One of the sales arguments for a Fjord Yacht is its re sale value.
Even if it is true that many clients who decide to purchase a vessel do not always realise the importance of this factor, we must highlight the role this plays in the decision.
At the time being there is a strong demand for used Fjords. The offer remains limited due to customer satisfaction and the production volume of the German shipyard.
Both these issues, added to the fact that new boat prices have been on the increase every year, has maintained the price of used vessels.
If we observe other more popular types of yacht i.e. 40’ Flybridge where the market offer of used vessels is high. Due to the many different makes of these second hand yachts on the market, the prices tend to depreciate significantly. It seems that potential buyers are confronted with such an offer that they can achieve lower purchase prices.
If we go back a bit and search for open vessels similar to Fjord with few used units on the market we can imagine that these will be dealt at high re sale prices. However this is not so, on the contrary.
They cannot ask for high re sale prices as this considerably lengthens the time it takes to sell the vessel. In this case it seems that potential buyers are not attracted to makes that have not sold a certain number of units. It seems there must be a balance between the amount of used units for sale and the volume of new units of the same vessel previously sold.
Take the Fjord 40’ open as a reference , with 170 units sold since beginning of production in 2008.
Since beginning of 2017 we have had 6 second hand Fjord 40’ units for sale. All were sold within 30 days of bringing them on to the market.
These vessels were promoted internally, only 3 units were placed on our web page.
The result is that used Fjord vessels sell quickly.
The average age of the units was 4 years and the mean sale price € 380.000. This gives an annual depreciation of 6% and an accumulated loss of 24% over 4 years.
Usually the rate of depreciation of a Yacht is 20% the first year and 5 to 10% the second and third years after which it is of around 5% per annum. This would result in 35% to 42% depreciation during the first 4 years
Meanwhile the loss of value of a Fjord is limited to 24% in the same period.
The presentation of two new models since 2015, the Fjord 48’ open and the Fjord 42’ open have enabled Fjord 40’ owners to contemplate the purchase of a new boat. This increased the number of Fjord 40’ open available on the second hand market but did not alter the price, which remained high.
The second most sold used Fjord is the 36’ open. We quickly sold both units that came on to the market in 2017.
We still do not have second hand units of the Fjord 42 and Fjord 48 models as these are very new on the market.
We must remark with great satisfaction that Fjord Yacht owners are very faithfull to the brand and have only purchased a new boat when we brought out the new models.
In view of this years evolution we can expect more of the same which is good news for Fjord Yacht owners.
Fjord vessels sell quickly with little depreciation.
Marivent Yacht Sales deparment