Buying a Yacht for the First Time
What do I need to know before buying a yacht?
In order to keep this as concise as possible I will present 7 factors and elaborate a little on each:
1) What do you plan to use your boat for?
Do you plan to go fishing, scuba diving, do cocktail cruises, coastal cruising or adventure into the Caribbean and further?
2) Do you need to get there fast?
If you have a busy schedule you won’t want to take a couple of days to get to the Bahamas – and you won’t need to if you get a Motoryacht.
You could leave Fort Lauderdale in the morning and be there in time for lunch. On the other hand, if you are retired it may well not matter how long it takes to get there – or how long you stay. A full displacement Trawler such as a Selene or Nordhavn will lock you in at 9 knots but give you ocean-crossing capability.
3) What size boat would you like?
If you are doing day trips to go fishing or scuba diving then you will need to know how many people you would like to take along. The size of your Center Console is not going to matter nearly as much if you’re not sleeping onboard. If you plan to do longer range cruising then you will definitely need to consider how many cabins and heads you want. In spite of the enjoyment you will have, a boat can seem smaller when you live aboard and even more so if you want to invite friends and family. It is good to start small and grow with experience but it is also wise to go with the slightly bigger option up front, if you feel comfortable to do so.
4) What is your price range?
The annual expense of running a boat can be estimated to about 10% of the boat’s value. Contact us by email or phone to request the generalized annual Yacht Expense Spreadsheet calculated by length of vessel (or Click here to request).
Similar to automobiles, but even more so, there are choices of construction, luxury, propulsion and seaworthiness that will determine the make of your vessel and its price range. A higher pedigree boat will cost more up front but likely will save you more down the line in expenses.
Another aspect would be whether you buy new or pre-owned: The new boat will lose value in depreciation but it will also come with a warranty plan that may need consideration.
Production yachts are mass-produced and assembled by factories, and they start around $200,000 to $5 million. Semi-custom or fully custom yachts are considerably more expensive. A semi-custom yacht averages about $25 million, while a fully custom boat can reach $100 million.
5) Avoid private sellers or unrecognized dealers
It might be tempting to get a cheaper yacht from a less reputable dealer or even an individual private seller, but this will significantly increase your risk of scams and frauds. Always go for reputable dealers such as Denison Yachting, who have a reputation to protect and uphold. The private sellers have nothing to lose since they aren’t in the business for the long haul. At best they will have little knowledge about due process or correct documents for closing.
An established dealer will hold the buyer’s deposit in a licensed escrow account. Don't make the mistake of giving your deposit directly to a private seller.
A representative that you can trust will make sure you have complete documentation and proof of ownership. Only then can you enjoy your boat.
6) Investment
Is a boat a good investment? Although money can be made, I wouldn't promise my clients anything more from Chartering than to break even on expenses. It is good to remember that yachting is a luxury. Luxury cars are a massive business but you cannot sleep in your Lamborghini. Nor wake up in it the next morning to the view of a beautiful bay with palm trees, and then dive in for a swim before breakfast. Yachting is an investment in quality time and memories with those you love. There is little to compare it to if you have the resources to do so. In today’s world of unhealthy hobbies it is a great way to get you and those you love to spend time with, back out into the world of adventure.
7) Get help from an expert
It is invaluable for your enjoyment that you have an experienced person to work with. It will make the process faster and less stressful.
An experienced consultant/broker will provide you with the following:
- A listening ear and the experience to guide you away from mistakes and into the best choices.
- A walkthrough on the boat along with market comparisons in order to ensure that you are getting good value and not wasting money on surveying the wrong boat.
- Being present on the survey and providing guidance through acceptance/rejection and closing.
- Spend some time and teach you the basics in how to handle your boat and provide you with reliable Captains to assist and teach you to safely enjoy your boat.
- Good contacts for dockage, marinas, weather, travel, service and other sources you will need.
- Answer your calls and provide help as you return with the questions that naturally arise as part of the yachting journey.
If you have questions or need more information, contact Grant at 954 649 4958.