Yacht Buying Guide- Buying a Used Yacht
How to Buy a Used Yacht
Are you ready to enjoy the yachting way of life but not quite sure if buying a used yacht is right for you? We understand how difficult this decision can be especially if this is your first time purchasing a yacht. Buying a yacht is a big investment and requires careful consideration. Determining to buy a used vessel depends on your preferences, budget, and your expectations. Let’s take a look at the pros and cons of buying a used yacht.
Buying a Used Yacht Pros:
- Wide Variety:
Buying a used yacht allows for a wider variety of vessels offered from all over the world. Galati Yacht Sales alone provides an impressive line-up of used yachts. Everything from center consoles and sportfish yachts to superyachts for sale.
- Discounted:
Due to the depreciation of vessels being the highest for the first few years of its life, there are steep discounts when buying a boat/yacht a few years old. Typically boats depreciate at a rate of 10% for the first year and then 6-8% for the following 4-5 years. With a slower depreciation, a boat around 6-8 years old should sell at a great value to the buyer.
- Larger Vessel:
With steep discounts offered on used boats, the extra money saved can go towards purchasing a larger vessel, one that may have been out of your price range if purchased brand new.
- Charter Potential:
To offset expenses, you may be thinking of entering into a charter fleet. In which case, buying a used yacht makes the most sense. Especially if the used vessel was included in a charter program. This way you can see how that particular vessel performed as a charter and what you can expect to bring in.
Buying a Used Yacht: Cons
- Upfront Costly Fees:
When buying a used yacht, you are going to want to make sure a survey is complete before purchasing it. Not to mention an engine inspection, and haul out. This cost could be anywhere from 4-8 thousand dollars depending on the size of the boat.
- Warranty & Limited Dealership Support
As with any new product, the certainty of issues arising is never apparent. Not having a warranty for a used yacht makes matters worse. Not to mention dealership support is often limited when service needs to be performed. Typically priority of service goes to those customers who have purchased a new yacht from the dealer.
Many manufacturers allow the remainder of their new boat warranty to transfer, but only to the second owner. Hull warranties are usually transferable to the second owner as well, but beware that on both warranties, the clock starts ticking the day the boat is delivered to the first owner. Some manufacturers charge up to $1,000 to transfer a warranty.
Usually, blister warranties aren’t transferable. If the boat has a lifetime hull warranty, it usually won’t transfer to the second owner. In any case, manufacturers have specific procedures that have to be followed to transfer a warranty, and failure to “dot all the I’s” can cause grief for the second owner.
- Maintenance:
Typically, vessel maintenance increases after 6-8 years. This could mean more money spent than anticipated. Usually, you can expect to pay about 10-20% of the boat value per year, depending on what you include as maintenance.
- Older technology:
Of course, when buying used, you’re not always getting the latest technology and safety features offered on the market today. This could mean remodeling upgrades in the future.
The Galati Difference
If you are having a tough time deciding whether or not to purchase a used yacht versus buying new, let one of our experienced yacht brokers help you out. Like real estate agents our certified professional yacht brokers work in your best interest; to find the vessel that best matches your boating needs. In addition, Team Galati’s product knowledge and experience are unparalleled in the yachting industry. Since 1970, our sales team has managed billions in yacht sales with our world-class customer support for both buyers and sellers.
A few of our notable accomplishments include Boating Industry Top Dealer two years in a row, Boating Industry Hall of Fame (one of only six marine dealerships in the country have earned that distinction), and we’re Marine Dealer Certified. We can access the sold-boat data that buyers don’t have readily available to them, and based on that data, prepare a CMA [Comparative Market Analysis] for our customers when they shop for a used boat. Learn more about the buying process and how our Galati Yacht Brokers will be there with you every step of the way.
