Boat Exit Strategy

I've never really thought about the day I sell a boat (or car) on the day I was buying it. These are depreciating assets that except in rare cases are not going to return the purchase price when you sell them. I do think if you buy quality boats, cars that have been cared for and continue to take care of them, you will come out as good as you can on the end. I just can't worry about the numbers on cars and boats - it would drive me nuts. When I think of exit strategy I just hope my feet aren't wet when that day comes.
 
100% effective :)
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El Capitan said:
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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The prices on outboards are kind of breath taking and I can't quite wrap my head around why they're so expensive. I mean there are some "normal" (ie, not the biggest or most powerful) outboards like 300s that cost nearly as much as a car *of the same horsepower* without any rigging.

The economics don't make sense -- a car has way more engineered parts and systems, often with their own complex regulatory requirements and unique engineering challenges. I get it that the market size isn't the same and economies of scale of car manufacturing is some of it, but it still kind of baffles me.

The only thing that seems to account for it is an existing huge demand for outboards that lets manufacturers enjoy massive margins without denting the market demand.
 
I have had 4 240 Sundecks that I bought for 20-22K, polished and perfected, and sold for 35K. It's just work, and driving to pick one up where they aren't as valuable.

When are you buying a boat? Are you paying cash in October in colder climates, when you can't even abandon a boat without being charged with littering, and then selling them in March? That is worth $10K.
 
DWABoat said:
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.
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it’s not for sale!


Oh, you didn’t mean mine...

Carry on
 
Fletch said:
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!
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I am a lot like you, and I walk away from many boats because of salability. I've sold my last 3 boats for break even (purchase price plus money I had to put into them), or profit. I personally would not buy a boat with those hours if salability was a concern. Yes, they sell, but they sit on the market a lot longer then low hour comparables.
 
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