Quote:
Originally Posted by CaptainFredGreenfield
DON'T FORGET DEPRECIATION
Assign 30% depreciation for the first year on a new boat, 20% for the second year (Or the first year on a used boat ) and 10% (of the original price) for each year thereafter. At some point the depreciation will taper off, but the maintenance will escalate to make up for it.
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I hate it when people shoot from the hip or use a bad data set..
Let's see I have bought and sold six boats since 1997:
SeaWay 19 - Paid 5k sold for 6.8k
Catalina 30 - Paid 16.5k sold for 22k
Cataina 36 - Paid 47k traded in for 56k
Mainship Pilot 30 - Paid 102k traded in for 105k
Catalina 310 (brand new) Paid 111.3k sold two years later for 107.5k
CS-36 Paid 47k have not sold yet but was offered 60k last summer if I would...
Made/Lost: 1.8k + 5.5k + 9k + 3k -
3.8k = net increase in value over 11 years of boat ownership = +15.5k
Even on a two year old boat I only lost 3.4%!! If I were to use Captain Fred's numbers my 2005 Catalina 310 would look like this:
Original purchase price March 2005 = 111.3k
- 30% Year 1 = 77.9k
-20% Year 2 = 62.3k
-10% Year 3 = 56k
(boat actually sold in winter of 2007 for 107.5k)
If you are a hack, and don't maintain or care for your boat you WILL lose money! A well maintained boat will sell at the absolute tip to of the market and will sell quickly.
Our Catalina 30 sold to the second looker in just four weeks, our C-36 sold to the first looker within three days of trading it in, my Mainship sold to the first looker within in one week of trade in, and our Catalina 310 sold to the second looker in just about 8 weeks.
The bottom line is that boats are still expensive and time consuming but the OP is off on the math. My scenario is not standard, as my boats are always in the top 1-2% of condition, but even if you go by soldboats.com the numbers don't work in the OP's post..