Understanding Depreciation Curves in Older Sailboats: Why My Ericson 32-200 Has Reached Its Value Floor

Most people assume boats depreciate like cars. Cars lose value every year, and eventually they are worth almost nothing. Older fiberglass sailboats do not behave this way. Their long-term value is shaped by structural longevity, refit economics, and market scarcity rather than by age alone.

After evaluating my survey results, studying Ericson market history, and modeling the depreciation mathematically, it’s clear that my 1990 Ericson 32-200 has reached the flat, stable region of its depreciation curve — what I call the value floor.

This post explains why.

1. Why Sailboats Do Not Depreciate Like Cars

Cars depreciate toward salvage value because:

• the frame wears out
• the engine wears out
• components fatigue with mileage
• safety standards change
• rust and accidents permanently reduce value

Fiberglass sailboats are different:

• the hull does not wear out from use
• composite fatigue is extremely slow
• almost every system is replaceable
• neglected boats can be restored
• restoration cost creates a real value floor

This means a well-built fiberglass cruiser loses value early in life but eventually settles into a long-term stable range.

2. Modeling Sailboat Depreciation

To capture this behavior, I used a logistic depreciation function. It models assets that:

• depreciate quickly early
• slow down in middle age
• flatten into a long-term equilibrium

Here is the exact formula:

$$\text{Value}(t)=\text{floor\_value}+\frac{(V_0-\text{floor\_value})}{1+e^{k(t-\text{midpoint})}}$$

Where:

• Value(t) = estimated value at age t
• V₀ = new-boat value
• floor_value = long-term stable value
• t = age in years
• midpoint = where depreciation slows the most
• k = rate constant

For a 32-foot fiberglass cruiser, reasonable parameters are:

• V₀ = 78000
• floor_value = 28000
• midpoint = 12
• k = 0.20

3. Applying the Model to My Ericson 32-200

Using an age of 35 years:

$$\text{Value}(35)=28000+\frac{(78000-28000)}{1+e^{0.2(35-12)}}$$

The exponential term:

$$e^{0.2(35-12)}=e^{4.6}\approx 99.5$$

Now compute:

$$\text{Value}(35)\approx 28000+\frac{50000}{100.5}$$

$$\text{Value}(35)\approx 28000+497\approx 28497$$

This is the model’s prediction for a fully depreciated Ericson 32 in good condition.

My boat’s survey valuation was around 33000, which aligns with the long-term stabilized range for these boats.

4. The $3,900 Ericson 32 Project Boat

Before buying my boat, I considered a 1969 Ericson 32 listed for $3,900. On paper, that looks like a bargain. In reality, it needed nearly every major system replaced.

Here is a realistic cost breakdown.

Rigging and Sails

• Standing rigging: $6,000–$10,000
• Running rigging: $1,200–$1,800
• Mainsail and jib: $4,000–$6,500

Mechanical

• Cooling, fuel, exhaust work: $1,500
• Motor mounts + alignment: $1,000–$1,600
• Cutlass bearing + shaft work: $1,000–$1,500
• Possible repower: $12,000–$18,000

Electrical

• Full rewire: $2,500–$7,500
• Batteries and charging: $1,200–$3,500

Plumbing and Sanitation

• Sanitation hoses and tank: $1,000–$2,000
• New thru-hulls and seacocks: $1,200–$2,500

Interior

• Cushions, refinishing, windows: $1,000–$4,000

Electronics

• Instruments and autopilot: $3,500–$11,000

5. Restoration Cost vs. Final Value

Total estimated restoration cost:

• Minimum: ~$33,000
• Typical: $50,000–$65,000
• High-end with repower: ~$97,000

After all that, the market value of a fully refit Ericson 32 is still in the same band:

$25,000–$35,000

This is the crucial point:

A neglected Ericson and a well-kept Ericson eventually converge to the same value band once restored. Restoration cost sets the floor.

6. Why My Ericson Has Finished Depreciating

Everything points to the same conclusion:

• The logistic model flattens after ~30–35 years.
• The model’s output at 35 years is around 28,500.
• My survey valuation (~33,000) sits in the expected floor band.
• Restoration economics show that no Ericson 32 in good condition can fall below this range.
• Upgrades now add value instead of fighting depreciation.
• At this age, Ericson 32s behave as value-stable assets.

7. Final Conclusion

Fiberglass sailboats are not disposable consumer goods. They have long structural lives, replaceable systems, and a real cost of restoration that defines their market behavior. Instead of drifting toward zero, their depreciation curve flattens into a long-term stable range.

My 1990 Ericson 32-200 has reached that range.

Going forward, condition and upgrades—not age—will determine its value.

—J