Jeff wrote:

It sounds like you don't want a wooden boat because of the aesthetics,
but to save money. So how much do you figure you'll save?

OK, let's do some sums:

Wooden boat:

boat: 12k
survey: 1k
haul-out: 0.3k
initial work: 3k
TOTAL initial outlay: 16.3k
Annual haul-out: 0.3k
Annual work: 3k
Annual insurance: 0.5k
Annual loan repayment: 4.5k
TOTAL annual cost: 8k

End of 3 year loan have asset worth 12k.

GRP/steel boat:

boat: 30k
survey: 0.4k
haul-out: 0.3k
initial work: 0.5k
TOTAL initial outlay: 31.2k
Annual haul-out: 0.1k
Annual work: 1k
Annual insurance: 0.3k
Annual loan repayment: 4.5k
TOTAL annual cost: 5.9k

End of 3 years, have 30% stake in a 30k boat, 7 years left on mortgage.

Figures seem fair? sorry, all these are in pounds sterling. Roughly
double the numbers for $, isn't it these days?

30K pounds seems like a lot. There are hundreds of 38+ foot boats In
the USA for under that, and a quick search of YachtWorld shows a
number in the UK. For instance, a '97 Dehler 41 asking 29K would be a
fine boat, and more likely to hold its value than an ugly wooden boat.

One point in your calculations: if your cash flow is less with the
glass boat, why not take out a shorter loan? That way you'd be a full
owner or a quality boat in 6-7 years.


* biz wrote, On 3/8/2007 6:55 PM:
Jeff wrote:

It sounds like you don't want a wooden boat because of the aesthetics,
but to save money. So how much do you figure you'll save?

OK, let's do some sums:

Wooden boat:

boat: 12k
survey: 1k
haul-out: 0.3k
initial work: 3k
TOTAL initial outlay: 16.3k
Annual haul-out: 0.3k
Annual work: 3k
Annual insurance: 0.5k
Annual loan repayment: 4.5k
TOTAL annual cost: 8k

End of 3 year loan have asset worth 12k.

GRP/steel boat:

boat: 30k
survey: 0.4k
haul-out: 0.3k
initial work: 0.5k
TOTAL initial outlay: 31.2k
Annual haul-out: 0.1k
Annual work: 1k
Annual insurance: 0.3k
Annual loan repayment: 4.5k
TOTAL annual cost: 5.9k

End of 3 years, have 30% stake in a 30k boat, 7 years left on mortgage.

Figures seem fair? sorry, all these are in pounds sterling. Roughly
double the numbers for $, isn't it these days?

Jeff wrote:
30K pounds seems like a lot. There are hundreds of 38+ foot boats In
the USA for under that, and a quick search of YachtWorld shows a number
in the UK. For instance, a '97 Dehler 41 asking 29K would be a fine
boat, and more likely to hold its value than an ugly wooden boat.

Yes, holding its value is an interesting point. But I'd tried to
include that in the annual maintenance cost, so that at the end of 3
years the value would be equal.

One point in your calculations: if your cash flow is less with the glass
boat, why not take out a shorter loan? That way you'd be a full owner
or a quality boat in 6-7 years.

Well I'd calculated how long I'd need the loan for to make it roughly
the same monthly payment. The figures were really back-of-envelope.