Case Study : CMB 60ft Sloop

Depreciation and the Myth of Recoverable Investment

1. Background

In 2019, a used 60-foot sloop (CMB) was purchased for around £450,000. When new, this yacht would have been worth well over £1 million. The buyer’s plan was ambitious: extended cruising, possibly a world voyage.

2. Owner Investment and Upgrades

Following the purchase, the owner invested an additional £150,000 in upgrades:

Davit system for tender handling

Full solar power installation

New dinghies and supporting equipment

Safety and convenience systems for bluewater cruising

This brought the total outlay to approximately £600,000.

3. Market Experience

Within 18 months, business circumstances forced the owner to sell. The boat was initially marketed at £600,000 but ultimately sold for £425,000.

4. Depreciation Reality

This case illustrates a common pattern:

Yachts depreciate steadily, regardless of upgrades.

Additional equipment improves enjoyment and sometimes helps a boat sell faster, but rarely raises its market value.

Upgrades create what we call phantom equity: the owner feels they’ve added value, but the market does not agree.

The better analogy is a car, not a house. Adding new wheels and a stereo to a 2005 Toyota Camry makes it more appealing, but not worth more.

5. Strategic Takeaways

Brokers: Manage owner expectations from the start.

Sellers: Understand upgrades are for personal enjoyment and safety, not for resale profit.

Buyers: Factor in both purchase and upgrade costs when budgeting for ownership.

6. Conclusion

The CMB sloop shows how quickly a significant investment can erode. Owners who see their yachts as appreciating assets are set up for disappointment. Yachts are platforms for adventure and lifestyle, not capital gain.

Boatshed Pricing Team Blog 2025