Depreciation

[FlowerPower]

230k brand new 195k 6 mnths old. SC35...if you were looking to buy, which would you choose and why?
Lisa

If the 6mth old boat had the "right" spec, I would choose that one.

If there were "must have" options that I really really wanted but were not available on stock boats or second hand boats (e.g. leopard skin with purple upholstery) and that were hard to retrofit, I would order a new one.

[joliette]

If you don't like massive depreciation, buy an older or smaller boat.

Exactly ... if you want to buy new you will suffer depreciation. If you buy something classic you could end up with something that actually is more of an investment.

[Tranona]

I've collected lots of info and done lots of calculations, in an attempt to estimate what to offer - and what depreciation to expect in the family-boat segment around 30-35'

The result is that identical models and makes, from same year, vary up to 30% in asking price. Asking price is to be seen as a starting point for negotiation.

Thats a very wise observation, although the range widens as boats get older because relatively new boats tend to be in good condition. It is when they get to the second and third owner that some start to deteriorate quicker than others, or get messed about in the name of improvement.

[hlb]

Dont think depreciation comes into it much. I've got all the bills since my boat was new.

For a few years it actually went up in price, then stabalised, but still more than new.

That was up to ten years ago and the price has been stable till a couple of years ago.

Prices now seem to be dropping like a stone.

I'm just looking for a reasonable asking price.

[FlowerPower]

I'm not unhappy with S28 depreciation, maybe £20k or so over six years.

That, I can live with.

But, £30k per year ???

[gsturgeon]

Just had a thought.....

It's worse than £30k a year, we are comparing two buying prices, the second one should be what the owner sold the boat for.

[tico]

FlowerPower (e.g. leopard skin with purple upholstery)

rings a bell... perhaps some of the older members might remember

[Nick_H]

Depends what you consider as depreciation I suppose.

I was recently offered broadly what I paid for my boat, so arguably i'd have seen no depreciation during 4 yrs ownership. However, money is worth less now through inflation, and if i'd have stuck the money in the bank 4 years ago i'd have got maybe 12% after tax during that 4 yrs, so arguably it has depreciated 12%. If I sold it though, I'd want to buy a replacement, and to buy the equivalent boat of the same age (at time of purchase) i'd be looking at maybe 30% more because new boat prices have rocketed, so arguably it has depreciated 25%.

The last measure is most relevant to me, so I kept the boat

[scubaman]

We bought our 2004 Sealine F37 in 2007 and sold it this year. In pounds we lost 9% in four years, which is not at all bad (if talking about euros, we lost a lot more of course, but that's a somewhat different story).

We've been searching for a new slightly bigger three cabin boat, but I've been amazed by the depreciation of some of the models we've looked at. I need to gather some statistics to get better understanding on this before jumping to conclusions.