SailNet Community - View Single Post - Average devaluation on sailboat...
View Single Post
  #6  
Old 09-17-2009
jameswilson29's Avatar
jameswilson29 jameswilson29 is offline
Senior Smart Aleck
 
Join Date: Aug 2009
Location: Richmond, Virginia
Posts: 2,036
Thanks: 26
Thanked 64 Times in 59 Posts
Rep Power: 6
jameswilson29 is on a distinguished road
You could predict future depreciation based on past depreciation by finding the acquisition costs of similar boats 10 years ago, subtract the present fair market value of the boats today, and adjust for the change in buying power of the dollar from 10 years ago to today.

The error you sometimes see on the listserv is not considering the change in value of the dollar from the date of acquisition, ex. "My boat is a good investment because it sells for the same price I paid for it 20 years ago."
Reply With Quote Share with Facebook