Anyone ever plotted a depreciation curve for their ( or any other) boat?

[Bathdave]

A large and pretty transparent market place and easy access to data like Glass's guide and Parkers makes it pretty easy to plot a depreciation curve for any car, and some people (including yours truly) find it interesting (sad?) and helps informs a buying decision ..we all know depreciation is the largest cost of car ownership.

Boats are clearly different ...much lower volumes, less efficient market, higher transactional costs, and historically at least much lower depreciation rates...although perhaps there is a bit of a market correctiongoing on?

It must be possible to do even with some guess work and assumptions, and I wondered if anyone out there had tried, and if so , is willing to share findings?

 

[bedouin]

My boat has not depreciated in cash terms over it's life(40+ years). It is still worth pretty much what it cost new.

It's value (in £ terms) went up a bit during the high inflation years (maybe by 25%) and has dropped back over recent years. Of course over the lifetime of the boat the purchase cost is a very small proportion total costs.

 

[Tranona]

Traditionally, mainstream boats have held their monetary values fairly consistently, partly of course because of inflation. Some brands hold values better than others, but one offs and custom builds are very unpredictable.

Mass produced boats in recent years have tended to lose 20% or so fairly quickly and then level out to a slow decline. However it is all a bit of guesswork as actual selling prices are not easy to find, base prices for calculating depreciation difficult to establish (do you use base price or add in extras?) and once boats are a few years old, condition and location can be very variable. So you see asking prices (and probably sale prices) in a wide range - anything up to +/- 20% for similar boats.

The market (and therefore prices) for older boats has dropped dramatically in the last 3/4 years and 1970's and 80's boats have often halved in value after years of stable prices. This is perhaps due to a combination of factors, but probably falling demand (people leaving the pastime and few coming in) the rising cost of moorings and costs of replacements such as engines and sails which are related to new boat prices, not 40 year old boat prices.

 

[Lakesailor]

Mass produced boats in recent years have tended to lose 20% or so fairly quickly and then level out to a slow decline. However it is all a bit of guesswork as actual selling prices are not easy to find, base prices for calculating depreciation difficult to establish (do you use base price or add in extras?) and once boats are a few years old, condition and location can be very variable. So you see asking prices (and probably sale prices) in a wide range - anything up to +/- 20% for similar boats.

Quite, A pointless and probably misleading exercise.

 

[pvb]

However it is all a bit of guesswork as actual selling prices are not easy to find...

Most boat brokers have access to a private database giving actual sale prices.

 

[Bathdave]

Most boat brokers have access to a private database giving actual sale prices.

Yes I stumbled cross a site on the interweb once but regrettably can't find it again !!! It showed asking and agreed sale price, and I would love to find it again. Anyone else know the address?

 

[Tranona]

Most boat brokers have access to a private database giving actual sale prices.

I know, I have just seen it in relation to my boat. However, it only covers sales through subscribing brokers so is still rather thin. Only 3 of my popular model in the past year, interestingly all within a narrow price band.

This either gives me hope that my boat will fetch a good price, or depress me because there are at least 4 others on the market at the moment and suggests a year to sell a boat is realistic.

 

[Tranona]

Yes I stumbled cross a site on the interweb once but regrettably can't find it again !!! It showed asking and agreed sale price, and I would love to find it again. Anyone else know the address?

The only one in the public domain I have seen is French and so all over the place that it was difficult to draw any conclusions about average sale prices.

 

[pvb]

I know, I have just seen it in relation to my boat. However, it only covers sales through subscribing brokers so is still rather thin. Only 3 of my popular model in the past year, interestingly all within a narrow price band.

This either gives me hope that my boat will fetch a good price, or depress me because there are at least 4 others on the market at the moment and suggests a year to sell a boat is realistic.

I found the information useful in pitching the asking price on my boat recently. Put together a website for about £100 and sold the boat quite quickly for probably more than a broker would have got for it, and saved myself about £7500 in fees!

 

[GrahamM376]

Too many variables with boats as condition varies, as does equipment - number of sails, with or without liferaft and dinghy/outboard, quality of instruments etc. Surveyors also have a large influence on prices, when we sold our Berwick some years ago, two potential buyers with different surveyors whose valuations varied by £5,000!

 

[Elessar]

A large and pretty transparent market place and easy access to data like Glass's guide and Parkers makes it pretty easy to plot a depreciation curve for any car, and some people (including yours truly) find it interesting (sad?) and helps informs a buying decision ..we all know depreciation is the largest cost of car ownership.

Boats are clearly different ...much lower volumes, less efficient market, higher transactional costs, and historically at least much lower depreciation rates...although perhaps there is a bit of a market correctiongoing on?

It must be possible to do even with some guess work and assumptions, and I wondered if anyone out there had tried, and if so , is willing to share findings?

Brokers on yachtworld have access to a large acheived price database. Which is as good as you are going to get.

I have sold all my boats for the same as or more than I paid for them.

 

[Malo37]

I think that generally, boats depreciate in real terms by about the rate of inflation. ie likely to retain close to the original monetary value (if reasonably maintained) but loose out on the discounted value of cash.

 

[Elessar]

I think that generally, boats depreciate in real terms by about the rate of inflation. ie likely to retain close to the original monetary value (if reasonably maintained) but loose out on the discounted value of cash.

Apart from initial depreciation from new, I think you have hit the nail on the head. And even that is basically just writing off the extras.

 

[Bathdave]

Thanks for insights and experiences...very relevant for me as I assess my new acquisition.

I have a theory ( which doesn't seem to be broadly supported by contributors to date) that the future depreciation on early to mid noughties AWBs will be significantly higher than that on slightly older ' quality' boats currently offered at similar prices, through a combination of different supply and demand metrics and faster physical deterioration.

My theory suggests a ( now ) 6-8 yr old AWB priced the same as a 12-15 yr old quality boat in 2014 will be worth much less than the quality boat in 5 years time.

Maybe I am deluding myself? I've just bought a boat today on this basis ( although I have to say there were a host of other reasons too I made the choice I did)

 

[pvb]

I think you're probably right. So have you just bought an older, quality boat? I've just sold one and am buying a new AWB!

 

[Bathdave]

So have you just bought an older, quality boat?

Yes I have

 

[sailorman]

I think that generally, boats depreciate in real terms by about the rate of inflation. ie likely to retain close to the original monetary value (if reasonably maintained) but loose out on the discounted value of cash.

Mine represents 43 yrs of weekends & holidays, now how much would that cost ??? i still have my boat too, so quids in. Worth the cost imo

 

[johnalison]

Absolutely. Who, in their right mind, tries to work out the cost of sailing?

 

[Garold]

Absolutely. Who, in their right mind, tries to work out the cost of sailing?

If done carefully and honestly with some consideration of the opportunity cost of spending money on a boat vs reasonable missed investment returns, it will often be done by someone who is soon to be an ex-yachtie.

The price of yachtie ownership has increased. If it includes a newish awb, Uk south coast marina mooring, servicing and fixing by 'marine leisure' accredited professionals, and some regular use which includes visitor fees and fixing worn/broken bits, then it's a bit of a significant financial decision.

So, if you really want to go sailing, don't add it up. It is a bit off-putting.

Garold

 

[dunedin]

I think that generally, boats depreciate in real terms by about the rate of inflation. ie likely to retain close to the original monetary value (if reasonably maintained) but loose out on the discounted value of cash.

Perhaps for older boats, but from what I can see new boats seem to depreciate a lot in the first 5 years. Certainly looks to be 20% or so in year 1 (though admittedly a guesstimate from boars i have looked at not backed up by a database)

Compared to 20 years ago, a much smaller proportion of the purchase price goes into the long lasting GRP, wood and mast bits. A much higher proportion goes into things which generally expect to last in the shorter 5-15 year span - ie sails, electronics (a biggie), engine, windlass etc. So these parts of the value drop down over 10 years
After 10 years old it tends to be a case of annual spend on renewals and upgrades - so depreciation tails off

Certainly I would not believe anybody who asks for near new price for a 1 or 2 year old boat. Seen a few expensive Scandinaviam makes on at silly prices which later dropped subst.antially as unsold after nearly a year