Traditionally, yacht sales have been categorized into two primary markets: new builds and used (often referred to as brokerage). However, an emerging trend in certified pre-owned yachts is adding a layer of reassurance for buyers, albeit at a premium.
The used yacht market dominates sales activity and has witnessed a significant evolution in professionalism and service over the past decade; meanwhile, the market for new yacht sales is more diverse and exciting than ever before.
Both markets come with their own pros and cons, offering distinct benefits for first-time yacht buyers.
Why Choose A New Yacht?
Buying a newly built yacht offers a unique and satisfying experience for several reasons. Firstly, there's the joy of peeling off the proverbial protective screen and experiencing everything in pristine condition. With a new yacht, you're the first to truly explore and appreciate every inch of it, from the untouched keys to the fresh interior and that new yacht smell alongside the privilege of being the first to sleep in the cabin.
If your timing is right and you purchase the yacht as it rolls out of the shipyard, you may even have the opportunity to customize certain interior details like the color scheme or galley layout to perfectly align with your ideal.
Beyond the initial thrill, buying new means you have the shipyard at your disposal. This includes familiarization sessions to get to know every system on your yacht, accompanied sea trials to ensure everything operates flawlessly, comprehensive delivery packages to make the transition into ownership smooth, and extensive after-sales service and warranties.
The warranties provide peace of mind, covering various components and systems, and reducing potential maintenance costs in the early years of ownership. Furthermore, a newly built yacht incorporates the latest gadgets, and instruments, and adheres to the most up-to-date regulations in build quality.
This ensures that you're cruising away on a yacht that is technologically advanced and compliant with current standards.
However, buying a new yacht can come with a higher initial price tag compared to purchasing a used one. Additionally, unless you opt for a stock boat, you'll often have to wait for the yacht's construction and delivery, meaning there's no instant gratification in ownership.
Depreciation is a significant consideration. While both new and used yachts can depreciate over time, new yachts often experience a steeper depreciation curve in the first few years before they start to level out.
This underscores the importance of choosing the right yacht that you'll enjoy for a considerable length of time to maximize your investment, or that will serve you well if you're proceeding into the charter market with the yacht.
Onboard Finish
One of the joys of yacht buying lies in the ability to choose the exact finish and personalization options for your vessel. Yachts embody a unique blend of being a home, a vehicle, and a luxury item, and every element can be customized to create a personalized expression of your individual taste and style.
Design And Layout
You may be given a choice of cabin, salon, or deck layout, so choose the design that suits you best. If there is a two or three-cabin layout, see which one works for you, or delivers the best use of overall space. Try to avoid anything too bespoke, it might suit your style but will it harm a potential resale?
Yachts can also offer some fun options with design, such as fold-down balconies, bar and barbecue areas, hardtop shades and sunroofs for versatile outdoor spaces, and hydraulic swim platforms for easy water access.
Hull Color
New yachts offer a wide range of hull color choices for personalizing your yacht's exterior style. However, it's important to conduct some research, as a stylish black hull that looks stunning in the boatyard may fade quickly under the intense Mediterranean sunshine.
Specification
While the appearance of a yacht is important, the onboard experience is often determined by its functionality. A new yacht allows you to customize it to your precise requirements, from air-conditioning and audio systems to navigational equipment. This is your opportunity to craft your ideal yacht.c
Activity
If you are keen on fishing, now is the time to get rod bases fitted; or if you love to ride personal watercraft, ensure the garage and launch and recovery systems will suit your active lifestyle.
New Yacht Purchase: Pros And Cons
Pros
- Choose finish and styling
- Warranties
- Dealer support
- Latest design and technology
Cons
- Higher costs
- Lead (waiting) time
- Residual values
Why Buy A Used Yacht?
Opting for a used yacht over a new one can be a strategic choice for several reasons. While new yachts offer the allure of pristine condition and personalization, there are compelling advantages to purchasing a used vessel. From cost savings to immediate availability, and a reduced depreciation hit, buying a used yacht can make perfect sense for the savvy buyer.
When considering the purchase of a used yacht, whether through a broker or privately, there are key factors to keep in mind. Buying through a broker typically offers a degree of support and assurance that the yacht is accurately described, providing some peace of mind.
If you opt for a private sale, the responsibility of verifying the yacht's title and documentation, such as VAT status, falls entirely on your shoulders.
Regardless of the buying avenue, there is more responsibility placed on you during the purchasing process. This includes the necessity to seek expert advice from a surveyor and potentially a marine engineer to ensure the yacht's condition aligns with your expectations.
Buying used also means accepting the yacht 'as is,' but it grants you the option to undertake refit work to update and personalize the interior or exterior according to your preferences.
Buying used also means accepting the yacht 'as is."
Used Yacht Purchase: Pros And Cons
Pros
- Choice
- Lower purchase cost
- Immediate ownership
Cons
- History and maintenance checks
- Higher running costs
Approved And Certified Pre-Owned Yachts
The used yacht market has witnessed a significant rise in professionalism and service quality, leading to the emergence of dealer-approved or certified yachts. These are used boats that come with a degree of warranty or guarantee, offering buyers extra reassurance.
The certified yacht concept initially took root with main dealers who represent specific yacht builders. These dealers often take used yachts, refurbish them to a high standard, and utilize parts and support from the original builder, essentially transforming them into near-new vessels.
It's worth noting that independent brokers have also embraced this idea, offering certified yachts and expanding the availability of well-maintained and guaranteed options within the used yacht market.
Part Exchange
The approved or certified yacht concept was catalyzed by the growing trend of individuals part-exchanging their old yacht as part of the deal for their new one. This led to dealers holding more used boat stock. By ensuring these yachts were in optimal condition, dealers became more likely to sell them while maintaining confidence in their condition and reliability. This approach also protected the reputation of the yacht brand itself by ensuring older models were exceptionally well-presented.
Premium Prices
It's important to note that the extra work and updates on these certified yachts often result in buyers paying a premium compared to typical brokerage examples. However, the outcome is typically a yacht in excellent or nearly-new condition, offering a high degree of reliability and satisfaction.
Certified Pre-Owned: Yacht Improvements
Approved yachts should be offered for sale in excellent condition. The yacht itself might simply be a very good example of its kind or have undergone specific work. This work might be purely aesthetic or run to more serious engineering matters. If the latter, further investigation is advised.
Regardless of the nature of the work done, an approved yacht should be considered to be in good working order. However, it's highly advisable to take the precaution of hiring an independent surveyor to thoroughly assess the yacht's condition and confirm its seaworthiness and overall integrity.
Certified yachts are expected to be in excellent condition, characterized by well-maintained and polished exterior finishes, pristine interior and deck furnishings, and fully serviced engines. In many instances, these yachts may have undergone extensive refurbishments, including the installation of new upholstery and meticulous detailing of both interior and deck areas. Moreover, the engines themselves may have received more than just routine servicing.
Pros And Cons Of Certified Pre-Owned Yachts
Pros
- Supporting guarantees or warranties
- Good all-round condition
- Serviced engines
- Possible updates to interior and deck furnishings and finish
Cons
- Higher asking prices
- Limited choice
Used Yacht Pre-Purchase Surveys
If you are considering the purchase of a used yacht, it is highly recommended that you employ the services of a marine surveyor prior to the deal being done.
It is usual for any offer of purchase made on a yacht to be 'subject to survey', with the buyer able to withdraw or renegotiate based on the survey findings. Similarly, any deposit paid will be refunded if the findings are not to the buyer's satisfaction.
A surveyor will check the general condition of the entire yacht, but a marine engineer can also be employed to complete a more concise report on a yacht's engines.
A survey will provide the following:
- Assessing the condition: a professional marine surveyor can provide an objective assessment of the yacht's overall condition. They inspect the hull, structure, systems, and components to identify any existing issues or potential problems. This assessment helps you understand the true state of the yacht, which might not be evident to the untrained eye.
- Safety assurance: safety is paramount when it comes to yachting. A surveyor can identify safety concerns, such as structural weaknesses or malfunctioning systems, ensuring that the yacht is seaworthy and complies with safety regulations.
- Hidden problems: even well-maintained yachts can have hidden problems beneath the surface. A surveyor's expertise can reveal issues like osmosis (hull blisters), corrosion, or hidden damage that may not be apparent during a visual inspection.
- Negotiation power: survey findings can be used in negotiations with the seller. If significant issues are discovered, you may have leverage to negotiate a lower purchase price or ask the seller to address the identified problems before finalizing the deal.
- Peace of mind: a survey provides peace of mind for the buyer. Knowing the yacht's condition and any necessary repairs can prevent unexpected and costly surprises after the purchase.
- Insurance and financing: many insurance providers and lenders require a survey before they provide coverage or financing for a used yacht. A favorable survey report can lead to better insurance rates and loan terms.
