The International New Boat Buyer's Guide

Before looking at manufacturers, decide what you want the boat to do.

Ask yourself:

Where will I normally use it?

Coastal cruising, inland waterways, island hopping, offshore passages and long-distance cruising can require very different boats.

Where will I keep it?

A boat permanently based in Florida has different practical considerations from one based in Dubai, Singapore, Sydney, Monaco or Tokyo.

Climate matters too. Air conditioning may be essential in one location while heating and all-weather protection could matter considerably more elsewhere.

How many people will normally be aboard?

Consider normal usage rather than the maximum number of guests you might invite once or twice a year.

Will we stay aboard overnight?

A day boat can devote considerable space to outdoor entertainment. A cruising boat needs to balance those areas against cabins, bathrooms, galley facilities and storage.

How far will we travel?

Longer journeys make range, fuel capacity, storage, sea-keeping and onboard systems increasingly important.

Will I operate the boat myself?

The size and complexity of the boat can determine whether owner-operation is practical or professional crew becomes desirable or necessary.

Will the boat ever be chartered?

This is important enough to decide at the beginning. Commercial use can affect specification, equipment, certification, insurance, tax treatment, crewing and operating requirements.

Define the mission before choosing the boat.

Purchase price is only the entry cost.

Depending upon the boat and where it is operated, expenditure can include:

• purchase price;
• optional equipment;
• taxes and duties;
• transport or delivery;
• commissioning;
• registration;
• insurance;
• marina or mooring fees;
• fuel;
• electricity;
• servicing;
• engine maintenance;
• antifouling;
• lifting;
• winter or seasonal storage;
• cleaning;
• replacement equipment;
• navigation and communications;
• safety equipment;
• management;
• professional crew; and
• regulatory compliance.

For larger yachts, crew, berthing, fuel and maintenance can become major annual costs.

Before ordering, prepare a realistic operating budget for the first three years.

A boat you can afford to purchase is not necessarily a boat you will be comfortable owning.

There is no universally best boat.

Day Boats

Designed primarily for daytime recreation and entertaining, often providing generous deck and social areas without extensive overnight accommodation.

Sports Boats

Generally focused on performance, handling and outdoor enjoyment.

Cruisers

Designed for longer periods aboard, with greater emphasis on accommodation, storage, galley facilities and weather protection.

Motor Yachts

Larger motor yachts can provide substantial accommodation, range and onboard facilities, but generally bring increased fuel, maintenance, berthing and potentially crewing costs.

Sailing Yachts

Sailing yachts introduce additional considerations including rig, sail plan, keel configuration, deck layout and ease of sail handling.

RIBs

Rigid inflatable boats can provide excellent performance and practical deck arrangements and can serve as family boats, tenders, sports boats or serious offshore craft.

Multihulls

Catamarans and other multihulls can provide exceptional volume and stability for their length, although additional beam can affect marina availability and berthing costs.

Choose according to your intended boating rather than simply appearance or fashion.

New boats can be purchased in very different ways.

Production Boats

Established models built in comparatively significant numbers.

They can offer:

• proven designs;
• predictable specifications;
• established dealer networks;
• relatively straightforward pricing;
• recognised resale markets; and
• potentially shorter delivery times.

Semi-Custom Boats

The underlying hull and engineering are established, but the owner has greater control over layout, finishes and equipment.

Fully Custom Yachts

A custom yacht can be created specifically around an owner's requirements.

That freedom comes with additional complexity.

Design, specification, engineering, contracts, classification where applicable, construction supervision, project management, regulatory compliance and budget control become considerably more important.

The appropriate route depends upon how individual your requirements really are.

When buying new, you are buying both the boat and the organisation standing behind it.

Research:

• the builder's history;
• manufacturing location;
• number of boats delivered;
• experience with the particular model;
• dealer network;
• service facilities;
• parts availability;
• warranty;
• international support;
• owner feedback; and
• resale reputation.

If you plan to keep a European-built boat in Asia or the Middle East, for example, establish how technical and warranty support will actually be provided there.

Ask existing owners about what happened after delivery.

How a builder deals with a problem can tell you more than the sales brochure.

Online research is excellent for producing a shortlist.

It should not replace physically inspecting a boat where possible.

At a dealership, shipyard or boat show:

• sit at the helm;
• walk the side decks;
• open lockers;
• inspect storage;
• sit around the dining table;
• lie on the berths;
• stand in the shower;
• examine engine access;
• walk between interior and exterior spaces;
• consider boarding; and
• imagine the boat with your normal passengers aboard.

A boat designed to photograph beautifully is not necessarily a boat designed to live with easily.

Two boats of the same nominal length can provide completely different ownership experiences.

Compare:

• length;
• beam;
• draught;
• displacement;
• air draught;
• hull form;
• internal volume;
• deck space;
• fuel capacity;
• water capacity;
• payload;
• storage; and
• usable accommodation.

One 12-metre boat might prioritise speed and cockpit space while another prioritises interior accommodation.

Neither is necessarily better.

They have different purposes.

Modern boats are constructed from a variety of materials.

GRP / Fibreglass

Widely used in recreational boatbuilding and capable of producing complex shapes and repeatable production.

Construction methods and quality vary considerably between builders.

Aluminium

Strong, comparatively lightweight and increasingly popular for both specialist and recreational craft.

Correct construction and protection against corrosion remain important.

Steel

Common on larger displacement vessels, inland craft and some long-range cruising yachts.

Steel is strong and repairable but requires appropriate corrosion protection.

Wood and Advanced Composites

Wood remains a legitimate sophisticated construction material when correctly engineered, while modern composite construction can combine materials to optimise weight and strength.

Don't ask simply:

“Which material is best?”

Ask:

“Which construction method is most appropriate for this boat and my intended use?”

Engine and propulsion choice can have a major effect on the ownership experience.

Consider:

• petrol or diesel;
• inboard or outboard;
• number of engines;
• shaft drive;
• sterndrive;
• pod drive;
• hybrid systems;
• electric propulsion where appropriate;
• power output;
• fuel availability;
• manufacturer support;
• servicing availability;
• efficiency;
• noise;
• maintenance access; and
• resale implications.

A propulsion system with excellent support in Europe or North America may be much less convenient if the boat will be based elsewhere.

Check local service support before ordering.

Maximum speed is an easy number to advertise.

It is not necessarily the most useful number for an owner.

Ask:

At what speed will I normally operate the boat?

Then compare:

• fuel consumption;
• range;
• noise;
• engine load;
• comfort; and
• sea-keeping.

A 45-knot maximum speed provides limited value to an owner who normally cruises at 20 knots.

Buy performance because you will use it, not because it looks impressive on the specification sheet.

Ask the builder for representative performance information at several speeds.

Actual range can be affected by:

• speed;
• load;
• weather;
• sea state;
• hull condition;
• engine installation; and
• fuel reserve.

For long-distance cruising, also consider where suitable fuel is available.

Range should be evaluated against the cruising you genuinely intend to undertake.

Count usable accommodation rather than advertised berths.

Consider:

• cabin privacy;
• berth dimensions;
• ventilation;
• air conditioning or heating;
• natural light;
• storage;
• bathrooms;
• galley;
• seating;
• headroom; and
• movement around the interior.

Climate deserves particular attention.

A specification suitable for Northern Europe may need significant changes for regular operation in the Gulf, Caribbean or Southeast Asia.

Treat the helm as a working environment.

Check:

• visibility;
• seating position;
• throttle placement;
• instrumentation;
• chartplotters;
• screen reflections;
• switch positioning;
• access to decks;
• communication with crew; and
• visibility when berthing.

If the boat will normally be operated by one person or a couple, easy handling becomes especially important.

Modern boats can incorporate:

• chartplotters;
• radar;
• AIS;
• VHF;
• depth and speed instruments;
• autopilot;
• cameras;
• satellite communications;
• internet systems;
• digital switching; and
• remote monitoring.

Consider where you intend to cruise.

Navigation, radio, communications and regulatory requirements can differ between regions.

For internationally cruising yachts, equipment should be selected with the intended cruising area in mind rather than solely the country in which the boat is built.

Electrical requirements are increasing rapidly as boats carry more domestic equipment, communications and entertainment systems.

Consider:

• battery capacity;
• shore power;
• voltage and frequency compatibility;
• chargers;
• inverters;
• generators;
• solar;
• air conditioning;
• heating;
• refrigeration; and
• onboard electronics.

International cruising deserves particular attention because shore-power standards can differ between countries.

Make sure the electrical specification matches where the boat will actually operate.

Optional equipment can dramatically increase the final purchase price.

Separate options into:

Essential — necessary for your intended operation.

Desirable — genuinely improves the ownership experience.

Optional — attractive but unlikely to be used regularly.

Some equipment is substantially easier to install during construction than afterwards.

Before rejecting an expensive factory option, ask:

“Can this realistically be retrofitted later, and what would that cost?”

Stabilisation can make a significant difference to comfort on some motor yachts.

Different systems may operate underway, at anchor or both.

Consider:

• boat size;
• hull design;
• cruising conditions;
• time spent at anchor;
• passenger comfort;
• power requirements;
• installation space;
• maintenance; and
• cost.

For some owners, stabilisation will provide considerably more day-to-day value than cosmetic upgrades.

Think about everything that will eventually live aboard:

• clothing;
• food;
• cookware;
• fenders;
• lines;
• tools;
• spare parts;
• cleaning equipment;
• lifejackets;
• water toys;
• diving equipment;
• covers; and
• luggage.

Then work out where it will actually go.

Storage rarely sells a boat at a show.

A lack of storage can frustrate an owner every weekend afterwards.

Safety requirements depend upon vessel size, registration, operating area and whether the boat is privately or commercially operated.

Equipment may include:

• lifejackets;
• liferafts;
• distress equipment;
• fire protection;
• bilge systems;
• first-aid equipment;
• emergency communications;
• recovery equipment; and
• emergency power.

For international cruising, equipment requirements may change as the vessel enters different operating regimes.

Safety specification should therefore be considered at the build stage.

A yacht's flag state is an important decision.

Registration can affect matters including:

• ownership requirements;
• documentation;
• safety regulation;
• crewing;
• inspections;
• mortgages;
• commercial operation; and
• administrative obligations.

The most appropriate registry is not necessarily determined solely by where the owner lives or where the boat was built.

Larger or commercially operated yachts in particular should obtain specialist advice before choosing a flag.

Changing registration later can also involve additional cost and documentation.

This is an important distinction.

A yacht's registration or flag does not, by itself, prove that taxes or import duties have been paid in a particular country.

Tax and customs status can depend upon:

• where the boat was purchased;
• where delivery occurred;
• residence or establishment of the owner;
• ownership structure;
• where the boat is imported;
• whether it is used privately or commercially;
• where it is normally kept; and
• applicable exemptions or temporary admission procedures.

Keep purchase invoices, import documentation and evidence of tax status safely throughout ownership.

These documents can become extremely important when cruising internationally or eventually selling the boat.

There is no single worldwide tax system for yachts.

Depending upon location, a transaction might involve:

• VAT;
• sales or use tax;
• GST;
• import VAT;
• customs duty;
• local taxes; or
• exemptions and reliefs.

The tax position can potentially change when a yacht crosses a border, is permanently imported, changes ownership or changes from private to commercial operation.

This means a buyer should consider taxation before deciding where delivery will take place.

A yacht's advertised price should never automatically be assumed to represent the total tax-paid cost of owning and operating it in another country.

For substantial international purchases, specialist marine tax advice can potentially save very expensive mistakes.

Yachts circulating within the European Union can have different customs status depending upon ownership and import circumstances.

A vessel that has Union status can generally circulate within EU customs territory without repeatedly paying import VAT.

Qualifying non-EU vessels used by eligible persons may instead be able to enter EU customs territory under Temporary Admission, allowing temporary private use without payment of import duty and VAT subject to the applicable conditions.

Temporary Admission is not the same as having EU VAT-paid status.

It is a customs procedure with eligibility requirements and time limits.

Owners intending to base or cruise a non-EU yacht extensively in European waters should establish the vessel's precise customs status rather than relying on assumptions based upon its flag.

Following the UK's departure from the European Union, UK and EU VAT status are no longer interchangeable concepts.

A yacht can therefore have a different customs position in UK waters from its position in EU waters.

UK residents keeping privately used boats in the UK may need evidence of UK VAT status, while eligible non-UK residents may potentially use Temporary Admission for qualifying privately used vessels.

There are also specific arrangements that can apply to qualifying boats purchased for export from the UK.

Anyone moving a yacht permanently between the UK and EU should therefore investigate both regimes.

International purchasing is commonplace.

It also introduces questions that a domestic purchase may not.

Before signing the contract establish:

• where legal delivery takes place;
• when title passes;
• where the yacht will be registered;
• where it will initially be imported;
• what taxes or duties arise;
• who is responsible for transport;
• what conformity requirements apply;
• whether warranty support is available at the destination; and
• whether any temporary import regime applies.

The cheapest country in which to buy a boat is not necessarily the cheapest place from which to structure the entire transaction.

Owners sometimes encounter advertisements stating that a yacht is:

“Not for sale to residents while in certain waters”

or similar wording.

This should not automatically be interpreted as something suspicious.

A foreign-owned or foreign-imported yacht may be present in a country under a temporary customs arrangement that permits its use but restricts how it can be sold domestically without first completing import formalities and paying applicable duties or taxes.

The exact rules vary significantly between jurisdictions.

This issue can arise with yachts visiting major international boating markets, including the United States and Europe.

If purchasing a foreign-flagged yacht while it is physically located in another country, establish:

• its customs status;
• whether it has been formally imported;
• whether local tax or duty has been paid;
• whether it can legally be offered or sold to you in that location;
• where completion should occur; and
• what happens when you subsequently import it elsewhere.

Never assume that physically viewing a yacht in a country means it can automatically be purchased there on the same terms as a locally tax-paid vessel.

New boats may need to comply with technical and conformity requirements in the market where they are supplied or placed into service.

Requirements differ internationally.

A boat built for one market may require changes or additional certification before being imported into another.

This is particularly important when buying:

• directly from an overseas builder;
• a boat originally specified for another country;
• a stock boat abroad; or
• a yacht that you intend to relocate permanently.

Ask the builder to confirm the standards and certification applicable to the specific vessel and intended destination.

The purchase or construction contract should clearly establish what is being supplied.

Depending upon the project, it can address:

• model;
• construction specification;
• equipment;
• price;
• currency;
• applicable taxes;
• payment schedule;
• construction milestones;
• delivery date;
• delivery location;
• title;
• risk;
• inspection;
• sea trials;
• acceptance;
• warranty;
• delays;
• variations;
• cancellation; and
• dispute resolution.

International transactions should also consider which country's law governs the agreement and where disputes will be resolved.

For substantial purchases, specialist legal advice is appropriate.

Build projects frequently involve staged payments.

Understand:

• when each payment becomes due;
• what construction milestone triggers it;
• who owns the partially completed vessel;
• whether title progressively transfers;
• how payments are protected;
• what happens if delivery is delayed; and
• what happens if the builder experiences financial difficulty.

Paying 50% of a yacht's price does not necessarily mean you legally own 50% of the yacht under construction.

The contract and applicable law determine the position.

International purchases introduce another factor: exchange rates.

A yacht priced in euros may be purchased by someone whose assets or income are in pounds, dollars, dirhams, yen or another currency.

During a long build period, currency movements can materially alter the effective purchase cost.

Consider currency exposure when agreeing staged payments on a significant international build.

Professional foreign-exchange or financial advice may be appropriate for substantial transactions.

Owners commissioning a semi-custom or custom yacht should consider independent technical representation.

A buyer's representative, project manager or surveyor can monitor:

• construction progress;
• specification;
• equipment installation;
• variations;
• quality;
• testing;
• documentation; and
• delivery preparation.

Problems identified during construction are often easier to resolve than problems discovered after delivery.

New does not mean inspection is unnecessary.

A modern boat combines engines, electrical systems, plumbing, electronics, navigation equipment, structural components and numerous domestic systems.

An independent surveyor or technical representative can provide the buyer with additional assurance before acceptance.

The appropriate level of inspection should reflect the value and complexity of the vessel.

A sea trial should assess much more than maximum speed.

Consider:

• engine operation;
• acceleration;
• cruising performance;
• steering;
• manoeuvrability;
• vibration;
• noise;
• visibility;
• trim;
• instrumentation;
• onboard systems;
• low-speed handling; and
• general comfort.

Where appropriate, have an experienced skipper, surveyor or technical representative present.

Delivery should include a structured handover.

Understand the operation of:

• engines;
• electrical systems;
• batteries;
• navigation equipment;
• pumps;
• seacocks;
• fuel systems;
• water systems;
• generators;
• heating or air conditioning;
• anchoring systems; and
• safety equipment.

Ensure that you receive the relevant:

• purchase documentation;
• builder's documentation;
• registration documentation;
• compliance certificates;
• equipment manuals;
• warranties;
• service information; and
• keys.

Outstanding defects should be documented.

A warranty is only as useful as your ability to obtain support.

Ask:

• what is covered;
• for how long;
• what is excluded;
• where work can be performed;
• whether prior approval is required;
• whether individual equipment has separate warranties; and
• what happens when the yacht is outside the builder's home country.

This is particularly important for globally mobile yachts.

A strong international service network can justify choosing one builder over another.

Secure a suitable berth before buying.

Consider:

• length;
• beam;
• draught;
• access;
• water depth;
• shore power;
• security;
• parking;
• fuel;
• lifting facilities;
• maintenance support; and
• cost.

For multihulls and larger yachts, beam can be particularly important.

Prime marina berths in some cruising regions can also represent a substantial component of annual ownership cost.

Insurance requirements vary between countries and operating circumstances.

Even where insurance is not universally mandated by law, marinas, lenders, charter operators and other organisations may require particular levels of cover.

Insurers may consider:

• yacht value;
• construction;
• cruising area;
• storm exposure;
• owner experience;
• professional crew;
• commercial use;
• security;
• survey information; and
• where the yacht is kept.

A worldwide cruising policy may also contain geographical restrictions.

Discuss intended cruising and charter activity with the insurer before purchase.

As yachts increase in size and complexity, professional crew may become appropriate or legally required depending upon flag, operation and jurisdiction.

Crew expenditure can include:

• salaries;
• recruitment;
• travel;
• food;
• uniforms;
• insurance;
• training;
• accommodation;
• certification; and
• relief or rotational crew.

Crew accommodation also occupies valuable space aboard.

If you expect to employ professional crew, consider their working and living environment during the specification stage.

Good crew retention can have a major effect on the ownership experience.

Yes, in many circumstances owners make yachts available for charter when they are not using them.

For the right yacht and operating structure, charter income can contribute towards:

• maintenance;
• berthing;
• insurance;
• management;
• crew;
• servicing; and
• other operating expenses.

But charter should not automatically be treated as a way of making yacht ownership "free".

Commercial operation introduces additional considerations.

These can include:

• commercial registration or endorsement;
• safety requirements;
• inspections;
• crew qualifications;
• charter licences;
• local operating permits;
• insurance;
• tax;
• VAT or equivalent consumption taxes;
• management fees;
• marketing commissions;
• additional maintenance; and
• increased engine hours and general wear.

If charter income forms an important part of the ownership plan, tell the builder before the yacht is ordered.

Designing and building the yacht for the intended commercial regime from the outset can be considerably easier than trying to convert a purely private yacht afterwards.

A yacht that looks identical externally may operate under a very different regulatory framework when carrying paying charter guests.

Commercial yachts may be subject to additional:

• construction standards;
• lifesaving equipment;
• fire protection;
• stability requirements;
• surveys;
• certification;
• crew qualifications;
• operational procedures; and
• insurance.

Requirements depend upon factors including:

• yacht size;
• flag state;
• passenger numbers;
• operating area; and
• charter jurisdiction.

If there is a realistic possibility that you will charter the yacht later, investigate commercial compliance during the initial specification.

Usually, that is the wrong assumption.

A successful charter programme can make a meaningful contribution towards annual operating expenditure.

However, gross charter revenue is not the same as money retained by the owner.

Revenue may be reduced by:

• broker commissions;
• management fees;
• crew costs;
• maintenance;
• cleaning;
• consumables;
• insurance;
• taxes;
• marketing;
• additional servicing; and
• wear caused by increased utilisation.

The owner also sacrifices some personal availability during desirable charter periods.

A realistic charter business plan should therefore be prepared before relying on charter revenue in the ownership budget.

If charter is intended, think about what future guests will want as well as what you personally want.

Factors can include:

• cabin configuration;
• number of guest berths;
• crew separation;
• deck areas;
• water access;
• water toys;
• entertainment;
• internet connectivity;
• stabilisation;
• air conditioning;
• privacy; and
• storage.

An extremely personalised yacht can be wonderful for its owner but less attractive to charter clients.

There is therefore a balance between personal specification and commercial appeal.

Owners of larger yachts often appoint professional management companies.

Services can include:

• crewing;
• payroll;
• maintenance;
• regulatory compliance;
• budgeting;
• accounting;
• insurance;
• berth management;
• technical support;
• charter management; and
• operational planning.

Management can be particularly useful where the owner lives in one country while the yacht operates in another.

Compare exactly what each management fee includes.

Eventually your boating requirements may change.

Future buyers may consider:

• builder reputation;
• model popularity;
• engine package;
• service history;
• tax/customs documentation;
• commercial history;
• equipment;
• layout;
• condition;
• specification;
• colour scheme; and
• maintenance.

Unusual customisation may be perfect for you but reduce the number of potential future buyers.

You don't need to build your yacht for somebody else, but resale deserves consideration when making expensive decisions.

Buying Too Big

Larger boats mean greater berthing, cleaning, maintenance and operating commitments.

Buying Too Small

Replacing an unsuitable boat after one season can be far more expensive than buying correctly initially.

Ignoring Running Costs

Purchase price is only part of the financial commitment.

Buying for Maximum Speed

Most boats spend very little of their lives operating at maximum speed.

Over-Specifying Options

A long options list does not automatically create a better boat.

Ignoring International Support

A boat built thousands of miles away needs effective local technical support.

Forgetting Tax and Customs

International yacht ownership can involve significant tax and import consequences.

Choosing the Flag as an Afterthought

Registration can affect operation, administration and commercial possibilities.

Planning to Charter Later

If charter is genuinely contemplated, investigate the requirements before construction.

Buying Emotionally

A boat should excite you.

It must also perform the job you actually need it to perform.