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Old 08-09-2019, 11:45 AM   #1
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3 year cost

Hello
I have been following for some time and would really like some opinions.
Here is the deal.
If someone was to purchase a trawler say like a Selene 53 or K.K. around 5 to 8 years old with around 1000 hours. In great condition everything keep up excellent condition. Complete survey with all things taken care of. Say you spend around $1,250.000. now its three years later the boat has been keep in excellent condition, now has around 1500 to 2000 hours. Would it be reasonable to think you could resell at about a 10 % loss.
I know there are many variables. Lets just assume the economy stays about the same. Please don't consider the cost of moorage and general maintenance. I'm well aware of those!
Thanks
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Old 08-09-2019, 12:07 PM   #2
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From personal experience, I sold at a 20% "loss" on a 15 year old Selene owned for 8 years, not counting brokerage. The OP took an estimated 40-50% "loss" from original purchase price on a 7 year old vessel. Then you have to also figure in the cost of broker fees (10%) etc. I would expect that at the price range you mention, you are looking at fairly large vessel (60ft?) and the market is even harder on resell. Just takes a long time! So, if you figure you are likely going to lose at least $350K between buying/selling , you are probably in the zone. That is not counting upkeep, dockage, insurance, fuel etc etc.You can easily see what larger used vessels are typically selling for on Yachtworld and do your own comps. Depending on your usage plans, you might be better off chartering when you want to use the vessel if you really intend to sell in 3 years.
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Old 08-09-2019, 12:20 PM   #3
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The brokers could most likely give a good assessment of the depreciation, but I'd say you'd be absolutely LUCKY to only loose 10% on a boat that new over three years.


And acquaintance of mine bought a new boat for 2.5m and sold it a year later for 1.5.... cost a million to have it for one year.


A friend of mine bought a SeaRay ONE year old for about a 40% discount off list price.


on and on.


Generally, if one does some research, boats depreciate about 10 to 20% right off the showroom floor, and 5 to 10% per year thereafter.


They get to a point where the depreciation flattens out...probably somewhere in the 10 to 20 year range.


That's a pretty wide range, but over the some odd 20 boats I've owned, they all are not horribly far from the above.


Now, with real popular boats, perhaps the KK would qualify. Selene, not sure, the do a bit better.



And as the size goes up the market goes down so it will take longer to sell and have more of a depreciation as a rule.
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