Category Archives: Buying a Boat

This area of Oasis Yachts will show you how to safely and successfully buy a boat in the USA. Take advantage of currently favorable foreign exchange rates. Learn how to find your dream yacht out of thousands of deeply discounted boats available in the USA. The current economic climate in the United States offers you the opportunity to purchase a yacht and ship her home for a lot less than buying the same boat at home.

Why Now is the Right Time to Buy a Boat

Brunswick Corp. chairman and CEO Dustan McCoy during a conference call today announced the company’s 1st quarter earnings showed a 52 percent drop in marine sales.  Brunswick’s lineup of brands includes Hatteras, Bayliner, Cabo, Boston Whaler, Maxim, Meridian, Sealine and Sea Ray.

Statistical Surveys Inc. findings for the recreational marine industry show that sales fell 47.6 percent in the 30-foot-and-up segment across all 50 of the United States in 2008.    Hinckley Yachts, Mercury MerCruiser, Viking Yachts, Cummins, Crownline, Cruisers, Hatteras and dozens of other manufacturers have lain off a large part of their workforce in the last several months.  Some have stopped building boats altogether.

The Megayacht market has seen its share of troubles as well.  Ferretti which builds CRN, Custom Line, Pershing, Riva, Ferretti Yachts, Apreamare, and Bertram has been pulled back from the brink by Mediobanca and Norberto Ferretti himself. Derecktor Shipyards has filed for Chapter 11 and Broward Marine suspend activity at its Dania, Florida, yard.

Many of the nation’s smaller boat dealers have lost their dealership status through a combination of insufficient sales activity and not being able to finance new inventory.  Four wholesale credit providers have exited marine lending, leaving only GE Financial Services.  GE Financial followed by cutting back lines of credit and jacking up interest rates.  This has forced many boat dealers into bankruptcy or otherwise put them out of business.

The result has been a glut of non-sold boats that have been dumped on the market by liquidators.  National Liquidators, the nation’s largest marine repossession company has tripled in size over the last two years.

Given the current economic crisis there has not been a corresponding surge in used boats flooding the brokerage market as one might expect.  This has come as a bit of a surprise considering the media frenzy over job losses, home foreclosures, recession woes and Chicken Little screaming that the sky is indeed falling!  It seems that boat owners are choosing to hold onto their boats for longer and will continue to spend money on maintenance and improvements.

Bargain hunters have been taking advantage of the buyer’s market over the last several months.  Boats that were priced well below market value have been finding new owners.  The wholesale, re-possessed and retail stock is rapidly clearing the market as consumer confidence improves.

If you have been putting off a buying decision waiting for boat prices to bottom out it is time to start evaluating your options.  Cut-priced retail inventory is rapidly disappearing.  Boat builders are not prepared or able to replenish that supply with new stock.  In fact, two years from now you will be hard pressed to even find a 2009 model boat.  Distress sales of used boats are hard to come by as well.  Understand that most boats valued at $300,000 and more are not owned by an hourly paid employee who can no longer keep up with the payments.

Boat prices are now at historic lows and are very unlikely to go any lower.  As the supply of new and used boats diminishes with no new inventory to replenish the market – prices of used and brokerage boats are beginning to stabilize.  Demand will begin to force prices closer to normal market values.

The good news is boat prices have never been better and financing is readily available for qualified buyers who can come up with 20 percent down and verify their income.  The turmoil in our banking system has resulted in favorable interest rates that can be locked in for a 20 year loan.

Make your boat buying decision now while you still have plenty of options and prices are at record lows.

Fractional Yacht Ownership Trends

A Perfect Alternative When Buying a Boat

Fractional yacht ownership is like timeshare for boats.  You take part ownership in a yacht and share costs with one or more other owners.  This can be an attractive alternative to purchasing a boat on your own for several reasons.  This article explains why you should consider fractional yacht ownership, how to buy part ownership and will tell you where to look.

The average boat owner makes use of their boat twenty days to six weeks per year.  You may use your boat more often.  Take a few minutes now and calculate the number of days you used your boat in the last year.  Very few boat owners have the time to devote 365 days a year to their passion.  This simple calculation alone may reveal the reason why so many complain about the high cost of financing, maintenance, repair, cleaning, storage or slip fees and crew.  Consider that a one quarter share in a boat may be easier to justify.

Here’s another way to look at partial yacht ownership.  You can afford and justify an exponentially larger yacht and stay within your original budget simply by sharing ownership.  If you have had bad boat partnership experiences in the past you now have a safe and convenient alternative.  You will learn why this is a safe option later in this article.

Fractional boat ownership is on the rise for a number of reasons.  The current economic climate is forcing many people to re-think how their money is spent on luxuries.   The concept has been proved in other industries and fine tuned over the last few years in the yachting world.  More boat builders and dealers are offering time share in yachts in order to sell product.  Improved communications have allowed this ownership concept to be introduced to more of the boating community.

In the past some were turned off of this form of ownership.  Naturally they disliked the idea of using other people’s stuff!  This inconvenience has now been corrected by management companies who will freshen boats with your personal linens, dishware, silverware, art work, crew and even toys.

How to Buy Part Ownership of a Yacht

There are a growing number of companies worldwide who offer fractional yacht ownership.  Typically each boat is divided into shares ranging from two owners to ten.  You buy one or more shares depending on anticipated yearly usage.  Payments will include the initial share purchase and then a monthly or annual maintenance fee.  That fee is the yacht’s operating expenses for the year divided equally among the owners.  Some programs allow owners to swap weeks with other owners to accommodate unanticipated changes in a family’s schedule.

When shopping for fractional ownership you need to check if the monthly maintenance fee includes; administration and scheduling, insurance, maintenance and detailing, dockage, a valet service, crew and even emergency assistance.  You will likely have to pay for fuel, customs and port fees and provisioning.

Check and make sure that when you purchase a share of a yacht that you are an actual owner and not conned into paying for a glorified, long term charter.  In the United States fractional boat companies are often set up as LLCs (Limited Liability Company).  Company structure may take on a slightly different form in your country. Ownership plans can run from five to ten years.  At the conclusion of the ownership period the boat is sold and the proceeds are divided up amongst the owners.

This is an ideal option for someone who wishes to enjoy exploring far from home.  For example if you live in Europe or somewhere in Asia and wish to boat in the United States or the Caribbean you can get shares in a boat in that country.  This eliminates the need to transport the boat home.  It also ensures that your boat is professionally cared for in your absence.

A variety of yacht sizes are available.  Companies offering smaller boats generally are specific to a certain geographic region.  Larger yachts offer more range and can include trans-oceanic capabilities.  What you would normally pay as full price for a smaller boat can expand your horizons considerably and buy you a share in a yacht that can take you places you only dreamed of before.

Where to Find Fractional Yacht Ownership

Fractional yacht ownership opportunities can now be found around the world.  Most companies however are located on the US East Coast, the Caribbean and Mexico, Central America, and the Mediterranean.  There are fewer options available in the Middle East, the US West Coast and the Pacific Northwest.

If you have been trying to sell your boat with no luck you can try approaching one of the fractional yacht ownership companies.  This type of ownership is growing in some areas of the world faster than boats can be acquired.  Ask them if they are interested in putting your yacht into their time share program.  You could retain partial ownership and use of your boat and free up a large chunk of cash in the process.  Interest will depend on each company’s clientèle.  For example, fractional ownership companies that specialize in larger yachts may only want four stateroom boats in their fleet.

For a complete list of Fractional Yacht Ownership opportunities simply put your name and email address in the box below. I’ll see that you get the list right away.

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Your contact information will be jealously guarded by me personally and I promise you that I will share it with no one.  I hate spam as much as you do.

If you have any other questions please get in touch with me at david@oasisyachts.com.

Boat Loan Lender Found Alive!

One of the better known boat loan lenders was found alive today in South Florida.  I can verify that because I received an email from him this morning, responded to it and he replied!

Naturally I had to ask him the question.  Consumer confidence seems to be at rock bottom. No one seems to be able to get an auto or home loan.  Big banks are falling around us.  The federal government is bailing the big boys out but seems to have forgotten who put them in power in the first place.

So my question was how does a person take advantage of the best boat prices in years?  Most people haven’t got the cash on hand but can still afford a reasonable monthly payment.  Can a person still get a boat loan?

It turns out that the marine finance companies that are left have millions to lend.  The strongest marine lenders in the industry are still strong and are competing fiercely with each other to stay strong in this challenging economy.

Mark Lyon from Seacoast Marine Finance is an old friend and sent me a letter that you can download here.  In the letter Mr. Lyon explains what has happened in the marine lending sector.  He also verifies that boat loans are absolutely still available for qualified buyers.  It turns out that the  established boat loan companies did not succumb to the temptation that a lot of the big banks did in the sub-prime fiasco.

Mr Lyon goes on to say that, “Sophisticated yacht buyers view financing as part of a prudent business decision that permits them to minimize cash outlay.  In most cases, 75%-80% of the purchase price may be financed for up to 20 years.  The vessel itself is the only collateral required; marine financing does not encumber any other personal or business assets.”

Download the full version of Mr. Lyon’s [ tag-tec ]boat loan[ /tag-tec ] -> letter here.  A boat loan calculator is available online here:  Boat Loan Calculator.  Get in touch with me for Mr. Lyon’s email address and phone number by using my contact form here.

David Tomen CPYB

Foreclosed and Seized Boats

Foreclosed and seized boats offer a great opportunity for someone who wants to buy a boat well below market value.  They can range in size from trailer boats to large yachts.  This article will show you how to find and buy a foreclosed or seized boat in the United States.

David Tomen CPYB
David Tomen CPYB

Boat foreclosures are at an all time high in this country because of the current economic crisis.  There has been a surge of interest from overseas buyers especially in Eastern Europe and South America.  Some will buy blocks of boats for export to their home country which are then offered for sale at prices that can result in substantial profits.  Individual buyers have been successful as well in finding a bargain for personal use and well below what they would pay for the same boat back home.

Banks often take possession of a boat for non or late payment of a loan.  The Drug Enforcement Agency (DEA) regularly seize boats that have been apprehended for drug running.  Other government agencies arrest boats for illegal immigrant smuggling, non payment of taxes and a variety of other reasons.

Boats that are foreclosed on by banks are typically assigned to a company for resale.  These boats are often offered for sale at a price that will recover the balance of the outstanding loan.  The asking prices are usually well below market value of the vessel.  If the boat has been on the market for an extended period and has not sold the vessel will be put up for auction.

Boats that have been seized by law enforcement are not offered for sale until court proceedings have concluded.  These vessels are then put up for auction.  That auction can be held within a day or two after release by the courts.

You can take advantage of these great opportunities if you know where to look.  There are a small number of companies that specialize in the sale of foreclosed and seized boats.  They often work for a set fee rather than commission.  But this is where it can get difficult for you.

These companies usually have a sale or brokerage company as well.  These separate companies have a distinct advantage in their close relationship with the company in charge of selling these foreclosed and seized boats.  The sales people in these companies have a long standing list of clients looking for bargains.  If you are not at the top of their list you have a distinct disadvantage.

Your best option is to find a yacht broker in the United States that you trust and who has a relationship with one or more of these companies.  The broker you choose should know what is available and when the boats will be put on the market.  This can be tricky for example with a yacht that has been seized by the DEA.  It is difficult to predict when a particular boat will be released by the courts.  Timing in these circumstances is critical if you wish to be part of the auction process which can occur unexpectedly.

Contact me if you want more information on how to take advantage of these amazing buying opportunities.  You can save a lot of money and possibly even profit from foreclosed and seized boats in the United States.

Used Boat Buying Guide Update!  I recently published the Used Boat Buying Guide whichdoes have an updated chapter on Foreclosed & Seized Boats. Check out

this page by clicking here:  Used Boat Buying Guide for more information.

Cheers!

David Tomen CPYB

Shipping Your Boat Overseas

Once your new boat is paid for you will want to get her home as quickly as possible. Chances are that you have never shipped anything of this value and size from the United States to another country. The logistics of accomplishing this task safely and efficiently with no legal or export/import problems can be daunting. This article will tell you what to expect and who you need to ask for help.

Yacht Transport Companies

The easiest way to get your yacht shipped home is by contacting one of the companies that specialize in yacht transport. The agent you are assigned can help you acquire the documentation and information necessary. The better known and experienced companies include Dockwise Express, Sevenstar Yacht Transport, and Yachtpath International.

Freight Forwarders

Some freight forwarders specialize in yacht transport and generally work with shipping companies who carry general cargo such as containers. The agent at these companies will also assist you in getting your documents together.

Methods of Transport

Dockwise Express uses the Float On/Float Off method of loading and unloading using semi-submersible ships. Dockwise is capable of handling smaller vessels all the way up to Megayacht size. Crew are allowed to stay onboard larger yachts and Dockwise provides creature comforts such as recreational and entertainment facilities.

Yachtpath and Sevenstar are Lift On/Lift Carriers where boats are loaded using cranes and straps to lower the vessel onto a cradle. These carriers usually restrict size to between 45 – 55 meters.

Companies such as Wallenius Wilhelmsen, Heogh Autoliners, Mitsui and K-Line use the Roll On/Roll Off method of loading. These carriers have height restrictions and typically anything over 14′ must be removed. You have to provide the cradle or trailer.

The least favored but most cost effective method of shipping yachts is using a Flat Rack Carrier. These carriers have the capability to ship your yacht loaded onto flat racks and then onto the deck of their cargo ships. Some of these companies include APL, Evergreen, Maersk, OOCL, CMA-CGM and MSC.

The final option is hiring a captain and crew who will sail your yacht from the point of origin to a destination anywhere in the world. This naturally allows greater flexibility in scheduling but is restricted to boats that can make transoceanic voyages. You must also consider cost of fuel and wear and tear on the boat.

Documentation Required

Specific Requirements can vary by destination and mode of transport. Generally you will need a commercial invoice, an export packing list, the yacht registry, a Shipper’s Export Declaration, a Bill of Lading, and an Insurance Certificate.

Other documents that may be required are a Certificate of Origin (or Manufacturers Statement of Origin), a Builder’s Certificate, Temporary Import Certificate (ATA CARNET), a Consular Invoice, and an Inspection Certification.

Some countries require you to give at least 10 days advance notice and provide the authorities in that country with an original Certificate of Origin and an original commercial invoice. Some of these documents can be acquired for you by the yacht broker who assisted you in the purchase of the boat.

There are often fees associated with consular or embassy certification. It is imperative that you get necessary documents certified and/or notarized well in advance of loading your yacht on the ship. Take into consideration the time necessary for bureaucratic red tape and sending documents by courier. One missing document will likely prevent you from having your boat loaded on the ship the day before she sails.

Information Required

Depending on the method of transport you choose you will need the following: Port of Departure, Port of Destination, Beam, and Length Overall from the tip of the bow pulpit to the back edge of the swim platform, height from the keel or bottom of the shipping cradle or trailer to the highest point on the ship (depending on the method of shipping you may not have to step your mast on a sailing yacht), weight, make & model, Hull Identification Number, and the yacht’s name.

Questions? Call me at (954) 614-1663 or email me at david@oasisyachts.com. While you’re at it subscribe to my feed using the link in the upper right. And don’t forget to share this article with a friend!

Calm seas,

David


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