Loss in value of a new boat - SailNet Community
 
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post #1 of 10 Old 08-19-2010 Thread Starter
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Loss in value of a new boat

Hi Together!
I like to get a better understanding of the loss in value you have to expect for a boat after 2-3 years of continuous use. (after purchase new)

There are probably significant differences between various boat classes and the low loss is linked to the popularity of boats.

Can you give me some estimations or common numbers? What percentage is typical for what and how strong is the influence of the actual situation of the yacht markets at the moment of sale?

Thanks a lot,
Ulf
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post #2 of 10 Old 08-19-2010
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The question is very hard to answer, it is similar to asking about the depreciation in value on used cars. Each boat model or class will be very different in value retention. If you have a production boat then Boats for Sale, Yachts for Sale, Used Boats, Power Boats, Motor Yachts or EYB – Bateaux et voiliers d’occasion – Petites annonces are your friend since there will be several 2-3 year old model on sale and you can take their average or mean price and compare with the cost-as-new.

Some boats can even appreciate (only very rarely) but I'd take 30-50% as realistic for a medium to large production boat that has seen above average use or charter or below-average maintenance.

One-Offs (that are not megayachts), anything homebuilt, or with a cement hull see much higher depreciation values


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post #3 of 10 Old 08-19-2010
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Zanshin has it on the money...actual experience on 36' is about 32%....that was firmed up by other sales at the time.

30-50% would likely be "normal" and then maybe some appreciation...over the next 10-15 years..
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post #4 of 10 Old 08-19-2010
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I would never buy a new boat with the intention of selling it anytime soon. I bought a new boat in 1981 and sailed it until after I retired in 2004, and enjoyed it while it was shiny, and enjoyed negligible maintenance expenses for many years. When I sold it, I certainly didn't get my purchase price back, but I expected to take a loss, just as I expect to take a loss when I buy a new car. Nevertheless, I got 23 years of pleasure and happy memories from the boat, and it was worth every penny.
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post #5 of 10 Old 08-19-2010
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We've seen 15-20% on 3 previous boats. I'm pretty anal about my boats and keep them in top shape and I know that helps. As already mentioned check out yachtworld or other site for used boat prices. Keep in mind that popular production boats will be plentiful and prices will be lower as a result. Higher end boats will hold their prices but take forever to resell as the market for them is much smaller.
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post #6 of 10 Old 08-20-2010
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Sell it in New Zealand. Boats appear to appreciate there!
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post #7 of 10 Old 08-23-2010 Thread Starter
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Quote:
Originally Posted by ScottUK View Post
Sell it in New Zealand. Boats appear to appreciate there!
Hi Scott! Do you have an idea what kind of boats they like there? E.g. the typical europeans like Beneteau, First, Bavaria?
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post #8 of 10 Old 08-23-2010
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Quote:
Originally Posted by Sailormon6 View Post
I would never buy a new boat with the intention of selling it anytime soon. I bought a new boat in 1981 and sailed it until after I retired in 2004, and enjoyed it while it was shiny, and enjoyed negligible maintenance expenses for many years. When I sold it, I certainly didn't get my purchase price back, but I expected to take a loss, just as I expect to take a loss when I buy a new car. Nevertheless, I got 23 years of pleasure and happy memories from the boat, and it was worth every penny.
I would agree 110% with what you said. I think that also holds true for many recreational vehicles (not just RVs, but ATVs, boats, planes, etc...)

I bought my first sailboat used for a song, it was in tip-top shape, (essentially like new, very well babied) so if I discovered sailing wasn't for me, it wouldn't be a big loss, and I could likely unload this used boat as a used boat for the same as what I paid for it. Couldn't do that with a new one.

Now that I'm hopelessly addicted, I will consider a new boat purchase when I upgrade, but only because I plan on keeping it, and making it my baby for a long, long, time.
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post #9 of 10 Old 08-23-2010
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This is a big question with no simple answers. New sailboats by the major production builders will likely depreciate 15-20% as soon as you are out the door. And 7-10% per year thereafter is probably a realistic expectation. Remember, it is "consumption", not "investment".
But what you get is "your" boat. You'll get some say in how it is equipped--mostly in the add ons like electronics, canvas, davits, color of the settee fabric etc. And you get a bed that no one else has slept in and a head that no one has --- in. And you have a base line for maintenance. You don't worry if the guy you bought it from really changed the oil every 100 hours, etc.

With some of the higher end builders you may find not so much depreciation. The Island Packet guys like to say that they have a low cost of ownership since the boats often sell for what you pay for them 3 years or even 10 years later. But you'll tie up a bunch of cash just so that you keep most of it when you go to sell. Part of this comes from the fact that they build less boats per year than other builders and this tends to keep them scarce on the used market and the other reason is that they have had regular and steady price increases over the years, which make the older models quite attractive given the price of a new boat.

Other high end builders will also give good resale value and although it is true that there are fewer buyers when you are ready to sell, there are also far fewer boats to compete with. I'm thinking here of Sabre, Pacific Seacraft, Morris and others. (Look at Ferenc Mate's Worlds Greatest Sailboats for more.)

But even if you get good resale value on a high quality boat it will still cost ya. It'll still cost you for bottom paint, dockage, insurance, etc.
But is you love it like I do it'll be money well spent.

Remember what they said about a hole in the water that you pour money into?
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post #10 of 10 Old 08-24-2010
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Hi Scott! Do you have an idea what kind of boats they like there? E.g. the typical europeans like Beneteau, First, Bavaria?
Check out Trade Me – New Zealand online auctions and classifieds. Browse, buy and sell online on trademe.co.nz to get an idea,
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