How Much Should You Pay for a New Boat?

As we survey boat price increases by type of boat from 2019 to 2021 (the last full year where all data is available) we see the overall average price of a boat increased 20% to $100,000.  

For that two-year period following are the average prices in each category, the percent of increase in 2021 over 2019 increases, and the number of units sold—

2021 Ave Price       Increase    Type of Boat and Power          2021 Units

$65,800                      16.4%.        Outboard-powered fiberglass     63,000

$105,500                    16.9%         Sterndrive-powered                      9,000

$130,000                    19.4%         Inboard-powered wakeboats      14,000

$32,000                      22.6%         Aluminum outboard powered    125,000

$63,400                      30.5%         Jet Boats Glass & Aluminum        5,750

$1,177,000                 32.8%         Inboard-powered cruisers          1,650

Early indications are that 2022 price increases were from 8% to 12%, depending on the category.  

For the purposes of this report, we will set aside custom-built megayachts and superyachts because they are basically custom boats and it is hard to draw generalities.  But for production fiberglass boats, getting a handle on pricing is much easier to do.  

The Internet has taken out a lot of the mystery of boat pricing. Today, many well-known boat builders put the price of their boats right on their website.  Some even put it in their ads.  

What is the Price Per Pound?

Boats are not commodities and should not be thought of as such, nevertheless, small boats in any given type or class have very much the same components in common.  For example, small aluminum fishing boats have an engine, battery, possibly live wells and associated gear, thwarts, flooring, cleats and other hardware, and of course the aluminum structure. 

From one brand to another they might be shaped differently, and have different accessories, but generally those upgrades are easy to ferret out. For example, one model may have curved glass windshield, and another does not. The cost of that windshield will make that boat cost more, but for many people it is worth it no matter what the boat’s cost per pound. 

So, to form an idea of how two or three boats measure up against each other, simply divide the displacement into the price and add any noteworthy costly differences.

Price/Displacement + value of Extras

In the case of aluminum fishing boats, you will come out something between $20 to $35 per pound, in most instances.  Think of it as about the cost of a trimmed filet mignon in New York City.

So, why is one boat cost 75% more per pound than another?  The answer is that more goes into boats than just the stuff you can see. Such as--

• Man-hours in Construction 
• Factory General & Administrative Overhead
• Marketing (Boat shows and the like)
• Status brand or model name Premium (The Rolex phenomenon.)
• Corporate Burdon (when the brand is part of a larger company)
• Dealer Margin

The aluminum fishing boat category is probably the most competitive in the business, and that is where published pricing started. And it was started, not surprisingly, by the company that had the lowest prices per pound.  When shopping these boats now, it is relatively easy to detect what causes one boat to be more per pound than another just by looking at the list of standard equipment. 

But – when you can’t figure it out – that’s when you are paying more because more of the five factors listed above are baked into the price.  

Of course, there is more than goes into a boat’s pricing than raw economics: there is also pride of ownership, the prestige of one brand over another, perceived levels of customer service and reliability. Those are the kind of things sales people will tell you.

Our experience is that builders of cheap boats won’t call you back, but you’re more likely to get a call back from premium builders. 

The Big Boat Dilemma

When looking at boats, say, at over 50’ (15 m), you’ll find prices all over the place for boats the same length, and many times that are the same displacement.  Obviously, differences in mechanical equipment is one reason, but there is more to it than that. 

For example, the last 20 years or so, there has been a strong trend to make boats lighter so they can go faster and burn less fuel at cruising speeds.  Some builders choose to core their hull bottoms to save weight, others still build with solid fiberglass bottoms. With the advent of vinylester resin, either method is approved by rating agencies.

Generally, the boats will sell for similar prices, which means the lighter boat has a higher PPP. That could be because the light-boat builder used more expensive materials such as carbon fiber, Kevlar, aluminum or corded bulkheads and cabinetry instead of plywood cores and sub-decking. Or, it could be because the boat is skinned down to the basics.

Using PPP on large boats is problematical, but nevertheless it gives you a starting point to discover what you’re paying for the base boat. You also must realize that different cultures have different expenses baked into the base boat. 

Culture Makes a Difference 

For example, some European builders try to establish a boat’s value by promoting status, exclusivity, and ownership of their brands as de facto entry into the elite class. These companies spend millions of Euros and Pounds Sterling in lavish displays, parties in expensive locales, and at boat shows where bella figura is more important than a boat’s performance or function. 

On the other hand, American builders consider that “eye wash” and prefer to rely on the features, benefits and performance of their boats to sell them. It is a cultural difference, but by the look of things, “eye wash” wins.

Some countries have much higher social taxes than others, some still have tariffs, some have month-long holidays, short work weeks, higher cost labor and so forth.  Some builders only launch 5 or 6 yachts a year, while others in class build dozens or several hundred. 

Some countries of origin have weak currencies against the dollar, others have rampant inflation, still others are tied to the U.S. dollar.  Despite all of these differences, consumers will find prices in a surprisingly tight range from brand to brand of boats with the same world-class characteristics 

Indeed, many of the production motoryachts we checked had base prices from $30 to $40 PPP.  Fully option out they would be more of course, but at least then you know where the money is going.  

There are some outliers both lower and higher on the PPP scale.  Those lower do not have world class interiors, equipment and accessories, and they tend to be built just good enough to be receive a CE rating and NMMA certification.  

While those on the high side are like Faberge Eggs – exquisitely designed, equipped and built for yacht connoisseurs who appreciate – and are willing to pay for – the very best of the boat builder’s art.  The jewels have can have a PPP of $80, or more, but they are truly in another world, intended for a very special class of buyer.  

Eye of the Beholder

The biggest difference among large motoryachts these days is design and functionality.  At the Cannes boat show last September, we saw a blossoming of new ideas, innovations, designs and concepts, some of which broke 60 years of tradition. For most buyers now, these new approaches to yacht design and use are driving sales regardless of price.  These things can’t be quantified, but in the end for today’s consumer, they seem to be the most important.