Predicted Used Boat Values in 10 - 20 Years

[UNSTUCK]

I think it's amazing how expensive used boats are. Take my first boat for example. It was a 2000 Tige 21V. I sold it this last April for $20k. I have no idea what the new boat price was, but for being 17 years old and still being worth 20k I have to assume it sold new for at least 2 or 3 times that. I looked at alot of 2006-2008 24VE's last spring to purchase. They were all in the upper $30k range. Again, I have no idea what they sold new for. Seems like a lot of money. I understand these are not cars and not getting beat on everyday. Maybe it's just my nature to think about boat values the same as car values. I know I shouldn't do that.

That brings us to today's new boats. A new RZX2 is priced somewhere around $125k. I expect the used value to drop pretty drastically in the first 5 or so years. Probably to the point where a normal payment wont keep you right side up. At some point the value loss will slow and you may catch up and break even or even get ahead. Eventually the value will stay the same basically forever.

So how do you see the value of this RZX2 playing out 5, 10, 20 years from now? Think it will devalue at a similar rate as, say, a 24VE? Will someone buy it for $60k in 20 years?

[Jesse]

Five years ago we bought a 2004 22i for 19,500. This year we sold it for 25,000. For some reason, the more expensive new boats got, the higher the value of our boat got. I doubt that an RZX 2 will be worth 60k in 20 years, but if a new top of the line boat is 350k then 60k seems pretty reasonable.


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[UNSTUCK]

Very interesting. Who would have thought you'd make money on the boat?

I can't see an RZX selling for 60 in 20 years either. I imagine it will be on its 4-5 interior and the touch screen replaced with a plate that has all manual switches and gauges. I'll guess and say the tower hasn't folded down under it's own power in a few years.

[D&P Powell]

So how do you see the value of this RZX2 playing out 5, 10, 20 years from now? Think it will devalue at a similar rate as, say, a 24VE? Will someone buy it for $60k in 20 years?

Although I see this post as a good discussion, I am not sure it's anything more than that. Trying to predict resale values on anything, let alone boats, is a risky endeavor. Bottom line; in my opinion, if you are trying to gauge a boat purchase on resale potential or value in the future, you're doing it wrong. That's just my though.

[bsreid]

I just did a quick search, a 2006 22ve started at a price of 42k according to waterski magazine. What are they going for now, mid 30s? So if the market keeps going the way it is now it shouldn’t be too bad.

I’ve also heard of lots of people buying an older boat and selling it 5 years later for way more than what they paid for it. Before we had a tige, we had an older I/O and the dealer offered us a very similar amount to what we bought it for 4 years earlier. Then even better they listed it for way more than what we payed for it. So you never really know where the market is heading.

[dakota4ce]

There is no way to cleverly or shrewdly play the boat trading game right now . It makes no sense. Nobody wants to keep a boat more than a couple years because 400 hrs is considered “a lot” for some reason and surf systems continue to evolve. As long as there is financing available for these expensive boats the sales and trades will continue to happen at breakneck speed.


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[dakota4ce]

Although I see this post as a good discussion, I am not sure it's anything more than that. Trying to predict resale values on anything, let alone boats, is a risky endeavor. Bottom line; in my opinion, if you are trying to gauge a boat purchase on resale potential or value in the future, you're doing it wrong. That's just my though.

Very true. Absolutely no way to predict it. I️ gauge it in how much it costs outright and how good of a surf wave it makes. That’s all I can see at the moment.


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[bsreid]

You can gage the surf wake all you want but who says in 15 years we will be surfing?
20 years ago most boats were all true inboards and meant for skiing. So there really is no way or predicting it.

[dakota4ce]

Predicted Used Boat Values in 10 - 20 Years

You can gage the surf wake all you want but who says in 15 years we will be surfing?
20 years ago most boats were all true inboards and meant for skiing. So there really is no way or predicting it.

Who said anything about 15 years? I gauge the surf wake for usage tomorrow and ask how much the boat costs. Therein lies the (over simplified) extent of my boat purchase analysis.

In other words, I don’t think about future value very much. I think about present value—meaning how awesome will my family’s water weekends be in the immediate future. And how good of a deal can I get on a boat that meets those needs.


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[chpthril]

a 2006 22ve started at a price of 42k according to waterski magazine.

I can say without a doubt, this is off even with no trailer, bass engine and no added options. MSRP for a loaded with trailer was $70k'ish

Bottom line, as long as new boats are selling, there will be a secondary market. As long as new boat prices see a price increase yearly, the secondary market will be strong. However, I would still consider a boat to be a depreciating asset. You will likely be disappointed if you go into thinking of making a profit.

[ericinmich]

I found the original paperwork for the guy who bought the 2009 22Ve that I have (bought it with 180 hours from him). He paid about 50k out the door with trailer, alpha z, bimini, sub... no ballast. It was a holdover, probably sat for a year due to the economic downturn before he bought it.

[Bakes5]

Those stupid screens are going to be a pain in the butt in 10-20 yrs. Absolutely hate them. Mine is already acting up.

[bsreid]

How do the touch screens in boats seem to compare to ones in cars. If you were to take a ten year old car, would the touch screen still function properly? I know most brands didn’t have them but the high end ones did. If so, what is the marine industry doing wrong?

That’s the one thing I really like about my current r20, no screens, everything is simple. Supra is probably doing the best with the whole future in mind thing, making everything controllable by buttons and screens.,

[UNSTUCK]

I really worry about the screen. Everything else is standard mechanical parts that can be replaced or repaired easily. I don't see the screens in boats holding up as well as they do in cars. In the cars they are pretty well protected from the elements which I think would help alot. Anyone know of Tige's commitment for replacement parts down the road?

[SONIC]

I too wonder how the screens will fare long term and more importantly how well they will be supported. If they fail but can be replaced it's not that big of a deal.
My 01 23v has several parts that need replacing, but tige doesn't have them anymore, and as a low volume manufacturer they can't afford to make or keep parts for a 20 yr old boat. So I'm going to have to make my own. That's fine with mechanical guages and a fiberglass dash, but what happens when they stop using that particular screen/computer setup?
It controls the stereo, is all the gauge, controls ballast, engine etc. And as far as I'm aware it's specific to tige with their programming. Way too many eggs in one basket if you ask me.

Yes it's awesome, and great today, but when you call them in 10 years and they tell you you're SOL and they no longer have the part you're going to be really stuck. Things will have advanced to the point that a retrofit it tough (and expensive for an old boat) so your only real choice will be to ghetto it up and kill your resale.

We have still yet to see how they will last in cars, but it really doesn't matter because there will always be support for them, when the oems stop making them the volume is so huge that someone else will pick it up to make parts for AutoZone. That doesn't happen with boats. Once it's done it's done.