Envoy is currently in Lefkas marina, Greece and we are home in New Zealand.
This is an article we wrote that was recently published in NZ’s Pacific Powerboat magazine.
It must be great to experience the sheer pleasure of buying a brand-new boat without the slightest blemish detracting from its pristine appearance. We wouldn’t know for sure as all five boats Diane and I have owned over more than 30 years have been pre-owned, but over the years we’ve been surprised to meet a sizeable number of new boat buyers who’ve been disappointed to some degree. So what are the real pros and cons of buying new or pre-owned?
What follows mainly applies to larger vessels as we’ve not heard the same level of discontent with trailer boats, although we were recently told of a situation where somebody bought a complete new alloy fishing boat and had problems on his first three times out.
Purchasing a new vessel
Many buyers prefer the appeal of a new vessel for some of the following reasons, all of which are valid to some extent.
- With many brands they are able to customise a vessel to suit their boating requirements and tastes by specifying layout, engineering options, equipment types and brands, decor and furnishings. However in some cases the option to make more than minor changes is limited and usually adds considerable expense.
- They may be able to visit the builder’s factory to see their vessel take shape during the build stage, form relationships, and gain a better understanding of the vessel’s construction and systems.
- They experience the joy of taking delivery of a brand new vessel, never used by anyone else, and if this spins your wheels it’s hard to put a price on.
- They have a complete knowledge of the vessel’s history from day one.
- They receive a warranty and more ongoing support from the manufacturer and agent than could normally be expected with a pre-owned option. However support levels vary considerably and the prudent buyer should carefully research this aspect.
- They should benefit from lower maintenance costs for the first few years, certainly during the warranty period, although there’s no question some new buyers are disappointed with what they consider to be undue numbers of problems occurring. It seems that many new boat brands need to cruise for a few months to resolve initial teething issues, and even if successfully resolved at no cost they are frustrating, inconvenient and reduce the boat’s availability for use.
- They are able to spread payments over the vessel’s construction time, though financing options are also available for pre-owned boats.
Purchasing a pre-owned vessel
Other buyers prefer to purchase a pre-owned vessel for some of these reasons, again all valid to some extent.
- They can generally take immediate delivery; there is usually a wait for new vessels ranging from several to many months.
- They pay a significantly lower investment cost and then have spare cash available if required to make the boat more suited to their needs and replace outmoded equipment.
- They suffer less depreciation cost because like cars, a new boat generally takes its biggest depreciation hit early on from new.
- They believe a pre-owned vessel is tried, tested and reliable, and while this is true to some extent, when vessels age they become prone to more maintenance, especially with ancillary equipment. Some of her electronics may also be outdated.
- A used boat is likely to have more equipment included at little or no extra cost – many are purchased complete with spare parts, tools, chandlery, bedding, cutlery, crockery, galley utensils etc. For example we only had to add two fire extinguishers and stores to our Nordhavn 46 before commencing cruising.
Envoy was 16 years old when we purchased her, and so well-equipped we only added cruising stores and two additional fire extinguishers, saving us thousands of dollars
Enter the professional surveyor
Whether your preference is for new or pre-owned most of the risks can be significantly reduced by contracting a professional surveyor, who acts for and is paid by the buyer. This is particularly so for pre-owned vessels, but should also be considered for new vessels as these are not immune from poor practice and resulting problems.
Surveyors not only have considerable technical expertise, but follow a logical documented process for an objective examination of the vessel, whereas the enthusiastic buyer may be prone to overlook or downplay some negative issues. An initial survey is also helpful when arranging insurance and provides a benchmark for later surveys.
The survey will include a sea trial and an out of water inspection, and in most cases the surveyor will discover some defects and then discuss their level of importance with the buyer, who must then negotiate with the seller to remedy them. A survey for a pre-owned 14 metre vessel typically costs between NZ$1,800 to $3,000 depending on its value, plus lift-out fees, so is a relatively small percentage of the investment cost.
The buyer of a pre-owned vessel should also examine her service records and discuss her service history directly with the relevant engineering contractors so that a full inspection can be arranged if there is any doubt about her mechanical condition.
Exercising great caution during the purchase process for your either new or pre-owned vessel should maximize your cruising enjoyment.
This is an article we wrote that was recently published in NZ’s Pacific Powerboat magazine.
It must be great to experience the sheer pleasure of buying a brand-new boat without the slightest blemish detracting from its pristine appearance. We wouldn’t know for sure as all five boats Diane and I have owned over more than 30 years have been pre-owned, but over the years we’ve been surprised to meet a sizeable number of new boat buyers who’ve been disappointed to some degree. So what are the real pros and cons of buying new or pre-owned?
What follows mainly applies to larger vessels as we’ve not heard the same level of discontent with trailer boats, although we were recently told of a situation where somebody bought a complete new alloy fishing boat and had problems on his first three times out.
Purchasing a new vessel
Many buyers prefer the appeal of a new vessel for some of the following reasons, all of which are valid to some extent.
- With many brands they are able to customise a vessel to suit their boating requirements and tastes by specifying layout, engineering options, equipment types and brands, decor and furnishings. However in some cases the option to make more than minor changes is limited and usually adds considerable expense.
- They may be able to visit the builder’s factory to see their vessel take shape during the build stage, form relationships, and gain a better understanding of the vessel’s construction and systems.
- They experience the joy of taking delivery of a brand new vessel, never used by anyone else, and if this spins your wheels it’s hard to put a price on.
- They have a complete knowledge of the vessel’s history from day one.
- They receive a warranty and more ongoing support from the manufacturer and agent than could normally be expected with a pre-owned option. However support levels vary considerably and the prudent buyer should carefully research this aspect.
- They should benefit from lower maintenance costs for the first few years, certainly during the warranty period, although there’s no question some new buyers are disappointed with what they consider to be undue numbers of problems occurring. It seems that many new boat brands need to cruise for a few months to resolve initial teething issues, and even if successfully resolved at no cost they are frustrating, inconvenient and reduce the boat’s availability for use.
- They are able to spread payments over the vessel’s construction time, though financing options are also available for pre-owned boats.
Purchasing a pre-owned vessel
Other buyers prefer to purchase a pre-owned vessel for some of these reasons, again all valid to some extent.
- They can generally take immediate delivery; there is usually a wait for new vessels ranging from several to many months.
- They pay a significantly lower investment cost and then have spare cash available if required to make the boat more suited to their needs and replace outmoded equipment.
- They suffer less depreciation cost because like cars, a new boat generally takes its biggest depreciation hit early on from new.
- They believe a pre-owned vessel is tried, tested and reliable, and while this is true to some extent, when vessels age they become prone to more maintenance, especially with ancillary equipment. Some of her electronics may also be outdated.
- A used boat is likely to have more equipment included at little or no extra cost – many are purchased complete with spare parts, tools, chandlery, bedding, cutlery, crockery, galley utensils etc. For example we only had to add two fire extinguishers and stores to our Nordhavn 46 before commencing cruising.
Envoy was 16 years old when we purchased her, and so well-equipped we only added cruising stores and two additional fire extinguishers, saving us thousands of dollars
Whether your preference is for new or pre-owned most of the risks can be significantly reduced by contracting a professional surveyor, who acts for and is paid by the buyer. This is particularly so for pre-owned vessels, but should also be considered for new vessels as these are not immune from poor practice and resulting problems.
Surveyors not only have considerable technical expertise, but follow a logical documented process for an objective examination of the vessel, whereas the enthusiastic buyer may be prone to overlook or downplay some negative issues. An initial survey is also helpful when arranging insurance and provides a benchmark for later surveys.
The survey will include a sea trial and an out of water inspection, and in most cases the surveyor will discover some defects and then discuss their level of importance with the buyer, who must then negotiate with the seller to remedy them. A survey for a pre-owned 14 metre vessel typically costs between NZ$1,800 to $3,000 depending on its value, plus lift-out fees, so is a relatively small percentage of the investment cost.
The buyer of a pre-owned vessel should also examine her service records and discuss her service history directly with the relevant engineering contractors so that a full inspection can be arranged if there is any doubt about her mechanical condition.
Exercising great caution during the purchase process for your either new or pre-owned vessel should maximize your cruising enjoyment.
No comments:
Post a Comment