Buying a boat is your chance to take to the high seas, but before you can make your sailing dreams come true, there’s the issue of new vs. used yachts.It’s one of the most common questions newbies have when entering the world of sailing. If you’re looking to buy a motor yacht, does it make sense to be the first owner or go down the pre-owned route?
The truth is, there’s no easy answer. Each one has its own pros and cons. The right choice always revolves around your budget and what you’re looking to get out of owning your own yacht. In this guide, we explore the pros and cons of each option to help you make a final decision.
Why You Should Buy a New Yacht
Looking up a motor yacht for sale and seeing that shiny “New” tag is tantalizing for new and veteran skippers alike. There’s no doubt that you get to enjoy exclusivity, cutting-edge features, and that fresh-built feeling.
Here’s why you should opt for a brand-new and exclusive motor yacht.
State-of-the-Art Technology
Purchasing a brand-new boat means you’re accessing the latest technology, design, and value-added features that make taking to the water that much more enjoyable. Examples of what you could benefit from include:
- Navigation systems
- Fashionable designs
- Fuel-efficient engines
On top of that are all the modern comforts you could ever hope for. It’s all there to make your time on the water simpler and more comfortable.
Warranty Protection
The big benefit of a new boat is the warranty protection that comes with it. All brand-new boats will have a manufacturer’s warranty attached, which can cover various repairs and maintenance tasks for the first few years.
Essentially, it covers many of those out-of-pocket costs during the initial years of ownership. Plus, you’re protected against any unexpected expenses if anything goes catastrophically wrong.
Full Customisation
Approaching a shipyard or broker about a new motor yacht for sale allows you to customize to your heart’s content. This is your chance to fit out your boat to suit your exact preferences, whether it’s color, layout, or extra features.
It’s the one route that allows you to build your dream boat with the leading craftspeople in the business. Extra personalization is among the biggest reasons why, in the debate over new vs. used yachts, many side with the former.
Limited Maintenance
New boats that have a nautical mile counter of zero usually require less maintenance compared to pre-loved boats. The engine is new and the components are fresh, meaning you’re not worrying about the usual wear-and-tear you get with a used boat.
Like with the warranty, the lack of expected maintenance means you’re not grappling with those outlays common to owning a boat.
Why You Shouldn’t Buy a New Yacht
Buying a new and exclusive motor yacht isn’t the right move for everybody. It’s as important to understand the drawbacks as it is to understand the benefits. Here’s why you might want to think twice about going down the brand-new path.
Higher Costs
The biggest downside of buying a new boat is the fact that you will be paying a premium for the privilege. Just like buying a car, a new boat is always going to be significantly more expensive than buying second-hand. And that’s before you factor in all the taxes, registration fees, and extra upgrades you might want to add.
Depreciation
Most people don’t buy boats as an investment but for the passion and lifestyle. Still, depreciation matters because the chances are you’ll want to sell your yacht one day. The truth is that whilst some models hold their value better, you’re never going to turn an overall profit.
New boats depreciate as quickly as new cars, so you’ll have to be prepared for the value to drop as soon as you take delivery.
Why You Should Buy a Used Yacht
The majority of boat sales involve the second-hand market. It’s the most accessible route into boat ownership, and it allows buyers on a budget to purchase high-end models for a lower price. If you’re thinking about new vs. used yachts, here’s why you should opt for a second-hand boat.
Lower Purchase Price
Obviously, the biggest advantage of a used yacht is the purchase price. Second-hand boats always cost significantly less than if you’re taking delivery directly from the shipyard that built it.
Hunting for great deals on used vessels makes sense because you’re going to pick up more boat for your money. It’s especially appealing not just if you’re looking to save but also if you want a bigger yacht or one with high-end features.
Lower Depreciation
Depreciation hits every boat, but depreciation doesn’t hit equally. A used boat has already gone through the steepest part of the depreciation curve, so the value of your vessel should remain relatively stable in the years ahead. That means you’ll recoup a bigger percentage of your investment when you eventually sell it on.
In some cases, your model may retain most of its value, but note that this is model-dependent and depends on the condition you keep it in.
Wider Buying Options
A little-known benefit of buying a used boat is the bigger selection of yachts you’re likely to come across. If you’ve got your heart set on a particular boat, especially vintage models, the resale market might be the only place where you can get a vessel that’s no longer in active production.
Full Reliability Records
Performance and comfort matter, but reliability is what keeps you out of the yard and on the water. Any good used boat will come with detailed histories and service records, giving you an idea of how it’s performed and the potential maintenance issues you might come up against. The same cannot be said for a new boat.
Why You Shouldn’t Buy a Used Yacht
Buying a used yacht does have its drawbacks, and many prefer to avoid them for reasons like maintenance or a lack of protection should something go wrong. Let’s discuss why you may want to think twice about a pre-owned vessel.
Higher Maintenance Costs
The initial purchase price of a used boat is lower, but for the savings you make, you’ll be spending a significant portion of them on maintenance in the years ahead. There’s no way of getting around this, as parts could wear out faster, and you might encounter hidden problems that weren’t apparent when you bought it.
Limited Warranty
The majority of pre-owned boats sell without a warranty. If you’re buying from a registered dealer, you may get a warranty, but it won’t be the full warranty that comes with a new yacht. In short, it means that if something goes wrong, you’ll be the one bearing the costs out of your own pocket.
Lack of Customisation
When buying used, the boat you see is the boat you get. Although you can refit the boat using your own funds, you’re not going to have the option to alter the design or many of the features attached to it.
If you want your boat to embrace who you are as a person, you’re limited in that respect when buying a new boat.
New vs. Used Boats: Which Option is Right for You?
Deciding between a new or pre-loved yacht is ultimately about your budget, how you plan on using your boat, and what your long-term goals are. New yachts are better if it’s all about customisation and taking advantage of the latest features, but used yachts win out when it comes to savings.
What’s your preference when investing in a boat?
New vs. Used Yachts FAQs
How much does a new yacht depreciate in the first year?
A new yacht will usually depreciate by as much as 15% during the first year, with a rate of decline of 8% per year in every following year. In contrast, a used yacht depreciates much faster, since it’s already gone through the steepest drop in value. However, even a used yacht will continually depreciate as it gets older, so expect your resale value to drop for every year you keep it.
Can you get third-party financing for new and used yachts?
Yes, you can. New yachts tend to have better financing options attached with lower interest rates. You can also source financing for used yachts, but you can expect higher rates and less favourable terms. Your lender may also demand a survey of the vessel as a condition of approving your loan on a used yacht.
How much cheaper are used yachts compared to new yachts?
It’s quite common for used yachts to come in at 20-40% less than the price of a new boat. Orders for new yachts are often placed before the vessel is built, meaning you’ll have to wait months or even years before you can take delivery. Whenever you buy a used yacht, you’re able to take it to the water without any waiting period.