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Yacht depreciation: better or worse than cars?

Discussion in 'General Yachting Discussion' started by BenSeattle, Jul 20, 2006.

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  1. BenSeattle, Jul 20, 2006
    #1
    BenSeattle

    BenSeattle New Member

    Joined:
    Sep 28, 2005
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    Location:
    Seattle/Kirkland
    Greetings from super-sunny Seattle:

    As I peruse boating magazines and examine countless ads for both new and used yachts, I can't help but wonder about the advantages and disadvantages of purchasing "more yacht for my money" by going the Pre-Owned route. We all know that while a new car is great, one can get a substantially better value by purchasing a high-end model (BMW, Mercedes, etc.) that is only two or three years old. New to you, but because depreciation has dropped that initial cost thousands of dollars, most would consider such a purchase to be a smart deal.

    Question is: does this also hold true with boats in the 75 to 95 foot range? Like any potential buyer, I love the notion of creating a boat from scratch, incorporating personal preferences and design features, but would one save significantly by investing in a used model? Or -- unlike automobiles -- do boats hold much of their original value long after they cease being called "new?" I'm also imagining that some brands of yachts hold their value much longer than others ---- what makes fall into this category? (After all, everybody sells their boat some day, right?)

    Thanks and happy cruising.
  2. goplay, Jul 20, 2006
    #2
    goplay

    goplay Senior Member

    Joined:
    Mar 16, 2006
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    Location:
    Sausalito, CA
    Definitely worse than cars. The larger the boat the smaller the market.
  3. AMG, Jul 22, 2006
    #3
    AMG

    AMG YF Moderator

    Joined:
    Jul 26, 2004
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    Sweden
    In both cases you need to know what you are doing. A one-off design will normally be more expensive than a used and refitted yacht and perhaps still with a lower resale value. Buying a second hand, well known quality yacht and use it "as is" to evaluate what you would really need and would like to have is the most sensible start before going into a more personal refit or newbuild.

    Selling a too special design can take long time and cost you a lot of money, so being prepared to keep it is part of the one-off game...;)