Yacht Prices Falling

[IdahoCopper]

I've been tracking the price of used 40 to 50 foot sailing yachts for about a year now. Recently, in the last 6 weeks or so, a lot of boats that have been on the market a while are now dropping their prices by 15% to 30%.

This is a clear sign that the fiscal cliff is approaching. When the moderately wealthy start ditching their expensive toys, that means the leading edge of the economy is crumbling.

Yachts that size cost $10-$12 per foot, per month, to keep in a marina. Monthly maintenance and insurance expenses are typically $500 to $1500 per month in this size range. And if the boat has a mortgage, there is more alligator nipping at your ass.

A decent 45-footer, in fair to good condition, with good sail inventory and current electronics can now be had for $30k to $40K. The steel 45', that I've been tracking in French Polynesia has dropped from $32k last month to $26k now.

[68Camaro]

Really? Good grief - I'm not a yacht/boat person, but I know people that are, and if I'm not mistaken those are something like 10-20 cents on the dollar of new boat prices. At least the prices that I recall from several years ago. The boat manufacturers must be dying.

[IdahoCopper]

A boat is not an investment, its a lifestyle. Yes, used boats sell for much less than new ones, they always have.

But now, lots of boats are being sold at fire-sale prices. I was looking at www.yachtworld.com this morning at 40-50/ft and there are dozens for sale, that look reasonably fit, for less than $40k.

[NDFarmer]

Don't you just hate it when you can't afford your 50 foot yacht anymore?

[Diggin4copper]

A lot of people drop the price in the fall because of the winterizing and winter storage fees that pop up at this time of year. Im in the northeast, so my observations may be a little different than someone in Fla. But, if you are selling a 30k boat in Fla, and someone in Boston has the same boat, and drops the price 5k, you kinda have to follow suit to sell...Just one word of advice... Dont take your stash with you, its gonna sink the boat.. I hear that time and time again....

[Lemon Thrower]

yacht prices have actually stabilized and are up considerably from say 3 years ago.

what you are seeing is seasonal.

if you are paying under $100K for a 50 foot yacht, then it needs a lot of work and upgrades.