Economics of boat buying: New or Old?

[exMaggieDrum]

I bought a cruise-worthy, but not cruise-ready boat a year and a half ago. I got it for far less than the owner had hoped but the boat had far less than the owner thought was of value. I am fixing, replacing, adding things now.

I expect to be able to get 90-100% of the sales price that I paid, excluding sales tax of 9%, fees, etc. I will not recoop what I am adding to the boat. But quality cruise-worth boats are anything but a glut on the whole of the North American Pacific coast. I can't say for the Atlantic coast but I suspect it is close to the same. There are lots of boats for sale but the good used boats go very quick, very quick indeed. A couple I wanted sold within 1 week of offer. No exaggeration. I looked for two years. I have cruising friends who have been looking for three years. Yes, we are picky, but not overly picky. There just aren't that many of the good ones offered for a good price.

But you'll never get back what you pay in total for a boat, including upgrades, refits, etc. unless you get a very good deal. You might be able to sell a recently purchased new boat that you put 20-30% of new equipment on for about what you paid for it originally, if, you had the work done to a professional level (DIY or commercial). But you won't get back the cost of the new bits. Every year you use the boat, the less value the new bits will have. A two year old radar is very much depreciated from a brand-new state of the art model, at least in perception of buyers.

New or old - depends on the price you pay for what you get. There are some amazing deals from time to time out there on used boats, usually from inside knowledge, purchased by knowledgeable, ready-to-buy sailors. New boats go for the listed price less whatever the current discount level is in the country they are purchased in. Much of that depends on the competition in that country for other new boats in the same category of quality and capability.

Just saying that if there is a glut of used boats on the market it isn't very obvious in the US and Mexico. You can buy less capable and less worthy boats all day long, but there is no free lunch.