Hi all
When browsing boats for sale, I’ve noticed that older boats are cheaper than new ones (doh!) but there doesn’t seem to be much consistency. So how is depreciation on a boat estimated? And do some boats keep their value better than others? (one make over another; widebeam versus narrow, etc).
Ian
I don’t think that depreciation can be estimated with any degree of consistency. It’s not like motor cars where you can look up the exact variant of vehicle in Glasses Guide.
The vast majority of boats are individual and don’t come off a production line as such with two identical looking boats from the outside having completely different internal layouts.
The price someone ends up paying will depend on: Not in any particular order
Who made the hull.
Who fitted it out with self-fitout at the bottom.
What engine/gearbox/prop is fitted and how many hours it’s done.
Evidence of regular upkeep. Engine maintenance/blacking
Quality of paintwork.
Interior layout.
Hull/shell design. There are some odd looking boats out there!
There are probably other factors as well but none of this really helps you. If you like a boat and the price seems reasonable then go for it. If you like it but the price isn’t reasonable make an offer.
Best Regards
Pete
Living retirement in the slow lane.
20 years hiring, 6 years of shared ownership and a Continuous Cruiser since 2007 but still learning!
If you look at the price of new boats (which I am currently sticking my toe into) for a 57ft or thereabouts they range from below £60k to over £120k. So as Pete says, there are a lot of factors. And some asking prices for used boats are way overpriced.
Retired; Somerset/Dorset border when not out and about on Lucy Lowther
Days without name and hours without number
http://thelovelylisanarrowboat.blogspot.co.uk
Hi Pete
Good point about the huge level of variety between boat makers making comparisons difficult. I guess that i need to get more familiar with who the best makers are (although some “names” seem to be no longer trading).
To me, handling and reliability will be crucial. I could live with a competent owner fit-out.
Just looking at the adverts, it seems that there are more second-hand boats coming onto the market all the time – is supply outstripping demand?
Ian
Alan said
If you look at the price of new boats (which I am currently sticking my toe into) for a 57ft or thereabouts they range from below £60k to over £120k. So as Pete says, there are a lot of factors. And some asking prices for used boats are way overpriced.
Hi Alan, yes, that’s my point exactly…the range is huge. And some do seem to be way over the top in terms of gimmicks and price.
This purchase would probably be the last major financial lay-out of my life, and if I ever have to sell it, I don’t want to lose too much to depreciation. I have no property to cash in so it would basically be my savings, afloat! That said, freedom, independence and the ability to wander at will are worth a lot to me, so I’m prepared to pay for them.
I’ll be interested to hear about any future purchase you make…
Ian
It’s certainly a buyer’s market at the moment. Apolloduck always has at least 1,000 canal boats (narrowboats, wide beams, butties) for sale at any one time. The number is higher than usual at the moment at 1,384
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Hi. I agree with Pearly. When I was looking for my boat just over two years ago, I saw loads of rubbish. I think many boats for sale are like the ones Paul talks of that sit in his marina. Hardly ever used or visited and basically unloved. Often showing signs of neglect and poor or no maintenance. Times get tough so the boat goes up for sale. I was lucky in the end as I ended up with Beatrice, a 1996 pretty much immaculate example with FSH, so to speak. She wasn’t cheap but, my opinion, worth it. I have spent a few thousand since having a repaint, new carpets, solar panels etc and I don’t think I have wasted my money. So, in my humble opinion, as long as a boat is conventional design, comes from a reputable hull builder, a professional fit out (not B&Q kitchen units etc), decent engine etc, the value is then down to the boats condition and just how appealing she looks. It’s not unlike a house really excepts location isn’t an issue. Like all the property programmes on tv, if your house is dirty, cluttered and generally unkempt, you will have trouble selling it. A lick of paint, everything tidy and minimalist, coffee on and flowers in the room, it will sell much more easily.
So, if you find a boat you really like, it fits the criteria above, buy it. If you then look after it and even improve it, you will not ever loose too much. But, I bet you won’t find that boat very easily as good boats are harder to find than you think despite there being more for sale than usual.
Just to finish, I was told to avoid Chinese built boats and that Liverpool boats were mass produced but please don’t rant and rave at me. I was just given advice. Mind you, a 2004 Chinese boat tree boats along from me looks more like a 1996 boat and mine looks the 2004 boat!
Hope this might help in some way
Best of luck
Rob
As has been pointed out many boats sit on moorings for much of the time. Mine was built in 2006 and had done 400 hours when I bought her!!!
Depreciation obviously depends on the state of the market when selling but they certainly do not depreciate like cars. If you are lucky (and buy well) you should not lose much – and may even make a profit.
Retired; Somerset/Dorset border when not out and about on Lucy Lowther
Days without name and hours without number
http://thelovelylisanarrowboat.blogspot.co.uk
Alan said
As has been pointed out many boats sit on moorings for much of the time. Mine was built in 2006 and had done 400 hours when I bought her!!!
Mine was built in 1977 and had only 4,000 hours, or 111 hours a year!
Click here to get a FREE copy of “Living On A Narrowboat:101 Essential Narrowboat Articles”
rob99fla said
Hi. I agree with Pearly. When I was looking for my boat just over two years ago, I saw loads of rubbish. I think many boats for sale are like the ones Paul talks of that sit in his marina. Hardly ever used or visited and basically unloved. Often showing signs of neglect and poor or no maintenance. Times get tough so the boat goes up for sale. I was lucky in the end as I ended up with Beatrice, a 1996 pretty much immaculate example with FSH, so to speak. She wasn’t cheap but, my opinion, worth it. I have spent a few thousand since having a repaint, new carpets, solar panels etc and I don’t think I have wasted my money. So, in my humble opinion, as long as a boat is conventional design, comes from a reputable hull builder, a professional fit out (not B&Q kitchen units etc), decent engine etc, the value is then down to the boats condition and just how appealing she looks. It’s not unlike a house really excepts location isn’t an issue. Like all the property programmes on tv, if your house is dirty, cluttered and generally unkempt, you will have trouble selling it. A lick of paint, everything tidy and minimalist, coffee on and flowers in the room, it will sell much more easily.So, if you find a boat you really like, it fits the criteria above, buy it. If you then look after it and even improve it, you will not ever loose too much. But, I bet you won’t find that boat very easily as good boats are harder to find than you think despite there being more for sale than usual.
Just to finish, I was told to avoid Chinese built boats and that Liverpool boats were mass produced but please don’t rant and rave at me. I was just given advice. Mind you, a 2004 Chinese boat tree boats along from me looks more like a 1996 boat and mine looks the 2004 boat!
Hope this might help in some way
Best of luck
Rob
Cheers Rob. I had heard that Liverpool Boats aren’t so good, an maybe explains why seem to be the cheapest on offer. I didn’t know that there are Chinese boats on the cut though! Intrigued by that…
Your advice will help me narrow down the search. I should find my “Beatrice” eventually, and as I’m not in a hurry, I can take my time.
Ian
Paul Smith said
Mine was built in 1977 and had only 4,000 hours, or 111 hours a year!
Paul, good to know that a 35 year old boat still has a lot of value in her! Thanks also for the comment about availability of 2nd hand boats…any idea what’s driving the “sell”? More new boats or just harder times?
Ian
Alan said
As has been pointed out many boats sit on moorings for much of the time. Mine was built in 2006 and had done 400 hours when I bought her!!!Depreciation obviously depends on the state of the market when selling but they certainly do not depreciate like cars. If you are lucky (and buy well) you should not lose much – and may even make a profit.
Thanks Alan, very encouraging. At this stage in my life I won’t get another mortgage for bricks and mortar, so I guess that as long as depreciation is less than renting, I will still be better off on the water than on land.
I’ll keep watching your blog – hope that you get your Lovely Lisa (either new or refurbished) soon.
Ian
IanL said
I’ll keep watching your blog – hope that you get your Lovely Lisa (either new or refurbished) soon.
Ian
Thanks Ian
Retired; Somerset/Dorset border when not out and about on Lucy Lowther
Days without name and hours without number
http://thelovelylisanarrowboat.blogspot.co.uk
IanL said
Paul, good to know that a 35 year old boat still has a lot of value in her! Thanks also for the comment about availability of 2nd hand boats…any idea what’s driving the “sell”? More new boats or just harder times?Ian
I don’t know why there are so many about. Apolloduck’s boats are mainly second hand and there are some bargains to be had if you look hard enough.
Click here to get a FREE copy of “Living On A Narrowboat:101 Essential Narrowboat Articles”
IanL said
rob99fla said
Hi. I agree with Pearly. When I was looking for my boat just over two years ago, I saw loads of rubbish. I think many boats for sale are like the ones Paul talks of that sit in his marina. Hardly ever used or visited and basically unloved. Often showing signs of neglect and poor or no maintenance. Times get tough so the boat goes up for sale. I was lucky in the end as I ended up with Beatrice, a 1996 pretty much immaculate example with FSH, so to speak. She wasn’t cheap but, my opinion, worth it. I have spent a few thousand since having a repaint, new carpets, solar panels etc and I don’t think I have wasted my money. So, in my humble opinion, as long as a boat is conventional design, comes from a reputable hull builder, a professional fit out (not B&Q kitchen units etc), decent engine etc, the value is then down to the boats condition and just how appealing she looks. It’s not unlike a house really excepts location isn’t an issue. Like all the property programmes on tv, if your house is dirty, cluttered and generally unkempt, you will have trouble selling it. A lick of paint, everything tidy and minimalist, coffee on and flowers in the room, it will sell much more easily.So, if you find a boat you really like, it fits the criteria above, buy it. If you then look after it and even improve it, you will not ever loose too much. But, I bet you won’t find that boat very easily as good boats are harder to find than you think despite there being more for sale than usual.
Just to finish, I was told to avoid Chinese built boats and that Liverpool boats were mass produced but please don’t rant and rave at me. I was just given advice. Mind you, a 2004 Chinese boat tree boats along from me looks more like a 1996 boat and mine looks the 2004 boat!
Hope this might help in some way
Best of luck
Rob
Cheers Rob. I had heard that Liverpool Boats aren’t so good, an maybe explains why seem to be the cheapest on offer. I didn’t know that there are Chinese boats on the cut though! Intrigued by that…
Your advice will help me narrow down the search. I should find my “Beatrice” eventually, and as I’m not in a hurry, I can take my time.
Ian
Hi Ian
Try searching for East-West Marine. There are lots of forum discussions on these boats. Something I didn’t know was the 44 foot length fits inside a standard container and a 12mm bottom plate to helps reduce ballast. I was looking at one a couple of years back but glad I didn’t buy. Best thing is to keep looking at loads of boats. You could try Rugby Boats who have a good reputation for decent quality boats and excellent quality service.
Best of luck
Rob
I think a lot of the second hand price comes down to the quality of the original fit out. Our boat was a bit neglected when we bought her, leaking sinks and radiators, lots of battle scars and a poor bilge drainage system leaving a permanent five inches of water in the engine room. Added to the fact that it was a bit grubby inside and wasn’t shown in its best light by the broker (lots of info missing from the details) and it wasn’t surprising the asking price wasn’t going to get achieved.
Look below the surface though and what we got was 12 year old ex show winning boat built to a high standard using materials that you will now only see on top spec boats eg solid iroko floors, solid oak cabin sides, corian worktops, double glazing, cocoon wrapped engine and many more things. There is no way I would do a like for like swap with a cheaper brand new boat. Indeed i would think that now we have done a bit of work LJ is worth about the same as a couple of year old cheaper boat.
James and Debbie
NB Lois Jane
http://nb-lois-jane.blogspot.co.uk/
De-Ogz said
I think a lot of the second hand price comes down to the quality of the original fit out. Our boat was a bit neglected when we bought her, leaking sinks and radiators, lots of battle scars and a poor bilge drainage system leaving a permanent five inches of water in the engine room. Added to the fact that it was a bit grubby inside and wasn’t shown in its best light by the broker (lots of info missing from the details) and it wasn’t surprising the asking price wasn’t going to get achieved.
Look below the surface though and what we got was 12 year old ex show winning boat built to a high standard using materials that you will now only see on top spec boats eg solid iroko floors, solid oak cabin sides, corian worktops, double glazing, cocoon wrapped engine and many more things. There is no way I would do a like for like swap with a cheaper brand new boat. Indeed i would think that now we have done a bit of work LJ is worth about the same as a couple of year old cheaper boat.
Hi De-Ogz
So it’s possible to buy well and increase value. I like the sound of that!
Ian
Hi Ian
Good luck with your boat search. The advice given to me was to look at as many boats as possible and when you see the one you want, you’ll know. That actually does work!
I bought my boat on 5th Aug and new that was the boat I wanted the moment I looked in the front door.
One thing you must not do is buy a boat without a survey and a BSS being done by surveyors of your choice.
The boat I bought was well cared for above the water line, but unfortunately the same could not be said about below the water line. Although the boat had a valid BSS, I still had another one done, which the boat failed!
So, it doesn’t mean that because the boat looks in good condition that the bits you don’t see are also in equally good condition.
Also, be prepared to see a lot of rubbish at ridiculous prices.
All the best
Monz
monzie said
Hi IanGood luck with your boat search. The advice given to me was to look at as many boats as possible and when you see the one you want, you’ll know. That actually does work!
I bought my boat on 5th Aug and new that was the boat I wanted the moment I looked in the front door.
One thing you must not do is buy a boat without a survey and a BSS being done by surveyors of your choice.
The boat I bought was well cared for above the water line, but unfortunately the same could not be said about below the water line. Although the boat had a valid BSS, I still had another one done, which the boat failed!
So, it doesn’t mean that because the boat looks in good condition that the bits you don’t see are also in equally good condition.
Also, be prepared to see a lot of rubbish at ridiculous prices.
All the best
Monz
Hi Monz, thanks for your advice. Even from browing the web pages, it does look like some folks are asking ridiculous prices for their boats. On the other hand though, there does seem to be some fair deals about.
I will definitely heed the warning about having a survey done! Last thing I want is have to do emergency repairs to stay afloat.
Good luck with life afloat and I hope your boat serves you well.
Ian
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