Depreciation

[Sifuedition]

Why does it seem like most private sellers think there should be no depreciation on boats. I can go down to bass pro and pick up a new Tracker 175, well equipped, for about 18. Very basic, even cheaper. Yet, craigslist seems to think a 190 that is 5-10 years old should still sell for 13-18. And all the bigger names? forget about it. They still want 18+ on 10+ year old anything Nitro, etc.

 

I'm not a mechanically inclined person. I don't need to inherit a motor I'm going to need to work on or an interior I'm going to need to redo, etc. It just seems odd to me that boats that are old enough those things have to be true, they don't expect that to affect the value. I've been keeping an on again/off again watch on boat prices and it seems to be consistent.

 

Am I naive and boats really have very little depreciation or do you think these people all end up settling on a price far lower than they list?

[slonezp]

The cost of new boats is increasing which in turn, props up the used boat prices. Used boat prices increase in the spring as well. Buying in the fall might be a better option

[Sifuedition]

Just now, slonezp said:

The cost of new boats is increasing which in turn, props up the used boat prices. Used boat prices increase in the spring as well. Buying in the fall might be a better option

I started watching in August, up until now. I should have caught the "off-season" prices.

[slonezp]

It's possible they are trying to get a premium price from add ons like electronics and such. BUT, as far as getting a well equipped 175 for 18k I guess the definition of well equipped differs. The base offering is 17K with a 60hp motor and basic equipment. Equipped with a second console, 75hp motor, no electronics and a 12v trolling motor, and your at 22k. Add tax and dealer prep and your're at $25k out the door. At $1k depreciation a year over 10 years, your still looking at a $15K asking price. 

 

I bought a new boat in 2013. The model is no longer available but the new similar version is $10k more than I paid. That's $2k a year increase. I could sell my boat today for close to what I paid for it. Our economy is on an upturn. It is what it is.

[Sifuedition]

They had one at my local Bass Pro, equipped like you describe, for about 15,5. Add on upgraded interior, trolling motor and electronics and I was at barely over 18.

[slonezp]

The tracker website has the 175 starting at $16,995. Sure you were looking at the 175 and not the 170?

[Sifuedition]

Absolutely positive. Had it writing. Might still be around here somewhere.

[Logan S]

Boats with more expensive retail prices will have more expensive used prices...Your example is not really apples to apples.  A new Tracker 175 might be 18k...But a new 190 might be 25k and a new Nitro Z20 might be 55k.  Check the prices of used 175's and I'd bet the depreciation is the same or similar percentage wise.  

 

FWIW, there is a Blue Book for boats just like for cars...The accessories portion of it is a little funky, but the basic info is enough to get a good estimate.  

[12poundbass]

44 minutes ago, Sifuedition said:

They had one at my local Bass Pro, equipped like you describe, for about 15,5. Add on upgraded interior, trolling motor and electronics and I was at barely over 18.

I'd jump on that if I were you. I was quoted here in Michigan just over $19k out the door. The only add on was a cover and that was with the 60 on the back.

[Sifuedition]

I just used the NADA on three of the ones I was looking at to compare. They are all at least 2k over what they should be asking if you go by that, which does take zip code into account.

[slonezp]

Have you made offers on the used boats based on your research? Are they willing to negotiate? 

[Sifuedition]

So far, I'm just looking to find out what I should be targeting. If I can get something low enough to not have to finance, that would be ideal, but obviously, since I don't want to have to repair it, those are mutually exclusive, lol.

 

I'd like to get pre-approved through my credit union, but I'd need to know what I'm going to need to finance, which is part of where the price watching is coming in. The other part is I'd like to know when I really do find a good deal. The NADA site should be a big help there.

[slonezp]

NADA is a good baseline, but it is also a guide for banks and insurance companies and doesn't take into account a lot of other things that affect resale. NADA only knows the age of the boat, motor, and trailer and do not take into the usage factor. Was the boat used in Texas 12 months a year or Minnesota 8 months a year? Was the boat used to fish tournaments 52 weekends a year or by grandpa 12 weekends a year? Was the trailer used to pull the boat cross country or was it stored because the boat sat on a boatlift all season? Is there 20 hours on the motor or 2000 hours? and so on

[Goldstar225]

Another thing that plays a role in private sales pricing.  Locally a Tracker 175 with a 60 horse has the standard $16,995 price tag.  Add to this the $800-$900 freight and prep fee plus sales tax of 8%. A buyer who puts down the 10% minimum (including the sales tax) owes over $17000.00 out the door.  If he makes minimal payments over the next year, he still owes almost the new price on a 1 year old boat. 

[Sifuedition]

1 hour ago, Goldstar225 said:

Another thing that plays a role in private sales pricing.  Locally a Tracker 175 with a 60 horse has the standard $16,995 price tag.  Add to this the $800-$900 freight and prep fee plus sales tax of 8%. A buyer who puts down the 10% minimum (including the sales tax) owes over $17000.00 out the door.  If he makes minimal payments over the next year, he still owes almost the new price on a 1 year old boat. 

Just like a car. In the same way, they don't get to pass that along to a buyer unless they find one ignorant enough to go for it. That's precisely what I'm trying to avoid. Bass Pro has financiers who will finance for 12 years. Sure, it keeps payments low, but they will owe practically sticker price for years after buying it. That is precisely what I think these are. They are not asking based on the VALUE of the boat they are selling. They are asking based on what they owe when they made a bad financing decision.

[12poundbass]

7 hours ago, Sifuedition said:

Just like a car. In the same way, they don't get to pass that along to a buyer unless they find one ignorant enough to go for it. That's precisely what I'm trying to avoid. Bass Pro has financiers who will finance for 12 years. Sure, it keeps payments low, but they will owe practically sticker price for years after buying it. That is precisely what I think these are. They are not asking based on the VALUE of the boat they are selling. They are asking based on what they owe when they made a bad financing decision.

This is probably correct. There is a boat for sale down the road from me. It's a 175 TXW, 2013 with only a 50 go, $400 fish finder and the guy is asking $17,500!! What's even worse is this boat has sat out by the road all day and night since April! The only way somebody is asking this price is because he's never sober or like you said that's what he owes. It's a nice boat and I'd offer $10-11k for it but I worry about the seats, carpet, and reaction from him when I cut his price by almost $7k. 

[PECo]

When I listed my first boat for sale on Craigslist, I priced it at just below what I thought it was really worth. In the fall and winter, I got a lot of lowball offers, including one from a buyer from who said, “You’d let a sale walk away over a measly $1,000?” My thought was, “You’d walk away from a purchase over a measly $1,000? If you can’t afford a boat, don’t buy one.” Craigslist buyers always seem to expect a big price break.

 

In the spring, I had two buyers look at the boat in two days and both wanted it for what I listed it. I let the second buyer take it, because he had contacted me first. I probably could have played the two buyers against each other and gotten more money, but believe that a deal is a deal.

7 hours ago, Sifuedition said:

Just like a car. In the same way, they don't get to pass that along to a buyer unless they find one ignorant enough to go for it. That's precisely what I'm trying to avoid. Bass Pro has financiers who will finance for 12 years. Sure, it keeps payments low, but they will owe practically sticker price for years after buying it. That is precisely what I think these are. They are not asking based on the VALUE of the boat they are selling. They are asking based on what they owe when they made a bad financing decision.

12 years? I have a buddy who financed his with Bass Pro for 20. He pays next to nothing each month.

[LoweStinger]

Another thing that will bring big used boat prices is supply and demand. If you live in an area that doesn't have a lot to choose from used, that will get people willing to spend more. Also people start high so they leave themselves room to work down to what they actually wanted in the first place, and at the same time you think you got a great deal because you worked him down so far.