hey guys how you doing today it's nick cardozo with mr yachts we're down here in sunset harbor marina in miami beach i was emailing with a client last night topics you should consider when you're buying a boat and i thought i'd make a good video topic uh i wanted to share with everybody so basically yeah i printed out the email and i want to go over some some points so if you're ever thinking about buying a boat or upgrading into a new one i think these are some of the questions you want to ask yourself going into buying a boat since it's such a big purchase i think each one of these topics they could be their own video so let me know if you want me to go into like a deep dive into each one of these because i mean frankly i could i could talk about this stuff almost all i mean i do talk about it all day uh any of these topics that you want to like know more about please let me know in the comments you know there's a lot of aspects to buying a boat you know you've got the financing part of it you've got the shopping part of it you've got the ownership part of it you know the usage part of it the most fun part is why you buy a boat so number one i would say that like when you when you're buying a boat when you're shopping for a boat you know consider that like boats are mission specific right so if you want to go fishing you're gonna buy a fishing boat you know if you want to do cruising you want to buy something that's going to have a lot of cabins that's comfortable has a lot of volume and if you're going to be day boating you know you want something with a lot of open deck space to entertain and you won't be worried to to get the boat wet so you know visit the sand bar or whatever you want to do so you know there's different types of boats everybody knows plenty of different types of boats but try to think about like what is your goal how do you see yourself on your boat out on the water right more so than going over the different types of boats with you because we could go over fly bridge and you know uh express boats and all that but try to put yourself in the frame of mind of what are you going to be doing on the boat are you going to be pulling up to the restaurants with it are you going to be entertaining clients friends family do you plan on doing a lot of water sports do you need a lot of storage are you going to be spending overnight on the boat ever so for example last year i sold a boat to a client who it was this first boat it was a 72-footer so it's a pretty big boat for your first boat but in the end we found out that you know the boat suited him in many aspects but but lacked in other places right so it's a great day boat for example to have a 72 foot fly bridge here in miami because you've got all that upper deck space but for a long-term cruiser for something like going to the bahamas and not so much you run out of space there's not enough storage on the boat you know you want to be able to you know have your water toys places to store them and enough enough crew cabins so that everybody's comfortable on board people always want to move up in boats but bigger is not necessarily better either so that's why i said put yourself in that frame of mind there's no there's no right answer to this it's just that's just one of the things i want you to think about when you're when you're shopping right is you know what am i going to use my boat for that's it all right one of the most important things about buying a boat is obviously going to be the budget how much can you spend on a boat how much can you throw down for the boat and how much is going to cost you to own it well there's a lot of different factors at play here you could even put the boat into a charter program and offset your costs we can talk about that in another video coming up because that's its own segment for sure i could actually sell you a boat for free but we'll talk about that later getting back to the costs we talk about market value depreciation how fast the depreciation curve is when it starts to flatten out cost of ownership you've got to consider things like crew marina insurance maintenance you know and then you've got your variable costs but you know you basically want to buy a boat that's hopefully ahead of the depreciation curve now the market will bear what the market will bear for the seller but you know for the buyer you know you want to try to get the best deal as possible like you know considering all factors involved right and again that's where like a a good broker can add value you know which is another video like that i'll go more in depth with the things that we like really look at like how to negotiate the price better but you know hopefully you create a relationship with somebody maybe it's me uh that can you know steer you the right way through the buying process of a boat so that ultimately you're happy with your purchase as a broker right like i don't want people to be unhappy you know by getting themselves in over their head on a boat that they can't afford in the end you know because it's a million dollar bow but it costs them you know a million and a half a year to run you know what i'm saying like that's that's not cool you know what i'm saying my job as a broker is to advise somebody in the right way and give good advice hey yeah like that's a cheaper boat out of pocket but you know up front but like you know the cost to own that boat is is gonna like put you in a bad place or you know i mean you're gonna in a resentful way what i try to explain to people when they're buying a boat is like look your budget's your budget and and i go through you know a whole budgeting thing with with the client like if you like want to keep it 10 out of 10 like this is how much it's probably gonna cost you if you want to you know keep a seven out of ten yeah you could run it with a skeleton crew and maybe shave 20 to 30 off that annual running cost but you know in the end you're gonna end up paying for it so you know it's one of those things that's like you might as well just pay for it and enjoy having a beautiful boat instead of like not paying for it and then kind of having like a ratty mediocre boat and then having to like shell it out at the end just so someone who buys it ends up with a brand new boat again you know what i'm saying it's like through the lifetime of owning the boat you know you want to enjoy your yacht so take care of your yacht some of those things hurt like wax jobs and bottom painting and stuff but like you know you got to take care of the boat one of the next things um you know that i think is very important when you're shopping for a boat is condition and condition right real estate is location location yachts are condition condition now there's two ways to approach this right you could buy a boat that needs work and you can put the work into it and you can get that boat for a really good price but if you buy a turnkey boat you're there you know what i'm saying like time is money right like it's not really because time is time and you can't buy that but you know you don't want to waste your time either i'm i'm a yachty enthusiast i'm going to do it again i love boats for me to buy a project boat that makes more sense because that's my life there's a lot of people who are busy though so they don't really want to manage that type of project so like condition right condition condition when you're looking to buy a boat especially if it's like your first boat or even second boat i wouldn't dive into like the project stuff unless you're like yeah i want to do a project you know what i'm saying what i'm trying to say is buy something turnkey that is like your best deal you have no idea how much boats can consume your time even when they're perfect you don't want to get yourself into a good deal because you've got you know this massive boat that you could buy for 50 off and yeah you can deal with the carry cost but you don't really know what you're getting yourself into because you know the boat's 10 years old and the glue they use you know in italy can't withstand the florida temperatures and starts coming apart you've got to redo the entire interior that type of stuff it's just a consideration right i don't think one way is better than the other it's a case-by-case basis right so that's my thoughts on like condition especially if you're new to the game and yachting and and you want to enjoy yachting i would buy something turnkey if you're like me and you just like want to get the best best possible deal and you don't mind putting the time and effort into it then you know go for you know the the project boat that's pennies on the dollar when you're buying a boat i i tend to stick to kind of my own rule of thumb there's different thresholds based on the depreciation that i've kind of like noticed especially with production boats right what does that mean it means that when you buy a new boat right you're paying the msrp minus whatever discount you can get from the dealer and you get you know your warranties and you know your guarantees all that stuff when you buy a new boat and then you go to sell it in a couple of years you're competing with the factory you're basically going to have to give a much better deal than what you paid for because you know the factory can can outsell you by offering their warranty for just like you know 10 or 20 more let's put this in a practical situation right boat msrps for a million bucks right maybe you get a factory discount of 10 so you buy the thing for 900 comes with two years warranty you got a brand new boat nothing wrong with that then you go to sell it in two years well yeah the boat depreciates 10 per year right but you're not going to sell it for 800 it's going to be pretty hard because you know the factory can just say if you shell out another 100 grand we'll get you two years warranty and you get that whole package right so that's where i think the boats and like the the the three to five year range that's your first threshold of like the best deal for a few reasons you've got late model boat it's pretty new still and you're probably gonna get somewhere around 30 off of what the msrp would be you know maybe more it depends the market then you've got like the second threshold which is like what i call like the the value buy coming up on your 10-year mark now these are boats that if you buy them right they're good deals and you can get a good boat for a really good price like a big sky or even neoprene now i don't really ever recommend somebody buy a boat coming up on 10 years because that's generally where like boats need a major overhaul a major refit they replaced everything you can see and everything you can see if you buy a boat that's like seven years old for example you're gonna own the boat probably two to three years that means when you go to sell it you're either gonna have to put the money into it yourself to try to get as much back as you can or you're just gonna have to sell it first you know a crazy cheap price because the guy who's inheriting this is inheriting all the problems with the boat too when you go to buy a boat you're either going to be in that three to five year range because you're gonna own it to two to three years right you're gonna end up selling it at seven years and you'll let someone else deal with that or you buy the boat in the like 10 to 12 year range only if it's had that like major overhaul like refit you're getting an older boat like as long as you're cool with the design of the exterior you get some like timeless design you know then the interior is all brand new that's a good value right so yeah there's a lot of boats coming out of europe like that because they they do a lot of refits over in greece turkey that are cheaper so you know there's tremendous value that you can find especially overseas okay so like moving forward what boat brand do you buy okay so let's just take these into into segments so there's different countries that are well known for for building you know higher quality yachts so for example you know the us build some really high quality odds they built some not high quality yachts the dutch are very well known for building very high quality yachts germans also italy builds some beautiful yachts that being said i don't want to discredit any other brands or countries but there's very fine yachts that come out of you know asia or or turkey for example choi lee's cl line they're building a magnificent product and we did a walkthrough on the clb 88 then i was just i was blown away by it i mean the interior design the everything about the boat i thought was just wonderful but brandt speaking of brands and like when you're shopping around for boats especially in this production line segment of yachting which you know i'd say is like all your brand names like westport bonnetti azimut sun seeker ferretti pershing riva like all these like brand names that you're you're hearing about you want to buy brand names when it comes to boats there's always a market for these right when it comes to resale value especially in the united states you know we come across this that it's kind of hard to move out of a boat without giving a crazy deal to get rid of it because you're competing with you know some of the best best brands in the world that are you know also on the market so that's my thought on brands uh buy pedigree if you can um unless you're just like absolutely in love with the boat and you have to have it and it's such a great deal that you know it doesn't matter what you sell it for after then you can buy one of those [Music] oh i know what i want to talk about hours people want to buy low hours low hours low hours like guy wants to buy a ball it's got like 800 hours instead of the boat that has like fifteen hundred dollars but the guy who buys the boat with eight hundred dollars has to pay for the thousand hour service and has to come out of pocket like 60 grand and he's like what the hell just happened right so the hours on a diesel engine aren't necessarily like they're not gasoline engines people so like thousand hours not really that high the lifespan of a diesel engine especially like you know these good diesel engines they've got a they've got a lifespan upwards of 10 000 hours maybe you know i've seen boats with 15 000 hours on them don't be too afraid of hours on a on a diesel engine because you know maybe the guy was you know taking the boat up you know to new york or new england in the summer and put on like a couple hundred hours you know extra you know that year so the hours add up but it's like highway miles and and city miles right they're not necessarily the same it's more about how much fuel has gone through the engines but that's kind of a difficult way to like measure uh the age of an engine so we talk about it in hours but anyway you want to buy a boat that has been recently serviced so you don't have to pay for the service so i don't i don't think that a boat like at 800 hours for example is necessarily as good of a buy as something that has like let's say 1500 hours or 14 that just had the 1500 service on one side you know everyone says yeah well you know when i go to sell the boat everybody's going to want to buy the lower hour bow well hopefully that's why you can get a better deal in the first place right you can leverage the high hours the high hours that aren't really that high to get yourself a better deal in the first place so that when you go to sell it you're not really getting hurt on that aspect so much and you're really just benefiting from the fact that it has higher hours but it's it's an arbitrary number to get to like rebuild phase which is like you know eight thousand ten thousand dollars you know the hours of the engine is important but you know don't be fooled by you know just the low hours and don't pay a higher price for lower hours so ask yourself when you're buying a boat are you buying this boat with the intention of moving up into another boat like when you're considering buying a boat you got to know the business like some of my clients get this right like they'll buy boat like it's like yeah whatever it's like whatever boat but they get into it for a good price they're chartering the thing out they basically don't pay anything for the boat because when they sell it like they've made all the money back there's also like a business aspect of it where like you can actually like people like oh the best that you own a boat is like the day you buy it the day you sell it well yeah like if you don't really use your boat that much and if you don't really understand the business and you bought it like because you know one day you thought it was a good idea to buy a boat right that's probably the wrong way to go about buying a boat i think like i could sit down with you and like really go over numbers and like make each purchase at least somewhat make sense right to to a certain extent like as much as you want it to make sense like we could buy a boat for free really um you know if if we put it in the charter program and we manage it properly and just couple sacrifices there blackout dates and stuff but generally speaking like you got to know the business like if you know if you're gonna buy a boat are you buying it so just so you can have boat and you know get in and out of boats cheaply with minimal damage that's like one mentality or are you buying like it's my one and only i love this boat i'm gonna buy it and keep it in the family forever you know like then like i think there's a different approach than you want to buy like the nicest boat ever and like maintain it always to the highest you know standards because you're going to keep that boat forever you know or for you know a really long time so you want to just enjoy it that pretty much wraps up i think my most frequently asked questions or like my main topics on like you know shopping for boats thanks for watching uh don't forget to hit the like button subscribe and please share with your friends i mean if you're looking for a boat or one of your friends looking for a boat spread the knowledge that's why i make these videos and you know the more this channel grows uh the more videos we can make so thanks again for watching and see you soon