Best Projected Resale Value

[barnakiel]

Originally Posted by Vronsky

No problem at all.
I'll be cruising singlehanded, so 34' seems appropriate, but optimum resale value considering: what would be a better size ??

Salut,
V.

40+ is the norm/majority today. The trend was upwards between 1960 and 2000, I think.

Alas, it is important to see the % loss vs. dollar loss.

You may suffer a smaller dollar loss @ a higher % loss when you elect a bigger vs. a smaller one.

All other things equal, I would go for lower $ loss.

b.

[barnakiel]

Originally Posted by biker6977

More people may "want" cats but more people can afford mono's. (...)

Yes. But don't you think there are more monos?

Just thinking aloud.

Noticed things like Athenas stay at nearly the same price level last couple of years. But maybe they have just reached the flat(ter) part of the curve.

OP doesn' cat anyways.

b.

[a64pilot]

See I think he is looking at exactly the right size being on the smaller end of the 30's. Because they aren't as desirable as a 40 fter he can get it for less money upfront and his operating costs will be lower.
Maybe even that smaller boats will come back into favor as more and more people just simply can't afford "yachts" as much anymore.
Maybe it's part of aging, but at least in the US it seems the wealth of the middle class is decreasing, not increasing

[Vasco]

Originally Posted by a64pilot

Maybe even that smaller boats will come back into favor as more and more people just simply can't afford "yachts" as much anymore.
Maybe it's part of aging, but at least in the US it seems the wealth of the middle class is decreasing, not increasing

Well you could have fooled me. Every year the boats out cruising seem to get bigger and the cats are multiplying like rabbits.

[Vronsky]

Originally Posted by a64pilot

...
So if your buying with the intent on re-selling soon and your return is most important, then start your search looking for a steal on a boat as opposed to your dream boat. ....

I fully understand it most likely won't be my dreamboat. However, the usual reason for 'steals' to be 'steals' is that they are hard to re-sell. I wouldn't mind spending a more on a boat to be sure it'll be easy to get rid off later on with minimal depreciation.

[drzasa]

In my experience if you are worried about cost at all boating/cruising is not for you. If you have a very limited budget after you buy your boat it's not for you.

[monte]

I don't think he's saying he's worried about the cost, just wants to make a sensible decision before purchase which is a good idea, especially considering his realistic approach that he may not be buying a boat to sail off into the sunset for the remainder of his life..
Personally I don't think boats depreciate much, they just need more $$$ as time goes on repairing and upgrading to keep them safe, modern and in good condition. There's lots of boats that are worth more today than when they were new. Regardless of what you buy, if you buy sensibly, preferably directly from the owner to avoid brokers fees, and sell the same way chances are you will break even on the initial purchase price, whether it's a new boat or a 10 or 20 year old boat. That said, after 5 or 10 years the upkeep costs will rise quite a bit from new or near new boats.
One of the more important considerations is probably registration. Where is it registered. Can you keep it registered there after purchase. Are annual registration fees payable. Has tax been paid on it already, etc.

[Vasco]

Originally Posted by monte

Personally I don't think boats depreciate much, they just need more $$$ as time goes on repairing and upgrading to keep them safe, modern and in good condition. There's lots of boats that are worth more today than when they were new. .

Definitely not so in my part of the world. The only boats that don't depreciate much are those that have reached the bottom of their value. Granted the depreciation gets less and less as they near the bottom. My experience is with production boats having bought three new ones over the years.

There are very few sailboats that are worth more today than when they were new. Frankly, I can't think of a single one, especially if you factor in inflation.

[valhalla360]

I think the big issue is going to be going the caribean. That's a long distance purchase for most people and they give lower bids as a result. If you can get back to Florida or another major U.S. market, that will probably be a bigger deal than the brand.

I would disagree on the resale of high end boats. A high end 5yr old boat will sell for more than a mid level 5yr old boat but original price of the high end boat was likely dramatically higher to begin with. The depreciation in percentage terms won't be dramatically different.

As far as maintenance and upkeep on an older boat, a lot depends on the level of fit and finish you demand. If you want like new condition with the latest electronics, sails, upholstry, etc... every 5yrs, it quickly gets crazy trying to maintain an older boat. If you are just looking for a serviceable 15yr old boat, you can keep them going for a long time with a moderate amount of cash and a moderate amount of sweat equity (and I'm talking about maintaining a clean funcional boat not a derelick).

[monte]

Without factoring in inflation, what is your experience with depreciation in round figures, ie paid x sold for y, z years later..?

[Vasco]

Originally Posted by monte

Without factoring in inflation, what is your experience with depreciation in round figures, ie paid x sold for y, z years later..?

My first boat (1984) I sold after 3 years at a slight loss. It was a new model (CS30) and much in demand.

My second boat is worth approximately 50% of what I paid in 1988. I still have the boat. It is 26 years old and in good condition. (CS36M)

My third boat (B393) I don't even think about as it was a US built boat and when I bought it in 2004 the Canadian dollar was real low. Since then the Canadian dollar has risen to par with the US dollar and now has fallen a bit to about 90 cents. I figure it's worth less than 50% of what I paid for it in 2004 and that does not include the improvements over the years such as $7000 worth of canvas work. This boat is in excellent condition.

I have said a few times in this forum that buying a boat for personal use is not a business transaction. It is mostly emotional and you cannot put a price on the pleasure that sailing brings.

[Cheechako]

I've been able to "break even" on some boats by selling myself and upgrading and making them better than bought. What that really means is I gave away the new stuff I added and the labor.
One boat I bought for 65k put 65k into it and sold it for 165k. ... less the brokers fee.
One boat I put 50k into it above the initial cost and lost that + the brokers fee in 3 years.

[monte]

Thanks vasco. Interesting about your second boat being half the value after all this time. Can you give us an idea on initial cost, current market value and the cost of a new boat with similar specifications if it's no longer made? I'm curious as to whether new boats are becoming comparatively cheaper to buy. Inflation since 1988 should have things costing about 4x as much today. I think you guys that have bought and sold a few boats can give the OP an idea on how to break even, rather than take a big hit after a couple of years..

[Cheechako]

"I think you guys that have bought and sold a few boats can give the OP an idea on how to break even, rather than take a big hit after a couple of years.. "
Buy smart...
Don't be too anal about upgrading every little thing.. ask yourself: "how many times will I actually use this? and with the cost how much is that each time I use it?"
Use your own labor and keep it ship shape.
Don't buy an "oddball" boat... one that no one has heard of or is just really weird!

[a64pilot]

I think of it like buying a car, it's a depreciating asset, period.
Don't buy a car or boat to sell, or if you do, only look for a steal of a boat, be prepared to write a check, right now to get someone out of a bind. You may find that steal tomorrow, or still be waiting for it three years from now, every body is looking for a deal, good luck.