Being the Second Owner of a Yacht Makes a lot of Sense!
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 for buying a used yacht or preowned yacht. Being the second owner of a yacht often gets you a lot of value.
First Year Headaches on New Yachts
I find that the best yachts (or boats, or cars, etc) are ones that are slightly used and/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 and some mechanical. However, ALL boats and yachts have a one year ‘teething’ period!
Because boats and yachts are built of components that become increasingly complex with size and thus systems, 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 this period each boat was fairly trouble-free as long as it was well-maintained. 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. Upon doing this, my next year was relatively trouble free. Thus – the value of warranty in new boat ownership.
Heavy Depreciation the First Year
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. In order to keep the business of these one or two year old boat owners, new boat dealers inflate the trade-in price and get them into a new model (at full retail). This is just a shell game and most savvy buyers eventually come to grips with this form of business. After understanding such, they often face the real market and take their lumps. Then they get smart and buy next time as the second owner and elect to buy a used yacht over a new yacht!
Save Big with Options
Here’s another reason why: New options don’t drastically increase market price (but can increase desirability). For instance, a 2010 47’ Sea Ray 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 swim platform, it is wiser to seek used yachts which already have these installed. 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. This allows for upgrades to equipment over time rather than planned obsolescence. It is a good thing to find this modular system on a used 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).
Look for Good Maintenance
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 at the worst time! The “idiot light” is sure to blink on when your family holiday is ruined because of neglect problems.
Keep the Country of Origin in Mind
It is really important to know as a new owner how to get things fixed once you buy a yacht. Sometimes that beautiful deal can turn sour if you cannot obtain what is needed to fix things…like engines, electrical systems, etc. South Florida is a mecca for getting things done for boats worldwide…but not so much in other areas which don’t have services. A wise buyer will keep this in mind when shopping for a used yacht.
Get yourself an Ally
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 for your goals at the best price. Stick with him (or her); as they will do the same for you 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.
Here at Ak Yachts, we specialize in making sure that any desired modifications, repairs or improvements get made after the sale as part of our service….protecting you from the sharks!