Repower resale value

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sam_uk

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Hi I am considering buying a yacht that needs a new engine.

What kind of value will a new engine add to the resale value in 12 months time?

Assuming:

* 8k purchase price
* 5k re-engine costs
* Market stays more or less the same for yachts in general

Can I expect to sell the re-powered boat for 12K in a years time? Or should I expect the new engine to add less to the value than that?

I realise this is slightly 'how long is a bit of string' and that the value will depend ultimately on what someone will pay for it! But presumably having a new engine will add _something_ to the value, just after some ballpark figures of what that might be..

Thanks

Sam
 
Will lift the value, but not as much as you would think. The main benefit would be ease of sale but I wouldn't expect more than about £2K on top, you have to remember the engine is secondhand.
 
I think it's like maintenance is generally. You spend a lot of time and money and end up with the condition it was originally :(

In your case it depends on whether the purchase price is fully discounted to cover the cost of re-engining. Then decide whether you want all the hassle that involves. Look around and see what similar boats are going for ... ...
 
What would the purchase price of the same yacht be at the moment with an engine that doesn't need replacing? That is about the value you will be looking at. It won't add considerable value to a boat, it is putting it back to a more saleable condition and as ssd says just makes it easier to sell as it could be the deciding factor if a potential purchaser has to choose between 2 similar boats.

Think about cars - if you blow up the engine on a 5 year old car and put a new one in, it won't add to the trade/insurance book price but just might stop a private buyer haggling you down too far.
 
Two further options

Engine re-build

or

Secondhand engine.



BTW I will have a Yanmar 3GM30 mated to SD20 Saildrive for sail at the begining of next year (Portsmouth area)
 
Thanks for the replies

I have considered a overhaul, but it is a volvo MD5C only made between 81-82. The parts are hard to get/expensive and engineers I have spoken to have all suggested repowering is the best way to go.

It is overheating on full revs which I understand may indicate clogging of the cooling pipes.

I may try a flush with Rydlime: http://blog.motortechmarine.co.uk/2011/05/03/rydlyme-marine-descaler/

And if that cures the overheating get a compression test and take it from there.

Not planning to sell in a year, but it's a possibility and I just picked a year as a arbitrary date to get a feel for things.

The boats seem to go for 10k - 12k with better engines..

Thanks

Sam
 
5k for a new engine? Or is it a refurbished one?

What about the installation, replacement beds & prop & shaft & seals? That added another 5k to my re-engining about 4-5 years ago.

And then the fuel tank failed while undergoing sea trials, so that was another 700 squid plus a tank full of fuel lost in the bilges :rolleyes:

Don't expect boats to make money these days, even if you buy really cheap & do them up yourself, once you cost your time out (even at minimum wage) you'll be lucky to break even.

For a small boat, if I costed it against the price os a charter for 2 weeks a year it just about broke even, when I moved up to SR I needed to offset it against at least 3 weeks charter. Now I just don't bother, it's a cost I'm prepared to pay while I can.

My first boat sold for what I paid for her after 7 years of improvements, SR would probably lose me 3k after spending some 20k on improvements & replacements over the 25 years I've had her.

Boats are seldom a sensible investment.
 
Re engine only worth doing (on a financial basis) if you keep the boat. You might increase the resale value by about 50% cost - but very difficult to predict at that end of the market. If you are investing £5k, get that value out of it by using the boat for a long time. If not, offload the boat onto somebody else.
 
I had a SeaRay powerboat with a Mercruiser 5.0 litre V8 petrol engine :eek: which just decided to blow up.

No idea why.

I was given three options:

Rebuild

New 1/2 block ? (crank, pistons etc already fitted) and refit old/existing parts after some refurbishment.

Complete new engine with cost offset by the engine supplier buying my engine for spares and only the labour to fit it at nominal cost. Two year warranty.

No brainer.

The first two costs were similar and added nothing to the value of the boat.

I sold the boat with the engine still under the warranty for a much higher price than similar models and much more quickly.

From an initial loss of (I think) 7k I managed to get it down to around 3k and it sold within 3 weeks. One of the other boats was still on the market 15 months later.
 
Last edited:
Bav34 said:
I had a SeaRay powerboat with a Mercruiser 5.0 litre V8 petrol engine :eek: which just decided to blow up.

No idea why.

I was given three options:

Rebuild

New 1/2 block ? (crank, pistons etc already fitted) and refit old/existing parts after some refurbishment.

Complete new engine with cost offset by the engine supplier buying my engine for spares and only the labour to fit it at nominal cost. Two year warranty.

No brainier.

The first two costs were similar and added nothing to the value of the boat.

I sold the boat with the engine still under the warranty for a much higher price than similar models and much more quickly.

From an initial loss of (I think) 7k I managed to get it down to around 3k and it sold within 3 weeks. One of the other boats was still on the market 15 months later.
Click to expand...

Engines represent a substantially bigger proportion of the value of a powerboat than a sailing yacht, and are certainly rather more important to a power boat, particularly a single engined one.

A newish (say 1-3 year old) engine does make a sailing yacht more attractive to a buyer, but not that much more than a clean, apparently well maintained 10 year old engine, unless it's actually still under warranty.
 
Bav34 said:
I had a SeaRay powerboat with a Mercruiser 5.0 litre V8 petrol engine
[...]
I sold the boat with the engine still under the warranty for a much higher price than similar models and much more quickly.
Click to expand...

Perhaps a bit different in the motorboat world though, where the engine is a much bigger percentage of the value of the boat?

Pete
 
sam_uk said:
...

The boats seem to go for 10k - 12k with better engines..

Thanks

Sam
Click to expand...

If others are available, save yourself the hassle, get one that's already been reengined. I have the Beta twin in my Vega which was installed by the previous owner, good little engine...
 
sam_uk said:
Searush definitely not trying to make money! Just trying to work out roughly how fast I will be losing it :)

Quote is based on

£3000 inc for a beta marine 16hp
£1500 fitting
£500 sundries according to http://www.tsmarine.co.uk/

This is based on keeping the existing saildrive leg.

50% of 5k I could live with I think..
Click to expand...

Fitting sounds very expensive to re-use your existing leg. Not sure how much is involved in fitting a bobtail Beta to a saildrive, but Vetus advertise that their engines will go straight on and fit the existing beds. Worth investigating as it might make fitting a DIY job.

However, you will want to change the diaphragm while the engine is out, and you will still be stuck with a way obsolete 110 drive. You will need to change the prop because the new engines rev much higher and not sure what prop sizes are available for the 110.
 
To answer the original question - very little value addition.

However there is a saying about new wine in old bottles, the project is, IMHO, likely to end in tears and big budget overruns, mainly due to the saildrive and its mismatch with the new engine.

Far better to accurately investigate the problems with the current motor/drive and carry out a simple rectification - likely to work more satisfactorily and at a lower cost.
 
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