NADA used boat values

[BigEasy1]

How accurate are the NADA numbers in trying to determine the value of a used sailboat. I realized that there are variables such as market location, condition of boat; however, the values do attempt to value the equipment added to the boat and also attempt to give a value range based on the overall condition. In comparing asking prices vs NADA values; it appears that there is a 15 -20% variance.

In negotiating a sales price, should the final price fall withing the NADA value range? I am not only concerned about the purchase price; however, I am also concerned about the resale price if I keep a boat for 3-5 years.

Thanks.

[kd3pc]

In boats less than 25' and in sail boats, NADA is useless...National Automobile Dealers Association....

for boats, find a broker that you trust and ask for recent sold prices. They too, will vary, but are based on real numbers, not some funky math like BUC and NADA..

Your final price should be what you are willing to pay for that particular boat. IF you are that concerned about price and resale, then perhaps you should look at other hobbies, especially at this time of unsure economics and politics....

The boat YOU are looking at is only worth what someone is willing to pay. And NADA and BUC have no clue what you are looking at. Boat US has a "valuation" service, but I find them fairly low, no matter whether you are a buyer or seller.

Best of luck,

[BigEasy1]

kd,
Thanks for the reply.
I have owned four boats over a 25 year span, obviously I am not new to the game. The point that I am making is that no matter how good the condition of the boat, it is going to depreciate a finitie amount over time. I just don't want to overpay and then take a beating on the resale end. Now days, any savy buyer or seller is going to look at the valution guides to help set the price. Believe me, I have seen owners that set a price beyond the normal range because they felt their boat was a cut above and refused to budge on the price. I have seen their boats sit for a couple years until they finally realize that they need to reprice. I have also studied the internet sites for a few years since I lost my last boat in a hurricane. It never fails that well maintained boats of a particular year & model sell within a few weeks after listing as compared to boats that have higher prices that tend to remain for sale for a year or two until they finally drop the price.
I will never forget a quote from an old boisterous business professor, "How do you know what something is worth? What any fool will pay for it!" That rule most definitely applies to boats.

[JimsCAL]

In using NADA and BUCValu in my search for a new boat and selling my old one I found their numbers to be all over the map. Occasionally pretty close to market, but in general overestimating the value of older boats and underestimating the value of newer boats. I suspect that due to the lack of sufficient data, they apply a depreciation factor to the original new price which sometimes doesn't work well at all. Best is soldboats.com but that is only available to brokers or other marine professionals that pay the fee.

[olson34]

Originally Posted by BigEasy1

How accurate are the NADA numbers in trying to determine the value of a used sailboat. I realized that there are variables such as market location, condition of boat; however, the values do attempt to value the equipment added to the boat and also attempt to give a value range based on the overall condition. In comparing asking prices vs NADA values; it appears that there is a 15 -20% variance.

In negotiating a sales price, should the final price fall withing the NADA value range? I am not only concerned about the purchase price; however, I am also concerned about the resale price if I keep a boat for 3-5 years.

Thanks.

As others point out, NADA is mostly worthless. Given your intention to turn this boat within five years at the outside, buy a boat based solely on popularity and numbers sold.
If, OTOH, you intend to keep it for ten + years, buy it for build quality and design for intended purpose, i.e. sailing.

Initial price is only one factor in the longer term true cost of ownership, and the longer you own it, the less important it is.

I note that you have not listed pedigree in your list of "values" at all, but this, along with condition, is the real determiner of resale price as a boat ages.

No right or wrong answers implied, just factors to consider.


L

[eherlihy]

Originally Posted by BigEasy1

How accurate are the NADA numbers in trying to determine the value of a used sailboat. I realized that there are variables such as market location, condition of boat; however, the values do attempt to value the equipment added to the boat and also attempt to give a value range based on the overall condition. In comparing asking prices vs NADA values; it appears that there is a 15 -20% variance.

In negotiating a sales price, should the final price fall withing the NADA value range? I am not only concerned about the purchase price; however, I am also concerned about the resale price if I keep a boat for 3-5 years.

Thanks.

I've been down this road before... (A few members here would probably argue that I live there)

I did an extensive post here comparing NADA, BUCvalu, and Soldboats some time ago that I believe may help put this all in perspective. Read that post here. I feel that NADA values are typically lower than actual selling prices, and BUC is closer to reality, but also is not infallible. One broker publishes the selling price of the boats that he sells. SOLD Yachts (Warren Trafton SYRI)

Finally - There are four variables in figuring the value of any boat. "The value of any specific boat (or anything) is only determined after a specific seller and a specific buyer agree to a specific price at a specific time. Changing any one of these can affect the price dramatically."

- FULL DISCLOSURE: I do not yet own a boat.