Sara Clemence
Turning A Profit
Top-quality boats not only look terrific, they also hold their value better.
While some experts say that you should never expect to profit on the sale of a boat, others believe that with the proper maintenance, a boat can retain or increase its value.
"Very high-quality boats hold their values and don't depreciate much," says Northrop and Johnson's Bob Leslie. While smaller medium- and lower-quality boats do depreciate, the drop in value is not as dramatic as with a car, taking place mostly over the first two or three years. The percentage of depreciation varies widely from boat to boat.
A boat's condition can change its value by as much as 30%. "As you're using the boat, you're consuming it," Leslie says. "You're wearing out the sails, the pumps."
"If a boat is kept in excellent condition and upgraded constantly, there's a good chance it will hold its value or be worth even more than [the owner] paid," Leslie says. "But the owner has to have a very high commitment to maintaining the boat."
Nevertheless, a boat is still a precarious investment. As with art, the main return on your money, if all goes as planned, will be in pleasure.
"The only reason to buy a boat is therapy," says Mitchell Gibbons-Neff of Sparkman & Stephens. "When you go to bed at night, instead of thinking about the hassles in your day, you think about where you're going to go next on your boat."
Sailboat Buying Guide
1. Intro
2. Location
3. Brokers
4. Bigger can be better, but..
5. Pedigree Counts
6. Turning a Profit
7. Used? New? Custom? In-Between?
8. International Buying
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