Sail boat depriciation Sail boat depreciation schedule?

rockDAWG · #1 (**permalink**) 09-11-2006

Does anyone here have a published depreciation schedule over the life of a sailboat? I am interested in how much a new boat depreciate 1 to 2 years, up to 5 , 10, 15, 20, 30 years etc. TIA.

LS

longwaterline · #2 (**permalink**) 09-11-2006

20% initially and then a little more each year until it levels off. In the mean time you sink mucho dinero into what amounts to a "wasting asset."

Faster · #3 (**permalink**) 09-11-2006

I think it's safe to say there is an immediate depreciation on the purchase of a new boat - much like in automobiles. The 20% figure could well be correct. But beyond that there are too many variables to come up with an accurate generalized depreciation schedule.

The reputation of the manufacturer, the condition of the vessel, and to a small extent the amount of extra equipment installed will have a huge influence on the market value of any particular vessel. Even regionally some boats command higher prices than elsewhere.

Many boats have been sold years old for more than they cost initially due to the effects of inflation and local market forces.

Selling prices are one thing, ROI another altogether. As mentioned above, we all throw plenty of money into our boats over the years and it's certainly not realistic to expect much of that back.

We were fortunate, in our view, to have owned a couple of different boats for more than a decade, and later sold the boats for nearly identical prices to what we paid. Did we get our money back? No way, not when you factor the improvement and maintenance costs along with operating costs. Do we feel we got our money's worth? You bet we did.

hellosailor · #4 (**permalink**) 09-12-2006

Rockdag, maybe you've never heard the famous quote about what a boat costs? "If you have to ask, you can't afford it."

I've never seen hard numbers for boat depreciation aside from what the IRS would allow as with any motor vehicle or asset in a business. If you want hard numbers, go to a large library, get the past 20 years worth of the BUC book (or buy the numbers from BUC) and you can actually measure the depreciation on boats over the past 20 years. Remember to find out the market interest rates for your loss of capitol and other factors in the same time. Remember that when Congress passed a 10% luxury tax on new boats...the prices of old ones soared as the market tightened up. And when oil prices rise, fiberglass resins rise, and used boat prices rise again.

The only other guide I've seen is if you buy the used boat review books from Practical Sailor. They show market values (new and resale) for the boats they cover, not adjusted complete depreciations. But they also show a lot of variation from model to model, and you'll have to accomodate that as well.

Depreciation? You're gonna have to do the homework. It would be nice if you shared it with us all after you had some numbers.

rockDAWG · #5 (**permalink**) 09-12-2006

HaHah HS, although I was a FOB, I did hear that famous phase

You interpreted my question way too deep. I am just a simple guy thinking to get another boat with the least amount of money. For the last few months of lurking around, I found/felt most sailboat hold their value pretty good.

Unlike buying an auto you have Blue Book value, MSRP and invoice prices to go with. But for a newbie, it is hard to objectively evaluate or compare between sailboats. That is why I tried to seek some info to support the base value of a boat and plus percentage of the upgrade that the owner spent. By doing this way, I hope to separate/minimize the emotional urge to buy syndrome. I hope this makes sense.

Many thanks

longwaterline · #6 (**permalink**) 09-12-2006

I never could see the sense in paying up for a new boat. They add useless things like commisioning costs, etc. As long as the hull, deck, and rigging are sound you can always tinker with the other stuff. I repowered my S2 shortly after I bought it used and still have not even come close to the cost of a new sailboat. Sailboats have not changed that much in over 30 years and good initial fiberglass work has an unlimited life. It's plastic. New boats add a lot of useless equipment. They are trying to be condos and not boats. Good luck.

rockDAWG · #7 (**permalink**) 09-13-2006

How did anyone pay for the boat?

Cash, boat loan with x% down, lease with writeoff?

catamount · #8 (**permalink**) 09-13-2006

cash

Well, actually it was a personal check for the escrow deposit, and a bank check for the balance due on closing. I asked, but the broker's office wasn't set up to take my credit card for the transaction ;-)

hellosailor · #9 (**permalink**) 09-13-2006

"I asked, but the broker's office wasn't set up to take my credit card for the transaction ;-) "

Yeah, just think of the Frequent Flyer Miles.

"Hello, Amex? Yeah, I'm gonna need you to bump my credit limit tomorrow..."

cardiacpaul · #10 (**permalink**) 09-13-2006

True story, last year a guy up bought a new 35s5 on his AA/Advantage citibank card.
****
Eddie Belfour at the time was a Dallas star, and saw a 44 ft carver or cruiser, (i can't remember) the boat show, shows up at the marina on tuesday asks the price of the tub and drags out a papersack, peels of the number of 100's that was asked.
the boat sat at grandpappys for over 2 yrs, and one day, a big azz truck shows up to haul it off to canada.