7 Things to Consider When Buying A Yacht
7 Things to Consider While Buying a Yacht
If you’re looking to make a great investment while having something to show off your lifestyle, yachts are the way to go. Lifestyle magazines and movies have romanticized the idea of yachts so much that anyone who can afford it wants one. But before you can head off over the horizon, there’s a hurdle to get over - buying it. Considering the high stakes and technical know-how required, buying a yacht is no easy task. It is easy to get scammed or charged absurdly high rates for a sub-standard yacht. Luckily, we’ve got your back. Keep these tips in mind while shopping for a yacht to make sure you get the best deal.
1. Get Help from the Experts
A yacht has many elements to it. If you want to purchase the yacht that’s right for you, it’s important to familiarize yourself with these items. Ask for help from people who already own some kind of passenger boat. Get them to show you how to operate it, and understand the terminology involved. If you are not aware of any such person, go for online videos, tutorials, and reading material. Remember, an ignorant buyer is a lot more susceptible to being scammed. If you know the basics of a yacht, you’re more likely to spot a good deal and avoid the fraudsters.
2. Know Your Requirements
How big do you want your yacht to be? Will you use it for traveling, or are you going to charter it out? How many passengers do you expect to have? Do you prefer speed or a luxury cruise? How much are you willing to spend? These are some of the questions you need to ask yourself before you start hunting for a yacht. Once you know what you want, it becomes a lot easier to find something that matches those goals. Another important thing you need to ask is whether you’re happy with a production yacht, or do you want to go for a custom yacht. The prices of both differ significantly, and so does their suitability for you. IMPORTANT NOTE: When counting the number of travelers, do not forget to take crew members into account.
3. Familiarize Yourself with the Prices of Yachts
Yachts are a significant investment, and you should expect to spend a considerable part of your savings on one. Production yachts, i.e., yachts that are mass produced and assembled by factories, using general specifications and requirements, generally start around $100,000 and can go beyond $5 million. Semi-custom or fully custom yachts are considerably more expensive. A semi-custom yacht averages about $25 million, while a fully custom yacht can reach $100 million. Another option to consider is buying a previously owned yacht. This brings the initial cost down, but there is always a risk of it being worn or faulty, so the cost of upkeep and maintenance will go up. Buying second-hand is a good option if you have experience in buying yachts, or know someone who does. This way you can keep an eye out for any mechanical or other faults in the boat. Second-hand is also good if you want a customized boat, or a yacht with some character and history attached to it. You can use the money you save on the initial cost to refit and customize it to your taste. Being aware of the many elements involved in a yacht is helpful when you negotiate a price with the dealer. Knowing the value of everything involved can help you assess whether the seller is offering you a fair price or not. When it comes to budgeting, it is important to take into consideration the upkeep and maintenance costs. A yacht requires a proper support crew, fuel, and general maintenance. All this can cost you more than a million dollars every year. Add to this the insurance costs, and you have a hefty bill.
4. Enlist the Help of a Yacht Broker
Just like a real estate agent, getting help from a yacht broker makes the process faster and less stressful. Brokers can help you find the perfect yacht, but you will need to know your requirements and be able to make them clear. Yacht brokers have plenty of experience in buying yachts for customers, thus enabling them to detect a good buy when they see one. Find a good broker either through referrals, or by checking their advertisements - but do make sure you run a background check on them too. You can do this by talking to some of their previous customers, asking about their experience.
5. Avoid Private Sellers or Dealers without a Credible Reputation
It might be tempting to get a cheaper yacht from a less reputable dealer or even an individual private seller, but this will significantly improve the risk of scams and frauds. Always go for reputable dealers, who have a reputation to protect and uphold. The private sellers have far less to lose, as they will usually have only one or two boats to sell, so a bad reputation won’t affect them much. When it comes to reputable dealers, one unsatisfied customer can ruin the image they took years to nurture and build. They will go the extra mile to make sure the customer is happy and satisfied, because a satisfied customer significantly improves the dealer’s image.
6. Take Your Yacht for a Test Ride
Once you have decided on a boat, it is important to take it out for a test ride. A yacht will cost you a lot of money, so it’s best to be vigilant. Make sure you’re entirely satisfied with the yacht you are about to buy, because once the contract is signed there won’t be much you can do. Save yourself the regret and test your yacht! If you can take an expert on board with you, so much the better - they can point out any flaws, or tell you if the yacht is not as the seller advertised. Sellers may often charge you for the test ride, but if you’re lucky or have good negotiation skills, you can convince the dealer to waive this. Even if you do have to pay, it is still important to check the yacht - they cost a lot, and if you cut corners now, you might be faced with additional maintenance costs later.
A third party escrow service such as Escrow.com are designed to provide complete safety to buyers when paying for high value transactions such as when purchasing a yacht. No money changes hands between the two parties until all terms and conditions of the sale have been met meaning that there is no risk to the buyer of not receiving their boat. If you are looking to buy a yacht, contact Escrow.com today to ensure that your transaction is secured by the Escrow.com shield.
Once you’re satisfied, you can finally sign that contract. At this point, make sure you have complete documentation and proof of ownership. Only then can you enjoy your boat. If you have no prior experience in sailing, hire a crew and maintenance staff, or get some training.
Where to find a yacht to buy
YachtWorld and its local market websites are for finding boats online advertised primarily by yacht brokers. A Miami, Florida-based online advertising website providing boat listings, website development, and lead generation marketing solutions. In addition to Miami, YachtWorld has operations in Fareham and Padova. The company has websites in 13 languages, and lists over 100,000 boats in approximately 160 countries.
Superyachts.com was founded on a desire to make the superyachts industry more accessible than ever, not just for those looking to buy, charter or refit a luxury yacht, but for any individual searching for current and extensive information on the yachting industry and its accompanying lifestyle.
Boat International is the global authority in superyachting, celebrating the yachts and the life that comes with them through our unique environment and our unrivalled access.