They say that the two happiest days in a boat owner’s life are the day they buy their boat and the day they sell it. These days, it’s difficult to ignore the fact that price reductions in the used market have made it easier for many to experience firsthand the sentiments of that overused expression.
There are various reasons for the softer market. These can be practical and demographic in nature, or they can be more legal in nature. Some boomer owners of high-performance C&Cs that once cleaned up the local race circuit have grown tired of the physical demands of sailing on brisk fall days. Additionally, the forces that drove boat sales and financing during the pandemic seem to have ebbed. What’s more, boats themselves have gotten on in years, with once-prestigious boats from the 70s and 80s presenting prospective buyers with softened balsa core decks or engines with lots of hours clocked on them.
Marinas and boatyards are also factors, with some being less thrilled about accepting older vessels. While a marina might not worry too much that the proud new owner of a forty-foot cruising sailboat seeking a slip might have postponed an overdue replacement of standing rigging, it could be highly concerned about environmental liability from aging through-hull fittings, marine sanitation systems, fuel systems, or a dockside sinking.
Legal issues are also factors in the equation, particularly in the area of insurance and risk. This could play out in a number of ways. The first is that older vessels could be more susceptible to having property damage claims denied. This could be on the basis of the vessel being deemed unseaworthy. Another form of denial could be in the form of “wear and tear,” which could cover anything from hose clamps to circuit breakers. While such denials are possible even with newer boats that have been poorly maintained, such denials can be more likely with older vessels.
The “privilege” of having a claim denied would mean that the boat was fortunate enough to be insured in the first place. With some older vessels, it may not even be possible arrange insurance. This could be because the boat exceeds a certain age, e.g., 20 years, 30 years, depending on the carrier’s terms, or might not pass a condition & valuation survey performed by an approved surveyor.
In some cases, carriers will issue a policy for an older boat, but will carve out exclusions outside of basic liability coverage. It’s worth noting that even on new boats, certain risks may very well be excluded anyway, such as ordinary wear and tear, manufacturer defects, using boats in races or contests, or environmental claims.
Some forms of coverage could be added on, such as pollution coverage to protect against spillage of fuel, lubricants, sewage, or other possible hazards. Such coverage could be required for marinas. Unfortunately, older boats may face difficulty here, which could be a significant concern, due to strict environmental regulations such as the Oil Pollution Act of 1990.
There are options out there for older boats, such as classic boat insurance. There are a number of tiers here, including historic, antique, classic, etc., and the guidance of an experienced marine insurance professional would be helpful here. But even with insurance, some marinas could still turn away older vessels, simply because they view them as potential headaches or liabilities.
Could this trend in prices be in part a cultural shift in the way society sees boating… similar to the way someone who drives an electric vehicle in the HOV lane today might view a 5.0-liter V-8 Pontiac Trans Am from muscle car days? ‘Probably not. There are millions of people out there who still love boats of all types… motor, sail, and paddle.
Maybe the trend we see is just part of the market fulfilling the tired old expression about the two happiest days in a boat owner’s life. Someone may be getting the boat of their dreams they remember from their childhood, depicted in splendid ads on the back covers of yesterday’s boating magazines… and someone may be getting rid of an albatross that drained their checking account and tied up their weekends with painting and sanding, where they now look forward to spending that time with friends and family. Hopefully, everyone is happy in the end.
Tim is a NY-based maritime attorney and has taught law at SUNY Maritime College. Erol is a graduate of CUNY School of Law and Farmingdale State College.