Depreciation on boats

[PADDLES]

sorry about the late reply chimo, but yeah some good research as to a fair replacement value for your rig could save some premium costs for you. in my case i bought a 550br signature with a 135 blackmax merc on a tinka drive on trailer (all 1992 vintage in vgc), off my mate. paid $20k for it. the insurance split on the policy is 15 for the hull and gear in it, 3 for the motor and 2 for the trailer. to replace this rig at a boat yard would be a smidgin higher than the 20 but at least i'd get my money back in the event of a total loss, which i would be happy with. i reckon racq have pretty well priced premiums but you've just got to be realistic with the market value. getting a good collection of photos of your rig would be good evidence of it's condition too.

back to the depreciation thing, the 25% in the first year figure was all based on new packages. yes you're right for you or i we would freak at losing that much money but for some it's just a cost of living, interesting how the other half live isn't it

[PinHead]

sorry about the late reply chimo, but yeah some good research as to a fair replacement value for your rig could save some premium costs for you. in my case i bought a 550br signature with a 135 blackmax merc on a tinka drive on trailer (all 1992 vintage in vgc), off my mate. paid $20k for it. the insurance split on the policy is 15 for the hull and gear in it, 3 for the motor and 2 for the trailer. to replace this rig at a boat yard would be a smidgin higher than the 20 but at least i'd get my money back in the event of a total loss, which i would be happy with. i reckon racq have pretty well priced premiums but you've just got to be realistic with the market value. getting a good collection of photos of your rig would be good evidence of it's condition too.

back to the depreciation thing, the 25% in the first year figure was all based on new packages. yes you're right for you or i we would freak at losing that much money but for some it's just a cost of living, interesting how the other half live isn't it

Paddles..I know of a boat..same make and model as mine but without the options I have on mine and it sold for $11k more than what I paid for mine and that boat is also only 18 months old. I would suspect that any losses are due to what chimo said...either bad deal at time of purchase or perhaps not looking after the boat and carrying maintenance and keeping it clean. 25% off a 200k boat is 50k...take for example a 32' mustang cruiser ..retails now for about $220k..selling 2000 models for about 150k...so taking 2000 retail price into account I doubt they owuld have lost much from new price.

[PADDLES]

fair point about lack of maintenance and diffent boat condition pinhead.

but this guy was buying new and working out the loss based on his purchase price. maintenance for him was done regardless of expense. boats were whittleys.

like i said "interesting how the other half live!"

[charleville]

i reckon racq have pretty well priced premiums but you've just got to be realistic with the market value.

Back to where we started, I finally decided that because the RACQ premium was so much lower than every other insurer who I had questioned that this time around, i would just go with my undepreciated value.

This means that it is overinsured but I would hazard a guess that the savings at the premium end are likely to be too low relative to all of the other costs of my fishing hobby for me to lose sleep over. I use the boat several times each and every week so a dollar or two each week in its fixed costs is nothing in the greater scheme of things.

Nonetheless, the question remains as to identifying a quantifiable basis for estimating depreciation.

Thanks guys for the discussion and perspectives. It has been very interesting and illuminating.

[lee8sec]

This is a cut and paste from another aust forum where some one was asking questions on "nautilus insurance". So it pays to check with your insurer. Leigh.

"I recently had claim from gio, did not have agreed value, two year ago valuation 20,000. now that it had been stolen and claimed value 5k.

As an example of the accessory markdown.

bimini and clears value 1500 in two years they now value them as $120... go figure.

Thats 75% depreciation in two years.

By the way I have authorisation to disclose this information as agreed by their valuer."

[PinHead]

wow Paddles..glad I have not bought a Whittley then if they depreciate that much.

[PADDLES]

that's what I thought when this guy was telling me how much he lost on these boats ....... youch! i always thought they'd hold value better than that with whittley being a premium product.

[PinHead]

from the prices I have seen on them I thought they did keep their value....the problem with them being that from new their prices are a bit high for what you get....in early 2005, a whittley cruisemaster with trailer was aboout $140k with some options on it...then you had to purchase a vehicle to tow it. At the same time, something like a Mustang 28' was 120K..an on water boat but 20k sure pays for a lot of berthing and antifoul and no need to buy the tow vehicle.

[Alchemy]

My experience to date has been relatively positive. I bought a 4.1 Ally Craft Top Ender second hand about 7 years ago. Paid $6500 and sold it 2 years later for $6000, then I bought a new Quinny 600 Offshore for $36500, and sold it 3.5yrs later for $34000. Admittedly I had added a few extras in that time, but not a hell of a lot. What helped the quinny situation was that from the time I bought and sold, the new pricing rose to 45k. So when the buyer offered 30k and said you only would've paid about 35k, I just quoted the new price. First person to see it bought it, and I could have sold a dozen of them judging by the number of calls I took for it.

Hopefully I'll have a similar experience when the time comes to upgrade Alchemy.

Regards,
Dave.

[charleville]

This is a cut and paste from another aust forum where some one was asking questions on "nautilus insurance". So it pays to check with your insurer. Leigh.

"I recently had claim from gio, did not have agreed value, two year ago valuation 20,000. now that it had been stolen and claimed value 5k.

As an example of the accessory markdown.

bimini and clears value 1500 in two years they now value them as $120... go figure.

Thats 75% depreciation in two years.

By the way I have authorisation to disclose this information as agreed by their valuer."

The Nautilus premium quote for my was was a lot more expensive than RACQ so they were not in the race. That may simply mean that they only target a certain segment of boats of course and just overprice other quotes so as to either dissuade the customer or at least pick up above-the-norm profits for the contract. I don't know if that is the case but they were a lot dearer than RACQ for a very similar set of risks on my little boat.

[Bob H]

you think he would give up if it is costing him that much.

mate if you are loosing $500 dollars a week on a boat ,you have too much money in the first place. bob h

[PinHead]

I certainly hope I am not losing $500 per week on my boat