When to dispose/part out a boat?

[Presentation]

I’m surprised at some of the boat restoration projects or at least planed projects I have read online.

Here is my question. At what point do you give up on a boat?

Let me add a bit more. Suppose a boat, if working, would sell for $10,000. It needs repairs that total $12,000. Unless you have an emotional attachment to that specific boat that has intrinsic value to you the boat should be discarded or sold for parts. If you could get some money selling the boat for parts the answer becomes even clearer to not fix the boat.

Let’s change the numbers a bit. You feel the boat would sell for $12,000 and repairs cost $10,000. What do you do then?

I remember us discussing a used boat that the owner had really looking incredible. I mean the hull shined like new or better, interior, gauges, engines, drives, all had been rebuilt and looked like WOW!

The issue was the asking price was higher then what you could buy a similar boat that was only a couple of years old, for sure less than 4 years old. The styling was dated, obviously, and so was the hull itself. The person had in the advertisement that the asking price was firm and was far less then they had spent restoring the boat. My goodness, from an economic perspective he would have been far better off not restoring the boat.

What I’m asking is how much money do you spend repairing a boat relative to its post-repaired value?

 

[Presentation]

Will anyone here that has been in this gut wrenching situation share their thought process and result?

 

[skibum]

It depends on the boat and the owner. Given your example of the $10,000 boat that needs $12,000 in repairs to put it into "pristine" condition. Assume that we are talking about a 1980 Sea Ray. It may be ok to spend $12,000 on the boat if the owner ends up having a "like new" 1980 Sea Ray. You couldn't buy a brand new, or even a 4 year old Sea Ray for $12K.

There is an intangible value in the project that someone who does this kind of work realizes. It is a great satisfaction to complete a project like this. The owner ends up with a very unique boat (he won't bump into many brand new 1980 Sea Rays in his travels), he knows every square inch of the boat, every component in every system, and has (should have) complete confidence in the quality and installation of everything in or on his boat.

The only down sides are loss of the time to complete the project (negated if the person doing the work is doing it for entertainment or learning purposes) and the possibility that no one else will recognize (at the time of sale) the value of the "new boat". In a case like this, blue book value has no meaning if someone really wants a brand new 1980 Sea Ray and sees the boat as being worth what the owner is asking for.

 

[firecadet613]

Hard to say. I, myself, am not one for very intensive boat restoration project. My brother is. He bought a '71? or so Sea Ray bow rider, and completely gutted it, redid everything, and then painted the exterior. It looks great, but the styling is dated. It was a VERY fun project to see him complete. He recently picked up a boat a forum member was giving away. Its now his and our younger brothers project. Turns out his first boat wasn't as much $$$ as I thought, it was mostly labor. This second boat should be a great project for two brothers to work on and spend time together.

 

[jpk33]

Its really no different than restoring a classic car - except for the fact that there is a market for restored "classic" cars, where there really is no (comparable) market for restored (or even "classic") boats. The few that I know of were done for fun and bragging rights of having done it - not to restore and resell, but to enjoy. What you have to ask yourself is the $$$/time you put in worth it? Yes you can unload and buy another one - but you maybe in the ssame place in a few years. Its a gamble either way.

 

[HUMPH]

I believe the answer is if you are in that situation and do not want to do the repairs or upgrades simply sell the boat as a project. It would be way easier than trying to part out and there is always someone crazy enough or someone who really enjoys that type of project that would buy it. Take the money from the sale of the project boat and buy a new one!

I personally don't have the kind of time for a project such as that and my boat could not be brought to my house to work on since I have a 1,000' long driveway that winds up a hill. :wow: If I had a small project boat that fits up my hill I would think about it.... hmmm, now that I think about it I could use a little runabout!

 

[Hampton]

It's time to give up when the cost to repair the boat exceeds it value, you can't sell it as is, and you'd just as soon be done with it.

 

[Henry Boyd]

I think there is a significant distinction between repairing and restoring. People restore stuff all the time for the enjoyment, activity, learning etc. In those cases the economic evaluation gets skewed. I once got talking to a guy on a plane who restored WWII military vehicles. I can't believe in any economy there is much of a market for a restored Sherman tank! This guy didn't care, he just enjoyed doing it.

Since restoring something like a boat is labor intensive, if you can do the labor restoring an old boat can be an economical entry into a larger boat than you could otherwise afford. Our friends daughter and son-in-law bought a mid sixties 38' Pacemaker for short money last year. Over the winter the engines have come out and been fixed up, new stringers and engine mounts gone in, the teak interior has been stripped and refinished along with new upholstery. Come Memorial Day when it goes back in the water it will be a fully functional and good looking classic cabin cruiser.


In any event, I thought we had all collectively come to the conclusion in previous threads on CSR that the words 'boat' and 'economic sense' were the epitome of the oxymoron.

Henry

 

[Pietro]

It depends on the boat and the owner. Given your example of the $10,000 boat that needs $12,000 in repairs to put it into "pristine" condition. Assume that we are talking about a 1980 Sea Ray. It may be ok to spend $12,000 on the boat if the owner ends up having a "like new" 1980 Sea Ray. You couldn't buy a brand new, or even a 4 year old Sea Ray for $12K.

There is an intangible value in the project that someone who does this kind of work realizes. It is a great satisfaction to complete a project like this. The owner ends up with a very unique boat (he won't bump into many brand new 1980 Sea Rays in his travels), he knows every square inch of the boat, every component in every system, and has (should have) complete confidence in the quality and installation of everything in or on his boat.

The only down sides are loss of the time to complete the project (negated if the person doing the work is doing it for entertainment or learning purposes) and the possibility that no one else will recognize (at the time of sale) the value of the "new boat". In a case like this, blue book value has no meaning if someone really wants a brand new 1980 Sea Ray and sees the boat as being worth what the owner is asking for.

Just right!!! These would be my words!!! :thumbsup:

Jpk is right also, it's like restoring a classic car. I did an Austin Healey a few years ago without being concerned of its value afterwards...now, after 4 years I would get all my money back....I know I will probably never do with my boat..but, guys, it's such fun :smt001

 

[highslice]

I don't see that it's any different than, say, remodeling your kitchen. You never get out of it what you put into. You start with $20,000 worth of cabinets, countertops and appliances sitting in your garage. But after you install them they are only worth $15,000. But you have a really cool kitchen.

Okay, maybe it's not as good an analogy as I thought when I started typing.

 

[Crazyhorse]

Personal Preference, same as a Harley-Davidson..

 

[Jackie J V]

I think "value in use" also has to form part of the equation. If you plan to keep the boat and if $12k brings it up to where you'd be happy with the boat for say, the next three to five years, who cares if the market value of the boat (as-was) was only $10k when you embarked on the project?

I bought a Sea Ray a year ago, and have sunk enough money into it to enhance my enjoyment, that the total investment now exceeds the market value. Do I care - no! I have a boat that to me, is better than some of the alternative brand new boats that I would have considered and that would have cost quite a bit more.

Boating is not an investment upon which you'd expect a monetary return - or even to break-even. Having said that, it's the best investment I've ever made in my family.

Paul

 

[comsnark]

I'm with Jackie.

Boats are NOT investments. From a financial perspective. . .boats are money pits.

I have an old blowboat. . . . every year, I think that the maintenance costs exceed hull value. I suspect in a few years. . the SeaRay will be in the same category.