It's known that a brand new car loses approximately 20% of it's value as soon as you drive it off of the lot. I'm wondering if it is the same for boats.

 

 

Does a brand new boat drop value immediately like a new car does?

 

 

And if so, what is the percentage?

I think just about every major purchase item loses at least some of its value once you take possession of it.  Whether its 20% might be up for debate.  I don't think boats lose their value nearly as quickly as an automobile does.  My boat's 6 years old this season and I've have a bunch of people ask me if its brand new.  I think I could re-sell it tomorrow for at least 80% of its original value of what I bought it for. 

 

Most of the time a boat is just sitting there on the trailer.  Its not really an everyday mode of transportation like an automobile often is.  The depreciation on a boat is a fraction of what an automobile receives.  Just my 2 cents

There will always be an initial loss in resale value when you buy a new car or a boat.  If you get a bargain, you can reduce the amount of that loss. Factors like brand reputation and warranty can also affect this amount.  Some boats hold their value better than others.  The location of the boat is also a factor. For example, it's hard to sell a bass boat in the Bahamas and difficult to sell a flats boat in Montana.  High end pontoon boats lose more value than cheaper models.  If deprecation is important to you, you may be better off buying a boat that is a few years old.  Some people buy a boat and never use it.  As long as it's been well maintained and passes an expert's inspection, I wouldn't be too concerned.  My biggest concern would be with the motor.  Newer outboards are much more reliable than they used to be. Do your research.  Make sure there is someone local that can work on your boat.  You don't want to have to tow your boat 200 miles to get it serviced. 

2 hours ago, tcbass said:

It's known that a brand new car loses approximately 20% of it's value as soon as you drive it off of the lot. I'm wondering if it is the same for boats.

 

 

Does a brand new boat drop value immediately like a new car does?

 

 

And if so, what is the percentage?

You are spot on.  20% in year one an additional 15% in year two.  Then like 13 to 14% in year three.

Ordinarily, yes.  Why would someone pay you the same as they'd pay a dealer, when buying direct from the dealer has certain assurances that they can't expect from you.  That's worth a bit of a premium.  Plus, they have to be suspicious of you if you're turning around and selling something you just bought.  What displeased you so much about that boat that made you get rid of it immediately?  How much of a discount do you need to put on it to make me quit worrying about that unknown?  That's the heart of the immediate hit in value these things take.  

 

But at this very moment, it might actually gain value the second you take possession of it.  And the reason is because you absorbed the wait time for them.  Boats have been hard to come by, and people who want one right away, if there are none left available, will likely pay above retail for your slightly used example.  It all depends on supply and demand.  If the supply is low enough, and demand high enough, crazy things can happen.  So if your particular boat has a lot of people trying to buy it, and hardly anyone has one for sell, then you can understand why you might be able to ask a little more than what the dealership sold it to you for.  

 

Of course, the same thing happens to certain cars, even under normal circumstances.  Like the first few months after Corvette comes out with a new body style.  The first few are usually worth more than what the dealer is supposed to sell them at (though sometimes they mark them up too), and sometimes people will immediately buy and resell them to make a profit.  A few months later, and prices stabilize with availability.  Some people are willing to pay extra to be the first.  

 

And really, the 20% thing people talk about is just a made-up internet number.  Each car and each boat is going to be different, just as each market under which it's being sold is going to be different.  For instance, 4-door luxury sedans tend to take an enormous hit in value the second you take ownership.  Usually much higher than 20%.  But something like a Jeep Wrangler?  20% seems really high.  

Excellent breakdown!

 

With today’s boat you have to factor in electronics too. They depreciate much faster than a boat. $10k worth of electronic add ons may only be worth $5k a year later. 
 

The smart money on any boat is to buy about 10 years old and sell after 5 years. You typically come close to breaking even and in the right circumstance could even sell for more than you paid. For instance if you buy a 2008 Ranger or Bass Cat for $22k and fish it for 5 years you will be able to sell for close to $20k with proper upkeep. The key is to be patient and find the right boat. 
 

But if I’m buying new I’d def buy a higher end brand that depreciates less. More importantly buy a boat that others desire. If you watch the classifieds you will notice trends. 

Best way to judge resale value is try to sell or find the same to buy.

Everything deprecates differently, some things actually increase in value.

Most bass boats hold their value better the most cars the same year.

Tom

One of the reasons that anything of this type looses its value is due to financing and titling issues. Banks and lending institutions offer better and longer rates on something new, vs something that has been titled. That alone hurts resell value right off the bat. I don't think however that it looses near as much as vehicle year over year. I just bought a 2015 that had a nada retail of 70% of the cost of what I could go purchase a new one for. If that were a vehicle, it would have been much less than 70%.

Try to sell it. 
It’s worth what someone will give you. Then you’ll know. 
 

 

Mike

17 hours ago, WRB said:

Best way to judge resale value is try to sell or find the same to buy.

Everything deprecates differently, some things actually increase in value.

Most bass boats hold their value better the most cars the same year.

Tom

That's good advice.  If you ever want to know what something is worth, just try looking around at what other people are buying it for.  The internet is great for stuff like that.

2 minutes ago, Bankc said:

That's good advice.  If you ever want to know what something is worth, just try looking around at what other people are buying it for.  The internet is great for stuff like that.

 

 

Too bad Craigslist isn't like Gunbroker where you can search items by what they sold for.

Just now, tcbass said:

 

 

Too bad Craigslist isn't like Gunbroker where you can search items by what they sold for.

True.  But it does show you how long ago they posted it at the top.  If it's been posted for a long time, then they're probably asking too much, or it's the wrong season.  I just ignore those.  And eBay has the "sold" listings.  But with big things like boats, it's harder to get an accurate price on because so much can effect what someone is willing to pay, like fees, location, buying sight unseen, and perhaps shipping.  There are also other websites like Boat Trader.  Basically, if you want an accurate estimate, you're going to have to spend some time doing lots of research on multiple sites trying to find what the range is around.  Still, nothing that can't be done on a rainy afternoon.