monte, there was a time in the late 70's early 80's when sailboats held their value very well - indeed, I actually made some money
on the resale of a couple of my boats. Circumstances were different then, as:
1. The supply of good used fiberglass
sailboats was relatively small. FRP construction of cruising boats did not begin on a large scale until the 1960's and, as a consequence, anyone looking to buy a used fiberglass
sailboat had to purchase
one that was built in the last 10 to 20 years. In addition, the bareboat charter
market was in its relative infancy and the companies ordered only a fraction of the boats that they do today. As the boats they purchase
go off charter
, they flood the market for used cruising boats.
2. Even though the supply for used cruising boats has increased, demand for the same has remained relatively constant; indeed, with the downturn in the economy, it has probably dropped.
3. Interest rates/inflation are much lower today than in the late 70's and 80's.
4. The huge increase in the cost of oil
during the first oil
embargo had a dramatic effect on the cost of resin, dacron, etc.
Real estate is a very different matter than boats or cars as:
1. The land itself does not deteriorate with the passage
2. The land for new construction is typically less desireable than many older homes as it will be further and further away from town centers.
3. Typically, designs of homes do not become obsolete; indeed, many prefer designs from previous generations.
4. The quality of materials/workmanship in some older homes is much better than in many newer homes and, those areas which are not (windows, electrical
, plumbing) can be upgraded relatively easily.
5. Demand for housing is relatively inelastic - even in a bad economy, people still need a place to live. People do not need a cruising boat.
6. It is easier to get a mortgage for a reasonable rate on a house than on a boat.
So, unless in the next several years we move into hyper inflation and yet simultaneously, also have more people with more disposable income
, a boat that costs 400K now will not cost 400K when Scarlet is in the market for a used boat
in the next 5 or 6 years!
Scarlet, your basic thinking is IMO correct. Howver, as has been pointed out, your mileage may vary depending upon the boat. Some cats, particularly those that are well designed, well built and not intended primarily for the charter market, will typically depreciate less. Think of it this way - the demand for new Lagoons, Leopards etc. is fueled by not only the demand for new cruising cats, but more significantly, by the charter market. Once those boats are off charter, the demand for the used examples will only be from those in the market for used cruising boats.