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Old 09-12-2017, 17:52   #1
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Yacht prices defy logic

I am completely baffled by yacht prices. It seems like new, well-known brands will sell for prices fantastically higher than older boats from unknown makers, even if the older boat is in good condition.

For example, here is a 90 foot pilothouse yacht, apparently in excellent condition for $650,000:

1990 Broward Raised Pilothouse Motor Yacht Power Boat For Sale - www.yachtworld.com

I have seen 30 foot boats that sell for that much.

What is the logic here?
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Old 09-12-2017, 18:10   #2
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Re: Yacht prices defy logic

Boats even from the same maker often take a huge depreciation in just a few years.
Iíd guess people with money, want new
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Old 09-12-2017, 18:23   #3
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Re: Yacht prices defy logic

Often boats are not properly maintained and over the years the costs to refit are very high. There are tons of examples of used boats that are being sold very cheap and that's what all shoppers want to hear, everything else is tuned out. Now an older quality boat that has been constantly maintained and upgraded is not cheap but the value is there, problem is that they are as scarce as hens teeth. So no matter the ad most older boats dont really live up to their description and hence the huge difference. Most boats are party boats and seldom leave the dock and if they do they don't go very far and newer boats with their wide beams and large multiple ports are far better at serving this purpose. Buying a boat to cross oceans is another kettle of fish, pay the base price on a new boat and then add 30% or so for upgrades. And finally, yes many people like brand new things and if you can afford it why not?
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Old 09-12-2017, 19:08   #4
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Re: Yacht prices defy logic

Here is part of the logic... That 1990 aluminum hulled boat you pointed to... I'll bet it's about time for her to be repainted, and probably in line for some other major refit work too after almost 20 years.

Care to take a guess what a professional LPU paint job would cost for that beast??? Then add that the the $650K... Plus new engines... Plus....
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Old 09-12-2017, 21:09   #5
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Re: Yacht prices defy logic

Nobody who is in the market for a 90' yacht is looking for one that needs work.
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Old 09-12-2017, 21:59   #6
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Re: Yacht prices defy logic

I pay for pounds of displacement. If a 30 foot boat from 2000 displaces 7000 pounds and they are asking $10k thatís about 1.42 dollars per pound. Therefor a boat 50 feet in length in similar condition of the same year and same manufacturer that displaces 33000 pounds should be priced fairly at at $47k. If I see that boat selling for 100k I know itís way overpriced. Adjustments for condition and equipment can then be inferred. You might not like that method and everyone has their own technique but this is mine.
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Old 09-12-2017, 22:09   #7
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Re: Yacht prices defy logic

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I pay for pounds of displacement. If a 30 foot boat from 2000 displaces 7000 pounds and they are asking $10k thatís about 1.42 dollars per pound. Therefor a boat 50 feet in length in similar condition of the same year and same manufacturer that displaces 33000 pounds should be priced fairly at at $47k. If I see that boat selling for 100k I know itís way overpriced. Adjustments for condition and equipment can then be inferred. You might not like that method and everyone has their own technique but this is mine.
That comes really close to another rule of thumb: The cost of a boat rises proportionally to the cube of the length. Of course you would expect them to be pretty similar, and it's nice to see they work similarly in the real world.
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Old 09-12-2017, 22:50   #8
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Re: Yacht prices defy logic

To a boat builder friend of mine the value of a fiberglass boat starts with it's weight. Then he adds what ever is there that does not need replacement, less whatever needs replacement, then add/deduct for the quality build and he gets a pretty good estimate of its value. Not its "fair market price" as markets are somewhat askew due to advertising, local conditions/preferences, cost of dockage/storage, etc. but just "rule of thumb" value to him, with which to compare various makes, models, etc.

According to him makes such as Hinckley are way overpriced, both new and used. Not because they are not well made (according to him they are well made) but because so many other popular makes are poorly made. So this makes a simply well made boat look stellar in comparison.

His basic test of the quality build is always to see the finish of unseen places on a boat - deep inside the lazarette, way behind the bulkheads, etc. Once at a boat show we climbed aboard Island Packet listed for around $500K. He immediately went to the cockpit locker well and brushed his hand against the inside partition. Almost cut himself on the fiberglass strands there. Was cursing profusely. Then we went up to the bow and saw that there was no windlass. WTF? A half-million heavy sailboat with windlass as an option and not standard equipment? We didn't even go down below as he pronounced it POS. That was 10 years ago. No wander the company went (or is going to) belly up. May be 20-30 years ago they were making decent boats but definitely not 10 years ago.

Imagine a $500K automobile with ABS brakes as an option. How many of those will be sold?
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Old 10-12-2017, 00:31   #9
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Re: Yacht prices defy logic

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Originally Posted by jsc7 View Post
I am completely baffled by yacht prices. It seems like new, well-known brands will sell for prices fantastically higher than older boats from unknown makers, even if the older boat is in good condition.

For example, here is a 90 foot pilothouse yacht, apparently in excellent condition for $650,000:

1990 Broward Raised Pilothouse Motor Yacht Power Boat For Sale - www.yachtworld.com

I have seen 30 foot boats that sell for that much.

What is the logic here?
While I get your point, very few 30' boats run $650k new. There are some but they are definitely outlyers. At the same time, you won't find a brand new 90' boat for anything close to $650k. Figure at least a couple million for a quality well outfitted 90' boat.

All you are seeing is depreciation and there is nothing special about the boat market. Example: I picked up a 2001 F250 3-4yrs ago for $6k. The new truck with the same options is closer to $60k if you bought new today.

The other thing you see is different markets: If you put a New Ford Focus up against a new Ferrari:
- The Ferrari is likely on the order of 20 times the price.
- It's far less reliable.
- It's far less comfortable.
- It doesn't have seats for the kids or a truck to take groceries.
- And it doesn't get you thru the daily commute any faster because both are easily able to exceed the legal speed limit.

Yet people buy new Ferraris. Same principal with boats, there are certain name brands that people pay a premium for far out of line with any improvement in actual quality or value.
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Old 10-12-2017, 01:38   #10
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Re: Yacht prices defy logic

It's a Broward. Go look at some and you will see why they sell cheap at that vintage.

At one point they were known as the Bayliner's of Mega yachts.

90' is no longer considered Mega of course.

Total money pits.
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Old 10-12-2017, 10:08   #11
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Re: Yacht prices defy logic

Apples and oranges. Well-known does not automatically equate with suitability and there a lot of self-qualified novice "sailors" out there who don't know enough to know what they don't know. Lot's of anecdotal experience going on there. Confusing sometimes, for sure, especially if just starting out with this endeavor.
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Old 10-12-2017, 10:25   #12
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Re: Yacht prices defy logic

ďA boat is only worth what someone is willing to pay for it.Ē
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Old 10-12-2017, 10:38   #13
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Re: Yacht prices defy logic

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Originally Posted by jsc7 View Post
I am completely baffled by yacht prices. It seems like new, well-known brands will sell for prices fantastically higher than older boats from unknown makers, even if the older boat is in good condition.
I donít understand your confusion. Aside from this specific of whether this 90í boat is a junker or not, most goods and services in our consumerist culture is sold based in large part on brand-value, not inherit value. Itís why the Ďno-nameí (or lesser known name) version of something is usually a lot cheaper than the Ďname-brandí version, even when the items are identical.

Companies spend a lot of money on building their brands. Why? Because they know they can then sell their particular widget at a much higher price point. Happens with beer, cars, hotels and yes, boats. Thatís not to say some brands arenít better quality than others Ö of course they are. But itís not necessarily the case.
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Old 10-12-2017, 12:19   #14
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Re: Yacht prices defy logic

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Originally Posted by a64pilot View Post
Boats even from the same maker often take a huge depreciation in just a few years.
Iíd guess people with money, and lacking experience of the costs of commisioning a new boat want new
As Stu M would say, there, fixed it for you, A64.

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Old 10-12-2017, 12:56   #15
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Re: Yacht prices defy logic

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Originally Posted by JPA Cate View Post
As Stu M would say, there, fixed it for you, A64.

A.
If one can afford it, buying new can be a very attractive option.

And without new boat buyers there would be no end product to purchase for those who might not understand all the costs and expenses of buying used.

Vive la difference.
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