Future Value

[thoran]

How do you determine the future value of a new boat? If you purchase a sailboat new for about 200k what would it be worth in five years? Ten years? Does it continue to lose value over it's lifetime or does it bottom out at some point and start increasing in value?

[sailingfool]

My opinion is a new boat loses about 20% in purchase price plus commissioning costs in the year you buy it, I guess it reflects the part of the boat cost that represents the vendors markup and sales commisions. You can test this calculation by looking at the prices for a one-two year old boat on yachtworld.com versus new.

One way or another, its a material premium for the pleasures/pains of a new boat. Then the boat becomes much like any used boat, it will lose value slowly over the years, say like 2-3% a year, uless the owner spends more than that maintaining/upgrading it annually.

Just my opinion.

[Sonofasonofasailor]

Just an observation, but it seems like typically sailboats depreciate steadily and slowly until about 15-20 years old then plateau for a bit before depreciating more rapidly at around 30+ years.

[camaraderie]

For mass production boats...the above remarks seem to ring true to me...but there are some premium brands that tend to hold value much better over time and (if kept up to date and "bristol" condition), get sold for more than they originally cost due to the commensurate rise in new boat prices. Hinckley would be one example of this but there are quite a few others.

[cardiacpaul]

I dunno about all that...

not taking inflation into account, I've found that boats fall in value for about the first 10 years, "bottom out" then, while the price doesn't come back up, your intial purchace price may be recouped...

[Sonofasonofasailor]

Of course these are all generalities but CPaul I think we are on the same page. By adding inflation to the depreciation of a boat creates the plateau that I mentioned. But once a boat hits 30+ years it seems that the perception of the design is that it no longer is advanced enough to be "worthy" of todays sailors.

Of course I'm just talking out my arse and reserve the right to be proven wrong by somebody more knowledgeable. Certainly not a broker though.

[thoran]

These replies confirm my thoughts...Would you put Tartan in the list of premium brands? I have looked at Yachtworld, but it's hard to find the "list price" and I have noted that most people are pretty "proud" of their one or two year old boats

[cardiacpaul]

Take for example a 2005 hunter 456, listed @ 290k... it has lost a full 1/3rd of its purchase price
(ok, its a hunter, i'm using it as an example, get over it..)

example # 2, a 1979 Alden 44' @ 259k, is almost twice the original list price.
yea, I know, different boats, different purposes, but, still.

the lowly Catalina 27, in 1974, 7685.00, list, with sails and an A4, today, to purchase one, you're looking ar 4-8k.

I have not adjusted these prices for inflation. and betwixt the holes in the water, gimme that 30 year old dawg. I won't get there faster than you in your shiny brand new boat, but I'll get there, and my smile will be just as wide.

[camaraderie]

Thoran...my opinion would be that Tartan's hold their value better than the "Huntebenelinas" but are not in that upper tier of "mercedes" type boats. So...like most of us...you can expect to lose money when you sell but not as much as some other boats. Your local Tartan dealer should be able to show you actual sale prices for used Tartans he has sold and you can compare them to what he is asking for a new one. I would say that if you can afford the initial outlay, the net cost of owning a Tartan for 5 years before selling might end up quite similar to a lower quality boat.
Be sure you know what you are getting into with those sail drive engines before you write the check though!

[thoran]

thanks, what about sail drives?