How can buying a new or used yacht in this day and age of uncertainty be a good decision?  For those who have managed to retain liquidity or are in markets which are still thriving, owning a high-end luxury commodity might not be such a bad idea.  Here are some compelling reasons why:

• The yachting market, similar to other luxury markets in our previous era of booming economics, have seen prices rising unreasonably – mostly due to supply and demand.  A correction is certainly evident today, with many yachts having come to market; some just to cover liquidity needs, others competing for few buyers.  Thus we see many buyers actually buying yachts at prices that they would not have dreamed of a year ago.

Realistic buyers know value when they see it – Unrealistic buyers often miss the great deals.

• The cost of money is extremely favorable with plenty of credit available to persons with sufficient liquidity.  Never have rates been this low.
• Repairs and improvements are not only much easier to organize (no standing in line waiting for quality vendors these days), but time constraints and pricing is much more favorable.  The same goes for other aspects of ownership, such as fuel costs, quality crew and salaries, dockage, etc. 
• Cruising grounds and marinas are less crowded and more flexible during the popular seasons, thus offering more choices to cruise areas which may have been previously limited – such as Nantucket, or Nassau (Atlantis). 

Yachting today offers a far greater tangible and “quality of life” value than the uncertainty of equity markets – plus they won’t lose value overnight for no apparent reason.   Some wise business folks are taking time to enjoy life with their families and friends – knowing that things will eventually turn around and that they may never have the opportunity to spend precious leisure time exploring the finer things in life – like watching the sunset behind a tropical island while at anchor.  You can’t put a price on these experiences. 

"No Name" 38' Rampage express sportfisher for sale in Fort Lauderdale

"Emotion" 1999 48' Sea Ray Sedan Bridge for sale

Whether a first-time buyer or a seasoned yachtsman, the art of locating and buying a used yacht can be a truly enjoyable experience.  Here are some tips to making a good decision:
I find that the best yachts (or boats, or cars, etc) are ones that are slightly used or exceptionally cared for.  When I managed boats for television shows (such as Miami Vice), I found that the first year is spent troubleshooting glitches, or problems.  Most of these were electrical in nature, some mechanical.  Because boats and yachts are built of components that become increasingly complex with size, thus system, increase – it is hard to tell what will fail from one boat to the next.  I found that most problems were solved within a year, after which each boat was fairly trouble-free as long as it was maintained and operated well.  I actually pleaded for the manufacturer to leave the one-year old fleet of fast boats alone, as they were much better than when I put them into service.  Thus – the value of warranty in new boat ownership.  
Historically, yachts (especially production yachts) depreciate rapidly the first year.  Often, if it is a bad sales year, the dealer will actually compete with used boat prices by discounting their inventory.  The real gimmick for the dealer to keep the business of these one or two year old boat owners, is to inflate the trade-in price and get them into a new model (at full retail).  It’s really just a shell game and most savvy buyers eventually come to grips with this form of business – then face the real market and take their lumps.  Then they get smart and buy next time as the second owner.  
Here’s another reason why – new options don’t increase market price (but can increase desirability).  A 2002 46 SeaRay is worth “x” amount of money on the market, whether it has a transom lift, or satellite TV, or new electronics.  These options cost someone a lot of money up front, but only add value several years down the road.  However, if you have to have a certain option, such as a hydraulic wim platform, it is wiser to seek used yachts which already have these installed, as retro-fitting is prohibitively expensive in some cases and often not able to be recaptured on resale.   Of note – the electronics industry has morphed to “black box” technology – thus allowing upgrades to equipment over time rather than planned obsolescence – making wise electronics module  purchasing a viable investment in your yacht.  
Thus, It is a win-win situation to buy a second hand (used, pre-owned)  boat – the first guy takes the biggest hit, you get lots of virtually free options (even if you don’t need some) and hopefully the bugs are worked out (with maybe some warranty left). 
Yachts which are well-cared for are certainly more desirable than those which are not.  And though you might congratulate yourself on the “killer” deal that you made on a repossessed boat with only one engine running – just wait until you start seeing all the other problems that show up as a result of neglect.  In some ways, boats are like onions – you often don’t see the real boat until you peel away a few layers – and while some things work well at the dock, murphy’s law has a sinister way of coming into play when one is in difficult conditions.  The “idiot light” is sure to blink on when your family holiday is ruined because of neglect problems. 
Most buyers realize that a good broker is a true asset in finding the perfect yacht.  Find one that is willing to help you find you the best boat at the best price.  Stick with him (or her); as they will do the same and be an invaluable resource to help make those moments on the water the best ones of your life.   Be reasonable and try to learn as much as you can – most brokers have a lifetime of experience to offer, and will surely agree that the best value is often a fresh used yacht or boat.

Easy cruising in Fort Lauderdale on "Bulls n' Boats" 447 Cruisers Sport Sedan

 I get a lot of customers who are new to yachting and wonder if there are any good books focusing on buying a yacht and the variables involved in yacht ownership.  I have looked around and can’t find anything specfic to buying a pre-owned yacht (which is what I specialize in), however there is a good book relevant to megayacht buyers who want to build a custom design…” Megayacht Wisdom  II” by Buddy Haack and Doug Hoogs (both competent ex-yacht captains) and available online. 
This blog is relevant to the buyer who wants a yacht, but needs to determine which is the best one suited for his (or her)  needs.  I work with a variety of buyers, each with a different set of values and try to match the market to their needs.  Let’s face it…nobody wants to make mistakes in any size purchase, least of all an expensive one.  So…
The first question is obvious…what is your budget?  A buyer needs to be realistic with him (or her)self, as the market changes radically as the budget goes up or down.  Getting everything that you want is proportionate to size, goals and budget. With this in mind, the budget is not limited to simply the purchase price, but to also keeping things going.  Other considerations are maintenance and repair, dockage, crew considerations, and so on.    This is where other factors come into play.
What are your crusing goals?  Do you want a boat which is fine for weekend (or an occasional two week) trips say to the Florida Keys and perhaps the Bahamas…or a boat which has longer “legs” which can navigate in safety to the Caribbean Islands for a longer period of time (I will cover some criteria for this in another blog)?  This also applies to sailing yacht buyers, although more critical for motor yacht buyers. 
How large of a boat will you be comfortable in?  Staying aboard for longer periods requires a full beam  aft or mid-ship main (master) stateroom with room outside to enjoy life, whether it be a large flybridge or aft deck.  Most of the folks who find out that this is a terrific lifestyle, eventually opt for a larger boat which will allow for these two important factors….livability for longer periods.  Without a doubt, seaworthiness is paramount.  If your goals are to cruise from marina to marina, then one doesn’t need to worry about the very seasick wife hitting the rails with the cry of “this isn’t my idea of fun!”.  If your plans include more adventurous plans, say to the lower Caribbean or unprotected waters, then a planing, light cruiser is not a very good choice (see blog on transporting), but rather a displacement or slower yacht with stabilization.

Guests and Family – an important aspect of yachting is the ability to gather and share the seagoing home.  Once you are away on the vacation, new friends (and often family) want to join in the fun and experience (which is exactly why yachting offers a unique lifestyle to enjoy intimate time together) .  Thus the question of comfort and how long one can sustain a crowded boat.  It is very important to have expectations with individual comfort in mind…and how many staterooms will be often in use.   It expands once a larger yacht is envisioned as crew need their comfort as well to do their very hard  jobs.  Of course, this expands into the galley and amenities to be able to keep the party in large happy.  Additionally, the ideal yacht should have outdoor spaces for all not to feel too clustered as privacy and space become important quickly. Equally important is the age of intended guests…as small children and such will need to be watched carefully and not exposed to dangerous ladders or spaces where they can injure themselves. 

Styling –   All of us have a sense of what we thinks looks good.  Just as in picking a car style, we all want something which defines who we are.  Face it - you need to look with a boat with ’love’ - something that we can look at and say ‘that is me’. Yet, different styled yachts have different limitations. For instance, Euro-styled sleek-looking boats have a limitation on interior volume, whereas domestic US styled boats (note that the majority of Taiwanese built yachts are designed and built for the American consumer) put an emphasis on volume….and thus livability.  The same holds true with Sailing yachts.  Thus the variety of the multitude of yachts abounds. 
Age -  Are you handy with fixing things or is the newness of equipment and systems more important?  If handy, an older boat will certainly demand more monitoring and repairs as equipment ages.  With this goes the availability of parts and technicians who can perform repairs.  A good example might be the saga of Detroit Diesel engines. There are plenty of these venerable engines still around, along with fair parts supply.  Just about any island has a fellow who can work (I did not say competently) on these as they have been around for over 50 years and are fairly simple.  Compare this to a modern, electronically controlled engine (as mandated by increasing pressure to control emissions) and you almost always require a factory trained tech to troubleshoot and repair these increasingly computer controlled (but here to stay) engines.  On one hand…aging, less fuel efficient engines which may be simply repaired …or relying on manufacturers with a stretched-out service ability.  As you wander from the major coasts (which is the goal of course), one should realize the probablity of service. 

Re-salability – what might seem like a bargain up front, meeting all of your needs might turn out to be a lemon on the market when it comes time to sell.  Given our dubious global economy, yacht buying is at the bottom of the food chain.  Yet, we still survive as it is one of the most glorious and satisfying  lifestyles around.  Be aware that repos and bargains often are extremely neglected.  I have resold more than a few from owners who have doubled (and more) their budgetory expectations of bringing the boat back into shape, along with a promise to themselves never to consider such folly again.  These boats are for the experienced buyer only without having to resort to boatyards and retail vendors to repair.  Keep in mind also that trends change over the years and that custom (or one-off) boats tend to have very small markets indeed.  My advise…follow the market with production yachts with proven desirability and options.  My philosophy (in concert with the majority of my seasoned buyers) is to buy with value in mind, yet with proven upkeep. 

Check out the huge aft deck and cockpit on "Andiamo" 85' Symbol

A note:  I welcome emails with questions or feedback anytime! But I do not follow comments much as most are spam. Any ideas for blog-worthy topics are also welcome!  andy@akyachts.com; (954) 292-0629 cell

Symbol yacht at dock in Fort Lauderdale

Did you know that Fort Lauderdale, Florida  is often  referred to as the ‘Venice of the Americas”?  Good reason for this analogy, as this area has plenty of waterfront home with private docks which directly and easily access the Atlantic Ocean. 

Many home owners offer dockage for rent at a huge discount over marinas.  Let’s face it…many owners are busy and can’t use their boat all the time.  A yacht has  to have a place to safely be moored, so why not do what many savvy yacht owners do…and rent private  dockage. 

Consideration has to be given to the draft (depth) and access to the private slip.  Some yachts need 6′ or more to get in and out to the navigable waterways.  Plus, the city code mandates a setback of 5′ -10′ from each side of the property whereby the yacht has to fit (for example a 100′ yacht requires a property of 110′-120′).  Power supplies must also be met, as larger yachts use 100 amp service (although twin 50 amp service can often be made to work).  One also needs to consider the parking and dock access, livability (most private docks don’t allow staying onboard),  the condition of the dock, location for easy ocean access, power requirements, landscape conditions (home with big trees are nuisances for keeping the yacht clean), fixed bridges and protection (upriver docks are favored by insurance companies during hurricane season).   Ak Yachts assists their clients in finding the perfect dock to keep their yachts behind, often going the extra mile to survey the depth of approach and these other important considerations. 

Private home dockage can range from $10 per foot per month to $25 per foot per month.  Some even include ‘light’ power usage (you won’t want to run your air-conditioning full-time, but that is another subject which will be covered in an upcoming blog).  Some dockage even allows for occaisional staying aboard.  Many home owners will rent their docks on a monthly basis.   We recommend finding conveniently located dockage with good access (not restricted in depth by tidal conditions) and moving the boat to a variety of ‘resort marinas’, of which Fort Lauderdale boasts many, when actually in town and using the yacht (naturally since Ak Yachts is a full-service brokerage, we can assist you with this).

Resort marinas in Fort Lauderdale  include Bahia Mar, Las Olas City Docks and Hall of Fame (located directly across from the very nice Fort Lauderdale beach), Pier 66 and Hilton Marina (located nearby the port entrance and capable of handling very large yachts up to 200′).  Rates vary with season with the high rate being $5 per foot per day…but you get great locations to the action, beach and many desirable amenities to compliment your yachting experience.

Part of the beauty behind yacht ownership is the ability to experience different areas at whim,  as well as cruising grounds not accessible to the ordinary person.  South Florida offers a a key staging point to cruise the finest waters in the world; including the Bahamas (800 islands  with breath-taking crystal clear water starting at only 50 miles away, South Miami Beach (ready to party?) , the Florida Keys (Key West being the best for the laid back tropical lifestyle …may never want to leave as many don’t!), and a centralized ‘jump point’ to Caribbean destinations such as Cuba, Puerto Rico, Mexico, Cayman Islands, Jamaica, Dominican Republic and the far Caribbean chain of islands (including the Virgin Islands, Saint Martin, Saint Barts, Martinique, Grenada and so on – see transport blog).  Many yachts in this area also cruise the very desirable area up to the New England coast and the Great Lakes region during the summertime months. 

The other desirable motivation to a yacht owner; is that the South Florida area offers the best availability of yacht services and crew worldwide!  Indeed, Fort Lauderdale has also been termed the ‘yachting capitol’ of the world!  Selling a yacht? Why not use it while enjoying your yacht in the premier yacht selling region worldwide?  Buying a yacht?  Can’t get better to see a huge variety of yachts at attractive pricing anywhere.  Shhh! don’t tell everyone this secret, or we won’t have the same opportunities to share!

Used yacht offloading

Often Buyers and Owners face the challenge of having a yacht transported; which can be done effectively and economically by a number of well-established worldwide operations.

Shipping as deck cargo, or on a specialized yacht carrier can both extend the opportunities to cruise parts of the world which cannot be accessed easily, due to range constraints or weather concerns.  There is virtually a ship for every port destination ; anywhere in the world.  Transporting yachts by ocean carrier saves much wear and tear often experienced by long trans-oceanic cruises, not to mention the hours accumulated on the machinery and systems.  Yachts arrive in a ready-to-go state.  Often they can be attached to shorepower while underway.  Carriers such as  Dockwise Yacht Transport (www.yacht-transport.com) offer submersible yacht carriers which offer float-on-off service whereby the yacht is driven onto the yacht with divers placing supports for the hull, then the cargo area is raised and unflooded.  This service travels worldwide with such destinations as South Florida, USA, Vancouver, Canada, West coast Mexico, Costa Rica, Australia, Tahiti, Europe (Medditerranean), Caribbean and many more.  Other ships (www.yachtpath.com) offer crane service which pick up the yacht with teams of cranes and carry the yachts as deck cargo with service worldwide.  When using a ship transport, the yacht will carry a seperate cargo insurance policy and often be shrinkwrapped (enclosed in a plastic shell) to protect the yacht on long-cruises.  I advise customers to even consider moving yachts over short distances (1000 miles) by this method, especially if the trip is against wind conditions (as often found between moving from South Florida to the Virgin Islands – much easier coming back from the VI’s with prevailing winds from the stern). 

Moving smaller yachts within continental North America can be economically accomplished by trucking.  Most express style yachts are built so that they can be moved by truck and trailer without exceeding a height limit of 13’6″ and a beam (width limit) of 14′  from the road.  Depending on the route, some road transports can exceed this height and   Even some sedan style motoryachts can have the flybridge removed and shipped on the same trailer, then reassembled on the delivered side.  This method of transporting yachts is often more economical than physically driving a yacht.  Most owners will shrinkwrap the yacht while transporting.  Sometimes a combination of transporting means will be the most effective way to accomplish deliveries; such as moving a lake-bound yacht to a navigable waterway where an on-water delivery team can take over. 

Professional delivery crews are also employed to move yachts between locations.  Many are free-lance operators who have many years of experience.  It is an  important consideration to select a delivery crew who has experience on the desired route and with the type of yacht being delivered.  Provision should be made for weather conditions which could potentially interrupt the trip, as often occurs..so that the delivery can be accomplished smoothly and without damage. 

Ak Yachts has many customers who elect to buy yachts which are good buying opportunities  from various  locations and transport to their home port . We handle all aspects of  this service at no-charge to the customer and can often negotiate more favorable pricing. As worldwide currencies become stronger against the US dollar, many international yacht buyers seek the  used yacht market in the US, especially South Florida; where most of the best opportunities to buy yachts advantageously are found.   We see many buyers from Europe, Australia, South and Central America and Canada who recognize this fact and make up a major part of our buying market – then use transport services to bring their purchased yachts to their home port.  Many buyers elect to use their newly purchased yacht to cruise our fine destinations, such as the Bahamas and Florida Keys prior to transporting.  Ak Yachts often handles the management (including dockage, maintenance, captain services, etc) to assist  these happy new owners to keep the boat in South Florida and do some excellent cruising prior to transport.