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Years 1, 2, 3 & 4 depreciation (upper mid-tier CCs)
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There used to be a general rule of thumb that a boat depreciated 15% in the first year and 10% each year for the next three years or so. Upper tier boats probably fared better than lower tier boats. Some measured the depreciation off the cost of an equivalent new boat, which ordinarily increased in price over the prior year's model.
That pricing went out the window the last handful of years when houses rose in price rapidly and people could tap the "equity" readily. Buyers kept paying ever-increasing amounts for used boats seemingly without regard to depreciation. With the rising price of gas and people re-assessing where they will spend their extra money, it is likely that depreciation will be closer to historical levels AFTER the existing oversupply of new and used boats is sold off in a year or two or three or four if gas doesn't go up too much. Maybe a bit more as boats and engines are better-made and should last longer. Let's face it, the boat ages in the sun, new electronics are better, and recreational use four-stroke engines with 500 hours on them likely have used up one-third to one-quarter of their normal life expectancy.
Now if gas goes up too much ($5/gal?), the recession drags out much past 2010, the fishing continues to deteriorate, etc., depreciation likely will creep up.
First year is a huge hit for new boats. This number was given to me by the owner of a Sea Ray Dealership 10 years ago. I do not think it has changed much. This 30% was what he used for trade ins. BUC is a good resource, considering there are only two, NADA being the other. NADA has inflated pricing because it is owned by the dealer association.
Hate to say but this is a bad year to sell boats. If you bought a boat within the last 2-3 years and try to sell it now, you would be lucky to get 50% of what you paid. I have a 2005 boat, and I paid $40k for it and now I can't find anyone offering it at $13k.
Hate to say but this is a bad year to sell boats. If you bought a boat within the last 2-3 years and try to sell it now, you would be lucky to get 50% of what you paid. I have a 2005 boat, and I paid $40k for it and now I can't find anyone offering it at $13k.
Condition figures into this also. I just bought a 2001 Skeeter ZX2200 center console which the owner used 4 or 5 times a year max in fresh water to striper fish. Had less than 150 hours on the engine, all service records at the dealer and all work done by the dealer (factory authorized & trained Yamaha service center & dealer), even spoke to the service manager to confirm condition and hours. They guy kept it stored in his basement between trips (ie, 11.5 months out of the year since new).
It looked to be a brand new boat with no signs of it's true age.
I still got it at a bargin price under "book value" due to the current market conditions, but due to the actual condition of the boat/motor I was less inclined to try to haggle the guy down on price. It was hard to pass up and I doubt I would ever find one in this condition for that low a price again. I paid $17,000 for it. On it's face some might say I could have paid less, but the condition would not have been the same. All said, a 2009 was $53,000 rigged the same and out of my price range as I've still got kids in college. Other than the fact the year is printed on the registration you would not know the boat is not a new one.
You need to look beyond the price on a for sale posting. This sort of thing is impossible to judge without actually seeing the boat in person, but condition makes a difference even in this market.
So what is the expected life of a boat? 10 yrs, 15 yrs 20 yrs?
That totally depends on how its kept, taken care of, how well its made, and 75% of that answer is how the owner drives them. Slam wakes and waves not very long. If you make them your hobbies and fishing is the extra that comes with them,,, a long, long time although the adv. time that a owner usually keeps a boat is only 5 to 7 years then trades for something else.
A great rule of thumb is longer than you will have it.
__________________ Fountain 31TE...... Hydra Sports 21 Bay...... Dodge 3500 Camping unit "Gone Fishing"..... Tinker Toy..... Sunset Point Nixonton NC
Last edited by liveaboard74; 09-09-2009 at 04:24 AM.
Years 1, 2, 3 & 4 depreciation (upper mid-tier CCs) 
