sell or keep

BrentJones

BrentJones

Member
Oct 4, 2006
405
Fenton/Lake Ozark, MO
Boat Info
2005 240 Sundeck
Engines
6.2L
I've discussed this before on SRO, but wanted to get some updated opinions. My 05 240 SD is a great boat, but I know in the near future I will want to upgrade to maybe a 280DA for my young son (and me :grin: ) or larger bow rider. I'm trying to figure out approximately how much it will depreciate per year vs. how much I will pay my loan down in the same period.

I currently owe about $46,000, so I'm guessing I might be able to break even at this point. I would like to keep it another year, but based on my monthy payments, I'm not sure if I will be upside down by next year. What do most of you think would be the average depreciation percentage per year?

BTW, I have the 6.2 engine and most of the normal upgrades, but don't have the tower. I would also sell my trailer with it, which I have only used 3 times! :smt013
 
I don't know how long a period you financed your boat, but if it was for 15 years you might want to sell in the spring just to break even. While 240SDs hold their value real well, the amount you reduce your principal in the next few years (again assuming a 15 year loan) might put you "upside down" where you will owe more than the boat is worth.

If you financed for less than 15 years then run an amoritzation schedule and start comparing that against what you think the boat will be worth over the next few years.
 
I think the problem with coming up with a formula is pricing has many factors to it; location, demand for model, etc. I would take Dave's advice and run a table of how much you will owe at any given time. I would then look for my model boat, in my particular area, for each year 02, 01, 00, 99 and use that as a guage for how much it should be worth. Still realizing there is a big chance that I am no where close, due to changes in style, models, etc. Good luck with it.

Wesley
 
It all depends a little on how fast you want to sell your boat. the boat type and brand and the demand for this type and brand of boat. Your 240SD is in demand so that is good ... I doubt you'll still get $46K for it even now.

Best barometer is to go on yachtworld and track boats that sell. If you put the link to a boat that has "sale Pending" indicated on Yacht World, you can navigate to it after it is sold (a function dealers and brokers can search for, but not consumers). Then go to the detail page and you can see the actual selling price in the header. But you have to save the link to the boat first. Once it is sold it vanishes from the list of boats you can search for.
 
Fall and Winter would not bring the most your 240SD. Spring and Early summer is going to bring the most. IMHO With that said, by all means run the table/numbers too see if you can wait till spring/summer.

Not sure about your area, but if you are not using the trailer may want to sell it by its self if your area would have enough demand for a boat with out the trailer. Normal the trailer will not add much to a deal because the buyer knows you don't need it if the boat is sold.

Personally would not purchase a sport boat without a trailer. I was amazed how many sport boats are purchased on Lake Lanier north of Atlanta without them. Found out that most of the buyers of the larger sport boats did not have a big enough tow vehicle plus they just slipped it full time and could get all their service done at one of the local marinas on the lake. Or the service facility would pick up the boat on one of their trailers.
 
From the amoritization table, it appears that I would only drop my priciple by about $3,000 in a year. My loan is based on a 15 year term at 6.75%. Is that what most people do and is that a decent rate?

I thought about selling my trailer, but most everyone said it would be of more value to sell it with the boat then alone.
 
BrentJones said:
From the amoritization table, it appears that I would only drop my priciple by about $3,000 in a year. My loan is based on a 15 year term at 6.75%. Is that what most people do and is that a decent rate?

I thought about selling my trailer, but most everyone said it would be of more value to sell it with the boat then alone.
Click to expand...

Rate sounds good, term is could have been better, but it is a personal thing that fits your budget.

I know when I was looking at a used boat on Lanier that did not have a trailer, used trailers were bringing almost as much as a new trailer.
 
Keep the trailer.

A 15 year note for a 240 Sundeck is not what I would have wanted to get myself into ... you'll pay the same amount in interest that you pay in principal on a note like that. 6.75 righ now is not bad.
Best I could get in June was 6.62, but rates only slightly moved after that and the Fed is holding right now as they yesterday announced
 
I really don't like the term either, but how do you get into your first boat without payment through the nose monthly. We put down $8000 too. The thing I always thought was that I was only going to have this boat for 3-4 years, so why not have a smaller payment? What has most people done on this board?
 
Well..because of the depreciation...however, with you putting that much down as the other posters have said, run the numbers and see what you can get as soon as you can out of it. I did the 15 year note myself too to keep payments low, but I anticipated keeping this boat a long time. (sighhhhh...... little did I realize the severity of the curse of the 'itis' :smt013 no matter how absolutely pefect this Sundeck is for us)
 
Brent

Wiith a limited budget, sometimes the initial depreciation hit you take on a new boat just leaves you in the situation you find yourself facing now. There isn't a lot you can do about it but I suggest you carefully evaluate your boating "needs" for the next couple of years so you know what to do with the 240SD. Look at your amoritization schedule relative to the boats estimated resale value each year for the next several years. It may be time to forget about upgrading and just enjoy what you have or it may be time to sell now and wait awhile before you get back into boating with a bigger boat. Only you can make that call but that's what I would do if I was in your situation.

Dave
 
Dave S said:
Brent
It may be time to forget about upgrading and just enjoy what you have or it may be time to sell now and wait awhile before you get back into boating with a bigger boat. Only you can make that call but that's what I would do if I was in your situation.

Dave
Click to expand...

OK, option 2 is definately out of the picture. The main problem was that I purchased new and that will never happen again. Yes, it may be the best option to just keep what I have for a couple of years, but if the right opportunity comes up, that may be the time to make a move whatever time of the year that may be.
 
ANother one to learn the lesson the hard way ... like I did ... we bought our first cruiser new for 32% off retail and still lost a bunch of money reselling it this year after two seasons.

Most people like us in boating go up in size and buy older, but good condition boats. That is the much better approach for me. We went from a 2004 24 footer to the 2002 340DA and our next boat will most likely be a late 90s 400/450 or 500 with diesels.

Best advice I can give you ... go up in ten foot or larger increments ... better if you are not intimidated buy the largest boat in a to you agreeable condition that you you can afford.

Consider the running cost and do not underestimate the fuel cost when you got from a small single stern drive boat to a larger twin inboard cruiser !! We go through $500 to $600 of fuel per month from June through September.
 
Larry&Leisa said:
(sighhhhh...... little did I realize the severity of the curse of the 'itis' :smt013 no matter how absolutely pefect this Sundeck is for us)
Click to expand...

I hear you. Not only is my next boat going to be bigger, but will have to get a bigger tow vehicle :smt089

sometimes the initial depreciation hit you take on a new boat just leaves you in the situation you find yourself facing now
Click to expand...

Sometimes it's hard to keep in mind that boats are toys and they are going to depreciate :smt089 , but have to keep in mind the fun we have with them :thumbsup:

What is it visa says? " blank x$, blank,blank xx$, the blank times PRICELESS" :grin:
 
brent,
looking at yacht world sold boats.com there were four 2005 searay 24 sun decks sold from jan 06 to oct 06. sold prices ranged from 35K to42K only one had a trailer and sold for 35K
hope this helps
 
thomas said:
brent,
looking at yacht world sold boats.com there were four 2005 searay 24 sun decks sold from jan 06 to oct 06. sold prices ranged from 35K to42K only one had a trailer and sold for 35K
hope this helps
Click to expand...

Thanks, but I would have to say it hurts more than it helps. :smt009
 
brent,
looking back at your post, you have a 6.2 merc for your engine.
the ones on yacht world only only had 5.0's that will make your boat worth about 4K more hope that makes you feel little better
 
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