Are boats really more expensive these days?

[ChrisJefferies]

So we've been speaking to James Barke of Boats.co.uk about how boat prices have gone up over the past 30 years and he puts forward an interesting argument:

Many people compare prices of cars and yachts, which is a little unfair as a car is a necessity for most, but a yacht is a luxury.
So if you're going to make that comparison you might as well choose a luxury car, say a Range Rover.

Now if we turn the clock back to 1986, a new Range Rover Vogue with a few optional extras cost £19,246 inc VAT, while a brand new Fairline 50 cost £250,000 inc optional extras and VAT.
So if we use the Range Rover as a unit of value, we can say that in 1986 a new 50ft flybridge cost the same as 13 Range Rovers.

Back to the present day and a Range Rover Autobiography, including optional extras an VAT is the best part of £111,000 while a Princess 52 with a decent spec is £998,000 inc. VAT.
Going back to our previous yardstick, the modern day 50ft flybridge costs the same as 9 Range Rovers.

So, are boats getting more reasonably priced? Do you get more for your money these days? Or are we using the wrong yardstick. Would be interested to see if the same holds up for other luxury cars like Jaguar, Bentley etc.

 

[Illusion]

I'm sorry I really don't get the boat vs car comparisons, surly it's all a question of affordability of the product vs people's income, cost of living and available funds for luxury items.
The key thing with cars is generally they are still affordable, even a £100k Range Rover if you really can justify buying one.
To me the link below just about sums up what's wrong with the boating industry at the moment, especially it seems with the British manufacturers and their understanding of the home market.

http://www.mby.com/news/princess-yachts-pre-season-boat-show-line-up-51160

This is the Swanwick Marina show, not Cannes, I'm a berth holder here and know many other Swanwick berth holders and berth holders from other marinas on the south coast who would probably be interested in this kind of early season show. Take a look at the boats in these marinas and you decide the average size and more importantly cost and potential new market.?
Yet Princess in their wisdom, must seem to think the general market coming to this kind of show is perhaps from somewhere else? Yes ok show a few big boats, but if you're wanting to take part and sell a few boats, try and better appeal to your main audience coming to the show....... however their smallest boat being exibited is a 56 footer at I'm sure we'll over £1m.
Now I would expect the market here for this kind of show to be circa £100 to 500k territory, even in 2016, unless I'm missing something?

Seems a bit of a shame.

 

[Whitelighter]

Surely its better to look at average salary or house prices?

You get a lot lire Range Rover for £110k now, where as it's pretty much the same boat

 

[CLB]

Average salary has got to be the best indicator. How many average salaries would it take to buy the two boats in the OP in 1986 and now in 2016. I'm sure you will also find a Range Rover has increased in real terms too.

 

[CLB]

Ok, cos I had nothing better to do and using some figures found in the internet that may or may not be accurate. In 1986 you would need 19.8 average sallies to buy the 1986 boat mentioned in the OP. In 2016 you would need 37.7 average salaries to buy the 2016 boat mentioned in the OP.

On the subject of Range Rovers, using the OPs figures you could have bought one with 1.5 average salaries in 1986 but would now take 4.2 average salaries in 2016.

So it looks like in real terms both princess boats and range rovers have become even more out of reach of the average person.

 

[CLB]

Still got nothing better to do

In 1986 you could buy the quintessential family car, a mid range Sierra, for 0.82 average salaries.
In 2016 you can buy its equivalent, a mid range Mondeo, for 0.85 average salaries

This must indicate that boats, and range rovers, really are more expensive these days.

 

[burgundyben]

What about looking at the cost of having the capital tied up? Or the cost of borrowing?

 

[kashurst]

"In 1986 you could buy the quintessential family car, a mid range Sierra, for 0.82 average salaries.
In 2016 you can buy its equivalent, a mid range Mondeo, for 0.85 average salaries"

a very interesting comparison as the modern Mondeo is a greatly improved car. Modern boats don't seem to me to be materially better than older boats - just more complex.
Borrowing is much cheaper now than it was back in the 80s and 90s, and is likely to stay that way for a few more years. Investing the equivalent money elsewhere is probably a much more sensible idea but returns at the moment are low and unpredictable.

 

[Nick_H]

Hmm, I'm trying to think of someone that has both a Range Rover and a large modern motoryacht, that could provide a valuable insight here ...

 

[jimmy_the_builder]

Hmm, I'm trying to think of someone that has both a Range Rover and a large modern motoryacht, that could provide a valuable insight here ...

 

[oldgit]

On the subject of Range Rovers, using the OPs figures you could have bought one with 1.5 average salaries in 1986 but would now take 4.2 average salaries in 2016.

The original Range Rover was almost certainly aimed at the sort of folks whos occupation demanded a 4 wheel drive but were prepared to pay a few extra quid for a car which would still
be at home on the farm but with added comfort.Get rid of the Defender and the Rover 2000 and get a Range Rover.
The car was priced for the market it was aimed at.
The latest Range Rover is priced to extract the most money from the market it is aimed at.
Hence the price inflation.

 

[admillington]

Hmm, I'm trying to think of someone that has both a Range Rover and a large modern motoryacht, that could provide a valuable insight here ...

Have both and both are stupidly expensive.......................

 

[admillington]

So we've been speaking to James Barke of Boats.co.uk about how boat prices have gone up over the past 30 years and he puts forward an interesting argument:

Many people compare prices of cars and yachts, which is a little unfair as a car is a necessity for most, but a yacht is a luxury.
So if you're going to make that comparison you might as well choose a luxury car, say a Range Rover.

Now if we turn the clock back to 1986, a new Range Rover Vogue with a few optional extras cost £19,246 inc VAT, while a brand new Fairline 50 cost £250,000 inc optional extras and VAT.
So if we use the Range Rover as a unit of value, we can say that in 1986 a new 50ft flybridge cost the same as 13 Range Rovers.

Back to the present day and a Range Rover Autobiography, including optional extras an VAT is the best part of £111,000 while a Princess 52 with a decent spec is £998,000 inc. VAT.
Going back to our previous yardstick, the modern day 50ft flybridge costs the same as 9 Range Rovers.

So, are boats getting more reasonably priced? Do you get more for your money these days? Or are we using the wrong yardstick. Would be interested to see if the same holds up for other luxury cars like Jaguar, Bentley etc.

James Barke sent me the same text via email earlier in the week:-

My answer

My View – Not about Cars but Boats

Princess 61 in 2002 cost £578580.00 exc vat

Bank of England Inflation Calculator - £849016.83

Princess 60/102 £ 1,049,000.00 exc vat – base price when launched was £962650.00

So£200K more than inflation.

Euroat a great rate so the engines are a load cheaper than theywere a year ago.

-Andrew

 

[KINGFISHER 9]

Hmm, I'm trying to think of someone that has both a Range Rover and a large modern motoryacht, that could provide a valuable insight here ...

Guilty! .... it's not a Fairline 50 though!

 

[BruceK]

Please just shoot me if I ever buy another Land Rover. Best car I've driven but far and away the worst car I ever owned. Yet again left me stranded while storm Imogen gently watered me on my two mile walk back home with two bawling brats. Going to find me a honest Japmobile next.

 

[petem]

What it costs new is irrelevant, its the depreciation that matters. I could afford to buy a £100k new boat nearly 20 years ago because I knew I could sell it two years later and only lose 10% or so of its value. The same can't be said now with new boats.

 

[oldgit]

Please just shoot me if I ever buy another Land Rover. Best car I've driven but far and away the worst car I ever owned. Yet again left me stranded while storm Imogen gently watered me on my two mile walk back home with two bawling brats. Going to find me a honest Japmobile next.

"Which" magazine either had it at the top or near the top of cars spending most time off the road for repairs and costing the most to fix.
Shame really.

 

[Whitelighter]

What it costs new is irrelevant, its the depreciation that matters. I could afford to buy a £100k new boat nearly 20 years ago because I knew I could sell it two years later and only lose 10% or so of its value. The same can't be said now with new boats.

But the only reason you could do that was because new boat prices were rising ahead of inflation.
Your £100k boat after 2 years might have sold for £90k but only because a new one was now £120k.

That couldn't continue forever so now we are left with hugely inflated prices for new stuff

 

[petem]

But the only reason you could do that was because new boat prices were rising ahead of inflation.
Your £100k boat after 2 years might have sold for £90k but only because a new one was now £120k.

That couldn't continue forever so now we are left with hugely inflated prices for new stuff

Unless I'm wrong, my logic was the status quo for 30 years or so.

 

[CLB]

What it costs new is irrelevant, its the depreciation that matters. I could afford to buy a £100k new boat nearly 20 years ago because I knew I could sell it two years later and only lose 10% or so of its value. The same can't be said now with new boats.

I disagree. What you state is more about whether buying a boat us a sensible or prudent decision. We are talking about whether boats are simply more expensive today than they were 25 years ago. The answer to that seems to be yes, when compared to what people actually earn, and looking at inflation values over the last 25 years.