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  #11  
Old 09-13-2006
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The price of used boats is based more on supply and demand than any set rate of depreciation and will vary from builder to builder, by location and by what the market considers hot at the time. Although you may not lose as much from depreciation on an older boat, you will certainly spend more on upkeep and maintenance than on a newer boat. And, yes, you can call Amex and charge a new boat. Only problem is that the bill will be waiting for you in 30 days... Go new, enjoy your free month and let AMEX deal with the depreciation once they find you.
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  #12  
Old 09-13-2006
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do you get double the manufacturers warranty that way?
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  #13  
Old 09-13-2006
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Hi RockDawg,
The manufacturer will have a lot to do with the depreciation schedule for a sailboat. I sail a 1988 Island Packet that is worth about $10k more than the original 1988 asking price. True, you have to adjust for inflation, but I could sell my boat for just about what I bought it for five years ago.

In my opinion, your best deal is to buy a 3 year old sailboat. Someone else took the big hit on depreciation, and you get a sailboat in good shape with most of the bugs worked out.

My .02 worth of opinion. Hope this helps.

Jeff

www.smartcaptain.com
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  #14  
Old 09-13-2006
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ROFL. It would be worth paying the dealer the extra 2% that Amex charges them, so they'd allow the purchase that way. But IIRC most of the extended warranty offers now exclude anything to do with motor vehicles in whole or part.
Still...It might be worth the residuals from being put in the commercials. "Here at Hinckley, we don't take American Express. VISA..."
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  #15  
Old 09-14-2006
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Quote:
Originally Posted by soul searcher
do you get double the manufacturers warranty that way?
....... I think we also entitle for the buyer protection plan. AMX will replace the boat if she is stolen and loss at sea.
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  #16  
Old 09-14-2006
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Quote:
Originally Posted by SmartCaptain
In my opinion, your best deal is to buy a 3 year old sailboat. Someone else took the big hit on depreciation, and you get a sailboat in good shape with most of the bugs worked out.
www.smartcaptain.com
It makes sense, but how do you know how much the original owner paid for the boat, and what percentage of rough depreciation would you take off? Thanks.
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  #17  
Old 09-14-2006
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value of money

Quote:
Originally Posted by SmartCaptain
Hi RockDawg,
The manufacturer will have a lot to do with the depreciation schedule for a sailboat. I sail a 1988 Island Packet that is worth about $10k more than the original 1988 asking price. True, you have to adjust for inflation, but I could sell my boat for just about what I bought it for five years ago.
Let's look at that inflation thing and the current value of money. A dollar in 1988 bought about 70% more than it buys today, which makes that 10K number seem trivial on a valuable package like the Packet. In the last five years it's about 15% inflation. Then toss in another 10% cost for brokerage when you go to sell it as most boats are brokered. So the point I'm making is that the deflation of the dollar is the silent depreciator.

The real test is to compare what kind of boat you could buy five years ago with what you can buy now for the same money. Hypothetically, if looking at two otherwise identical boats five years apart in age who would you pay nearly as much for the one five years older ?

Also, you need to take good care of that boat asset or there will be even more pain when you go to sell it. So please be careful out there...
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  #18  
Old 09-14-2006
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The boat market has seen some odd devolutions. During the 70's you would have had to have used an appreciation schedule.

I think it was 1979 or 1980 when Cal Yachts had a major ad campaign touting the fact that no used Cal 39 had been sold for less than it had sold for new.

Oddly enough many vessels appreciated so much one could recover not only sales costs but moorage costs for a several year period.

By the mid 80's the situation had reversed itself to the point that many US manufacturers were going or had gone out of business. Manufacturing climate, tax climate, and some wacko interest rates were to blame as well as a glut on the market of fiberglass vessels that didn't rot when unatended.

Prices firmed up in the mid to late 90's slowing the depreciation experienced during the previous decade. Used prices continue to remain high in general as the upper end of the luxury market has ballooned while some segments have suffered disproportinate losses. These segments vary by geographical area. here in San Diego Non-trailerable boats of less than 30 feet have depreciated more than the 34-45 foot segment.

Dewey
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Old 09-14-2006
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Two years ago, when we bought our current boat, the five Nauticat 33s of similar age and condition we inspected, were all similarly priced. The seller of our boat eventually accepted our final offer, which after survey, was 20% off list.

I recently researched the market for similar available models and was delighted to find the asking prices have increased by 20 - 30% from 2 years ago. A buyer would need to negotiate a price 40 to 50% below list to reach what we paid. That's a comforting thought, in respect to what most consider to be a depreciating asset.
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  #20  
Old 09-14-2006
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In addition as True points out, some segments hold or increase value even relative to inflation. Most Nauticat 44's in my recent experience of late 1970's and early 1980's models (the same vessel is still in manufacture, must be closing in on the record of longest production boat) have asking prices in the $200,000 range (plus or minus 15%). This model new is more than double that.

Dewey
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