Enjoy a ride with a yacht


Buying a yacht tips

New -vs- Used Consider your option of new oryacht and sell it after 3-4 years, annual
used carefully. There are very good values tomaintenance is likely to average around 4%.
be had in used boats. More first time buyersThe longer you own it, the more it will
purchase new boats, while experienced boatersincrease as things wear out and breakdown.
more often buy used. And with good reason.The first big hit usually comes when an
Experienced boaters know that there is betterengine or generator goes bad somewhere
value dollar for dollar in many used boatsbetween 5-7 years. Obviously, if you own the
than new ones. They've already had thevessel this long, suddenly the annual average
experience of taking a big hit intakes a big leap. If you're buying used, then
depreciation, along with the high cost ofyou have to be prepared for this, whether
financing involved in a new boat purchase. Toit's an unexpected blister repair job, or
help decide which is right for you, considersome other problem that's not covered by
the  following.insurance. Of course, with a used boat, that
fifty or hundred thousand you saved off the
When we track the depreciation curve for manynew  price more than makes up for "big bill."
of the most popular builder's models by
determining the net annual loss in resaleThe point is that in compiling averages, over
value, we find that the higher the vesseltime we know that costs can be reduced to
quality, the sooner the depreciation curveannual percentages for which an owner should
will flatten out. That means that higherbe prepared. For twin screw diesel motor
quality boats proportionately loose lessyachts or fishermen, a ten year average will
value than lower quality vessels. For therun around 7% annually. After ten years even
above mentioned builders, the flattening outmore. This accounts for all types of
usually starts around five years, so that bymaintenance from bottom painting to pump
the time a vessel is 6 years old, the annualreplacements and engine overhauls. Moreover,
loss of value is only a few percentagethis assumes that there is little or no
points. If you truly want to know what thedeferred maintenance, and for a boat owned
annual cost of ownership is, add in the totalsince new. If you're getting into a used boat
principle plus interest to the annualwith considerable deferred maintenance, that
operation and maintenance costs. Then, simplyannual average can increase dramatically,
subtract the anticipated residual valve andespecially when serious problems gang up on
divide by the number of years owned. For ayou  all  at  once.
new boat, this can be an enormous sum each
and every year. Perform the same calculationGet a Survey Marine surveyors universally
for the purchase of an 8 year old vessel andrecommend new boat surveys, not just because
the cost of ownership comes to only athey want the business, but because new boat
fraction  of  that  of  a  new  vessel.surveys often turn up as many defects as used
boat surveys. Not only can the surveyor tell
A general rule of thumb is that a new boatyou a lot about the quality of the boat
purchase works out better for the owner whoyou're buying, but he can help you get those
keeps a boat longer than the average fourproblems fixed before you take delivery and
years, or at least through the bottoming outhead off warranty problems before they become
of the depreciation curve. Obviously, theproblems.  See  also  More  on  Cores.
longer a boat is owned, the less the annual
cost becomes. However, that doesn't help muchDiesel Engine Surveys Diesel engines over
as far as residual value is concerned unlessthree years old should be subjected to a full
we consider the original cost versussurvey. Engine surveys are expensive, but the
anticipated resale value. Once we do this, wecost is nothing compared to the repair costs
understand that what they told us was reallyyou may face. As with any surveyor, seek out
true: boats, like automobiles, are not anthe best you can find. Engines over 5 years
investment but a major expense. If you planold should either have a compression test or
to only own the vessel for a few years, orthe injectors pulled and the cylinders
you anticipate that there is a chance you mayinspected with a boroscope. See also It's Got
have to sell, by far a used boat will be yourRecent  Overhauls!.
better  value.
Yacht Surveyors The way to find the best
Gas -vs- Diesel Within the size range ofsurveyor in your area is to ask people who
25-35 feet, it is a myth that diesel power isknow and are willing to give you an honest
more economical than gas. After about fouranswer. Its a mistake to take recommendations
years, diesel engines become much more costlyfrom yacht brokers or others who have a
to own and maintain. When a gas engine goesconflict of interest. Insurance agents,
bad, it can be rebuilt or replaced for a fewcompany claims offices and yard managers are
thousand dollars while we measure the costsin a good position to know which surveyors
of diesel overhauls in the tens of thousands.know their business and who aren't in the
Unless one plans to get a lot of use from hispockets of brokers. If you want a good
boat, gas engines are usually a better choicesurveyor,  choose  your  surveyor  carefully.
for boats up to 35 feet. See also Power
Options,  Gas  -vs-  Diesel  -  Part  II.The next most important consideration is to
make sure that the surveyor has adequate time
With used boats, don't make the mistake ofto do his job, along with good working
equating low hour meter readings with goodconditions. The surveyor can't do a good job
engine condition. For the most part, engineif he's being hustled by a broker or seller.
hours mean little because engines deteriorateNor can he do a good job if too many people
over time. Engines that are little used, gasare present on the boat. As the buyer, you
or diesel, are often in worse condition forshould accompany the surveyor so that you're
the lack of use. Also, don't succumb to theavailable to see things first hand. Sea
myth that marine diesels last for thousandstrials should be conducted in open water, not
of hours. They don't. The average timerestricted waterways. A brief run up a river
between major repairs is around 6-7 years.or the Intracoastal, interspersed with no
Or, if you want to put it in terms of hours,wake zones won't do. If weather conditions
around 1500 hours. Marine engines deterioratedon't permit an open water run, be prepared
rapidly  in  a  salt  water  environment.to reschedule another day. Its extremely
important  to  give  the  vessel  a good run.
Good boats with bad engines can turn out to
be a good buy when comparing priceAfter the survey, avoid letting a broker rush
differentials against a newer boat purchase,your decision. They all say that if you don't
particularly for smaller boats, and boatssign today, they got someone who will
with gas engines where engine replacementstomorrow. Its the oldest con in the book.
are easier. Many buyers find that they canSurveyors need time to consider their
get a good buy in a boat with clapped outfindings, and the survey is not really
engines and rebuilding or replacing them. Iffinished until he has written his report.
you don't mind the trouble, it may be worthMost surveyors get their reports done in a
making the price comparison. If the priceday or two, so give him adequate time to
works out, you end up with a boat with newfinish  his  job.
engines,  a  real comfort to any boat owner.
Purchase Agreements Make sure that your
Older Vessels While used boats can representpurchase agreement allows you to cancel the
good value, this is true only up to a point.deal if the vessel does not meet your
The problem with some boats once they getstandards. Include a stipulation that the sea
beyond 10-12 years is deferred maintenance.trial must be conducted in open water for a
It is an unfortunate fact of life that manyminimum  of  two  hours.
boat owners cut a lot of corners when making
repairs, additions or improvements. This isIf the seller warrants that he will repair
particularly true when it comes toany defects, make sure that you get that in
mechanical, electrical and plumbing. Whilewriting, preferably with a maximum dollar
the interior may be beautiful, major systemsamount attached. It is not wise to allow the
may have been ignored. On good quality boats,seller to repair deficiencies himself. The
repairs are often done to a much lowerreason should be obvious, but many buyers
standard than the original, so that by theoverlook the possibility that the repairs
time a decade has gone by, there may be a lotthat the seller makes may not be
of  substandard maintenance and jury-rigging.satisfactory. Indeed, they often aren't. The
best procedure is to negotiate a dollar
On older boats, these problems can accumulatereduction to the sales price and make the
to the point where it is no longerrepairs yourself, even if there is an element
economically viable to restore the vesselof uncertainty as to cost. Of course you
when considering the cost of refurbishmentshould get cost estimates on deficiencies,
versus market value. Nothing can take theand  better  still  a  contract  price.
pleasure out of boating faster than to get in
over one's head financially byIf you can't get away from the seller making
underestimating restoration and maintenancerepairs, at least stipulate in the contract
costs. When experienced boaters makethat the repair firm must be mutually
reference to repairs always costing doubleagreeable to both buyer and seller. What
what they think it will, they're not kiddingyou're looking to avoid is the shade-tree
or exaggerating. Estimating marine repairs ismechanic  who  doesn't  do  the  job  right.
extremely difficult, even for professionals.
And nowhere is the statement, "You get whatRemember that the broker represents the
you pay for," more true than in the marineseller, not you, the buyer. If you want to
business.believe their representations, make them put
it in writing. That way you have a contract,
Be wary of vessel's with excessive amounts ofnot  just  a  sales  pitch.
deferred maintenance or jury-rigging. After
the survey is completed, ask a yard toConcluding the Deal Don't be too quick to
estimate the cost of repairs. If they can'tcondemn an otherwise good boat that has a
do it, or are having a hard time estimating,major problem such as a bad engine. If you've
chances are that you'll have a hard timedone your homework and have researched more
paying when the bill comes due. See also Allthan just a few boats, you know what is
About  Buying  Used  and  Older  Boats.available and at what price. The old saying
that the devil you know is better than the
Cost of Ownership In addition to purchaseone you don't applies. If you can get serious
price, interest and depreciation, the cost ofdefects repaired well within economic range,
ownership includes maintenance and repairs,you'll probably end up with a better boat
something owners rarely consider. For newthan the next one you look at. The reason is
boats, maintenance is low for the first threesimple: if the problem has manifested, it has
years or so. But after three years costsbecome known. When you're looking at boats of
start increasing significantly. Regardless ofcomparable age, chances are those boats are
type, major machinery will often requirealso well on the way to having similar
major repairs in years 5-7. There's a reasonproblems. Therefore, the more problems that
why warranties expire when they do, andcan be discovered and repaired, the better
that's because that's when the breakdownsoff you'll be.
begin to happen. If you buy a new 40' motor



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