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2006 Yacht Depreciation

 
 
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Old 04-30-2007, 03:27 AM   #1 (permalink)
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2006 Yacht Depreciation

What is the percentage in price depreciation on a 50ft 2006 Fairline yacht in an excellent condition with 120 hours?
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Old 04-30-2007, 05:26 AM   #2 (permalink)
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hi - off topic: didn't you just buy one?
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Old 04-30-2007, 06:00 AM   #3 (permalink)
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Quote:
Originally Posted by brunick
hi - off topic: didn't you just buy one?

Yes, a friend of mine is buying a 2006 Phantom 50. That's the reason I am asking.
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Old 04-30-2007, 08:03 AM   #4 (permalink)
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They are different models, right? as in new version/old version?

I'm not sure in depth as I only looked quickly, but the internet lists the following prices on a few boats:

2007 phantom 50: 1375000 (lying UK, taxes paid), 1082000 (another one lying in greece apparently, no taxes paid on this one)
2006 phantom 50: 1050000 tax paid UK, 1080000 tax not paid in the netherlands
2005 phantom 50: 1062000 tax paid italy...

the prices seem to vary a LOT... your friend bought an 06? What is he trying to establish? the hit he already took, or the possible sale price for it now?

I'm not going to post the link to the search since I dont know what the rules are exactly for link posting, I know some sites are not to be linked...
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Old 04-30-2007, 09:40 AM   #5 (permalink)
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Thanks Roy.
My friend is still in the buying process, did not buy yet.
Same yachts will have varying prices according to options and specs. We have a copy of the factory invoice for the Phantom 50 in question. What I would like to know is the depreciation in terms of percentage which can be applied to this specific yacht.
I am not familiar with depreciation values on boats, but like in cars, a rough figure would be a 15% depreciation for the first year followed by about 10% per year. Does that also apply for the above yacht?
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Old 04-30-2007, 11:34 AM   #6 (permalink)
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I'm really not sure at all... I know that cars vary greatly in terms of depreciation, (I should know, I have a land rover! )...

Anyways, I really don't know how much it is roughly for the fairlines, it might even be quite different between the models on the lineup
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Old 04-30-2007, 03:18 PM   #7 (permalink)
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Unlike cars where actual sales prices can be statistically verified, since great numbers of them have been sold, it is very difficult to put a hard figure on depreciation for a product like a yacht where only a few have sold.

A broker who specilaizes in Sea Rays, told me 10% the day you turn the key, and 10% after the first year. Supply and demand is a big factor here as there are more used Sea Rays available, but more buyers also.

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Old 04-30-2007, 04:35 PM   #8 (permalink)
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Hi Tarek

I will try and find out some info for you here in Mallorca as there are many Fairlines here. Let me see what info i can find out for you. Where is the boat based that your friend is interested in. Location and time of year does play a factor.
I have found that prices are more easily negotiated in the winter then in summer.
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Old 04-30-2007, 04:41 PM   #9 (permalink)
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Originally Posted by GrahamF
Hi Tarek

I will try and find out some info for you here in Mallorca as there are many Fairlines here. Let me see what info i can find out for you. Where is the boat based that your friend is interested in. Location and time of year does play a factor.
I have found that prices are more easily negotiated in the winter then in summer.
Thank you Graham, I would appreciate that. The boat in question is located in Spain.
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Old 05-01-2007, 12:53 PM   #10 (permalink)
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Hi Tarek

Where in Spain?? I dont have any info for you as today was a holiday(Mayday) will get info for you tomorrow.
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Old 05-03-2007, 08:44 AM   #11 (permalink)
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Hi Tarek

I spoke to a Fairline sales person here in Mallorca and he said that the depreciation is 5% per year. They had 3 Phantom 50 for sale and at the moment they only have on left in Mallorca as the boat show is on at the moment. They have a 2004 model available. Engine hours are approximately 235 hours. The price is 485,000 GBP. The price is negotiable.
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Old 05-03-2007, 03:35 PM   #12 (permalink)
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Tarek,

I agree with Graham here. We have been looking at Phantom 50's (2004 Models admittedly) and the 10% first trip, 10% first year and 5% thereafter rule seems to be about right from what we have looked at. We run yacht syndicates and have a good network of people working with us in Mallorca, France and the UK. Graham - Is the 2004 from Charlie at Cala d'Or?
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Old 05-04-2007, 08:52 AM   #13 (permalink)
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Hi Philgreg

I spoke to a sales person at the boatshow and works for Fairline. He either works at the Portals office or Santa Ponsa office
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Old 05-04-2007, 09:28 AM   #14 (permalink)
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Quote:
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.
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Old 05-13-2007, 01:41 PM   #15 (permalink)
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Thank you Graham and everyone else for your replies to my inquiry.

Best regards,

Tarek
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