MOBO depreciattion

[ari]

I did not do any negotiating and just listened to the figures, but yes that's the price I paid with all extras and gizmos to the price offered today. Of course I would then expect a discount off the new one.

Being an ex yachtie, and on all those boats I always got what I paid back and as yoy say inflation covered up the difference

So if you've not done any negotiating, and you say you would expect a discount off the new one, then surely you don't actually have a price to change yet? Or am I missing something?

 

[c and c of the sea]

I'm in your boat with that statement.

 

[Powersalt]

I have ben given a price for my boat as p/e. I have been given a price for a new one. What I menat was there is iften a little bit more to get off the new price before you sign and I dont think I am talking much. But the price offered as P/e give the depriciation figure

 

[jrudge]

I used to work for a finance house. Our rule of thumb ( which used to be quite accurate - no idea about now) was the VAT in Year 1 and 10% thereafter. VAT now 20% so 20% then 10% per annum.

At a guess the 10% bit is still right but your year 1 hit is probably more in the current market?

 

[Powersalt]

Hmm actually that's not far off. Makes you think "year one 20%" eh

 

[henryf]

As a new boat the P43 is very much the belle of the ball - and it really is a cracking boat, I was going to do a review but can't be bothered after having a thread pulled by admin the other day. Anyway there will be a load of people wanting to buy one, order books will be fairly healthy and so you won't get much of a deal.

I assume you were basing your numbers on the asking price of the P43. Fast forward a year or two when the dust has settled and there are a few dealer stock P43's to be had. Price your boat sensibly, sell it privately which should make more than the p/x figure and go in hard on a new boat. You know what you got off a new P42 see if you can better it on a P43

If Essex offer a better deal it probably just means the original boat was over priced or not as popular. They haven't got a magic source of buyers and I bet to within £10k they need to see a similar amount out of your boat. The issue is whether the boat they are selling is worth asking price or considerably less. Don't get to concerned with list prices. Because you see £550k in print you're convinced that's what the boat is worth. Sometimes they are, sometimes they aren't. If everyone is getting 35% discount (and I'm not suggesting they are with the P43) then whilst you think you've had a better deal you're actually just stepping out of the frying pan and into the fire. When you come to sell the new boat you'll have a hell of a shock.

When we got out of our P42 after 5 years I was happy. I sold privately (with a bit of help from Princess on the paperwork) and I didn't lose anything like the money you're talking. We bought a stock P42 and possibly saved some money in doing so. We lost under £20k a year.

Henry

 

[Loggo]

Just add time - quite a lot actually - and you will feel better about it

My boat was new in 1997 at around £65k.(Not to me) Current valuation circa £60k

Say £350 pa

 

[malc60]

I,v just sold a princess med spec for 25K in spain, another pal just bought a 415 for 30K, tut tut, british prices eh.Another 435 could be bought for around 50K

 

[gjgm]

I appreciate that you have your experience on this to fall back on, but I am not sure things havent changed quite alot over the last couple of years. Go back a few, and many boats seemed to depreciate very little as the new boat price rose so fast. As OP says, this new 43 is the same (list?) price as his old 42 was (if I understood that correctly?)
That changes the game enormously.

 

[rubberduck]

I think the difference is EBY really put the effort in which includes very good PX deals, many of which they just get shot of best way they can, whereas Princess actively encourage you to sell privately & then come to them with cash. If it works then great, but I was less than impressed & got about £50k more than they said boat was worth (not offered) against a boat costing in excess of £100k less.

 

[Powersalt]

As a new boat the P43 is very much the belle of the ball - and it really is a cracking boat, I was going to do a review but can't be bothered after having a thread pulled by admin the other day. Anyway there will be a load of people wanting to buy one, order books will be fairly healthy and so you won't get much of a deal.

I assume you were basing your numbers on the asking price of the P43. Fast forward a year or two when the dust has settled and there are a few dealer stock P43's to be had. Price your boat sensibly, sell it privately which should make more than the p/x figure and go in hard on a new boat. You know what you got off a new P42 see if you can better it on a P43

If Essex offer a better deal it probably just means the original boat was over priced or not as popular. They haven't got a magic source of buyers and I bet to within £10k they need to see a similar amount out of your boat. The issue is whether the boat they are selling is worth asking price or considerably less. Don't get to concerned with list prices. Because you see £550k in print you're convinced that's what the boat is worth. Sometimes they are, sometimes they aren't. If everyone is getting 35% discount (and I'm not suggesting they are with the P43) then whilst you think you've had a better deal you're actually just stepping out of the frying pan and into the fire. When you come to sell the new boat you'll have a hell of a shock.

When we got out of our P42 after 5 years I was happy. I sold privately (with a bit of help from Princess on the paperwork) and I didn't lose anything like the money you're talking. We bought a stock P42 and possibly saved some money in doing so. We lost under £20k a year.

Henry

Yes it was your P42 that encouraged me to go ahead and buy mine!!!!. But reading your text I wonder if the market has changed a lot over recent years. If after 3 years the price has not gone up and interest rates are so low, maybe it keeps the second hand market depressed. I guess this also might apply to cars?

So you thought the P43 was good did you Henry. I did but IM not sure its worth the extra for me to change, perhaps if my boat was older!!

 

[henryf]

Yes it was your P42 that encouraged me to go ahead and buy mine!!!!. But reading your text I wonder if the market has changed a lot over recent years. If after 3 years the price has not gone up and interest rates are so low, maybe it keeps the second hand market depressed. I guess this also might apply to cars?

So you thought the P43 was good did you Henry. I did but IM not sure its worth the extra for me to change, perhaps if my boat was older!!

I don't know the numbers in your case and so it's difficult to comment specifics but from what you're saying we were probably quoted a similar figure to change from our P42 to a new P42 and it simply didn't make sense. I had a crazy idea to buy new every 3 years or so if the numbers worked but they didn't. Hence we waited a little longer spent a bit more, found a boat that was an interesting opportunity and bought the P50 instead. At 3 years old your boat isn't old. There will be a market for people who want a new P42 (or 43 as is now) but can't afford it. Something your age appeals because it's almost like buying new, certainly not 10-15 years old. But ultimately those people dictate market value. Princess will probably have new P42 stock to sell (I don't know this for a fact) so they just want to be careful with nearly new values now the 43 is out.

My guess is that you will probably do as we did and keep the boat 5-6 years. At that point it will still be desirable but you can offset any depreciation over a number of years rather than just 2 or 3. The P43 will have been out for a while as well by then and so there will be dealer stock to have a bit of a haggle on. I've never had a boat built for me, I've always bought stock boats and that probably saves a bit of money if you're in the right place at the right time.

When Roger utters those immortal words, "there will never be a better opportunity" we sit round the table and try to put something together.

Henry

 

[EugeneR]

I used to work for a finance house. Our rule of thumb ( which used to be quite accurate - no idea about now) was the VAT in Year 1 and 10% thereafter. VAT now 20% so 20% then 10% per annum.

At a guess the 10% bit is still right but your year 1 hit is probably more in the current market?

Before the recession, I tracked the price of sportsboats and their depreciation over the first 10 or so years - using loads of real samples - resulting in an 9.8% pa figure from y2 onwards - pretty much 10% as you say.