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Old 07-06-2014, 07:42   #1
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BUC vs market value

So the admiral and I have been looking for quite some time for a suitable cat. We are finally ready to make a few offers but are running into one big problem. Most if not all of the yachts BUC value is far under what they are listed for and appear to be selling for. So far we have not found a bank that will look at comps and or appraisal. Anyone else having the same problems. We could just bring more cash to make up the difference but don't want to spend more than our set limit to allow some cash for refit and or upgrades. One example is the Lagoon 380. BUC value for a 2005 S2 is 197k, good luck finding an owners version for less than 250k. Anyway just getting a bit frustrated with the whole deal.

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Old 07-06-2014, 08:41   #2
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Re: BUC vs market value

BUC values are notoriously wrong regarding larger boats that do not sell in narrow price ranges and in large numbers like jetskis and bowriders do.

Marine lenders understand this and do not use BUC as a valuation source. Local banks do not understand this and most treat all boat loans like automobile loans.

Go to a marine lender instead of a local bank.

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Old 07-06-2014, 09:18   #3
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Re: BUC vs market value

You can't value boats using the same method that you value cars. There are far fewer boats than cars, which dramatically reduces the accuracy of an average. There are also far more "options" that you find with a boat than with a car. There is also no odometer with a boat. The equivalent engine hours with a boat has far less relevance to its value than you find with a cars mileage.

Boats also do not have an equivalent end of life like you find with cars. Many boats are worth replacing worn equipment and upgrading. Most cars are not worth upgrading or repairing when something major breaks.

In my opinion the BUC valuations are wild estimates because of all the variables in value that come with a boat.
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