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Insider Insights

The NYS yacht buyer's guide

Buying a power boat or sailboat is a major investment and life-changing event. This is something you have probably given many years of thought, dreaming of the day you'll finally go out and make the big purchase.

Like automobiles, there are hundreds of models and makes of boats, some of them are 15, 20 or even 30 years old. One thing to remember is most boat manufacturers use the same engines, components and, in general, the same techniques to building boats. The core decision is whether to purchase new or purchase a previously owned boat. Each has its advantages and disadvantages.

Buying new gets you full warranty support along with the latest and greatest technology. Consider manufacturing in general: every year, cars, planes and boat manufacturers get better at building products. The companies they purchase parts from get better at building components. For example, marine air conditioners built today are way more efficient and effective than those built a few years ago, and the list goes on. You'll pay for this new technology upfront, but the peace of mind can go a long way.

Buying a used boat can save you an enormous amount of money upfront. Searching for used boats can be fun and adventuresome, and it can take you all over the world. If you plan on going this route, it is absolutely essential to work with an experienced yacht broker. There is a process to purchasing a used boat that will help eliminate costly mistakes.

Steps to buying a boat

If you're in the market for a boat, begin by visiting local dealers and boat shows. The Miami Boat Show, held every February, is one of the largest in the world. It features basically every new power boat and sailboat on the market, enabling you to compare all boats equally. When it comes to the Texas boating market, Houston is home to the largest boat show. Some of the boats represented at the show in Houston, Texas, include: Hunter, Dufour, Beneteau, Catalina, Carver, Cruisers, Marquis and SeaRay.

At Nautic Yacht Sales, every day is like a boat show since we have anywhere from 20 to 30 boats at our floating office on a regular basis. To better acquaint you with the standard buying process at NYS, we've compiled a list of steps:

Step 1: Determine your size accommodation needs.
This can be done by scheduling an appointment with a yacht broker. Nautic Yacht Sales has some of the most experienced brokers in the industry that can take you on a tour of as many yachts as needed to get you familiar with what is available.

Step 2: Prequalification.
Unless you are paying cash, our in-house finance specialist will quickly determine your financing capability. Typically 15 to 20 percent will be required for the down payment on any new or used yacht.

Step 3: The offer.
A used boat offer will require a 10 percent down payment in the form of a cashier's check. These funds are held in escrow until the close date. All NYS offers will have a place to add in a few contingency conditions, to make sure the boat is completely to your liking. If you do not like the results of one of the steps, you can always walk away from the deal and, in most cases, receive a refund of your deposit.

Step 4: Sea trial and survey.
Just like buying a house, with any yacht purchase offer, you the buyer have the right to have the boat fully inspected by a certified Marine Surveyor. Expect to pay around $15 per boat foot for this service. It will also be required by your insurance company. Following the survey, you will take the boat out with a captain for a few hours to see how the boat operates. This will cost around $75 per hour. Your yacht broker will accompany you during this outing.

Step 5: Secure insurance.
There are several companies we recommend for marine insurance. It is a very simple process and can be done over the phone. The insurance company will want a copy of your survey to ensure the value and condition. The insurance will go into effect on the close date.

Step 6: Closing.
The closing will take place shortly after the Sea Trial and Survey. From the day you make the offer, it will typically take two weeks to actually close. This is much shorter if you are not financing.

Step 7: Start realizing your dream.
Your broker can help you with choosing a marina that will suit your lifestyle and needs. If you are buying a new boat, you will have a very in-depth buyer orientation where all the warranties are activated and you really get to know the ins and outs of your new boat. We encourage you to hire our captains or participate in our certified training courses to ensure you get the knowledge required to be a safe, adept yachtsman.