When it comes to yacht ownership, there has been a great debate raging over the last decade or more and it goes something like this, “what’s better to buy, a new or used one?” In fact that debate has raged in lots of different areas, whether it is cars, motorbikes, luxury musical instruments or even, in some cases, property. The idea that one is better than the other carries with it their own personal preferences and risks.
Of course, there is no certain answer and instead the question we need to be asking is actually, what are the pros and cons of being new/used?
Whether you are going after a new or used yacht, research is always key. Companies such as Princess Yachts who deal in both the new and used market can take you through all of the pros and cons and it’s always a good option to consult industry experts be it on the web or at the myriad of boat shows that take place all year round.
For those doing some research today, let’s take a look at some of the pros and cons of both markets.
It is commonly thought that buying a new yacht is going to be the best way to avoid heartache. As with everything new, you are getting it straight from the factory and into your possession, but with that there comes some caveats.
- You get a selection of the newest designs and latest materials.
- Less maintenance costs for the first five years.
- Mechanical and electrical systems are up to date and generally without (or with considerably less) fault.
- You have warranties for the first 2 – 5 years.
- You choose the yacht, and extras the way you want.
- A new yacht losses the majority of its value in the first three years.
- You may not find what you were looking for.
- There could be more problems with systems and electronics if they are new to market and don’t have fixes.
- Cost more initially.
The used yacht market has grown considerably over the last decade, but with that there is an unfair preconception that buying used means you are getting cast offs, as we will see, that’s not necessarily the case and as per the new yacht market, there are things you need to consider when making your purchase.
- Less money for a bigger boat! The previous owners have depreciated it in value so you get more value for larger yachts in particular.
- Bigger choice of boats as you will have a wider selection to choose from.
- Less depreciation after the fifth year.
- You can inherit the issues of the previous owner
- You need to be weary of boat maintenance costs which, for used yachts can be considerably higher than new.
- You will need a full and comprehensive survey before purchase to ensure everything is at is seems.
- Unlike homes, you can rarely fix yachts yourself unless you are grossly qualified to do it. Don’t fall for a bargain, know that it will take a lot of work!