Upgrading ships

Is it just me, or is upgrading ships rather outrageously expensive? Generally more than twice what a new ship of the redesigned class would cost in the game I'm playing around in now. This persists in the save game files, so it's not a wierd quirk, but I'm not sure it's a bug either. It's certainly counter-intuitive though.
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This got me wondering since I noticed the huge upgrade cost as well. So I went into a saved game and compared ...

Old Ship listed "cost" in the ship builder: 179
New Ship listed "cost" in the ship builder: 268

Price to upgrade old ship to new ship: 1098 (ouch)
Price to buy the new ship immediately: 1800

Best trade-for-credit price I could get: 376


So there are trade offs. If you need the better ship immediately, it's cheaper to upgrade. But if you do need that upgrade immediately, it's probably because you're in a war and maybe you should build a new one and keep the old for cannon fodder. Then again, you upgrade the ship in situ and the shipyard for the new ship may be too far away to get it there in time to help.

If time isn't an issue, selling the old ship to an ally might be best. Especially if you're going for a diplomatic victory and you're trying to kill off the civ(s) that won't ally.

So many variables. But that's what makes it fun.

(I'm sure other, more veteran players have even better ideas. I'd like to hear them.)