I thought I would start a new post under Helmsman to address a topic I have mentioned many times and has allowed me to enjoy many boats over the past 30 years (getting older) ? “value”.
Let’s face it building and owning a trawler of any size is not inexpensive and owning four different trawlers in 15 years takes its toll on the budget. We are not wealthy and at times it appears I work to afford boating. We have been fortunate to have found ourselves requiring a second home in San Diego for work thus able to justify (to ourselves) the need for a trawler to live a board part time. Yes, life’s curves and been both rough and good to us.
So what does this have to do with affording three new builds and one used trawler, it sets the foundation. One thing about boats in general is that after a certain period of time (years old) many boats (in great condition) actually sell for their original purchase price. The basic reasons are materials and labor costs annual escalation being higher than the national average. In other words, the cost of building boats increases faster than many other products we purchase. A simple example may be the price of a new car versus a new boat. Apples to Apples we can still buy a new car for 25% to what we paid ten years ago due in part to mass production which helps keep costs lower than hand built, small quantities of boats. While any one can shoot holes into this over simplified analogy just hang in there awhile longer.
My first example starts years before our first trawler but starts the discussion. Around 1993 I decided to buy my dream boat when I was a kid growing up on Long Island, NY. The boat was a 21’ Mako center console with its nice bow rise and teak wood trim. Finding a Mako in California was not a simple task since they were east coast boats but I did find a dealer in Southern California which I visited at least half a dozen times (drove Mary crazy) as I dreamed about the boat I couldn’t afford. While my budget was more in line with the 19’ my passion was with the 21’. This was before the internet and finding dealers was through magazines and phone calls so I called the factory in Florida and ask for a list of all dealers west of the Mississippi River. When the least arrived I found a “former” dealer in Northern California and thought I would give him a call. As luck would have it he had an inventory of five different models he couldn’t sell. Turns out Mako was not a well known brand up north and center consoles were least desired. Besides two cabin models he had a 19’, 21’ and 24’ center console all stored inside a warehouse. While the boats were 2-3 years old they were new and came with a new model year OB engine. The dealer sent me a copy of his invoice from the factory and offered to sell me the boat below his cost. Needless to say I jumped at the opportunity and drove 8 hours north to pick up the boat and trailer it home.
We enjoyed that boat for over six years before Mary said she would need a boat with more protection from the weather if I wanted her to keep spending time on the water. When the time came to sell the boat I had no problem selling it for what I paid. This confirmed what I already knew about buying and selling boats at the right time, price and make / model. The biggest risk I knew I took was a boat that was not well known on west coast and the resale buyer would need to be fishing enthusiast who knows about center console boats. The person who purchased our boat had a friend who owned Mako 21 cuddy cabin and knew the boats reputation as a well built boat.
So when I think about “value” and our Mako it hit all the marks including: quality, functionality, enjoyment, purchase price, cost of ownership and resale.
Next post will carry this discussion to trawlers but for now it’s time for dinner ?.
John
Let’s face it building and owning a trawler of any size is not inexpensive and owning four different trawlers in 15 years takes its toll on the budget. We are not wealthy and at times it appears I work to afford boating. We have been fortunate to have found ourselves requiring a second home in San Diego for work thus able to justify (to ourselves) the need for a trawler to live a board part time. Yes, life’s curves and been both rough and good to us.
So what does this have to do with affording three new builds and one used trawler, it sets the foundation. One thing about boats in general is that after a certain period of time (years old) many boats (in great condition) actually sell for their original purchase price. The basic reasons are materials and labor costs annual escalation being higher than the national average. In other words, the cost of building boats increases faster than many other products we purchase. A simple example may be the price of a new car versus a new boat. Apples to Apples we can still buy a new car for 25% to what we paid ten years ago due in part to mass production which helps keep costs lower than hand built, small quantities of boats. While any one can shoot holes into this over simplified analogy just hang in there awhile longer.
My first example starts years before our first trawler but starts the discussion. Around 1993 I decided to buy my dream boat when I was a kid growing up on Long Island, NY. The boat was a 21’ Mako center console with its nice bow rise and teak wood trim. Finding a Mako in California was not a simple task since they were east coast boats but I did find a dealer in Southern California which I visited at least half a dozen times (drove Mary crazy) as I dreamed about the boat I couldn’t afford. While my budget was more in line with the 19’ my passion was with the 21’. This was before the internet and finding dealers was through magazines and phone calls so I called the factory in Florida and ask for a list of all dealers west of the Mississippi River. When the least arrived I found a “former” dealer in Northern California and thought I would give him a call. As luck would have it he had an inventory of five different models he couldn’t sell. Turns out Mako was not a well known brand up north and center consoles were least desired. Besides two cabin models he had a 19’, 21’ and 24’ center console all stored inside a warehouse. While the boats were 2-3 years old they were new and came with a new model year OB engine. The dealer sent me a copy of his invoice from the factory and offered to sell me the boat below his cost. Needless to say I jumped at the opportunity and drove 8 hours north to pick up the boat and trailer it home.
We enjoyed that boat for over six years before Mary said she would need a boat with more protection from the weather if I wanted her to keep spending time on the water. When the time came to sell the boat I had no problem selling it for what I paid. This confirmed what I already knew about buying and selling boats at the right time, price and make / model. The biggest risk I knew I took was a boat that was not well known on west coast and the resale buyer would need to be fishing enthusiast who knows about center console boats. The person who purchased our boat had a friend who owned Mako 21 cuddy cabin and knew the boats reputation as a well built boat.
So when I think about “value” and our Mako it hit all the marks including: quality, functionality, enjoyment, purchase price, cost of ownership and resale.
Next post will carry this discussion to trawlers but for now it’s time for dinner ?.
John
