The Charter Yacht industry is big and growing. In fact, it is the increased popularity of luxury yacht charter vacations that has allowed many more folks who have always wanted to own a luxury motor yacht, make their dreams a reality. This is because modern charter income programs, which can help you to offset many of your expenses, are making yacht ownership accessible to more people than ever before!
So, if you are considering purchasing a yacht to take advantage of a charter income program, does it make more sense to buy a new, or a pre-owned yacht?
As you might imagine, the answer to that question depends on many factors, from the size of the yacht you are interested in, to where she will be docked, and of course you budget!
Pre-Owned Vs a New Motor Yacht
Of course, if you are buying a yacht with the goal of putting her into charter, there may be several advantages to buying new. After all, who doesn’t enjoy stepping on board a boat that is all shiny and brand new? That is probably one of the main reasons you want a brand new boat yourself, because it is indeed – completely new! With a new yacht, you do not have to worry at all about the boat’s history, and wonder about things like, if this particular part was replaced when it was supposed to be, how many hours are on the engines, etc., etc. You will know that everything is in tip-top shape from the moment you take possession of her!
Here are some of the other relative advantages of buying a new vs a pre-owned yacht.
- No Compromise – If you are buying a new yacht, you never have to compromise, and accept only what may be available on the used market. You can get everything exactly as you want it. Not only in terms of make, model and size, but all amenities and accessories.
- Warranty – Even if something does go wrong, you have the peace of mind of the manufacturer’s warranty.
- No Guess Work – Even when looking at the most well-maintained and pristine pre-owned yacht, buyers always have the age-old question in the back of their minds, “Why is this yacht for sale?” That nagging question is eliminated when purchasing a new yacht.
Of course the main advantage of buying a pre-owned yacht, is the cost savings. If you have your eyes set on a particular size yacht, you can get that size in a pre-owned yacht for significantly less than in a new yacht. You also can probably get “more yacht for the money,” and go up a size class or even two, by applying your budget to a pre-owned rather than a new yacht. Also, the previous owner has taken on the almost immediate depreciation that occurs when a new yacht is purchased.
Besides saving money, here are a few other reasons to consider purchasing a pre-owned yacht for charter.
- Less Surprises – In a pre-owned boat, any initial bugs or problems in the major systems such as the engines, air-conditioning, or electrical system, have likely already come to the surface, and have already been repaired or otherwise dealt with.
- Recalls and Replacements – Similar to the above, if the boat was built with any newly introduced systems or components by the manufacturer that did not exactly work as intended, they will likely have already been replaced or upgraded.
- Seaworthiness – A used yacht will have already proven her seaworthiness, and depending on the particular yacht you are looking at, may have even been used to run the same kind of charters you are thinking about, so you will have an idea if she is well-suited for that purpose.
Charter Yacht Programs
Regardless if you choose to buy a new or a used yacht, you can certainly take advantage of the many different types of yacht charter income programs available. While the programs vary in design, they all have one thing in common: to remove many of the hassles of yacht ownership, while maintaining your opportunity to enjoy your yacht whenever you desire!
Having your yacht in a charter program can typically help you defer many of your motor yacht’s “operating expenses,” particularly the costs of “high ticket” expenses such as dockage, routine maintenance, and fuel.
Operating a motor yacht can be costly. Putting your boat in Charter can earn income, and defray some of the costs of ownership. On Demand Yachting from FYM can show you how. If you would like to learn more, or if you have any questions or comments about this blog post, do not hesitate to contact our Yacht Management specialists, or call us at (954) 900-9968.