How Fast do Yachts Lose Value?

Buying a yacht is an exciting endeavor, but you need to consider not only the purchase value when making your purchase, but also how quickly the yacht will depreciate over time. There are a number of factors that can affect the rate of depreciation of a yacht, and being well informed about them can help you make an informed decision, so let's explore just how quickly yachts depreciate below.

How fast does a yacht depreciate?

Yachts go through depreciation just like anything else, and the rate at which a yacht depreciates depends largely on the age and condition of the yacht. Generally speaking, the older the yacht is, the faster it will depreciate. For example, an average yacht will depreciate by about 10% in the first year, 20%-30% in the fifth year if the yacht is used frequently, and will stabilize at 30%-40% in the tenth year.

Factors affecting the depreciation of a yacht

Many factors affect the rate of depreciation of a yacht, and understanding the factors that affect the rate of depreciation of a yacht will help you make a clear buying and selling decision. Below are the factors that influence the depreciation of a yacht:

Yacht makes and model

Make and model have a huge impact on the depreciation of a yacht. Yacht models of well-known brands are known to hold their value better and depreciate at a relatively slower rate than those of other brands.

Age of the yacht

The older a yacht is, the faster it will depreciate in value. Generally speaking, new yachts depreciate more in the first few years after purchase. If the yacht is used frequently and sails every week, the mechanical parts and hull of the yacht are also more susceptible to damage, which can lead to faster depreciation of the yacht's value.

Yacht maintenance status

Yachts are cleaned and maintained on a regular basis as well-maintained yachts tend to depreciate at a slower rate. For example, a 5-year-old yacht may only depreciate by 20-30% due to good maintenance, whereas a poorly maintained yacht of the same age may depreciate by more than 30%.

Market demand

Market demand can also have an impact on the rate of depreciation of a yacht. When there is a high demand for yachts and a relative lack of supply, yachts will depreciate at a slower rate, e.g. fishing boats may retain their value in coastal areas where demand is high. Conversely, if the yacht market is saturated and the supply of yachts exceeds the demand, then the rate of depreciation of yachts will accelerate.

Do superyachts depreciate in value?

Superyachts can be affected by depreciation due to factors such as the market, the condition of the yacht and technological advances. While there are some yachts that will gain value due to excellent maintenance and refurbishment, most yachts will depreciate over time and superyachts are no exception, here are some of the reasons why superyachts depreciate in value:

Market supply and demand

Manufacturers of superyachts introduce a number of new products each year and the number of superyachts on the market will gradually increase, when there are more superyachts to choose from on the market, the value of a superyacht can be affected and depreciate in an unstable economic climate or when the demand for yachts falls.

Technological advances

As marine technology, yacht design concepts and construction materials continue to advance, newer superyachts have better seakeeping performance, fuel efficiency, comfort and safety, etc., which can lead to a decline in the relative value of older superyachts, resulting in depreciation.

Yacht wear and tear

As a means of transportation at sea, superyachts will inevitably suffer from wear and tear in the course of use. The mechanical parts of the yacht, such as the engine, propeller, etc., will also suffer wear and tear during operation, and prolonged contact with seawater will also lead to corrosion of the hull of the yacht, which will affect the performance of the yacht and ultimately lead to depreciation of the value of the yacht if it is not maintained and serviced on a regular basis.