Outboard Depreciation

I am having a hard time figuring out outboard depreciation, and the used outboard market in general.<br /><br />People sell cars that have no problems and that are completely reliable. It appears to me that people don't really sell their outboard engines if they are still completely reliable - as reliability is the number one characteristic of a good outboard. And if your outboard is good - then why sell.<br /><br />I am currently (in a month or two) looking to purchase a 150 HP Outboard. What I am looking at are carbed Johnson 150's. You can get one new for $7300. I would love to get a 1998 / 1999 for around $3000. From the used car market, I would think that this would be reasonable. Unfortunately, I see very few engines like this available, and many of them from 98/99 are $5k+. At that price I would rather buy a new one.<br /><br />Is talking to a dealer and letting him know that you are interested in a trade-in a good way to get engines like this? Is there a big difference between people who sell their own engines in classifieds and those who trade their engines in?<br /><br />Any thoughts will help.<br /><br />Thanks,<br />Todd Lynch

Re: Outboard Depreciation

i dont know where you getting a new 150hp johnson for $7300 but here's some iboats used 150hp motors, in case you hav'nt looked.<br /><br />1997 Evinrude 25" ERP 2-stroke REBUILT 6 month Dlr. Warranty $5,169.00 View <br />2001 Evinrude 25" ERP 2-stroke Ficht NEW (MSRP $13435.00) 2 Yr Mfr. Warranty $9,999.00 View <br />1998 Johnson 25" ERP 2-stroke NEW 60 Day Dlr. Warranty $6,799.00 View <br />2001 Mercury 25" ERP 2-stroke Optimax Special Program Engines, Quality-Certified, (MSRP $12266) 60 day Mfr. Warranty $5,999.00 View <br />2001 Mercury 25" ERP 2-stroke Counter-rotating Optimax PAIR OF ENGINES Special Program Engines, Quality-Certified, (MSRP $24871) 60 day Mfr. Warranty $12,099.00 View <br />2002 Mercury 20" ERP 2-stroke XR6 NEW (MSRP $8557.00) 1 Yr Mfr. Warranty (3 Year Additional Protection 960.00) $7,349.00 View <br />2002 Mercury 20" ERP 2-stroke Optimax, NEW (MSRP $12186) 2 Yr Mfr. Warranty (3 Year Additional Protection 2460.00) $9,399.00 View <br />2003 Mercury 20" ERP 2-stroke New/Demo (MSRP $11805) 1 Yr Mfr. Warranty (3 Year Additional Protection 1450.00) $8,749.00 View <br />2000 Yamaha 20" ERP 2-stroke NEW 60 Day Dlr. Warranty $8,799.00 View

Re: Outboard Depreciation

Catfish and others,<br /><br />The $7,300 figure is for a 2003 Johnson 150, $6,999 and $300 for shipping, no tax, from a well known, reputable, 'marine superstore'. I forgot what the quote for shipping was, but I know it was less than $500 - so it might be more fair to say - $7,500.<br /><br />I am not looking for a 4-stroke or fuel injection, just a good old reliable carbed engine.<br /><br />I was asking about the dealer because I thought that it might be a better source of 3-7 year old engines that are being traded in NOT becasue they are shot, but rather because people wanted to simply have a new four stroke or DFI.<br /><br />I spoke with a man who was trying to unload a bunch of loose outboards. He said that the market had completely fallen out for loose outboards because outboard prices had dropped and the internet allows for a very knowledgable customer. He was unable to do any better on two year old engines than someplaces could do the same engine from the current model year.<br /><br />Consider the following, assuming that a new 2003 engine costs $7,500 and a fair price for an 87 is somewhere around $1,500. That is an assumption but it seems to be fair by the market, and in my mind as well.<br /><br />Linear Depreciation:<br />2003: $7,500<br />1999: ~$6,000<br />1995: ~$4,500<br />1991: ~$3,000<br />1987: $1,500<br /><br />Which actually seems pretty accurate to how the market currently is. If this is true, then buying a new engine is the way to go.<br /><br />Thanks,<br />Todd

Re: Outboard Depreciation

Todd - On the other hand you can take that 1987 motor and freshen it up for lets say $1,000.00 and run it for another 10 years.