The dilemma sounds familiar. Is it better to buy a new boat or a used boat? While there is no single “right” answer that works for every boat buyer, certain factors may drive your final decision.
As with automobile purchases, some owners demand that new boat “smell,” comfortable in the knowledge that no one else has ever driven their new purchase before. Other boat buyers elect to avoid the initial value depreciation and may even acquire a well-maintained used boat for less that may also have a few more accessories.
If you are not sure which is the better option for you, here are some thoughts to consider while making your choice.
Perks of Owning a New Boat- With a new boat, you do not have to worry about how your craft has been handled, or mishandled in the past. Even though you should have had an extensive marine survey before your previously-owned purchase, general wear and tear are inescapable occurrences. And used boats will likely succumb to these issues sooner.
- A new boat owner never needs to trouble over why the previous owner wanted to sell their used boat.
- New boats come with manufacturer warranties to protect against any unexpected defect for one to three years. Assuming you take care of your new boat, you’ll likely have minimal additional costs to maintain it in the first years.
- New boats are available with the newest bells and whistles plus the latest technology. Ordering a new boat is like ordering food in a restaurant. You may request precisely what you want, no more or no less. With a used boat, you must either settle for what is available or wait until something shows up that more closely matches your dream. In some instances, you may have to mix and match new accessories with your older model.
- Remember that if you sell your boat in five years, say, the new one will still be worth more than the used boat, although the value differential may have decreased through depreciation.
Benefits of a Used Boat
- For a comparably equipped and similar type, size, and style boat, you initially pay less for a pre-owned one. Depreciation on new boats is substantial, depending on the type and condition.
- Pricing is usually negotiable with a used boat, so you should make sure to have a professional marine survey before signing to understand where any defects may be. Fixable flaws may allow for some haggling leverage.
- Previously owned boat models sometimes have inherent deficiencies in design that came to light only after they had been on the market for a while. When buying used, you have the advantage of being able to investigate which styles or motors may have been “lemons.” Buyers of new boats do not have the same advanced warning.
- Where you buy can be a factor in the final cost. Buying from a full-service dealer, a yacht broker, or direct from the seller can make a huge difference in what you actually pay. The broker or dealer may have a vast inventory to choose from, but a highly motivated seller, assuming they are selling what you want, can save you a lot of money.
- While maintenance costs can be higher over time, the used boat should be less expensive to insure, and, if you financed, your mortgage should be lower.
In the Long Run, Is the Used Boat Cheaper?
To answer this question, it is important to distinguish between the “Cost to Own” vs. the “Cost to Buy.” Buying a new boat is generally more costly than a used one. However, two important factors must be considered:
- With a used boat you start paying before you own it for a survey and then after for bottom paint, hull wax, new electronics, new pumps and other repairs or upgrades. All this is done for you on the new boat and reliably covered under warranty if something fails.
- If you buy a five year old boat and own it for five years, your boat is now ten years old or older and a second tier of depreciation drops the value because at this age, expensive gear such as sails, pumps, and deck canvas are worn and need replacing. Your new boat is just turning five years old and the value is still high so the resale will be better.
It is often the case that the actual cost to own that new boat is less than the cost to own the used boat, even though the cost to purchase the used boat was initially less.
Making the Right Choice
Just as with automobiles, boat buyers have differing opinions about buying new or used. For the first-time buyer, a used boat may be an economical choice in case they change their minds about boat ownership soon after.
For the experienced buyer who expects to keep their boat for ten years or so, a new craft might be the better way to go.
Working with trusted and experienced brokers like Cape Yachts in South Dartmouth MA and Newport RI, buyers can review a wide range of new boats crafted by the world’s top boat manufacturers. Or, they can also peruse Cape Yachts’ worldwide listing of hundreds of available pre-owned boats in all styles. If you have questions on the best option for your next boat, let our experienced brokers help.
