Gordon wrote:


d) Why does the value of boats fall off so fast? Some new boats seem
to loose half their value in five years.

Because people are stupid enough to buy a new boat which costs a lot
of money. Same as with cars.

Not all boats lose that much. In 1989, an Island Packet 31 listed at
under $78,000. Today there is a 1989 on Yacht World for $74,000 and this
is typical for IPs. Of course if you count inflation--
Still not bad for an 18 year old boat.
Gordon

That has a lot to do with inflation. How much would 1989$$s be worth
in current buying power? In the ten years between 1989 and 1999, the
buying power of the dollar went down. What you could buy for $78K in
1989 would take about $104 in 1999. That's not just a $4K loss - it
is a $30K loss

A more cogent analysis would be - how much was that boat selling for
in 1994? How much would you have had to pay for that $78K boat when
it was five years old?

Some of the older boats hold their value (discounting the cost of
inflation) pretty well, but that's an argument FOR buying an old boat.

Another argument FOR buying and old boat is that the new boats don't
come equipped - you have spend mucho additional money to fit her out
with things like lines, fenders and the like.

AGAINST an old boat is that the equipment may be worn and outdated.