Running costs

[greg]

Does anyone know by how much the modern 40' European cruising yacht depreciates by each year. I am presently in the process of buying one of these vessels new and am trying to project how much the vessel will cost me over the next five years (running costs and depreciation).

Appreciate your thoughts.

 

[vyv_cox]

The simple answer has always been - the rate of inflation. For the first few years you can reckon to get what you paid, less broker's fees and other fixed charges.

Personally, I think that running this type of calculation will scare the sh*t out of you and you won't buy it. Depreciation is a very small proportion of total costs in my experience.

 

[Twister_Ken]

Gut instincts suggest that Viv's rule of thumb might not hold in the near future. So many Eurotubs in the 36 - 42 category have been built over the last few years that there is already something of a glut of 'nearly news' around and the situation will likely get worse (from the seller's p-o-v). Add in the fact that Bavaria - at least - seems to introduce new models at about the same price as a previous slightly smaller model, and it's not difficult to imagine used prices taking a dive - especially if the economy remains somewhat belly-up for a while.

 

[vyv_cox]

Yes, I meant to put something like that in my post but got diverted by work or something. Hence my first sentence wording.

Secondhand prices are falling rapidly and the "rule" probably no longer holds true. This seems inevitable when you can buy a new 34 ft boat for the cost of a 10 year old one. Whether they are of equivalent quality is another matter altogether!

 

[robp]

89K four years ago seems to be worth 75k to 78K at a push today. (Beneteau).

I would like to think that potential buyers for these boats will learn that there's been cost cutting even in the past year or so and therefore look at 4 - 5 year old boats as built better. (Eternal story). But I won't bet on it.

 

[pvb]

Remember the old saying???

"If you have to ask the cost, you can't afford it". Sad, but true. If any of us actually costs out the cost of owning a boat, on the basis of the cost per day that we actually use it, we'd sell the things immediately. Truth is, there's a lot of pleasure to be gained from the ownership alone, so we can kid ourselves that it's justified. Best answer is not to buy a "modern European" boat, but to buy a limited-production higher-quality boat instead. These tend to hold their value better.