How much depreciation will the cat suffer while used in a charter fleet?

[warren460]

I am reviewing a proposed purchase of a 50 foot catamaran that would be put in service in a bvi fleet. (Not moorings or sun sail )

Assuming that the boat is well maintained.

What might a reasonable estimate be of the value of the boat after the five years has passed as compared to the original cost.

Is 50% a reasonable expectation?

Thanks for your input.

[RRMontgo]

Bareboat or crewed? Makes a huge difference! Bareboats tend to get abused by the less-capable-than-claimed typical charter "captain", especially a very large (more difficult to handle) cat. A lot depends on how well the boat is maintained by your charter company and how closely they monitor the skills or whoever uses it.

We bought a 4 year old Leopard 46 out of the Moorings fleet and I think our price was around 55-60% of new. Cats are popular so they seem to hold their value a bit better than the monohulls, but maybe that's just in the Moorings fleet where so many of the same monos come onto the market at the same time, causing more price discounting.

If you want to be conservative in your financial modeling (you are doing financial modeling, right?), then use 50%, but you should see something better than that after 5 years.