Sailing yacht depreciation

[Baggywrinkle]

Buy the best condition boat you can find which you feel suits you the best, if your budget is 50-100K then look to spend 75K on a boat from 8-12 years old - put the 25k to one side for eventual re-power, sails, and electrics.

I think that at around 10 years, boats take one of two trajectories, they either get well maintained and looked after, in which case they retain their value, or they don't and their value nosedives towards "project boat" status.

That is what I would do, buy a ten year old boat and maintain it well.

PS: Avoid teak decks like the plague.

 

[Quandary]

My experience , 50% after 8 years, (I reckon 20-25% in year 1) then at 35% after year two, fom then on it is only about 5% per year. so if you could buy it a 3 year old boat would be the best value,, unfortunately for you not many people want to let them go that soon. Obviously it flattens even further later on when usage, condition and equipment all come more in to play. A lot of folk like to replace marine engines after 20 years, not sure why but seems to be a fashion.

 

[Zing]

Before I bought I carefully considered depreciation rates as I didn’t want to lose badly. It is an important issue. by far the biggest cost of boat ownership potentially. It was 8 years old when I bought last and 10 years later I think got it right. The boat lost in my ownership a tenth of the amount the first owner lost. It’s the first 7 to 10 years, which are the sweet spot to buy if you are short of cash. Half to two thirds of its value will go in that period. Sometimes more. That said, I want a new one now. Priorities have changed. Boat repairs are now far too frequent.

 

[peter gibbs]

I am looking at buying a semi live aboard 40ft + yacht. My question is from 2005 onwards which year build is the best value for money, taking into account predicted further depreciation? Also if you buy a new one how much does it depreciate on you drive it off the forecourt as it were?

Always an interesting question. Popular family boats, Westerleys and Moody etc now 30+ years old pretty well hold their current value. At this age if the motor and rigging are original, large bills can be expected but the hull should be fine unless heavily grounded.

Younger boats with lots of quality instruments, sails and nice features will slow that early rate of depreciation., which can be expected to run to 1/3 off list on hitting 10 years.

I reckon after 10 years, you're entering the replacement zone for rigging, sails, and also kitchen gear, upholstery. etc and a further loss can be expected - of course if the owner has replaced lots at 10 years the hit will be less. But I don't think splashing out at 10 years prior to sale will replay the investment; quite a lot of style and personalisation changes a new owner wants would discount value the vendor is trying to recoup by way of a premium

PWG

 

[ashtead]

Reading the thread it would seem the choice of post 2005 boats at 40ft plus rather depends on budget but ideally you would be looking for say a quality boat from say 2015 on basis engine and sails etc still have some life in them. If you are happy with main brands then a jeaneau deck saloon might be a starting point to benchmark against ?

 

[Homer J]

It also depends on when the yard (of your eventual brand) were producing good boats. When I was buying mine 5 yrs ago (yr 2000. Jeanneau, worth the same now as then) A number of brokers told me to avoid certain spans of years Certainly mine was the last of the teak interiors. I seem to remember one telling me Bavari’s had a rough patch around then - but check this I may have the years wrong and someone will no doubt have another opinion - it wasn’t my opinion it was the broker.

 

[doug748]

I am looking at buying a semi live aboard 40ft + yacht. My question is from 2005 onwards which year build is the best value for money, taking into account predicted further depreciation? Also if you buy a new one how much does it depreciate on you drive it off the forecourt as it were?

I think some of the earlier informed estimates seem spot on.

A lot depends on how long you intend to keep the boat. If you envisage 25 year ownership, then the starting point is not so important as you will just pick up the regular items at a different point in the cycle. A six year old boat may not need a new engine now but it could well in 18 years time.
In this case, put simply, just go for the boat that offers the best deal.

I thought about going for a newer boat of the same type that I have now, it was lovely internally 25 years younger and very smart on deck. However my older boat had newer winches, sails, rigging, instruments and engine - so, sometimes, all is not what it seems.

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