New vs used? That is a difficult question when it comes to buying a luxury motor yacht, particularly if it is your first yacht. There really is not a definitive answer to the question because it really depends a lot on your needs, your budget, and even your personality.
Undoubtedly there is a percentage of the yacht buying population for whom only a brand new yacht will do. On the other hand, there are those buyers that appreciate the value that could be had in buying a pre-owned vessel.
There are pros and cons to each. Let’s discuss both sides of the equation.
Buying a New Motor Yacht
Of course the greatest advantage to buying a brand new motor yacht is that you can get exactly what you desire, in many cases you can even have a new yacht custom built to your exact specifications. When buying new you are sure to have your pick of the latest designs, the latest gear, and on-board safety and security systems. Beyond that, other advantages of buying new include:
- No secrets – A new yacht will never leave you wondering if you missed something during your sea trial and inspection. A new yacht has no secrets to uncover, and you do not have to wonder about how she has been used or whether she has been properly maintained or not, if the stated hours on her engines are accurate, etc., etc. She is a clean slate, and the only one writing her history, will be you!
- Warranty – We all know, however, that even when something is showroom new, things can go wrong. With a new boat, if something does happen, you’ll have the manufacturer’s warranty to back you up.
- Less worries – Other than routine maintenance, operating expenses and upkeep should be less on a new yacht, than they would typically be for a pre-owned yacht of similar size and class.
- Confidence – You can buy a new boat with confidence. You never have to ponder that all important question of, “why is this boat up for sale?”
Buying a Pre-owned Motor Yacht
The main advantage of buying a pre-owned yacht is cost. You not only can save some money buying a quality pre-owned luxury motor yacht, you could also probably get more yacht for your money. In other words, if you have a fixed budget, you can probably buy a larger used yacht for the same price as a smaller new one. Beyond saving money, there are many other advantages of buying a used yacht you may not have thought of. These include:
- Tried and True – A used yacht has already gone through her paces, and has proven to be seaworthy. Any bugs, which could have come up in a new engine design, or other system, have probably already surfaced and been addressed. A new boat may have fewer secrets, but a used boat may have fewer surprises!
- Immediate Gratification – There is no need to wait for your used boat to be built, or delivered, she is right there ready to go once you have made your deal.
- Selection – The brokerage market for pre-owned yachts in the Ft. Lauderdale area alone is very large. Working with a good yacht broker , you will have many used yachts to choose from that can fit your requirements.
- Already depreciated – Most likely a used yacht has already been through her largest portion of her depreciation. You can expect a new boat to depreciate by about 2-4% a year for the first 5-10 years of her life.
- The Exact Boat – Often when you test drive a new yacht, you may tour or take out the model you wish to buy, but then have your actual boat built to spec. With a used yacht you are touring and testing the exact boat that will be yours, if you chose to buy her.
- Charter potential – If you are buying a yacht and thinking about putting her into a charter fleet to defray expenses, and you buy one that has already been a charter boat, you can get a clear picture of how successful she can be as a charter.
How a Broker can Help
As you can see, the decision of new or used, is not so cut and dried. Your yacht broker can truly help you to evaluate your wants, needs and budget, and match you with the new or used boat that is right for you.
Remember, even if you buy a brand new motor yacht, built for you from scratch, you still may not get the boat that has “everything,” but a good broker can make sure you get the yacht that has everything for you.
Next Week: We’ll discuss how to find the size and style of yacht that suits your needs.
It’s not always easy to stay on top of what’s new in motor yachts. If you would like to benefit from our expertise in these areas, or if you have any questions or comments about this blog post, do not hesitate to contact our Sales Specialists, or call us at (855) 318-6328.