Quote:
Originally Posted by chucklesR
Boat depreciation averages, 6 percent year one, 3 percent per year after for 5 years, then it depends on maintenance and market, it's not a straight line.
A well maintained boat, bought cheap and fixed, doesn't depreciate at all.
Gemini's bought new in the 80's sell for more than the original price today.
Go figure 
That per BoatUS. |
Thank you for this. As I said, I've based my numbers on what I've seen.
I think you might be misunderstanding, the depreciation costs also assume a certain amount of maintenance/gas/diesel/other expenses to make up the difference.
In other words, if you don't spend it on maintenance, you will see it in depreciation, due to neglect. If you think a 20k boat with no maintence doesn't depreciate to 14k, it certainly does.
I just saw this in a 1970 Coronado I just bought for very little due to the fact that the guy bought it, his wife and boy decided not to continue to go sailing with him, he TOTALLY neglected his boat (Palmer engine now no-operational, the thing was filthy inside in and out), so I bought it for VERY undermarket.
On the flip side, there are a number of classic boats which actually sell for more than their original sales prices, like the Northwest 21 which I designed.