depreciation of motor

[the_anarchy16]

hi all. how much and how fast should an outboard depreciate. im trying to decide if i should get a new tohatsu 15hp 4stroke or a very lightly used 2003 15hp merc 4stroke. Thanks

 

[rndn]

Re: depreciation of motor

It all depends on the care the motor received. A 3 year old motor could be worth 10 bucks and a 15 year old one could be worth a grand or more.

 

[tashasdaddy]

Re: depreciation of motor

whats the price difference.

 

[TOHATSU GURU]

Re: depreciation of motor

Normal, industry standard saltwater, depreciation runs as follows:

30% year one.
10% per year thereafter.

By year 10 it only has value to engine worshipers. There are a lot of exceptions to that rule though.

 

[ebry710]

Re: depreciation of motor

Depreciation is just a tax term. I was talking to the Evinrude guy the other day and I saw parts to a 92' 90hp sitting in a wheel barrow. I asked him how much he was going to sale it for and he sad he rebuilds those things better than new. $5000. So tell me how much that has depreciate? A good rebuilt engine now might cost more then the did when they were new.

 

[TOHATSU GURU]

Re: depreciation of motor

Anyone that thinks that a product is worth more as a rebuilt than as new needs serious help. In the real world products lose their value when used. And $5000.00 for a 92 Evinrude 90 is a delusional dream. No one in their right mind would pay over $1500.00 for that engine in pristine condition.

 

[JB]

Re: depreciation of motor

Are you interested in using it or reselling it?

In 5 years the Merc will be worth more than the T'su. Not that the T'su isn't a fine engine, it just doesn't have the market share that Merc does and it is harder to get parts and service.

 

[TOHATSU GURU]

Re: depreciation of motor

JB,

We have been down this road so many times....Please explain to me how it is harder to get parts for Tohatsu? Since Tohatsu makes Mercury it is without any possible doubt the easiest engine to find parts for in the world.

 

[ebry710]

Re: depreciation of motor

Anyone that thinks that a product is worth more as a rebuilt than as new needs serious help. In the real world products lose their value when used. And $5000.00 for a 92 Evinrude 90 is a delusional dream. No one in their right mind would pay over $1500.00 for that engine in pristine condition.

I think delusion must be a matter of location. In Florida where boats are many and old just means old, reconditioned engines might not have value. In California where old means classic, two strokes are a dying breed, people look for original engines for vintage boats, pricing is a little different. I am not saying I would buy this engine, but one of only two Evinrude dealers in the area is selling this engine. Of course the next best offer is the ETEC for $9000.

 

[JB]

Re: depreciation of motor

Perception, TG. To most buyers the fact that the Merc is a Tohatsu is transparent.

Same reason folks consider Wal Mart Super Tech "cheap" and inferior oil to the same stuff in a better known and advertized brand's can at twice the price.

 

[the_anarchy16]

Re: depreciation of motor

thanks for all the info the price for the used merc is 1800 and 2200 for the new tohatsu(but thats an internet deal the merc is local) to get a new tohatsu from the local deeler its 2700 thanks

 

[tashasdaddy]

Re: depreciation of motor

the shipping on the tohatsu, will make it close to the dealer.

 

[the_anarchy16]

Re: depreciation of motor

i was quoted 2050 with shipping and 100 at border so 2150 do u think thats a false quote? its from porta boat i dont no if i trust them thats y im concerned

 

[BillP]

Re: depreciation of motor

Normal, industry standard saltwater, depreciation runs as follows:

30% year one.
10% per year thereafter.

By year 10 it only has value to engine worshipers. There are a lot of exceptions to that rule though.

Elvin,
I was at the Folsom dam lake in CA many yrs ago (before the marina was dry) and couldn't believe all the cherry old OB boats and motors there. It was like going back in time at least 25yrs. 50s & 60s vintage boats launching at the ramp looked brand new on original mint trailers. It was impressive how many were there. A real eye opener compared to old Florida rigs.

bp

 

[JB]

Re: depreciation of motor

Then I guess it depends on how much a warranty is worth to you.

I think I would buy the Merc.

 

[TOHATSU GURU]

Re: depreciation of motor

The 2050 from PB is the going rate for that model engine from everyone. No duty, just GST and any local tax. Usually there is a freight surcharge for Canadian delivery of $195.00. PB may be absorbing that or they may just have forgotten to tell you

There are always pristine, old, outboards that buck the depreciation curve and some can indeed be pretty to look at. But, I look at outboards as a source of power for a boat. They have zero value to me once they have reached the point of probable component failure which runs around year 7 to year 10. I simply cannot fathom how anyone would put their or anyone else's lives at risk by running an ancient(over ten years old) outboard on a body of water more than 100 yards wide.

I think that a lot of people on this board look at outboards with a since of romance about a brand or certain model of outboard. And if there was a topic called "I dream of Outboards of Long Ago" where they could talk about the Alzheimer induced benefits of said engines that would be great. I would even join in and say one of my favorite engines of all time was my 1963 Johnson( I loved that old piece of crap) , but, what we seem to get a lot of is a guy asking about what new or almost new engine they should get and people immediately telling them to look for an antique engine. It's ludicrous. They want real world help and advice, they get "you need a X, it was the best engine ever made in X hp"

Does that qualify as a bi-polar rant? I get so confused