Originally Posted by GrahamF
I spoke to a Fairline sales person here in Mallorca and he said that the depreciation is 5% per year.
I find that depreciation unrealistically low. Perhaps it is possible if demand for that model is high and there are no good substitutes.
In all likelihood though, it is a sales person positioning his product. Think about it: you can get at least 10% off of a new boat, and at least that amount when negotiating for a used boat. Not counting for depreciation, you are already well off of 5% per year.
Lastly, 5% per year is probably not realistic when you consider what the wholesale price is. Unless demand outstrips supply, then 5% per year means that it will be a few years before a used boat is worth less than the wholesale of a new boat. If that were the case, then you could sell a new boat for well over retail because the demand is there.
The only way to get a sense (and only a sense) of the re-sale price is to look at the actual price of the transaction and not the lisiting price.
My personal opinion (FWIW) is for an in-demand boat almost new (ie 6 months old, less than 50 hours) 10% off of typical new selling prices. For an Full year, over 100 hours, 15-20%. Two full years old, 20%-30%. For a boat that does not have high demand, even worse.
The complicating factor is the pricing for boats generally has been increasing year-over-year, helping to mitigate the down slope of depreciation a little, especially for a boat 3-4 years old since the delta between old and new is magnified.