boat depreciation

[fredfrog]

gloomy subject I know, but I need to do the maths before making the jump.
If we buy a new steel Dutch barge or Penichette for say £150000, how much depreciation should we expect P.A.?
Is second hand better? I.e. does depreciation slow down at a certain point in age? All wisdoms welcomed.
thanks! John

 

[Talbot]

most boats on paper appear not to have depreciated greatly until you start to look at all the add-ons that have been included in the pre-owned version. Personally I have never seen the need to be the first owner, and would much rather allow somebody else to resolve all the initial teathing problems!

 

[searover]

if your worrying now, just think how youll worry when you own it, i woudnt bother .Id just shoot myselfe...

 

[kcrane]

I'm going through the same thinking, and with similar amounts, and reaching the conclusion that recent second-hand will suit me - like a 2003 model for example. The 20% initial depreciation is a painful thought.

 

[kcrane]

Ooops, forgot - take a look at the uk.rec.sailing newsgroup - there is a thread on the same topic

 

[CodStewart]

I reckon my boat will actually appreciate. Got her for 30,000US and she sails so beautifully and there's so much space and wow, I just couldn't resell her for anything under 80k.

 

[tome]

Guess you have her for life then!

 

[Sea Devil]

I can never understand why anyone would buy a new boat - unless they are seriously wealthy and the money is irrelevant.

Quite apart from the basic price and the immediate depreciation on that, there is a load of extra equipment that needs to be purchased and is normally is included with the boat when it is sold.

New boats have teething problems as well as 2nd hand boats. Ask anyone who has purchased a new 'all singing all dancing' new boat. Sure the problems get sorted out by the builders but the hassel is still there.. The problems that arise with a 2nd hand boat can normally be paid for out of the savings in its original purchase price.

If you buy a new boat you are bound to get less for it when you re-sell than you paid originally for it and the extras.

If you buy a 2nd hand boat you should at least get your money back and the original outlay for the 'same' boat is at least 20% and probably a lot more less than the price of a new one......

 

[DavidJ]

[ QUOTE ]
I can never understand why anyone would buy a new boat -

[/ QUOTE ]
I can understand the argument, but for us the reality was that we couldn't find the boat we wanted (a Sealine S37) in good secondhand condition. We must have seriously looked at a dozen boats and they were expensive and shabby. (I don't know what people do with them!)
So yes, I take a hit because I have brand new electronics but it's the latest and will last me 5 years.
Also don't look at the new price for comparison. Dependant on the bouyancy of the market you can easily get 10%+ off new prices.
Teething problems, totally agree, mine is now a much better boat after a couple of years sorting out problems.
The plus is I had a lovely immaculate boat, to exactly the spec I wanted (and it still is, so mine secondhand would be ok...have I just defeated my argument?)
David

 

[fredfrog]

particular thanks to searover for being really useful, but to return to my question, does anyone(else) know anything about depreciation on a dutch barge type vessel?

 

[Trevethan]

Depreciation say 15-20 percent year one, 10 pct year 2 and 5 percent year three.
After that depends entirely whether you look after it, but price is likely to stabilise.

Alll the best

Nick

 

[Sea Devil]

Just been going around the French canals and everywhere there are live aboard barges in various states of disrepair which I should think reflects the prices asked.

The big problem with a barge is it is so big. Maintainance is, as with any boat, an ongoing chore. Often in UK waters the value of the barge is related to its berth. If the barge has a permanent berth with electricity and water laid on and the barge is not too big and is in good condition, well maintained then the price should appreciate with inflation. On the other hand if it has no quality permanent mooring and is rusting away because it has not been maintained (by you as it is expensive to employ others) then you may find it hard to sell at all................

Have a look at the H2O web site and see the price range of barges in France & Netherlands - and remember that the smaller the barge is (not talking narrow boats) the more desirable it is - just parking and maintainance costs...