Boat depreciation

[Refueler]

I don't regard upkeep / maintenance costs in same equation as value / depreciation.

Upkeep costs are not only based on general running cost - but also how ell you as owner wish to keep the boat in ... some are happy to be sound in the water - but not much else ... others want concourse in and out ...

Boats are not an investment unless you are into buying such as Riva or other classics. Even then burnt fingers / toes etc are common.

Of course like a car - we tend to grade a boat by the amount expected to be spent on it during ownership - but as I say - that depends on the person.. (and Wife !)

I have never regarded a boat as an investment. To me - its a cost that goes out - we get back whatever we can in fun / enjoyment and that's it. If I was to worry about it - then I am in wrong game.

Look at my Sunrider 25 ... probable value today about 3000 - 4000 quid IF LUCKY ... I cracked the keel after spending about 3000 on new wood strake, new sprayhood / sail cover / dodgers ... so looking at another 3000 to fix the keel. Some would say - why pay out so much on an old boat ...
I like the boat - its a good but old boat .. it will be great on the river ... once repaired will be back in channel bottom of garden costing me zero to moor ... Depreciation ? Whats that ?

 

[Whaup367]

My boat may be depreciating but I am appreciating it.

As long as the appreciation exceeds the depreciation I am happy.

 

[Irish Rover]

It's a long thread and I've not read every post carefully so forgive me if I'm repeating what's established already.
I bought my 2003 motor catamaran in 2017 and started using it April 2018. I motor on only 1 engine 95%+ of the time. I've put 1,100 hours on each engine since I bought it which I estimate amounts to well over 2,000 hours x 7knots so 14,000+ miles. I sold it a few days ago for 2% more than I paid for it in 2017. It has been well maintained and looked after while I have it and I've spent some money on upgrades like chartplotter, DSV VHF and bigger solar panels, MPPT controllers etc. I use the boat 300+ days in the year and we've had some fantastic times on board. If I include marina fees, maintenance, insurance, fuel, upgrades I'd estimate my annual costs are no more than I would have spent on good standard 2 foreign week holiday for myself and my wife and a couple of shorter city breaks. What's not to like?

 

[Dee Bee]

Paulfireblade's comment is very fair. I saw an article once saying running costs equate to something like 20% of the boat's capital value. My view is that you need to look at any boat that you buy and think of all the things you need to do to it to bring it up to your satisfaction. You might well find that you would be better paying that money in the purchase price if a lot of the work has already been done. I remember looking at two Shrimpers and buying the cheaper one and within a season I had spent the difference!

 

[Refueler]

I don't subscribe to this % of boats value to maintain .. basically because it depends on how you list what you pay out ... do you include marina berth .. lifts in / out ... etc. Are you a 'weekender' or a serious distancer ? What comfort levels are you looking for ?
Are you capable of doing work yourself - or are you paying someone else to do it ?

So many variables - I cannot see it.

 

[ylop]

Paulfireblade's comment is very fair. I saw an article once saying running costs equate to something like 20% of the boat's capital value. My view is that you need to look at any boat that you buy and think of all the things you need to do to it to bring it up to your satisfaction. You might well find that you would be better paying that money in the purchase price if a lot of the work has already been done. I remember looking at two Shrimpers and buying the cheaper one and within a season I had spent the difference!

I often see people throw around that sort of arbitrary percentage (the number I hear is usually 10%) - they make no sense really:

- a £250K recent Ben/Bav/Jen is not likely to cost half the running cost of a similarly sized, similarly aged HR/Moody/Sirius with twice the price tag is it?
- the running costs of a 20 year old Ben/Bav/Jen needing new sails, rigging, drive leg gaiters etc are not likely (even averaged over a 5 year window) to be substantially less than those of a much newer Ben/Bav/Jen which probably costs 3-4x the capital price?
- the running costs are affected hugely by the storage and mooring plans and location. A private mooring in a remote location can cost low 3 figures per annum, a top tier marina in the Solent can be approaching 5 figures!
- insurance cost more on a more expensive boat - but not linearly so the greatest risk is often the third party risk; likewise engine servicing etc - the cost might be more for a bigger engine but you still need to essentially the same parts and similar labour time etc so there it doesn't scale like that.