Let’s see, if we can shed some light on some very important key terms and questions when considering buying a boat.
As purchaser, you need to have clarity about several things.
There are different ways to purchase a yacht and there are different sellers who offer you the yacht.
Dealer
A dealer is selling you a boat from the brand he represents. He will emphasise the positive aspects of the boat for you and minimize the less desirable characteristics. To be able to have a boat in time in case they have found a client interested in certain a model, dealers often pre-order boats. If the dealer has so-called production slots or slots, he most probably rather wants to sell that slot to you, than order another slot. The dealer is responsible for the after-sales. He finances his aftersales efforts and costs out of his margin, which he makes by selling the boat to you.
Broker
A yacht broker is a middle man, he is in between parties involved in the purchase deal. A yacht broker is responsible for correct contracts and monitors the proper development and outcome of the purchase procedure. Because a third party delivers the boat to you, the yacht broker is not responsible for the delivery and after-sales services.
Private seller
A private seller sells you the yacht without the obligation of after-sales. If you buy a boat from a private owner you must make sure that the contracts are valid, the yacht has been maintained thoroughly and that the yacht is free from rights from third parties such as banks or even the government, such as the TAX office. To minimize risk, you assign a surveyor for assessing the technical status and a broker or maritime lawyer who can help you with the legal side of your purchase.
There are several reasons why you want to buy a boat: it could be for business or private purposes, or a combination of the two.
Buy for private use
There are new boats that you can order from the shipyard with the help of a qualified yacht seller (your purchase partner, see point 1 above) and used boats that are often seen as an opportunity and can be an alternative, indeed. BUT only if you have studied and answered for yourself the following points:
If you want to use your boat extensively and/or don’t want others to use your boat, you choose for using your boat only by yourself or your family. This means that costs for upkeep, upgrade, berth and insurance are fully bared by you. These costs are between 10-5 % of the yacht’s value, depending on the size, sailing area and marina. Topics to be aware of are:
• Is my sailing experience compatible with the sailing area I would like to sail?
• Is there a berth available in my favorite marina?
• Which companies are trustworthy and can help me with the maintenance?
Investment charter business
The main goal of investing in a charter boat is to create financial revenue. You invest fully in a yacht that performs well in the boat rental market and the charter operator will generate income for you. Currently, the best performing yachts are the catamarans. You are only investing money in the business and will have yearly revenue of 6-8%.
Combination of private usage and charter investment
If you want to be free in choosing the type and model you prefer, but want to reduce the ownership costs, and avoid the handling and maintenance of your yacht you can opt for yacht management. Your yacht will be maintained by a professional service provider and the costs for upkeep are reduced by the income out of a restricted amount of charter weeks. The main goal here is to have your boat ready for you to sail, whenever you want and in those weeks you don’t use your boat, rent her to carefully selected charter guests, with a beforehand decided upon maximum amount of weeks per year. This rental is often offered as skippered- and crewed charter.Â
New yachts
What to be aware of when buying a new yacht, is for any of the before-mentioned ownership goals more or less the same:
• Who is my contract partner?
• What can I expect from his/hers knowledge?
• How much can I trust the advice my contract partner provides me with?
• What should I order immediately at the yard and what can be delivered aftermarket?
• Is the delivery of aftermarket equipment more expensive or better prices?
• What is the role of the seller in equipping the boat to my needs?
• How will the seller manage the purchase procedure?
• How secure are my payments? And how do I know that the boat is ordered for me?
• Who can help me with the insurance?
• Who is responsible for the delivery and handover?
• What kind of instruction will I get to learn my boat as quick as possible?
• Has the seller experience in registering my boat?
• Can the seller deliver my boat to my favourite sailing area and chosen marina?
• How has the seller prepared the warranty service?
• Is the seller able to deliver the aftersales service I expect?
• How quick is the response of the seller in case of aftersales issues?
• How can the seller guarantee the local service I’m entitled too?
• Will my seller be interested in helping me with selling my boat in the future?
Pre-owned yachts
Buying a pre-owned yacht presents you with other challenges than a new yacht. Because it’s an existing yacht the purchase procedure is a bit different:
• Who is my contract partner and/or the yacht broker?
• What can I expect from his/hers knowledge?
• How much can I trust the advice my contract partner provides me with?
• How do I know the boat is owned by the seller free of mortgages, attachments and registrations?
• How do I minimize the risk of my purchase?
• How will the broker manage the purchase procedure?
• How secure are my payments?
• Who can help me with the insurance?
• Who is responsible for the delivery and handover?
• What kind of instruction will I get to learn my boat as quick as possible?
• Who should I assign to register my boat?
• How can I get the boat delivered in my favourite sailing area and marine?
As you can read there are many facets in purchasing a boat which you need to be aware of. YM is as your unbiased partner knowledgeable about any of the purchase factors and will support you in making the right decisions.
