When Does Buying New Make Sense?

[BWB75]

Why do people buy new boats? Many, many members advocate buying used boats because they are kitted out, the gremlins have been exorcised and the original owner took the big depreciation hit. All this makes sense to me.

Yet, many companies seem to do a profitable business building and selling new sailboats. It seems like there is much more variety in the market than there was 10 years ago. Clearly someone is buying new boats. It seems unlikely that all these new boat buyers are naive one-percenters who toss away a hundred grand just for the new car smell.

So, who buys the new boats, and why? It must make good sense in some situations, or there would be no production boats in production.

[letsgetsailing3]

Originally Posted by BWB75

Why do people buy new boats? Many, many members advocate buying used boats because they are kitted out, the gremlins have been exorcised and the original owner took the big depreciation hit. All this makes sense to me.

Yet, many companies seem to do a profitable business building and selling new sailboats. It seems like there is much more variety in the market than there was 10 years ago. Clearly someone is buying new boats. It seems unlikely that all these new boat buyers are naive one-percenters who toss away a hundred grand just for the new car smell.

So, who buys the new boats, and why? It must make good sense in some situations, or there would be no production boats in production.

When you can afford to do it, and you want a brand new boat.

What ELSE are you going to do with your money? You can't take it with you. If you leave it to your kids they become soft and useless.

Why stop at questioning new boats? Why would people buy new cars or houses? Because they want new.

[youngson]

Believe it or not a lot of people only worry about how other people perseive them, so then they buy the new boat to be "That guy with the brand new $300k boat".

Now im not saying everyone that buys new boats is like that, im sure there are many new boat buyers that are the opposite.

[BandB]

Make sense? There are many who would argue any boats making sense. Now to answer why people do it.

Boat is going to be subject to very high usage and they feel they'll have longer before major issues plus can be sure it's well taken care of from day one.

They want to design, decorate, outfit and otherwise make it just the way they want it. Sometimes exactly what they want isn't available otherwise.

Perhaps just don't want to go through the process of updating and getting a used boat to where they want it.

They are just more comfortable buying new. Not based on financial analysis or even logic, just the way they are. Maybe they've always bought everything new, cars and boats.

I do believe most who buy new understand the savings of buying used. They also understand the "bugs already worked out" argument is frequently made, although they may not agree with that argument.

[SaltyMonkey]

Charter companies?

If I had the capital I would buy new.

Bringing a used boat up to par costs money and sometimes a lot of it, almost close to a new one.
You don't always see what u r buying even with a survey.
Owner mod from hell.
Travel to find a good one. Tons of boats but only a few worth pursuing
Time and labor to get it commissioned.

Now I can't say why the top notch boats that cost > 1,000,000 $ r

[chris5977]

Interesting question. I realized I've never met anyone that bought a boat new. New boat boat buyers are a rare breed!

My speculation for the reasons is this:

1. Prestige. Just to impress others that they can buy new.

2. Germaphobe. A lot of people won't buy anything used for this reason.

3. Want to actually sail instead of doing maintenance.

With certain boats the difference between new and used is not that dramatic. A new Beneteau that cost $250k will probably still cost $200k after five years.

[BWB75]

Originally Posted by chris5977

With certain boats the difference between new and used is not that dramatic. A new Beneteau that cost $250k will probably still cost $200k after five years.

This makes a lot of sense.

I suppose there was a time when the Euro was only US % 0.85 when buying a brand new French boat would have been a great deal... and a 50 percent rise in the currency rate over the next five years would make up for a lot of depreciation...

But, that was when the market was bad and we all thought Bavaria and Dufor and other firms would disappear for good. Now the Euro rate is terrible (for Americans) and the boat firms seem to be booming.

Maybe most of the new boat buyers are not in the US any more? Is this about emerging economies?

[BWB75]

For example, from an ad I saw on Yachtworld just today, a typically equipped, commissioned and ready Catalina 445 (admittedly magnificent) sails away for about $394,000. It is hard to wrap my mind around that figure! I don't like germs and I get that depreciation probably won't hit all at once, but $394,000!!

[K_V_B]

From talking to other sailors I gather that buying new makes sense if:
- you know very well what you want. Buying new gives you the opportunity to get something exactly to your specs.
- you intend to keep the boat for a while. The depreciation isn't so bad when you look at owning the same boat for 15 years or so...

However, at the moment in Europe the second hand market us such tat it indeed hardly makes financial sense to buy new, unless you're a charter company that doesn't have to pay vat on its boats, or you're in the 1% this year...

[LordByron]

I bought new for most of the reasons mentioned above (but certainly not to impress or because I am a germaphobe - spare me).

Being able to configure the boat to my own liking was probably the main reason. For example, the extra fuel and water tanks were easier and cheaper to install whilst the boat was being built. Even the ducted heating, heaven forbid. And having a say in the davit design was a huge plus.

Plus my nav gear, solar panels and wind turbine are the newest and latest - something that only now do I fully appreciate. And this gear is getting cheaper and better (and even more compact) every year.

And also, being in my 50's I don't plan on selling the boat in the next 20 years at least (fingers crossed) so depreciation just wasn't a consideration.

And any tweaking or repairs that have been done have been so minor and were covered by warranty anyway.

So I got exactly what I have always dreamed of for not a lot more than a second hand version and am quite content.

And yes it helps if you don't have other commitments to worry about like leaving an inheritance or the like.

Horses for courses

[Sea Frog]

Originally Posted by K_V_B

From talking to other sailors I gather that buying new makes sense if:
- you know very well what you want. Buying new gives you the opportunity to get something exactly to your specs.
- you intend to keep the boat for a while. The depreciation isn't so bad when you look at owning the same boat for 15 years or so...

Exactly my case. I will be ordering new, because it will be extremely hard (if at all possible) to incorporate all the stuff I want to have, in a used boat. Basically that would require a complete rebuild and still it won't be what I want. And I will be living aboard and cruising for (hopefully) 15 or more years.

[aclmck]

You had better hope that people still want to buy new, after all if they don't you won't be able to buy a used one cheap!!!!!

Buying new gives the new owner his exact specification, fit out and finishes.
New gives the owner a lot of confidence that he won't need to pay for major items for a set period, this allows a lot of room when finance is used as no big unforeseen cost that can't be budgeted for!!!

owner knows that Everything is new, not damaged,not Thrashed,not used Incorrectly and has Full warranty for certain periods

Mate of mine purchased a six year old boat and saved 30% on the cost of a new one, only to find that over the next 2 years the "lightly Used" boat had been overused and he ended up spending his 30% savings plus some and this took many weeks of sailing time as most things broke at the wrong time and most were not noticeable for normal maintenance

When you think about it a production boat is produced at between 50 and 80% of the cost of a hand built boat so they obviously buy very well when it comes to sails,rigging,motors,batteries ,electronics etc etc etc So replacing all of these items will be a very costly experience.

I was once told that to buy a standard vehicle via spare parts would cost many, many more times than the showroom model same applies to boats i Guess.

So in a nutshell its cheaper to buy new if your buying for a longer period of time.

[Pelagic]

Many reasons as above including the gratification that you have earned the right to afford it.

[DumnMad]

I love people who buy new boats, they keep our tradies skilled and employed on the latest products, and one day the boat will be old and affordable for someone else. I also love the dreamer who buys a $5,000 boat.

Some people spend so much money on cafe's, cigarettes and booze so as to forgo the opportunity to finance a new boat. "life of the party types."
Others spend their "new boat finance" on holidays instead.
Others sacrifice having a new boat to buy a house twice as big as they need and with yard maintenance that will keep them off the water. "Investors"
Some think dying with a million in the bank is more important than having a new boat??? Funny that.
Some just love working on old boats. "I love these guys"

Takes all types to make a world and each of the diversity of characters and their boats have some endearing features. I don't want to knock anyone for their choice of boat.

[boatman61]

Originally Posted by DumnMad

I love people who buy new boats, they keep our tradies skilled and employed on the latest products, and one day the boat will be old and affordable for someone else. I also love the dreamer who buys a $5,000 boat.

Some people spend so much money on cafe's, cigarettes and booze so as to forgo the opportunity to finance a new boat. "life of the party types."
Others spend their "new boat finance" on holidays instead.
Others sacrifice having a new boat to buy a house twice as big as they need and with yard maintenance that will keep them off the water. "Investors"
Some think dying with a million in the bank is more important than having a new boat??? Funny that.
Some just love working on old boats. "I love these guys"

Takes all types to make a world and each of the diversity of characters and their boats have some endearing features. I don't want to knock anyone for their choice of boat.

Not so DumnMad....