Depreciation and future value

[Fishpants]

Hi folks,

Having fallen in love with the new 29S, I am agonizing over a potential purchase. While I am clearly aware that buying new comes with an automatic hit with regards to depreciation, I was wondering if anyone would care to comment on their experience or knowledge with regards to potential future resale value of Ranger Tugs.(not that's I'm already planning to sell the boat I don't yet have, but it's always good to have a backup plan...) I do see quite a few on the market, and they still seem to be priced fairly high (say for a 2010 model) but I don't know the original price of these boats.

Is there any way that any of you know of to anticipate or estimate resale after a given period, or at the very least have some ballpark idea of annual depreciation? Obviously pricing is affected by introduction of new models, and of course supply and demand. Just hoping for some informed opinion on this. It's a huge investment for me, and I just want to make sure I've considered everything.

Thanks in advance!

-David

 

[scross]

Nada Guides states the LIST prices for the Ranger Tug models on their website. Assuming they are correct, the new LIST price WITHOUT ANY OPTIONS is as follows:
2010 and 2011 $239,937
2012 and 2013 $244,937
2014 $249,937
The current spec sheet at RangerTugs.com for the R29 options should give you a sense of those additional items would cost.
Remember though, these are list prices, not boat show special prices. I imagine there is a significant discount over list for boat show pricing!

 

[baz]

IMO the depreciation on any of the R-25 thru R31 is going to be around at least 20 to 30% after 4 years if boat in good condition. The R-21EC hold a better price as it depreciates less from what I know.

A broker's price can be at least 10% higher than a private sale. Then there's the warranty aspect... does it have one or not.

Buying new gives you a 'new' warranty and suspect better and more attentive Customer Service help after the sale.

Of course, when it's time to sell, your potential buyer market is what it is at that time. Wait another 6 months and there's another set of buyers. You can be lucky and find a cash buyer within weeks or you may have to wait another 6 to 12 months for the right kind of buyer to turn up.

 

[tugnnaweigh]

Agree with much of the above posts, big hit on value upon new purchase, then annual decline in value. Cars, boats, airplanes are "declining value assets" which doesn't much sound like an "asset" at all to me but we own them for the pleasure they bring us. I do think Ranger Tugs hold value better because of the build quality, factory service/support and their reputation.

As for looking at what used Rangers list for, you need to keep in mind that the advertised price of used stuff is rarely the price it changes hands for and therefor subtract a percent from the advertised price to find the probable sale amount which is the actual value of the item.

For any purchase be sure to put enough cash in so you're never upside down and can sell when you need to.

Here's how I rationalize my boat: "Lets see, my payment is $602, $382 goes to principal which I gotta pay that back anyway, next the interest is $220, I write that off as second home interest because of the plumed in toilet so I get back $70 of that so it actually costs me only $150 a month!" Sweet!

And here's how my wife sees it: "Where the heck am I supposed to find an extra $602 in this months budget, again?"

Women, I tell ya..

 

[baz]

Well I never.... 2nd home mortgage interest taken as a tax deduction.... sweet. 😀

 

[S. Todd]

Tugnnaweigh is correct on the vacation home interest deduction and you itemize deductions on Sch. A on your US income tax return. The provision for the second home was added to the law in the 1986 Tax Reform Act. The boat needs to have a head and a galley to qualify, but there is no actual requirement that you use either or both any number of days per year. It does lessen the sting of paying the interest every month.
I always tell my wife that without the boat the cost for psychiatric care could be thousands per year and I might still be grumpy.