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Go Back   WakeWorld > >> Boats, Accessories & Tow Vehicles Archive > Archive through August 27, 2006

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Old    abadsvt            07-20-2006, 8:56 PM Reply   
I was just thinking this afternoon about resale value of new boats. Like what is expected value of the boat in a few years. Lets take my new boat. Its a 07 MC X1. It is fully loaded with tower speakers, upgraded motor to MCX, perfect pass, heater, bimini, kgb ballast, tandem trailer w/ extra tire, and ALOT of extras that i don't need to list. The reason i am asking is because if they hold there value really well then i might go with a long term loan because in 4-5 years i will upgrade to a new boat or if the resale is considerbly less then i will take a shorter term loan to help pay the boat off more so when it is time to sell i won't be losing alot of money. I almost forgot. For the sake of this post lets say the boat was 50k out the door. What do you expect the boat to be worth in 4-5 years?
Old    Nick Heckerson (kstateskier)      Join Date: May 2002       07-20-2006, 10:52 PM Reply   
I would say probably $25-30k. It's hard to tell how the market will treat the X1. Will someone come out with some crazy great design where the X1 does not seem as good of boat as it does now? Lots of variables. The boat should steady out in the 5-10 year mark. A lot will depend on hours, condition, etc.
Old    abadsvt            07-20-2006, 11:09 PM Reply   
I just looked at the nada for a 2001 mastercraft 205v with a bunch of options and it booked at 32-33k. I thought that was interesting.
Old    Robb Davis (boarder_x)      Join Date: Mar 2006       07-20-2006, 11:38 PM Reply   
I would get the longer loan. You can ALWAYS pay extra. Then if you decide to keep it, and start slowing down on the payments you have that option.
Old    E.J. (deuce)      Join Date: Mar 2002       07-21-2006, 8:35 AM Reply   
Of course having a new boat is nice for warranty and whatnot. But if I REALLY wanted a 205V hull(X-1)...it would be tough not to get a babied 02-03 for mid-upper 30's and love that boat.

Same exact thing for a new 210.... '02-'03 SAN that has been babied for 15-20 K less.... Pretty much will stagnate with depreciation...maybe losing a K a year, not 5-10 K.

Being these boats haven't changed a bit and you can find 3 year old boats that have been stored indoors and have a hundred hours on them.... STEALS..........

Anyway....those are my thoughts on resale. If you are buying a boat and planning on keeping it for a lifetime, new is a good way to go....but not the only way.... 15-20 K buys a lot of toys, gas or beer.
Old    Trace (trace)      Join Date: Feb 2002       07-21-2006, 9:01 AM Reply   
I agree - if resale is a concern, do not buy new. That goes for pretty much everything except real estate.
Old    abadsvt            07-21-2006, 9:03 AM Reply   
I am getting a sweet deal on the new x1. So i am going new but i am more curious on what to expect down the road.
Old    E.J. (deuce)      Join Date: Mar 2002       07-21-2006, 9:21 AM Reply   
Truthfully, expect to lose 15-20% in the first 2-3 years. Maybe a bit more....then things tend to level off a bit. That is assuming that the boat is worth 50K. Note, not talking about MSRP at 50K....but the standard deal being 50K.

So you purchase your boat for 50 K and 2-3 years later you can sell it for around 40K if it has been VERY well taken care of.....then it sort of just levels off. Year 4 it may be worth 38-39....year 5...36-37...

Note, this is not scientific research, but just off the top of my head as to what things are selling for now and what boats were selling for when I bought my last one.

10% first year....5-7% the next 2........then let's say 2% a year after that....maybe even level off at some point.
Old    Clayton191 (clayton191)      Join Date: Apr 2006       07-21-2006, 10:02 AM Reply   
The thing you need to consider is that the price of new boats continues to escalate - so older boats CAN be worth more than they were when you bought them originally.

The 2002 / 2003 mastercrafts you were talking about before - what did they cost new then?
Old    E.J. (deuce)      Join Date: Mar 2002       07-21-2006, 10:51 AM Reply   
clayton191, are you talking to me? Same....

Local dealer wanted 43K for a "stripped" '03 X2. No cover, no PP, no stereo. Did have ballast and the MCX. So put in PP, a cover and a stereo, add in taxes ect and you are VERY close to 50K.

'03 X-2 boat is now selling for 15-20% less....high 30's, VERY low 40's....

Though you always hear stories about people selling their boats for more or equal to what they paid....that is VERY, VERY rare. I consider myself VERY lucky that when I sold my Cobalt, I only took a few grand hit...and with the tax savings, actually almost came out even. But I added options aftermarket and that is never figured in.

People should ALWAYS plan on losing their ass on a boat. It is a depreciating asset.....to think that it is not is setting yourself up for disappointment.
Old    SeaDawg (seadawg)      Join Date: Jan 2006       07-22-2006, 12:51 AM Reply   
For reference, last year I bought a 3 year old boat with 75 hours, and the seller included the original invoice in the paperwork. I paid a little less than 60% of what was originally paid for the boat.
Old    E.J. (deuce)      Join Date: Mar 2002       07-25-2006, 8:06 AM Reply   
Holy Chit SeaDawg.....I hope you are talking about 60% of MSRP, not what the original owner paid....

If it is what the original owner paid, he took that one in the shorts. It is also not a ringing endorsement on Calabria holding value... Though we know that Phaeton(think that is who has turned over a Calabria or two) has done well with resale of his boats, so I am left to believe that we are talking MSRP......??????

Add....Whoever may read this in the future, I DO NOT think that a 40% hit after 3 years is a normal depreciation for a boat. If you can purchase the boat of your dreams used and get it for 60% of market price when bought new....BUY IT.

Go see how many '03 X2, SAN or VLX's you can find for 27-30K....which would have been a 40% depreciation(relatively speaking, but all could have been had in the 45-50 K)...some VLX's were selling in the lower 40s.....
Old    bocephus            07-25-2006, 8:11 AM Reply   
What about the the '06 SANS, it's the last year of that boat. I know I looked around for a used SAN before I bought mine but couldn't find anything that wasn't either trashed or something that wasn't higher than the $45K I paid. I'm sad that and happy that I have the last true 210 SAN.
Old    E.J. (deuce)      Join Date: Mar 2002       07-25-2006, 8:27 AM Reply   
Where you do you get that info Bocephus?

(EDIT) I will add and have said it a million times, I don't think that there is ANY CHANCE that Correct Craft will discontinue the use of the hull on the Super Sport. So again, where have you got confirmation of Correct Craft discontinuing the 210?

(Message edited by Deuce on July 25, 2006)
Old    bocephus            07-25-2006, 9:15 AM Reply   
Sorry, I thought everyone new already. There is a thread on Planet Nautique and a few other places.

(Message edited by bocephus on July 25, 2006)
Old    C.I.E. J-Rod (jarrod)      Join Date: May 2003       07-25-2006, 9:30 AM Reply   
MCs hold there value well, but always take the shorter term if you can afford the payments. Otherwise, not only are you trying to get out of a loan for a boat that is worth less that the loan, but you are paying interest over 3-5 years on value that no longer exists in your boat. Basically you're stll paying interest on what has depreciated. And if you have the money sitting in the bank, it makes even less sense.
Old    Paul (psudy)      Join Date: Dec 2003       07-25-2006, 9:54 AM Reply   
So you bought a boat and don't have the loan in place?
Old    E.J. (deuce)      Join Date: Mar 2002       07-25-2006, 10:04 AM Reply   
Bocephus, that was speculation..... So don't be sad, '06 is not the last year of the SAN as far as I can tell....
Old    Wayne Wilson (dubs_ucla)      Join Date: Mar 2005       07-25-2006, 10:12 AM Reply   
the difference in your actual cost of ownership will be quite low. the interest expense that you pay on your higher loan balance on the longer-term loan should be able to be offset by returns on the cash you have decided to not use to pay it down. if you have the cash and are paying 8% on a loan you have two options (1) pay the interest at 8% and invest the cash and try and achieve a higher after-tax return (would reduce your cost of ownership - beware, if this strategy cuts the other way you are making your cost of ownership higher), or (2) pay down the loan and effective fund yourself with 8% money since you are investing in yourself as a credit.

Either way your actually cost of ownership is not really changing much - the boat will be worth what the market says - the real question is how valuable is that cash to you. Can you make a higher return or do you need it for liquidity purposes? If the answer to both of those is no, i would pay down the loan.
Old    bocephus            07-25-2006, 11:26 AM Reply   
I have info that says otherwise...LOL. I believe there is a even an '07 in Ohio this week.
Old    SeaDawg (seadawg)      Join Date: Jan 2006       07-25-2006, 12:08 PM Reply   
You read it right, E.J., it was 60% of what the original owner *paid*, not the MSRP. But I can't imagine that he negotiated down very far, if at all, from MSRP, and I like to think that I'm a decent negotiator .

And even though I've had to take care of a few issues on the boat after the sale, which cost me some additional cash (I can give you details on that if you want), we're very happy with the boat, especially for the dollars paid.

As for Calabrias holding their value, my price paid is still below *this* year's NADA Guide "Low Retail" value, not including trailer, and the boat is in great condition. "Average Retail" on NADA right now is 73% of what was originally paid on the boat in '02. Basically, I think I got a good late-season deal from a motivated seller. This may not be the exact boat of my dreams, but especially for the price, it will be close enough for many years to come.
______________________
"Holy Chit SeaDawg.....I hope you are talking about 60% of MSRP, not what the original owner paid....

If it is what the original owner paid, he took that one in the shorts. It is also not a ringing endorsement on Calabria holding value... Though we know that Phaeton(think that is who has turned over a Calabria or two) has done well with resale of his boats, so I am left to believe that we are talking MSRP......??????

Add....Whoever may read this in the future, I DO NOT think that a 40% hit after 3 years is a normal depreciation for a boat. If you can purchase the boat of your dreams used and get it for 60% of market price when bought new....BUY IT.

Go see how many '03 X2, SAN or VLX's you can find for 27-30K....which would have been a 40% depreciation(relatively speaking, but all could have been had in the 45-50 K)...some VLX's were selling in the lower 40s....."
}
Old    Machew (mbrown)      Join Date: May 2005       07-25-2006, 2:28 PM Reply   
Always pay as little interest as possible, unless it's a home equity loan and you're using the right off to drop into another tax bracket.

The more interest you pay the more the boat costs. Some people pay so much in interest they could have waited 3-6 years and bought an X-star or other expensive boat of your choice.

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