Decide Between Buying a New or Used Sailboat
If you’re not sure what your budget can afford, do some shopping at your local dealership or at the boat show, and/or speak with your financial institution/lender about available rates and what you can afford. Once you’ve determined if new or used is the right/best route, then start to do your homework via website research, onsite dealership visits, etc. The most important thing: Get Started! Your sailing adventure awaits!
Steps
- Decide your budget - Purchasing a pre-owned yacht can make your yacht purchase dollars go further, thus allowing more sailors to enjoy the sport. But, if budget is not a serious consideration, there are many good reasons to purchase a new yacht. This is particularly true for the first or second time yacht purchaser.
- Weigh the value of a warranty - New yacht warranties include those offered by the yacht builder, the dealer, the supplier of many of the major components on the yacht, as well as extended warranties. There are usually separate and longer warranties on the boat bottom (hull). Pre-owned yachts do not typically have warranties or qualify for extended warranties. Warranties are one important difference between new and pre-owned options.
- Shop around - On-site dealer support is important and you can find it with new and pre-owned yachts so look for a boat dealer you feel comfortable with and that offers support.
- Decide how long you plan to keep the yacht - Most of the depreciation is gone on a pre-owned yacht and that is important if a purchaser is not planning on keeping the yacht for more than a year or two.
- Have the yacht inspected - Someone purchasing a pre-owned yacht should always have a survey performed on the yacht they plan to purchase. They should make that a condition of the offer to purchase contract. In addition, most finance and insurance companies will require this survey. A typical survey on a 40’ or smaller yacht will cost about $500, and it is definitely money well spent. Remember: there is no dealer or manufacturer warranty on pre-owned yachts so it is important to know about any deficiencies.
- Research financing options - Marine financing is the same for new and fairly late model pre-owned yachts. Most finance companies require about 20% down payment. Mortgages are usually for 10 to 20 years terms. Yacht financing is very similar to home financing, only for shorter terms. Some yacht purchasers prefer to use the equity in their homes to pay for their yachts. This usually results in low interest rates and the assurance of mortgage interest tax benefits.
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References
- Shared with permission, http://www.discoverboating.com
