Yacht TBC

I get calls or emails weekly from individuals that are in their final passage to yacht ownership; finding and buying their dream boat. They want my counsel. And more often than not, most buyers do not have a true understanding of boat values and the prices they command. Most individuals are shocked to find boats cost as much as houses do. They are often taken back when I try to explain the reason a boat is priced so low.

I want to give you a good idea of why used boats cost as much as they do so let’s start from the top.

On other pages on this website, you will read about the absence of a Yacht Blue Book. Yes, that’s right, there is no such thing. There is one for motorcycles but not for boats. If you call any used car dealer or bank in North America and name any production automobile, they will quote a value of within a few dollars of each other. This is due to the multi-billion dollar, organized wholesale car auction system.

And there is also the Powerboat Guide, NADA and others that like to sell you their version of a boat Blue Book.

With over 2,200 boat manufacturers (USCG Listings) in North America there is no such wholesale market for boats and the older a boat gets the bigger the price discrepancies. And keep in mind that boats and yachts are not built on an assembly line. I’ve been through my share of boat building plants including Hatteras, Bertram and Carver. Boats are built like houses, one step at a time. Very labor intensive, boats are built, cars are assembled. So you can easily see why new boats cost thousands, perhaps millions of dollars to produce. Powerboats cost more to produce than sailboats as they are more complex.

Generally speaking boats do not appreciate in value. But they do reach a point in their life where they do not loose any more value. Much like antique paintings, the rarer a boat is, the more it will be in demand. A 40 year old Huckins will often bring more money today than when it was first commissioned. But boats generally depreciate about 10% a year.

So you are looking at that 1984 40 foot Catalina sailboat, with a single Lehman and 2 staterooms. What is it worth? What is a fair price? Simply speaking, that boat is only worth what you are willing to give and the seller is willing to take. So where do you start?

Here is what you need to know when considering prices of boats. The owner has established his asking price with consultation with his listing Broker based upon several factors. I do the same with my sellers.

In what condition is the boat? Good boats always command higher prices, always! A newer boat in poor condition will bring less than an older boat in good condition always!. By condition I am speaking of both cosmetics (cleanliness, gelcoat, paint, woodwork, canvas) and structural issues involving fuel tanks, rudder posts, blisters etc. The more upgrades and maintenance that has been completed, the more you should expect to pay as the owner knows this. He also knows that you will have already looked at the worn out boats and have rejected them too.

How old is the boat? See above. This factored in but is not the deciding factor.

How motivated is the seller? Some owners want to move their boat as quickly as possible and any thing close to an asking price might be acceptable. This doesn’t happen often but it does occur.

How many of these 40′ yachts are there on the market? Remember, the more demand for the boat, the higher the price will usually be. And I find that most people will not travel far to buy a boat, so boats in New York will not be in competition with Southeast boats.

And lastly, and perhaps the most important factor in determining that asking price will be recent past sales history of similar makes and models. The recent past sales history is available only to Brokers however through our multiple listing service, YachtWorld. It will give me the recent demand for this 40′ boat and at what selling prices have been in different parts of the USA. It tells me what people are asking and what people are paying!

So when you are looking at this yacht and you have found at what seems to be a great boat for $50,000.00 and all of the others are in the $85 – $100,000.00 range, there is a reason for this. Remember, condition, condition, condition! Be carefull as new fuel tanks will cost you about $30,000.00 to replace, and rudder posts about $8000.00. But if you can live with the problems with the boat, then by all means buy it. I am just wanting you to know not to expect a problem – free boat for the low, low price; you’ll pay for what you get.

So now you are thinking, are all boat prices negotiable? Certainly they are. Everything has its selling price and neither the listing Broker nor the owner may know what that price will be. Only a serious buyer with money on the table will be able to find that out through negotiations. but I will tell you that as of 11/24/2008, boats are selling at about 15% off of asking prices.

Another factor that comes to mind is that powerboats always sale for more than sailboats. I ran this search on the MLS system and found that a 1985 40′ sailboat will have an asking price in the low $100s, however a 1985 trawler or motoryacht will be in the $130 – $140s. Sailors sometimes get sticker shock when they began to search for powerboats. Mike Dickens is the operator of Paradise Yachts, located in Florida USA. Paradise Yachts is a full service yacht brokerage offering quality used yachts and boats. We sell and ship worldwide.

Visit our website at http://paradiseyachtsales.net to view our current inventory

Visit our Cruising Center at http://www.paradiseyachtsales.net/CruisingCenter.html to experience the boating lifestyle.

We all live a really busy and a hectic life, we spend most of our time in the office and we barely spend time with our friends and family members. Well, such a routine can be broken and we all deserve some time to relax and have fun. A vacation is a perfect time to get away from our routine and get a break from our hectic schedules. So when you plan a vacation what are the things that you look for? Have you been out in a yacht recently – Doesn’t the idea of taking a luxury yacht out to Miami sound fantastic? Yachting is a great way of rejuvenating yourself with the family and the facilities that the luxury yachts provide these days will make your getaway perfect.

Over the years the luxury yacht industry has increased and if you look around I am sure that you will be able to find tons of options to choose from. There are various luxury yacht rentals available in the Mediterranean and Caribbean regions. A luxury yacht is not only great for vacationing with the family it is a great place for a corporate event as well. It is a great place to host a corporate event and mix a little business with pleasure. The demand of luxury boats for corporate events these days is outstanding, because of which most of the luxury yacht charters provide you with different options. You can choose a crewed yacht or a bare yacht, the best way to enjoy a luxury yacht is with a crew, they make sure that everything is in place and you do not have to worry about a thing.

Luxury yacht charters pretty much take care of everything so that you do not have to worry and you can actually enjoy your time off. Choose a yacht charter that allows you to customize the itinerary, so that you can have the kind of relaxation you want and enjoy. Make the vacation about you and if you plan on sailing with the crew, then I must tell you that you must use their knowledge about the local areas to your best use, they will be able to fill you in with the best places to dine and visit.

If you are planning a corporate vacation or an event there are certain elements that you should consider, before you finalize on a yacht. Factors like arrangement of the accommodations, private jets, rented resorts on Islands and luxurious travel are also been attended. At the end of the day it is all about having fun, choose a luxury yacht charter that is able to accommodate all of your needs.

You must ensure that the Luxury Yacht Charter you go in for, during either a vacation or else a trip guarantees an unforgettable experience. This is akin to making the necessary reservations at a luxury lodge; however this is an effortless task if you enlist the services of a firm who will assist you in a suitable process of Luxury Yacht Charter.

There are certain things you must keep in mind, when you are planning a Yacht Charter Vacation:

In the initial instance, ensure that you build up an infallible arrangement for your charter beforehand. The basic premise of a Yacht Charter Vacation is to be aware of your precise requirements. This might seem like an effortless process, however if you are really detailed in planning your vacation, you will be able to enjoy your vacation, even more. There are certain queries within this aspect too that you must take into consideration:

* Assess the total number of people who will be accompanying you, on the Yacht Charter Vacation. This will aid in determining the number of cabins which are necessitated. If you do not do this, you might acquire a Luxury Motor Yacht which is either undersized or else too big, and this will not be suited for your particular requirement. Remember that most of the Luxury Yachts Charter can accommodate up to 12 guests. You should plan your vacation accordingly.

* Evaluate the type of yacht you will require, for your journey. There are numerous alternatives in the sphere of Motoryacht Charter, Super Yacht Charter or else Luxury Yacht Charter. It is up to you to decide if you want the adventure of a seafaring yacht, the handiness of a Motoryacht Charter, or else if you would rather opt for the effortlessness of an opulent catamaran.

* Think of the places you want to visit, by means of the Luxury Yacht Charter. You have to opt for a distinctive Luxury yacht if you wish to enjoy your vacation inside the isolated beaches inside the Bahamas. It is up to you to confirm that the season is just the right one for your preferred destination as inclement weather might ruin your Yacht Charter Vacation.

* It is worthwhile to enquire about the dates during which you will require the Luxury Yachts Charters. It is up to you to ascertain the occasion for which you require the Luxury Yacht Charters, if it is for a company entertainment occasion or else a particular festival or social gathering.

* It is also worthwhile to reflect on your resources. Determine the amount of money which you as well as your visitors are willing to pay out. It is a good idea to comprehend all the costs which might be involved as you make the necessary arrangement for the Luxury Yacht Charter.

These are the aspects you must consider, as they constitute an essential guide for Luxury Yacht Charter during vacations as well as other memorable occasions.

In today’s vernacular, the word ‘hype’ implies that something has gained status or attention it has not earned. When buying a product as consistently and exceptionally fine as a Rolex Yachtmaster II watch (or any other Rolex model), the only “hype” is the excitement you feel when owning one. Given the quality of materials and exquisite craftsmanship that go into making each Rolex, it is little wonder that discriminating, sophisticated buyers are choosing the Rolex Yachtmaster II in record numbers.
The Oyster Perpetual Rolex Yachtmaster II regatta chronograph is not just a watch; it’s also an invaluable tool for people who race yachts competitively. Although some owners choose the Yachtmaster II for its handsome features and legendary durability, many buyers select this watch as a matter of practicality. It has been designed and engineered to withstand exposure to corrosive sea spray, variable atmospheric conditions, and inadvertent contact with ropes, sails, cleats, and all of the other rigging above and below the deck of a racing yacht.
Crew members of world-class racing vessels must move precisely and adjust to ever-changing conditions. These quick or trying movements create countless opportunities for shocks that would wreck the delicate inner components of other watches. With the Yachtmaster II, owners’ concerns about damaging their watches while sailing are alleviated by the durability of its interior and exterior features, including:
The Yachtmaster II’s composition-Equipped with the innovative, brand-new Rolex self-winding Caliber 4160, the Yachtmaster II consists of no fewer than 360 components that accurately keep time with 28,800 beats per hour. The PARACHROM hairspring with a Breguet overcoil is not sensitive to magnetic fields and is up to 10 times more resistant to shocks.
Water resistance-The Yachtmaster II is water-resistant to 100 meters. This feature gives wearers all the water protection they need for underwater hull inspections or repairs, as well as the occasional, leisurely post-regatta dip.
Triplock winding crown-The watch component most vulnerable to the intrusion of moisture, sand, and other substances is the crown. Rolex has virtually removed the possibility of harm with the triplock winding crown. This unique assembly includes a rubber o-ring gasket near the base and a finely threaded base that locks the crown in place in-between settings.
The Yachtmaster II has many other desirable attributes, including:
The Ring Command bezel and countdown timer-This bezel represents a leap forward for Rolex engineering and design. It must have been devilishly difficult to accomplish, too; it allows the owner to program the watch for yacht racing. A programmable digital watch would be unremarkable; however, since the Yachtmaster II is made of moving parts, it is a technical triumph. The Ring Command bezel rotates counter-clockwise to 90 degrees, allowing the owner to program a race countdown between one and ten minutes in length. This feature allows a skipper to see how much time he or she has to get the vessel in position for the staggered starts of the regatta race.
An invaluable tool for serious, competitive yacht racers, the programmable countdown feature can be started or stopped by the push button at the 2 o’clock position. The programming can be cleared by pressing the button at the 4 o’clock position. The fact that this programming is made possible by moving parts within the Yachtmaster II and not aided by a memory chip exemplifies Rolex’s dedication to remaining at the forefront of watch making.
Composition materials-Available in 18-carat yellow gold or 18-carat white gold with a striking blue ceramic bezel, the Yachtmaster II is crafted with the same attention to detail that Rolex puts into every model. The Oyster bracelet is also made of solid white or yellow gold and fitted with an Oysterlock clasp featuring the customary polished edges.
The Oyster Perpetual Rolex Yachtmaster II regatta chronograph is a technical marvel built specifically to serve serious sailors all over the world. Whether owners buy it for its looks, functionality, durability, programmability, or a combination of all these virtues, it’s easy to see that with the Yachtmaster II, there’s no hype at all. As the late, great baseball pitcher Dizzy Dean once said, “It ain’t bragging if you can do it.

Finding the best insurance policy and agent for your trawler or motor yacht can be complex and perplexing. Marine Insurance is a highly specific discipline, and a far different product than that which you buy for your residence and auto. It is by the way, the oldest kind of insurance and often ruled by its own body of Maritime Law.

There are the obvious coverages such as Hull Coverage and Protection and Indemnity Insurance, but there are numerous other considerations as well. Hull coverage usually includes the hull and all items on the trawler or motor yacht that are permanently attached or are on the trawler or motor yacht and used in the regular operation of the boat, i.e. electronics, TV’s etc. Several policies will offer you a reduced deductible for marine electronics which might be a fine choice given the price tag to replace these things and the frequency of loss or damage to the electronics by storm and/or theft.
Frequently you can buy Hull insurance at Agreed Value, meaning that you and your insurance company “agree” on the worth of your boat. If there is a total loss you would be covered for the amount shown on the Declaration Page of the Policy.

There is also another option, Actual Cash Value (ACV). This means that if your yacht was totaled in a loss you would be offered a depreciated settlement – the current market value of the trawler or motor yacht. Most losses are partial losses and you could expect a reduced settlement on that also. While Actual Cash Value will be less expensive, beware, you may also discover that if you suffer a loss you are getting much less than you bargained for.
Be certain to talk to your agent about how your loss would be settled for both a whole loss and a partial loss and what would be subject to depreciation. Often things like canvas, cushions, engines etc. are subject to depreciation. A few policies essentially exempt canvas from wind storm damage.

You will also need to be sure that the policy you buy covers salvage, environmental cleanup in the event of fuel spills, sue and labor and wreck removal. Often the recovery of a yacht could exhaust your policy restrictions were it not for these extra coverages often included in the better marine insurance policies.

Most recreational marine policies will have a navigation area. It is more often than not a warranty of the policy and therefore extremely significant that it is accurate on your policy. A warranty is very strong language in a policy and if you are out of the navigation restrictions shown on the declaration page, you probably would not have any insurance coverage should you sustain a loss. You will want to talk to your agent about this and make certain you have the coverage you need; keeping in mind this is a vital factor in determining the cost.

Lay-up dates are also something you will want to talk about with your agent. You could be entitled to some premium discount if the trawler or motor yacht is on the hard during the winter season. Some other things that could result in a discount are boating classes, USCG Captain License, and equipment on your trawler or motor yacht such as anti-theft devices.

If you are in hurricane areas, a layup will often be covered by the policy to protect the yacht from damage by an active storm.
Furthermore, many vessel policies will have Longshore and Harbor Workers Compensation which would cover you if you become lawfully obligated under the Longshore and Harbor Workers Compensation Act for any bodily injuries arising from the ownership, maintenance or use of a yacht. Jones Act coverage would also be essential if you employ crew or have a captain.
Always look at the Exclusion section of the policy so you know what is not covered.

Since Marine Insurance is a separate animal, you will want to work with an Agent that understands trawler or motor yachting and understands the marine insurance industry, so they will be familiar with how to advise you.