How Much is it Worth?

[CoralReefer]

What's the best tool to place a value on a vessel? I'm in the car business and NADA isn't accurate. It's not market driven and it's only updated once a month. The market changes daily and Blackbook seems to be the best evaluator since it's driven weekly/daily by current auction prices which is the best market indicator for that industry. I watch eBay, Boattrader, etc. daily as a hobby. Is there any other tool out there for watercraft that I don't know about?

Thanks,
CoralReefer

 

[jason78]

You can check BUC value, which as I understand, is what most boat dealers use. Personally I think it is a little high with current market conditions. I normally take an average of several sources to determine value with NADA and BUC being two of the main sources.

My Credit Union uses NADA to determine loan value. They run the boat with no options and that is what they will loan. Several other lenders I have talked to used NADA as well. I guess they are comfortable with it since they use it for cars.


Jason

 

[Henry Boyd]

What 'value' are you talking about? A valuation used for loan purposes is the maximum amount a funding source will lend on an asset, and does not constitute Fair Market Value. Properly applied loan value equals the FMV of the asset, less costs of recovery, costs of disposal and any other losses incurred as a result of default. The difference between FMV and loan value is called 'Down Payment'.

Henry

 

[Southpaw II]

You have to remember the lending institutions have to provide justfication for their actions. In other words, they better be able to explain "why" and "how" they came up with their loan value, if Joe defaults. They can say, "I used the published "X" value the is used by everybody else.........

 

[sprink56]

About the closest that you are going to get is known as "Sold Boats" as is published to registered brokers only.
"Sold Boats" however is only as good as what the broker puts in to the report as a final sale price.

If you really want to know in your market, find a local broker that you trust and get his opinion based on what is selling in your market. In todays economy there is only one sure thing....the price will be much less than you think it will be. You can justify this in your own mind by telling yourself that you will make up what you lost on the next buy.