How Do You Value Your Boat?

A thought and a question. (And I will probably rewrite this a dozen times before I think I have got it across right!).

As you think about your boat, how do you value it in monetary terms?

I am not talking about the intangible value of the enjoyment, experiences and health values etc. you get from it (which I agree with). But hard cold cash value. And not from a stance as if you were listing her for sale.

When you consider your net worth do you add in what you think your boat is worth? While you love you boat, do you still see it has a dollar/pound/Euro value? You see it as part of your estate?

I kept the last three cars I had until they were only worthy of donating to the Salvation Army - including an aging Jaguar XJ8!
For some reason I don't view Sonas as an asset. My brain knows it has value, but my sense is if I use it for as long as I can and if it has no or minimum value at the end I won't care.

That's not to say I am not maintaining her "with an open check book," and my brain tells me that she is worth quite a lot, but for some reason I don't look at her as having current monetary value, or feel I ever will.

Anyone else?

Or a strange thought?

A fair question. Rather than fair market value, how about how many trips to Alaska it will provide.....for you, maybe trips to the Bahamas. If you'd care to monetize that (I don't), what would bare boat charters cost you, denominated in months, to have these adventures? My goal is to use the boat so much that I've extracted most of its utility by the time I'm too old to use it. At that point, it doesn't owe me much. That's real value, to me.

I think a reasonable question, Paul.
We do put a number down on the personal balance sheet for the boats. I use a number that I think is fire sale, cash this week kind of number which is likely around half of an organized marketing number. It seems to satisfy the lawyers and accountants in terms of estate and tax planning.
The numbers have no relation to what they are worth to me or what I paid for them.

Interesting question!
I have an agreed value policy, and an open check book upgrade and maintenance program. There's only going to be one boat of this size and while I hope to get decent money for her when sold, she is a deprecating asset with an expensive annual cost.

Ted

Mine's a thowaway...I will be happy if I dont have to pay someone to take it off my hands.

I will let a professional broker make a suggestion and I will be happy with anything above $0.00.

It was just insurance surveyed for $75000, I think closer to $25000, and even then I am not going to wait more than 6 months after I am ready for it to sell.

I have never expected any significant final financial value for my boat. It is merely an emotional diversion. Like, a cost of living.

My plan is to make Sylphide a celebrity, so that if I ever need to sell, she'll be worth millions!



Or... five to six thousand dollars at current aluminum scrap prices.

I know it goes against conventional wisdom, but part of me hopes that being 35 years old already, most of her depreciation has already happened. I like to think that if I keep her as close to bristol as I can, and make improvements, she might still be worth about what I paid for her if I ever need to sell. I'm sure that's overly optimistic, and I'm certainly not planning for that eventuality, but one can hope.

It's kinda hard to tell with mine. She's unique, so a bit of an unknown quantity. She's a market of one.

You guys are still talking about what she is worth money wise.

So I guess I didn't word my post well after all.

I was trying to say that I don't see any actual monetary value in my boat at all, regardless of whether she has any in real life.

I bought her and I don't care if she has any value at the end of the day. Whether that end of the day is tomorrow or thirty years from now.

I don't see her as an asset with monetary worth.

She is what allows me to do what I do. When I am finished doing what I do I will move on. The dollar value I may be left is not important to me.

And when I am finished "doing," I don't care if I get anything for her.

Simple Equation:

Take the cost of the boat when you bought it,
Add the cost of any improvements,(new canvass, new electronics)
Add the cost of maintenance (engine repair, paint)
Add the cost of daily usage (Dockage, insurance, fuel)

Divide that number by about a million, (a million and a half in the off season)

That is the cash value of your boat! (It can be less than $0)

pete

I also apply no asset value to boats in my subconscious for some reason. Currently shopping for a much more expensive boat and that is one of my hangups, it is money spent in my mind.

The way the market is lining up I’m even likely to sell current boat at or above what I paid 8 years ago but that doesn’t help my psyche.

So while I get it - once I own it and am enjoying it I know I’ll never think about the money “invested” again. But it’s keeping me from spending what we can “afford” right now.

I own a very capital investment intensive business and make big capital decisions several times a year. I consider it one of my business strengths. I should be able to do this!! Maybe I’m just cheap! Crap!

Bradenvlp said:

I also apply no asset value to boats in my subconscious for some reason. Currently shopping for a much more expensive boat and that is one of my hangups, it is money spent in my mind.

The way the market is lining up I’m even likely to sell current boat at or above what I paid 8 years ago but that doesn’t help my psyche.

So while I get it - once I own it and am enjoying it I know I’ll never think about the money “invested” again. But it’s keeping me from spending what we can “afford” right now.

I own a very capital investment intensive business and make big capital decisions several times a year. I consider it one of my business strengths. I should be able to do this!! Maybe I’m just cheap! Crap!

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I think you may have nailed part of it.

Once you have spent the money - no matter how much.

Can you treat it as "gone" money, gone forever?

Now you just enjoy the boat. And if you (or you children) ever get anything back, it is gravy.

I treat it as spent money. Purchase and maintenance. I have never sold a boat near half the cost of owning it. That is why i will never finance a toy.

100% sunk cash. That way, anything I sell it for when she stops making me smile is just beer money and never a disappointing return.


As long as she makes me smile, I'll keep buying buying her feed.

Soo-Valley said:

I treat it as spent money. Purchase and maintenance. I have never sold a boat near half the cost of owning it. That is why i will never finance a toy.

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I think this is a good reason why financing a boat detracts from ownership. Is it worth what I owe on it? Once something is paid for, the focus is on enjoyment. The issue of value doesn't enter the equation again until the enjoyment has faded.

Ted

Purchased our sailboat and trawler without financing because being on the water is a life style that rewards us not in a monetary way. A explanation might be why after 18 years we wept after delivering our Cape Dory 28 to the new owners. Physically our sailing days came to a end as all boating will do one day and we had already decided on trawlers. Boats have meaning to us without much concern with value.

We're still paying down the loan, and will be for a few more years. We have no thoughts of selling.

Our boat is our home for part of the year, as well as our vacations, sanctuary, and hobby. Its valued (by us) well above what the insurance papers, surveyor, or most logical people would say.

When we bought it, we fought tooth and nail to bring the price down. Now that it's ours, she's invaluable.

If we had to put a monetary value, it would take into account the mortgage payments we DON'T have on a dirt house, the vacations we HAVEN'T taken, because the boat is more fun, and subtracted from all this: the cost of materials/equipment and beer consumed while making those repairs.

When the cost of repair is close to 100% of value is when I start thinking value., otherwise it’s just a great way to pass the time and keep me on my toes.

Olebird said:

100% sunk cash. That way, anything I sell it for when she stops making me smile is just beer money and never a disappointing return.


As long as she makes me smile, I'll keep buying buying her feed.

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Yep, same here. She makes me happy. When I get too old to use it, I don’t care if I have to giver her away.

It’s like the return on a nice meal, or a fun vacation. The return is the experience itself.

menzies said:

You guys are still talking about what she is worth money wise.

So I guess I didn't word my post well after all.

I was trying to say that I don't see any actual monetary value in my boat at all, regardless of whether she has any in real life.

I bought her and I don't care if she has any value at the end of the day. Whether that end of the day is tomorrow or thirty years from now.

I don't see her as an asset with monetary worth.

She is what allows me to do what I do. When I am finished doing what I do I will move on. The dollar value I may be left is not important to me.

And when I am finished "doing," I don't care if I get anything for her.

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Let me know when you are done with her. I will gladly take her off your hands! Lol!

Donna said:

Let me know when you are done with her. I will gladly take her off your hands! Lol!

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What she said!

Donna said:

Let me know when you are done with her. I will gladly take her off your hands! Lol!

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That will be at least another ten years and then it might go towards a Sabre 48!

The $ value for boat is what a bargain hunter like me would pay at the it is placed on the market. In the mean time the value in my mind is higher.

When we placed our previous boat on the market it was priced a few thousand lower than the 2 others of the same make and model. After many months without a bite I checked the listing prices of similar in size, age and performance. Suprise! We were way over priced. I directed our broker to lower the price to match the broader market and it shorty sold. The lesson to me was it wasn't what I thought it was worth but what someone was willing to pay.

I don't assign any monetary value to my boats when looking at net worth. We're pretty conservative in that regard. I feel that if you can't write a check to buy the boat, you can't afford it. Furthermore if the boat represents any meaningful amount of your net worth, you shouldn't own it, unless you're living on it. I know I'm likely in a minority with those views, but boats are depreciating assets like a car. I've found how much I enjoy boats is unrelated to what they cost.

I don't consider any of my possessions having a monetary value, unless the item is specifically for an investment. My boat, my home, my car etc don't have a monetary values in my eyes. The value is enjoyment, lifestyle and happiness.

The monetary worth is only what someone is prepared to pay
But for us with the lifestyle , comfort and joy she provides, our old girl is priceless.

AusCan said:

I don't consider any of my possessions having a monetary value, unless the item is specifically for an investment. My boat, my home, my car etc don't have a monetary values in my eyes. The value is enjoyment, lifestyle and happiness.

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Boat and cars I agree with.

However I have to disagree on the home though for the investment reason you mention.

When we were looking to move homes six years ago we had two main aims. To have the boat at our home dock and to diversify a chunk of change out of equities.

Sian wanted to downsize but when they have land on deep water they tend to want to get full value for it by building larger homes, so it was really tough to find a smaller house. So we ended up with a house a little under 6000 SF for just the two of us to rattle around in. We rarely wander upstairs.

So yes, we do include the house in our thoughts on net value. In fact when the children came to visit that first Christmas we told them that it was their job to make sure we were keeping up with the house as we got older since it was part of their inheritance!

Mine at under 100K is not such a big part of our net worth. I consider all costs including the lump sum to buy it as sunken and not ever recoverable. Actually, it will be a bit of a pain to most of my family to get rid of which is why I designated my brother (a GB42 owner) to handle it.

We've owned Sandpiper for 20 years. We've gotten our moneys worth of enjoyment, adventure and memories. We even lived on Sandpiper for almost two years while building our house not having to pay rent. We hope to boat another 10 years minimum and not too concerned about the boats value.

The value will depend on when Sandpiper is sold. If I'm still physically and mentally able and decide to sell, I would price it below market for a relatively quick sale.

I told my wife that if I'm dead, sell the boat at a fire sale price. I've seen too many widows hang on to the boat hoping for top price and end up with less money since moorage and maintenence added up waiting for the right offer. Plus the deterioration of the boat while waiting for the right offer.

I also told my wife that when I hit 80 and/or if I start to get ill or feeble, I'll put price stickers on everything I own so the estate sale will be easy for her.

As far as adding the value to net worth, it's not worth having to explain it to bankers.

Since Seafarer is nearing 100 years old her value is in many different areas. Historically she has value to folks interested in caretaking a living time capsule. For someone wanting to stand out in a sea of fiberglass she is priceless. To others all they see is a drain of cash. For us she is all of the above and so much more.

A very cool boat and I can see you from my slip on C dock. The woodwork is beautiful.