Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 12-03-2013, 08:06   #1
Registered User

Join Date: Nov 2012
Location: Baildon, Shipley, West Yorkshire
Posts: 18
Catamaran Depreciation Questions?

We are looking to sell-up and sail away and are in the process of detailled planning. We have chosen a short wish-list of Cats which fit our criteria. Some are truly well out our price bracket, now!? But, if we can calculate how much year on year that the main production cats depreciate we could end up buying more boat for our bucks so to speak. The wish menu is from Lagoon, Fontaine Pajot, Broadblue. Can anyone suggest an annual depreciation rate as these cats seems to hold their market value quite well?
__________________

__________________
Seadog54 is offline   Reply With Quote
Old 12-03-2013, 08:48   #2
Registered User
 
dan360's Avatar

Join Date: Jan 2012
Boat: Outremer 5X
Posts: 110
Re: Catamaran Depreciation Questions?

Well as you have many owners in this forum you may get the rose tinted spectacles version as we all like to imagine our boats retain their value :-)

That said, I do think that Cats retain their value pretty well. I personally have 10% depreciation, and 10% maintenance built into my budget. I think over time depreciation will decrease as a percentage and maintenance will increase.
__________________

__________________
dan360 is offline   Reply With Quote
Old 12-03-2013, 08:58   #3
Moderator Emeritus
 
David M's Avatar

Cruisers Forum Supporter

Join Date: Sep 2007
Location: San Francisco Bay
Boat: research vessel
Posts: 10,150
Re: Catamaran Depreciation Questions?

Like all things new, you take your greatest depreciation hit in the first year and then the slope of the depreciation line very gradually starts to get closer and closer to level. If you are sensitive to the cost of depreciation but don't want to buy an old worn out boat then I would consider purchasing a boat no younger than about 7 years old and no older than about 15 years. I think that is the sweet spot between the cost of depreciation and the cost of having to do major replacements and major maintenance.
__________________
David

Life begins where land ends.
David M is offline   Reply With Quote
Old 12-03-2013, 09:37   #4
Registered User
 
SearenitySail's Avatar

Join Date: Dec 2007
Location: Great South Bay, Long Island, NY, USA
Boat: TPI Lagoon 35ccc Catamaran designed by Morrelli & Melvin
Posts: 219
Re: Catamaran Depreciation Questions?

Quote:
Originally Posted by David M View Post
Like all things new, you take your greatest depreciation hit in the first year and then the slope of the depreciation line very gradually starts to get closer and closer to level. If you are sensitive to the cost of depreciation but don't want to buy an old worn out boat then I would consider purchasing a boat no younger than about 7 years old and no older than about 15 years. I think that is the sweet spot between the cost of depreciation and the cost of having to do major replacements and major maintenance.
David M makes some good points. You have chosen manufacturers for which there should be a good supply of boats (at least with Lagoon and Fountaine Pajot), so finding a boat shouldn't be an issue.

Of course you will probably get some posts regarding their pedigree and suggestions for more performance oriented, and/or less mass produced, boats. As with all boats, you have to decide both your price point and what you intend to use the boat for.

Other factors that affect depreciation are whether the boat was/is in charter and whether it is an "owner's" model. I think you especially have to consider his last statement if you are considering a boat coming out of charter.

One reason it is difficult to measure depreciation is there is usually a large difference between BUC Value/Blue Book Value and market value. I know for a fact that two Lagoon 35s like mine sold within the past 6 months for about twice the BUC Value. Another presently for sale will likely do the same. (A possible explanation for this, though, is that the supply of "smaller" catamarans (under 38') is somewhat limited--except for the Gemini cats.)

Marshall
__________________
"People sail for fun and no one has yet convinced me that it's more fun to go slow than it is to go fast." -Dick Newick
SearenitySail is offline   Reply With Quote
Old 12-03-2013, 09:40   #5
Registered User
 
ty.gregory's Avatar

Join Date: Dec 2009
Location: Panama City, Panama
Boat: Islander Freeport 41' Ketch
Posts: 422
Re: Catamaran Depreciation Questions?

David M. I trust your opinion immensely, but I’m a bit confused by your 7 to 15 year old “Sweet spot” recommendation. Maybe I am just not sure what you consider “major replacements and major maintenance.”

After seven or so years, isn’t it time to replace things like sails, electronics, rigging, etc? Some have said that it is better to get an older boat (14-20 years old) where someone else just did the major replacements and maintenance.

This is a subject that concerns me, and I would appreciate hearing more details about all this.

Thank you,

Ty
__________________
“If you end up with a boring miserable life because you listened to your mom, your dad, your teacher, your priest, or some guy on television telling you how to do your ****, then you deserve it.” ― Frank Zappa
ty.gregory is offline   Reply With Quote
Old 12-03-2013, 10:15   #6
Elvish meaning 'Far-Wanderer'
 
Palarran's Avatar

Cruisers Forum Supporter

Join Date: Jan 2008
Location: Me - Michigan / Boat - Tenerife
Boat: 56' Fountaine Pajot Marquises
Posts: 2,641
Re: Catamaran Depreciation Questions?

I agree with David in regards to the sweet spot. Also, given that you purchased the boat at the correct price, you will find the more you spend in maintenance and upgrades the less you will have in depreciation. I am estimating my total maintenance, running costs, and depreciation at 10% per year right now. So I need to use the boat for a minimum of 4 weeks per year to be ahead of what it would have cost to charter a similar cat.
__________________
Not all who wander are lost

http://www.sailblogs.com/member/palarran/
Palarran is offline   Reply With Quote
Old 12-03-2013, 11:16   #7
Registered User

Join Date: Oct 2011
Boat: WTB Lagoon or Leopard 38'-40'
Posts: 1,273
Re: Catamaran Depreciation Questions?

I've heard 10 years, which falls in the middle of David's range. About that time, the previous owner would have been forced to replace all the 7 year maintenance items, and the 15 year items still have some life on them.

In the kind of cats that you are looking at , though, things are different. For one thing, there is a constantly large supply of ex-charter boats - these boats go on the market at 4 years of age - and a very small, but maybe growing selection of older boats belonging to cruisers and "wealthy" owners, who tend to hold their boats very dearly.

Prediction: The ex-charter owners will be forced to lower their price considerably in order to sell into a glutted market, and an increasing fleet of older cats will bring more and more affordable boats
__________________
ArtM is offline   Reply With Quote
Old 12-03-2013, 11:18   #8
Registered User

Join Date: Oct 2011
Boat: WTB Lagoon or Leopard 38'-40'
Posts: 1,273
Re: Catamaran Depreciation Questions?

Theory is different than practice.

In practice, you will find several boats that roughly meet your price/condition requirements (after you have downgraded your expectations 3-4 times).

When that happens, you will simply choose between them. You will not have an infinite selection.
__________________

__________________
ArtM is offline   Reply With Quote
Reply

Tags
catamaran

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 01:22.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.