The Value of a Boat

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Say_Cheese

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Hi all,

I am looking to buy a boat and was wondering what happens to the value of a boat?
Are they like houses in so much as the value fluctuates depending on the current economic climate or are they more likened to cars. In as much as the second you take delivery of a new one it depreciates in value by a couple of grand and then it continues to depreciate at a steady rate until it is worthless.

Is the same true for all boats or are there exceptions to the rule?
I would be interested to know before buying.

Many Thanks



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If you buy a raggie there is much less depreciation (other than the reduction in value of the £) I bought my Cat 15 yrs ago for £22k and it was valued by a surveyor last year at a very conservative £28k. I have since invested even more money in her (who hasn't /forums/images/icons/smile.gif).

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Can't say I've really got the hang of it yet. It seems that new boats depreciate, but not at a rate of knots, and then seem to reach the point where their value increases i.e. look at any 30 year old boat and it will be worth several times what it originally sold for new (althought there is obviously the value of the pound over that period to be taken account of - bit too complicated for me)!


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They dont depreciate in the same way as cars. If you buy new, then you could expect to lose 10-20% in the first year depending on how popular the model is but then depreciation tends to level out and, in fact, most secondhand boats, particularly the popular types, level out completely such that you could buy a 5 yr old boat and sell it in 3 yrs time for the same as you paid for it. Dont forget however, that if you sell through a broker, you will lose 5-8% in commission
The whole secondhand market is underpinned by the fact that boats have a much longer life than cars (grp appears to last indefinitely) and the fact that the price of new boats has been rising for years by more than the rate of inflation (thats a whole subject on its own) and many desirable models have lengthy delivery times. Obviously, the market also depends on other factors but so long as the UK economy is generally stable and interest rates remain low, the boat market should remain healthy

There are some general rules for minimising depreciation

1. Buy used, maybe 3 to 5yrs old. Older boats may depreciate even less but cost more in maintenance
2. Buy a well known make (eg Fairline, Princess, Sunseeker, Sealine)
3. Choose a popular model, preferably one which is still a current one
4. Ensure it has a diesel engine, preferably two of them
5. Choose a boat fitted with the most powerful engine option

Then, if you look after it, you should get most if not all of your money back when you sell it

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Agree a lot with this, bought a Fairline Holiday for 10K, valued at purchase at 11.5K. Lost the engine in the frost, got 6K back off the insurance. Fitted her out with new diesel plus heating and hot water and shower, spent 14K, value based on MBM article 18K, so have spent 24K, got 6K back = value of boat excludind fuel pay back as red diesel is 30 pL and petrol 90p / l.

And remember enjoyment costs money it's up to you how much it's worth.... /forums/images/icons/wink.gif

regards

peter

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