Let’s Comprehend the Main Yacht Financing Options for Your Pre-Sale Preps
A Comprehensive Guide to Yacht Financing Options
Before you start looking for a yacht to purchase, what should you do first? The answer is that you need to decide on where to get funds for your further purchase. Yachts are typically quite costly properties, and deciding on yacht financing options is dramatically crucial in advance.
Let’s learn about which yacht financing options are available today and which cost items you should inspect prior to concluding a deal with a yacht seller.
The Main Stages of Pre-Owned Yacht Inspection to Determine Possible Costs
In this article, we want to talk about possible extra costs (often, they are recurring and unexpected) that a new owner should pay. For instance, these are as follows:
Boat maintenance costs. That’s what you face even if buying a new yacht. Regular maintenance is a must, so you have to plan your yacht financing options regarding them. The bigger the yacht you buy, the more costs it typically requires.
Yacht insurance costs one more must-pay. Like any transport, a boat or a yacht needs insurance, and its rates depend on the coverage plan you choose, your yacht’s type, age, and current value.
Boat mooring and storage costs. Your boat should be stored somewhere when you don’t use it, and it requires extra costs for mooring and storage.
Harbor fees are also the costs you may face regularly, Typically, harbors provide fees for each vessel mooring in its marinas. These fees cover the maintenance of lighthouses and navigation lights, dredging, and patrolling the harbor area.
Fuel and equipment are what you need constantly. That’s why it is better to inspect the yacht’s engine capacity and equipment prior to buying it to calculate possible expenses.
Upgrades to avoid depreciation. With time, your yacht ages, and it loses its value. That’s why if you consider your purchase to be a long-term investment, thinking about its upgrades is essential too.
Winterization of your yacht. If you live in a cold climate, winter prep routines may also take money. As an alternative, you can move the yacht for a cold season to warmer areas, yet, it is also costly.
With all these preliminary calculations, you can consider which yacht financing options are suitable for you.
Peculiarities of Loans for a Motorboat
Typically, there are two basic ways to get your future yacht financed. Either you pay for it from your funds, or you apply for a loan. It’s quite clear with the first yacht financing option but what about loans? You can apply for such an option to your bank but you should consider the interest rate in advance as it could be quite high. Additionally, yacht loans are secured ones, they require comprehensive insurance of your yacht during the whole duration of the loan, and they are often given for a period of 10-20 years. Thus, if you decide on this financing option, better calculate insurance costs for all these years, and compare interest rates.
📞 (954) 361-1618
