Boat Values

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bassett

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I'm currently look to buy an offshore cruiser in the £90 - £120K price range, ie P360, fairline sedan etc. Now that it looks pretty certain that tax will be going onto leisure marine diesel in 2006, what is the general opinion as to the effect on boat values.

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A hike to petrol prices has not been factored in. No one knows, some uncertainty has been factored in and I think the second hand markey might be starting to react to that already.

I believe that we are likely to see drops in the value of £130k boat in the order of £40k. That is nothing more than my guesstimate.

<hr width=100% size=1>Paul
 
WHAT!?

You think a £130,000 boat is going to suddenly drop to £90,000 because it'll cost a thousand or two a year more to run??

Quite remarkable...

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Gludy has a rather apocalyptic of the red diesel situation with which it is fair to say not many people agree. As tcm says, diesel is priced at road fuel levels in the Med and that has'nt stopped people buying motor boats there. Personally, I dont think it will affect boat values much if at all but I'm sure that people will think harder about how much they use their boats, in other words they'll use them less

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Caution to the wind(a bit)

Having been keeping an eye on boat asking prices due to poss ungrade to bit larger boat,have noticed absolutely no softening of prices...........I wish.
If you see a boat that represents good value,just buy it.Boats are not sensible investments,they are outrageously expensive toys but can put a smile on your face every time you set foot on the damn thing.Cars pale into insignificance.
Buy any boat using your spreadsheet for a partner and you will die clutching a manky piece of paper having wasted you life.
Remember the last suit you will ever wear has no need of pockets.IMHO./forums/images/icons/laugh.gif

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Re: Caution to the wind(a bit)

spot on Fred

<hr width=100% size=1><A target="_blank" HREF=http://www.suncoastmarine.co.uk>Sun Coast Sea School & Charter</A>
 
Re: Caution to the wind(a bit)

I very much agree with most of what you say. My experiance with looking at around a dozen boats over the last 3 months is that the are all still for sale!!

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Why not?

A Diesel boat commands the premium it does because it is cheaper to run, and because of that you retain the higher purchase price when you sell it.

It isn't the fact that it costs a few thousand more a year to run, but the fact that why should you pay £60-70k more than a petrol boat unless the savings reflect that.

I don't agree they will fall to petrol values, however it is sensible to assume that the gap will shrink to much much less than it is now. Certainly on a 130K boat a £20 - £30K drop isn't unrealistic - remember the finance cost (many people have these on finance) needs to drop by about the same as the cost increase in the fuel each month.

If we assume that the fuel cost will go up by £300 per month, then many people will want to reduce their payments by the same amount - which at current interest rates is about £40,000 on a 25yr marine mortgage.

People have a budget for their boating - if one part of that cost goes up then they have to adjust in other areas.

Lets say I have £1000 a month to run my boat. (I Wish but this is theoretical) -

I can buy a cheap petrol boat and spend the rest on fuel :-
Or
Buy a dearer diesel and what I save on fuel I spend on the finance in the safe knowledge that when I come to sell the Diesel boat will be worth a lot more.....'

take away the fuel saving and the guarantee of a higher resale and people won't finance the difference in cost as there is little point.....

I do NOT believe that the market has adjusted yet - as many owners aren't aware of the imminent increase and many others believe it won't happen.

<hr width=100% size=1>Why can't we work 2 days a week and boat the other 5????
 
Re: Caution to the wind(a bit)

You know Fred, for an oldgit you ain't 'alf wise!!

I thinkn I'm gonna adopt the suit adage for all of my high spend shopping from now on... Thanx!

<hr width=100% size=1><font color=red>If it doesn't kill ... it fattens</font color=red>
 
Forget the petrol argument. If you are at all serious about boating, petrol dont count as you cant buy the stuff most places and is about as usefull as a chocolate teapot!!

<hr width=100% size=1> No one can force me to come here. I'm a volunteer!!.

Haydn
 
Yes I do. people make a decision on the marginal cost of a trip. If that local trip, instead of costing £200 costs 6 to 8 hundred pounds they will not make it.

Actually in some cases the market has already factored the price differential in. Its where there is a petrol alternative to the diesel boat - this can happen with small cruising boats.

I know one chap who bought a petrol boat of over 30 foot, made one trip that shocked him in that it cost £600 for a local trip and then spent the whole winter changing his engines to diesel. The change over cost him one third of the price of the boat and a winter of work but he did it. So his bargain boat was no longer a bargain any more.

In the USA a 10% luxury car tax was introduced on cars costing ove $50,000 - it greatly dmaged the luxury car market overnight simply because it cost a bit more to have such a car. The tax yield dropped.

£120k for a motor cruiser is what many folks aspire to and sacrifice to get ....

In any event does anyone know of differntial examples, not in run around the bay boats, but in cruising boats between diesel and petrol?



<hr width=100% size=1>Paul
 
Re: Caution to the wind(a bit)

yes, I know many many boats that re now sticking on the market - it take s awhile for the price to drop but the market price is what a boat sells for, not what is asked for it.

<hr width=100% size=1>Paul
 
But Med fuel levels are much lower than UK petrol price levels and I specifically said if the price goes to UK petrol levels. We are talking of a 300% to 400% price hike and you are claiming that this will make no difference. I do.

<hr width=100% size=1>Paul
 
Re: Caution to the wind(a bit)

Allowing for the fact that boat owners always ask too much 0 these days I know of boats that have dropped 25% plus in price with theowner now hoping to achieve offers that they once turned down. The lower end of the cruising boat market has become very sluggish.

<hr width=100% size=1>Paul
 
Re: Caution to the wind(a bit)

Not too sure about that I know two other people apart from my self who have sold their boat very recently to the first person that came to see it.

<hr width=100% size=1>Dom

<A target="_blank" HREF=http://www.soltron.co.uk>the website</A>
MMS - Discount Chandlery
 
Low season

If boats are sticking at the moment, its far more likely to be because its low season. Very few people buy in Nov/Dec

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No they're not. Prices in the Med are now close to €1/litre in some areas which, thanks to the strong €, is equivalent to 71p/litre, not far off UK road prices
Now that I'm in the Med and because of the high cost of fuel compared to the UK, I think harder before I cruise long distances and I go slower in order to conserve fuel. I believe thats what will happen in the UK if red diesel goes

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