Does this seem right? Anyone have a better model?
I did a little back of the envelope calculation and it seems like a $75,000 boat depreciates at roughly $50.00 per engine hour for the first 500 hours and then drops to about $40 per hour.
I know the boat loses a lot of value the day it is sold – that is not what this is about.
- At the end of one season with 200 hours the boat is worth $65K +/-
- A few years later with 500 hours the boat is worth 50K +/-
- Another few years with 1000 hours the boat is worth maybe 35K +/-