Boat Exit Strategy

F

Fletch

New Member
Oct 22, 2017
25
Boat Info
1997 Crownline 225
Engines
5.7
So Ive been in the market for a 32-38' fresh water cruiser in the upper midwest. One of the things I consider when buying a boat is exit strategy ( salability of boat ), may it be for family emergency to just getting our of the hobby. Since I have a limited budget (90K), bigger cruisers, 15 years old, with 700-800 hours are on the radar. However, Im very concerned of their salability after they have 1,000 plus on the engines. I am a boat owner that takes pride in ownership, so the boat would be in very good shape when come to sell it..So how likely would it be a big loss or un- salable on a 25 year old cruiser. I know this is a tough question, but I'm open to hear all sides..
Thanks ahead of time!
 
A nice clean well maintained boat WILL sell.
Not everybody can afford a "big boat price" so they will be in the older market just like you(and me for that matter).

There will be alot of dogs in the older boat market and when they come across a clean one they jump on it.
 
It will sell if well kept, but maybe half the price by then? Definitely not something that can be considered an investment. Well, you do invest in happiness and family time.
 
Right now, in my area clean well maintained boats priced right are selling quickly.
 
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Buy quality and maintain it by the book. Our boat sold by word of mouth while it was in storage. It also substantially increased in value for each of the last five years we owned it.
 
Our 280 had always been cared for, both by the first owner and us. Although we traded it in to the dealer we bought Serenity from, they actually sold it before we closed on the Sabre. Like anything else it depends on condition and realistic pricing.
 
We used to make it a point to buy fishing battle wagons (Hatteras, Post, Bertram) at the bottom of their market, usually around 250K. Over the ten years you own it (or twenty), you'll spend that much again, just because of replacements. When you sell, it should still be around what you paid for it. You'll not recover the total of what you put into it financially, but you will collect priceless times. So, 250K for 10 years worth of a million dollar boat? It made sense. Someone else can pay for the new. My current Sundancer won't hold that model, but we're really not that far off, and it has been 17 years for her. The last 17 were far more attentive by me than the first 5 from the PO in this case. My motto has always been not buy the boat I can barely afford, but instead buy the boat I can barely afford to keep up for a long time. Good luck with the hunt!
 
There’s an ass for every seat!
Most serious boat shoppers have a price range and know what they want in a boat.
Some buyers want a mint boat for a lowball price and some sellers wanted all the money in the world for their hot mess.
I sold my then 29 year old 300 Sundancer back in June of 2016 in less than 24 hours to the first guy who looked at it.
It may have just been luck. Who really knows?
I’d like to think that it was because it was a clean well maintained boat that was priced right with maintenance, repair and replacements logged and documented.
The guy that bought it had a budget and after looking around for a long time, knew what he wanted to get for the money.
I could have just as easily had a string of guys looking for a steal over a long period of time before my buyer found me too.
Once that boat was gone I seriously stepped up the search for my next boat that had started 6 months earlier. It took close to another 6 months from that point to find my current boat.
There were plenty of boats for me to look at over that year long search. Some nice ones, some nasty ones and a lot in between. I’m sure they all fit someone’s budget and needs. Just not mine.
I was a serious buyer so once I found what I was looking for at what I felt was a fair price I acted quickly.
 
The economy will always be a big factor in your ability to sell a boat.
In a good economy, there will be buyers for a good boat. During an economic downturn it is much harder.

That may seem obvious, but since you are planning for unforeseeable circumstances it is something to consider.
 
You say you are looking to buy a 15 year old boat and are concerned about selling it as a 25 year old boat (10 years from now). In the current boat market sterndrives are falling out of favor and being replaced with four stroke outboards. Ten years from now its likely a boat with twin sterndrives will be less desirable and more difficult to sell. Given that, for a 32 - 38 foot boat I would recommend buying a boat with straight inboard engines. They are available in that size range and will most likely not depreciate as much as a similar boat with sterndrives.
 
A 15 year old well kept boat has depreciated from new quite a bit, and will most likely do so at a slower rate over the next 10 years
As another poster mentioned, the economy will come into play (think of what the boat you're looking at sold for 15 years ago vs current going rate).
I've always bought a boat with options already installed and the higher/max HP rating
Makes the boat stand apart when buyers compare to similar boats of the same year if the selling boat is loaded, bigger engine, etc..vs the 'base' model.
Of course condition is key too!
 
Chip S said:
You say you are looking to buy a 15 year old boat and are concerned about selling it as a 25 year old boat (10 years from now). In the current boat market sterndrives are falling out of favor and being replaced with four stroke outboards. Ten years from now its likely a boat with twin sterndrives will be less desirable and more difficult to sell. Given that, for a 32 - 38 foot boat I would recommend buying a boat with straight inboard engines. They are available in that size range and will most likely not depreciate as much as a similar boat with sterndrives.
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Chip,
Excellent point and something I will consider if I ever move to a larger boat. Unless some significant changes are made to I/O drive setup, it may end up going the way of Dodo Bird.
 
If you are a handy DIY'er look for a good boat that checks off the boxes in needs some TLC.

You can get it at a great price and while fixing/repairing you know it was refurbished correctly.

In my case I bought a new 2011 260 DA and kept it for 5 years and it was always needing repair vs my current 98 290 DA which needed some work, purchased it for below market value and have put in some work while enjoying a heck of a boat.

Which ever you choose enjoy the crap out of it and don't worry about resale.

None of us are promised a tomorrow.
 
If we could predict the economy and buyers preferences 10-15 years out...well...we'd all be exceedingly wealthy and not buying used boats :)

You could take a different approach if you're a Sea Ray diehard. Since they've killed off all of their 40'+ models recently you could potentially argue that the more sought after models above 40' could become more scarce, harder to get, more desirable. Particularly the well cared for units.

Find yourself a 40' hard top mid 2000's Sea Ray and call it in investment. ha. If you're trying to stay closer to 90k you could still hit 40' you just need to get closer to the year 2000.

And on the hours - in the grand scheme of things gas engines can be replaced for the cost of a good canvas replacement if you're thrifty. Get a solid hull and fear not the hours if she surveys well.
 
I look for boats needing specific types of work due to my shallow budget. Since I can do most of the work myself including pulling engines, I can get a boat with lots of potential for relatively small money. Many people don’t have the desire to dump lots of money into an older boat doing things like transom assembly replacement, engine re-gasketing/seals, outdrive seals, etc. due to excessive labor costs and down time at shops.

I am not doing it as an investment looking to turn a buck. It is a way for me to get an affordable boat that has mechanically new and sound components for cheap, unless you add in the time it takes me to do the work.

If you want a great boat, find one with a solid hull and transom but may have some oil leaks, steering pin leaks, other mechanical problems that are fixable. Calculate the repair prices in the purchase price. Install new components yourself, as much as possible, then you will have a mechanically solid boat at a reasonable price.
 
You're at least thinking the right way. Buy something universally appealing, not an oddball. I try not to ever buy anything that I can't sell the next day for 50% more than I paid for it.
 
Leardriver said:
You're at least thinking the right way. Buy something universally appealing, not an oddball. I try not to ever buy anything that I can't sell the next day for 50% more than I paid for it.
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Part of the reason I bought a Sea Ray Sundancer was their popularity in my area, which both made finding a good one pretty easy and will probably make selling it easier. I probably could have gotten more boat by buying a brand unusual around here or from a brand that's dead (like Trojan), but selling an odd duck from a discontinued brand (even if its all just marine parts at the end of the day) is a lot harder.

I will say that selling anything you buy for 50% more than you paid the next day is a neat trick, I wish I had that ability, especially with cars and boats.
 
mobocracy said:
I will say that selling anything you buy for 50% more than you paid the next day is a neat trick, I wish I had that ability, especially with cars and boats.
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Me too!
 
A Mercury 400R outboard is $36k without the prop.

A Mercruiser 8.2L 502 SportPac is $14k, Bravo 3 $7500.

You can run a cruiser w a single 502 but you won’t find one w a single 400R outboard.

Look at the off-shore super class racers and they’re all I/o’s.
 
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