how realistic are the prices on boat classified sites?

[ramblinrod]

Originally Posted by redneckrob

That's only if you assume those depreciation factors to be true, which is not necessarily the case or even ever the case. I was just pointing out an error in math reasoning so we were all on the same page with what we're talking about.

Yes, the depreciation values also depend on what the item is and it’s avg life expectancy. For marine electronics, having about10 year abt life expectancy, I use 30% initial then 10% YOY, with an extra 10% off the year it goes out of production and 20% extra the year replacement parts support is stopped. Installation labour has little to no resale value.

For the average boat, having an average life expectancy around 20 years, I would guess 15% initial and 5% YOY. The trouble is, one has to consider appreciation, for the stuff added. For this reason, and because of the other variables, the valuation method I first mentioned proves more useful.

[Cadence]

Originally Posted by ramblinrod

Yes, the depreciation values also depend on what the item is and it’s avg life expectancy. For marine electronics, having about10 year abt life expectancy, I use 30% initial then 10% YOY, with an extra 10% off the year it goes out of production and 20% extra the year replacement parts support is stopped. Installation labour has little to no resale value.

For the average boat, having an average life expectancy around 20 years, I would guess 15% initial and 5% YOY. The trouble is, one has to consider appreciation, for the stuff added. For this reason, and because of the other variables, the valuation method I first mentioned proves more useful.

Appreciation? I doubt it. It leaves the box it has depreciated possibly holding some residual value.
Boats are a depreciating item. That said how is the enjoyment valued or what can an individual afford to piss away?
I don't know having pissed away money.
Would I do it again, yes.

[NorthernMac]

I don’t get boat prices at all.

You can get a really well built and pretty 70s 80s boat for next to nothing, but a 10-15yr old boat that looks like it got squeezed out of a mold goes for a decimal point over. Worked well for me on my last buy, but it’s kinda silly IMO.

[NYSail]

When I sold my last boat, I accepted the purchasers offer (no broker) based on him
and his wife’s love of the boat and sailing. I was willing to take less and know all my hard work was going to a couple that would love the boat as much as me.

So definitely did not reflect the market value of the boat....... more involved.

[mcarthur]

Originally Posted by ers61

so that brings us here to this forum topic.I wonder it..btw this is how I calculate it each year
% 0
80.0
72.0
64.8
58.3
52.5
47.2
42.5
38.3
34.4

so your 9 year old boat is %34.4 of it's price to my undertanding

Except there's inflation. At 2% per year, you can think of the "worth" of the boat at 9 years as being 41% of the original number you paid - which is probably the number the seller is interested in as we mostly relate "value" against what we paid

[ers61]

Originally Posted by mcarthur

Except there's inflation. At 2% per year, you can think of the "worth" of the boat at 9 years as being 41% of the original number you paid - which is probably the number the seller is interested in as we mostly relate "value" against what we paid

you could make this as much complicated as you want but just to mention that euro zone inflation was negative or zero between 2014-2016 whereas nowadays around %1 . since these boats are sold in euros not us dollars you should calculate the inflation of eurozone which is less than %2 per year..

[ramblinrod]

Originally Posted by Cadence

Appreciation? I doubt it. It leaves the box it has depreciated possibly holding some residual value.
Boats are a depreciating item. That said how is the enjoyment valued or what can an individual afford to piss away?
I don't know having pissed away money.
Would I do it again, yes.

There can be several times in a boats life when it goes up in value. Really good example is a new boat with few factory options that gets many upgrades in the first couple years. Also an older boat after a major refit.

[Group9]

Originally Posted by Cadence

I believe how realistic classified ad prices are reflects on how naïve the buyer is.

Or the seller. Just because you think it is worth x amount doesn't mean anything if no one will pay that for it.

I see sailboats that I saw for sale in 2009 when we bought our last sailboat, that are still for sale at the same price. I just wonder what the seller is thinking. That he is the only one on the planet who truly appreciates what his vessel is worth?

[Cadence]

Originally Posted by ramblinrod

There can be several times in a boats life when it goes up in value. Really good example is a new boat with few factory options that gets many upgrades in the first couple years. Also an older boat after a major refit.

I can see some exceptions to a boat being a depreciating item but few.

Notice I use the term boat. When it comes to "real" yachts, I can't speak to that.

[Flod]

In Sweden buying a sailboat is like standing in a really really cold shower and tear apart new $100 bills. But people love it! Buying a boat is not really an investment in financial terms but maybe in pleasure and other values. This reflects in the sellers pricing as well. Old men that have owned, cared and loved the same boat for 4 decades seem to slightly overestimate the market value of their vessels.

[Abdou Aboyousse]

I believe in the integrity, intelligence and insight of the honorable member:
Mr. @cadence and his statement:
(" I believe how realistic classified ad prices are reflects on how naïve the buyer is.")
My question to all:
Are the higher levels of prices maintained because of companies' use of boats
for tax evasion purposes?

[ramblinrod]

Originally Posted by Abdou Aboyousse

I believe in the integrity, intelligence and insight of the honorable member:
Mr. @cadence and his statement:
(" I believe how realistic classified ad prices are reflects on how naïve the buyer is.")
My question to all:
Are the higher levels of prices maintained because of companies' use of boats
for tax evasion purposes?

I just don’t agree with this. It is true that some sellers are hoping to pull the wool over the buyer’s eyes, and vice versa, but many boats are priced right.

To me, it speaks loudly to the owners integrity when a boat is priced right; and to the purchasers integrity when they make the right offer. When I have a boat for sale and receive a low ball offer no where near FMV I think to myself:

A) the guy doesn’t understand boat value and I need to educate him
B) he’s a slime ball trying to take advantage of someone to get something for nothing.

I choose to believe A) until the individual proves otherwise.

[boatpoker]

I disagree with a lot of whats been said here.
After 5,008 surveys (with valuations) I have a few opinions

How much is she worth, boat values, a crap shoot

[kev_rm]

Originally Posted by ramblinrod

BTW, based on your formula, 20% initial depreciation and 10% / year annual depreciation on original price, would make every 9 year old boat free. Clearly this is not the case, or nobody would buy a new boat because of the wicked depreciation AND because everybody could walk away with a 9 year old boat in average condition, for nothing.

Maths is hard. a 9 million year old boat would still be worth something at 10% per year.

[boatpoker]

When all else fails (sometimes it's tough) to value a boat.
Professional surveyors will sometimes resort to the Martin Scale of depreciation method approved by the American Society of Appraisers.

Note: That depreciation tables are a last resort mainly used for boats which few or no comparable actual sale prices can be located and should be taken with a large grain of salt.

In the vast majority of cases soldboats.com is the only database of actual sales prices.