If you’re like most yacht owners, at one time or another, you’ve debated over whether to sell your vessel or charter it. The answer depends on a variety of factors.
Reasons for Selling and Chartering
Here are four typical reasons to sell your boat: You need money, your maintenance costs are too high, you rarely use it or you’d like to buy a new one.
#1 Selling Your Yacht
If you’d like the cash for a life-changing event, want to invest in something that will bring you more satisfaction or simply want a bigger boat, selling your yacht is one way to bank a significant amount of money. Just remember, depending on your yacht’s size, type and the area of the country where it’s berthed, the time it takes to find a boat buyer could vary from a few weeks to a couple of years.
#2 Keeping Your Yacht
Now, if you want to keep your yacht but are having trouble covering your maintenance costs, turning it into a charter vessel might be the way to go. The initial investment for licenses and surveys eventually will be offset by charter fees – and you may even turn a profit.
#3 Chartering Out Your Yacht
Don’t use your boat as much as you thought you would? But, you really love it? Consider this: The Mediterranean season starts in May and ends in September. That means you can enjoy your yacht for two weeks or a month in the summertime and still have four months available for chartering. In this case, a charter would help defray annual berthing, crew and maintenance costs. (Be sure to factor in additional wear and tear, including increased engine hours.)
#A Know Your Market and Do Your Research
Before putting your yacht up for charter, ask yourself these three questions:
- Does my yacht match the market demand in this location?
- Can people in this area afford what I want to charge to charter my yacht?
- Is there an interest for my type of boat? (It doesn’t make sense to offer a cruiser yacht with expansive sunbathing spots in Alaska, right?)
#B Charter Yachts and Profit
Rarely, do charter yachts make a huge profit. However, in the majority of cases, they earn enough to cover their running costs. Once you decide chartering makes sense for your situation and goals, study the best locations for chartering your type of boat, determine licensing requirements and draw up a charter agreement.
#C Chartering Out Your Yacht While Waiting for the Right Yacht Buyer
If you decide to sell your yacht, you might want to put it up for charter while waiting for the right buyer. This guarantees your vessel will always be shipshape and running well. And the best part is people often fall in love with the yacht they charter and want to make it theirs. Whichever choice you make, make sure it’s the best one for you.