Buying a Yacht: New vs. Used

It’s another breezy, clear summer day in the Bay, mid-60s on the water, and you’d like to be out there. In fact, you’ve been thinking about it for a while, and it’s time to finally buy the yacht you’ve wanted to get out of the city and spend more of your time relaxing out on the Bay.

One of the first things to consider is whether to buy one new or used. Let’s go over the pros and cons of each.

New Yachts

Buying a new yacht has the advantages we associate with buying anything new. It’s unused (and thus undamaged), a warranty comes standard, and the latest technology is available. That technology is usually what attracts a buyer, so what features are we likely to find on a new yacht?.

• The latest, most innovative designs with the newest materials. Broadly speaking, design changes are either aesthetic changes (the same way car manufacturers always create different bodies to attract new customers) or decrease hydrodynamic drag, which boosts fuel efficiency. New materials will create a hull that’s more durable, lighter for more speed and fuel efficiency, or, ideally, both.
  
  
• More efficient mechanical and electrical systems. This includes features like WiFi routers that offer a better standard Internet connection rather than as something you need to investigate and upgrade yourself.
  
  
• More eco-friendly and efficient engines.
  
  
• The expectation of several years with minimal required maintenance. Even when repairs are covered by warranty, you don’t want the yacht in the shop, especially in the San Francisco Bay, where boating can be a year-round activity.
  
  
• Financing is available at better interest rates.
  
  
• Boat shows often advertise big discounts on new yachts if you buy right before or after the show.
  
  
• The option to choose other upgrades and features to suit your tastes.
  

The main downside to buying new, of course, is that it’s more expensive than buying used. With yachts, you may also run into an issue where there aren’t a large number of models available, especially if you have a specific budget. Should you buy a brand-new line of yachts, you may also wind up with a model that doesn’t have all the kinks worked out, but you can look for a more proven model if this is a concern.

Used Yachts

Obviously, a pre-owned yacht is the less expensive option; that’s the main reason you’d look for one. But what other benefits are there in buying used?

• Slower depreciation. The main depreciation in a yacht’s value comes in the first few years. If you buy a used yacht and sell it three to five years later, you should receive a much larger percentage of your purchase price back.
  
  
• Much larger selection of yachts to choose from. You may not be able to pick and choose which features get installed on the boat, but on the other hand you have a much better chance of finding a yacht with everything or almost everything you want. It’s also much less expensive to buy used and have a peripheral upgrade or two installed after the fact than buy new.
  
  
• Potentially fewer bugs and other surprises. Just like a new yacht might not have all the problems worked out, a used yacht has already proven its seaworthiness. You can find an amazing deal if you, or someone you know or hire, can check the yacht top to bottom and make sure you know what problems (if any) exist. Pre-owned yachts are excellent for anyone who will put the time and resources into knowing what they’re buying first, just like used yachts can be a nightmare if you buy blind.
  
  
• Charter potential. If you’re interested in using the yacht for chartering (e.g. you won’t spend a ton of time on it and charter rentals can defray expenses), you definitely don’t want to buy new. Enjoy the yacht when you have time, let renters beat it up a little and give you your money back, and maybe you’ll end up with a second yacht of your own. Or a third, or a fourth…
  
  

No matter what you’re looking for, professional yacht brokers are a good resource for finding your perfect yacht. Just like you work for your yacht money, they work to make sure your money is wisely spent. If you’re looking for a yacht in San Francisco or anywhere in the Bay Area, contact us to find out how we can help find the yacht of your dreams.

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