If you are a longtime yacht owner, you will know that owning a yacht is a costly affair. It is important to make decisions that consider the long term costs of ownership.
Confirming that the investment is within financial means is essential in ensuring that owning a yacht will become a pleasurable experience.
If you’re going to be buying your first yacht, the following do’s and don’ts are some important points that should be carefully considered.
Consider the initial costs
Consider the initial costs of the purchase and ensure it is well suited to your financial means. Often overlooked is the analysis of what the vessel will be worth in a few years. Just remember, when you drive a car out of a new dealership, it immediately loses value and buying a yacht can lead to similar results.
Consider the quality vs quantity
There will be no harm in exploring a marina or port to analyze yachts and examine the condition after the vessels are a few years old. The age of a yacht can be determined from the hull number on the stern or through applications such as Boat Watch. How has the coating performed after a few years of cruising? Are the graphics fading? Is the plastic cracking or chipped? Are the window moldings corroding? These can all be signs of a poor quality yacht.
Consider different buying options
Shared yacht ownership is a great alternative to solo yacht ownership. Shared yacht ownership companies provide suitable co-ownership with around 3-4 owners. Some companies even take the responsibility of managing the yacht as well as organizing the crew.
Reservation systems ensure co-owners will all receive their fair share of the yacht throughout the year. In addition, shared ownership companies manage the maintenance of the yacht and co-owners sometimes have access to the rest of the fleet around the world.
Don’t buy the largest boat at the lowest cost
First time buyers are sometimes more interested in finding the largest size of vessel for the lowest cost. It is essential to remember that boats float in a corrosive fluid, sea water.
Due to the combined effects of sunlight, rain and rough conditions, potential owners should consider the quality of their potential yacht in detail.
Don’t succumb to style over substance
When the trendy design of a yacht is out of fashion in a few years what will the owner do? Ensure that the quality and safety of your yacht has not been sacrificed by its appearance.
Don’t rush into buying a new boat
Carefully consider the options of buying a new or a used yacht, or shared yacht ownership. Higher quality boats tend to lose less value than lower quality vessels.
In order to calculate the cost of sole ownership, the total principal plus interest to the annual operation and maintenance costs should be added together.
Then subtract the predicted residual value and divide by the number of years owned. If you compare the figures of a new yacht with an older vessel, the cost of ownership will have a significant difference.
Don’t forget the technical details
Consider the engine and type of petrol.
Diesel engines can become more costly to run after a few years in some yachts. If a petrol engine needs major maintenance, it can be rebuilt or replaced easily while the costs of diesel overhaul can be substantial.