Originally Posted by Polwart
no its a reducing balance approach not a straight line approach.
So - new boat £20,000 depreciating 10% per annum:
new - worth 20,000 the boat loses 10% (£2000) this year... so
1yr old - worth 18,000 the boat loses 10% (£1800) this year... so
2yrs old- worth 16,200 the boat loses 10% (£1620) this year... so
3yrs old- worth 15,580 the boat loses 10% (£1558) this year... etc
18yrs old- worth ~ £3000... assuming it still has the orginal engine etc.
if it was a 10k boat new - it would be worth £1500 now (18 yrs later). Its obviously not exact - and new engines, tubes, trailers are significant too.
in my personal opinion this method is completely miss guided and i have proved it with every boat i have owned
i had a boat that cost me 20 k new, 10 years later i sold it for 17.5k
if you want to know your market value, consider the following
search for like boats similar to yours
phone up the people and see if they are sold or not, how long been for sale, what interest they had, if sold how quick, what extras, etc etc
after doing your own market research then put it up for sale at a realistic price you are happy with.
i was told about the method of 10% per annum but i quickly drew the opinion it would undervalue my boat so opted for my personal view of pricing.....its worked 3 x now
using the above 10%pa method my 2nd boat would have been worth 7k after 10 years, i sold it for 17.5k, only one person phoned and viewed and i used my sales tenacity on him and made the deal
Mr polwart, i believe you made a mistake in your 3 year figure, should have been 14,580 ~ approx
consider it....you have nothing to lose