How does BUC perform used boat depreciation?
A. There are all kinds of depreciation techniques. A straightline method is often used by accountants and bookkeepers. It’s a tidy way to devalue capital equipment over its expected useful life, but the values obtained with this method have no relationship to the market values of recreational boats. The straight-line depreciation technique generally tends to separate the buyer and seller rather than invite them to negotiate. The only way to accurately determine and project the depreciation curve of a used recreational vessel is to study the market place to see what buyers are actually paying for boats in light of all the current economic factors. Determining used boat depreciation or appreciation by market demand is not an easy task because it requires analysis of actual used boat sales. BUC analyzes the market through Used Boat Sales Reports received from corresponding dealers, brokers and surveyors, and through analysis of current listing prices. Our expert staff, using the very late
