I will have to pay QLD transport myself to get the boat registered, but it could have been worse.

I'm aware of eight marine dealers in SE QLD alone,who have closed in the past couple of months. There must be dozens more elsewhere. The poor sales that pushed these businesses to the wall, will be felt by the manufacturers, so some of them might also soon be in trouble as well.

In the caravan industry, Baroma (also SE Qld) has closed. I suspect there will be more.


In the automotive industry, many dealerships are feeling the pinch. Poor sales, combined with the loss of the industry's major lenders (GE Finance and GMAC) will push many to the wall.

If you have the cash, it is a good time to buy as many businesses are desperate to make sales to move stock and keep the cash moving. The flip side is, if you pay a deposit and the business goes bust before you collect your purchase, you just become an unsecured creditor and wait in line to collect a few cents in the dollar (if you are lucky) some years down the track.

So, if you are in a position to do so, get yourself a good deal. But be cautious to ensure the good deal doesn't turn sour.

Norm C