Boat Depreciation

[Radar13]

book value is the worst way to determine a boats value. It's off the charts unreliable.

This is the bottom of the NADA boat value page. The last line


Value Type Definitions


Suggested List – We have included manufacturer's suggested retail pricing (MSRP) to assist in the financing, insuring and appraising of vessels. The MSRP is the manufacturer's and/or distributor's highest suggested retail price in the U.S.A. when the unit was new. The MSRP is furnished by the manufacturer and/or distributor and are assumed to be correct. Unless indicated, the MSRP does not include destination charges, dealer set-up, state or local taxes, license tags or insurance.

Low Retail Value — A low retail valued boat will show excessive wear and tear either cosmetically and/or mechanically. This boat may or may not be in running order. The buyer can expect to invest in cosmetic and/or mechanical work. Low retail vessels usually are not found on a dealer's lot. Low Retail is not a trade-in value.

Average Retail Value — An average retail valued boat should be in good condition with no visible damage or defects. This boat will show moderate wear and tear and will be in sound running condition. The buyer may need to invest in either minor cosmetic or mechanical work.

Note: Vehicles/Vessels in exceptional condition can be worth a significantly higher value than the Average Retail Price shown.

 

[eyexer]

This is the bottom of the NADA boat value page. The last line


Value Type Definitions


Suggested List – We have included manufacturer's suggested retail pricing (MSRP) to assist in the financing, insuring and appraising of vessels. The MSRP is the manufacturer's and/or distributor's highest suggested retail price in the U.S.A. when the unit was new. The MSRP is furnished by the manufacturer and/or distributor and are assumed to be correct. Unless indicated, the MSRP does not include destination charges, dealer set-up, state or local taxes, license tags or insurance.

Low Retail Value — A low retail valued boat will show excessive wear and tear either cosmetically and/or mechanically. This boat may or may not be in running order. The buyer can expect to invest in cosmetic and/or mechanical work. Low retail vessels usually are not found on a dealer's lot. Low Retail is not a trade-in value.

Average Retail Value — An average retail valued boat should be in good condition with no visible damage or defects. This boat will show moderate wear and tear and will be in sound running condition. The buyer may need to invest in either minor cosmetic or mechanical work.

Note: Vehicles/Vessels in exceptional condition can be worth a significantly higher value than the Average Retail Price shown.

not sure what the point is.

 

[Radar13]

the point is NADA is telling me that if my boat is in very good shape the value is worth a significantly higher value than the Average Retail Price shown.
Maybe I'm reading it wrong and my point is nothing.

 

[eyexer]

the point is NADA is telling me that if my boat is in very good shape the value is worth a significantly higher value than the Average Retail Price shown.
Maybe I'm reading it wrong and my point is nothing.

it really means nothing actually.

 

[deleted member]

Tis relevant for financing purposes.

 

[eyexer]

Tis relevant for financing purposes.

and that is really all it's used for. My buddy runs a bank here in town and they don't use NADA on boats. There is something else they use and I don't recall what it is. I don't think it was KBB. Might be something financial institutions can prescribe to. I'll have to ask next time I see him.

 

[Downrigger]

Most banks are using purchase price with comparable listings. I know one that went out took an NADA on the hull and then did manual additions for all accessories and additional motors. Some banks are behind the time and some are in front. Better terms at some banks that specialize in the recreational lending as well.

 

[sweeney]

ABOS is what a lot of boat dealers and finance companies use