Buying a Yacht for the First Time? Everything You Need to Know

 As a boat owner who has gone through the entire yacht-buying process, I understand that first-time buyers face many questions: how to choose a yacht, how much to budget, legal requirements, and so on. In recent years, demand for both new and used yachts has surged. For the average family, while buying a massive superyacht may not be feasible, buying a used yacht or buying a smaller new yacht is achievable. In such cases, a comprehensive guide is essential to help you understand the key considerations for your first yacht purchase.

Article Topics

First-time yacht buyer? Ask yourself these 5 key questions

Budget planning: It’s more than just the purchase price

A comprehensive guide to the yacht-buying process
a. Selecting a yacht
b. Yacht Inspection
c. Negotiating the price
d. Transferring ownership

Common Pitfalls for Beginners
a. Impulse buying
b. Ignoring Legal Documentation
c. The “Perfect Yacht” Fantasy

Maintenance Guidelines You Need to Know

Summary

This guide will provide step-by-step answers for first-time yacht buyers, covering foundational knowledge, budget assessment, the purchasing process, and post-purchase management. Drawing on my personal purchasing experience, I aim to share professional and trustworthy insights and advice to help you confidently take your first step.

First-time yacht buyer? Ask yourself these 5 key questions

If you're buying a yacht for the first time and don't have professional knowledge about yachts, start by understanding your own needs. Before purchasing, ask yourself these questions:

1. What is my primary purpose for buying a yacht?
2. What is my total budget?
3. Where and how do I plan to use it?
4. What size yacht do I need? How many people will it carry?
5. How much time and effort am I willing to invest in maintenance?

After answering these questions, you will have a clear understanding of what kind of yacht to buy. They are like a set of precision navigation instruments, helping you pinpoint your needs. By focusing on these requirements, you will find the yacht that suits you best!

Budget planning: It’s more than just the purchase price

According to the International Yacht Brokers Association (IYBA) 2023 report, first-time yacht buyers often underestimate holding costs by 30%-50%. Whether choosing a new or used yacht, maritime financial advisor Li Mingzhe notes: “The purchase price is just the tip of the iceberg. For example, annual fixed expenses for a 40-foot powerboat typically account for 15%-20% of the yacht's value. Marina fees vary significantly by region—high-end marinas in Sanya can charge up to 250,000 yuan per year, while secondary ports may only require 80,000 yuan.”

Additionally, insurance premiums are another fixed expense, with rates influenced by multiple factors including the vessel's value, type, size, operating waters, the owner's experience, and historical claims records. I provided a detailed overview of this topic in another article, the 2025 Used Yacht Insurance Guide. If you're interested, feel free to check it out!

In addition to the berthing fees and insurance premiums mentioned above, you also need to be aware of local annual maintenance and repair costs, fuel expenses, and winter storage fees. For example, my yacht is moored year-round in Dubai, but since Dubai is a global top-tier yachting hub, costs there exceed the global average. Therefore, the fees listed below, based on my personal experience, are provided solely for reference:

A Comprehensive Guide to the Yacht-Buying Process

Selecting a yacht

Earlier, I mentioned that you should ask yourself five questions before buying a boat. This is because when selecting a boat, it is essential to analyze your specific needs. Let me give an example: if you plan to go out on the water for leisure and recreation with your family, then ample space will be a priority. If this is your primary purpose for purchasing a boat, I recommend choosing a flybridge powerboat or a sports boat. If you are a sailing enthusiast, you will likely prioritize sailing performance, in which case a monohull or catamaran sailboat would be more suitable.

There are numerous yacht brands and models available on the market, and first-time buyers may feel overwhelmed. If you are facing such confusion and anxiety, the Beginner’s Guide: How to Choose the Right Boat for You provides a detailed explanation of the selection process, where you can find a comprehensive guide to selecting a boat.

Yacht Inspection

The yacht inspection process must be conducted by a certified third-party inspector—this is my advice to you! Chen Guoxiong, Chief Inspector of the Asian Yacht Survey Society (AYSS), once said, “Skipping a professional inspection is like gambling with your life.”

According to the IUMI Stats Report 2024: Claims frequency for yachts purchased WITHOUT a certified survey report: 32.7 claims per 1,000 yacht-years; Claims frequency for yachts purchased WITH a certified survey report: 9.1 claims per 1,000 yacht-years; This represents a risk reduction of 72.2%. The most significant declines were observed in machinery damage (-76%) and hull structural failures (-71%). In simple terms, professional yacht inspections can reduce the claims rate for major faults in used yachts. After all, once a used yacht makes a claim, the insurance premium for the following year will inevitably increase!

When I purchased my yacht, I insisted on hiring a NAMS surveyor, who identified a potential issue with moisture in the generator windings. Ultimately, this led to the seller covering the full cost of replacement. If this issue had been discovered after the transaction, I would likely have had to bear those costs!

Negotiating Price

The negotiation process should be based on both market data and survey results. First, analyze recent transaction prices for the same model using platforms like Yachttrading (note that there is a 10-15% price difference between Europe and the US), and combine this with the yacht depreciation curve (new yachts depreciate by 15-20% in the first year, followed by an average of 5-10% annually) to set a benchmark price. For used yachts, you can also calculate the price reduction potential based on the repair items listed in the inspection report.

In terms of negotiation strategy, based on my experience, I recommend starting the negotiation range at 70-80% of the seller's quoted price, emphasizing safety hazards caused by structural defects, such as excessive moisture content or insufficient engine cylinder pressure. If you have little experience in price negotiations, I strongly recommend engaging a professional yacht broker to mediate, avoiding emotional negotiations.

Important note: When the seller is required to choose between lowering the price and repairing defects, prioritize having the seller complete the repairs and provide a 90-day warranty to avoid subsequent liability disputes.

Transferring ownership

Given the complexity of the transfer procedures, if you are purchasing a yacht for the first time, it is best to hire a professional yacht broker to assist you with these matters. The following is a general overview of the process:

At the start of the transaction, an ABYC/BMF standard contract must be signed, clearly stating the hull identification number (HIN), engine serial number, payment method, and additional inspection terms. For beginners, I strongly recommend hiring a maritime lawyer to review the contract, focusing on breach of contract clauses (such as the deposit refund mechanism if the transaction is terminated due to inspection issues) and the list of equipment included with the yacht.

Payments must be processed through an escrow account, with funds released after the vessel’s original registration certificate is canceled. During the registration process, a Bill of Sale and Title Transfer must be submitted to the local maritime authority, concurrently processing insurance and tonnage certificates.

Important note: If buying an imported yacht, verify CE/RCD certification documents and pay import duties. After completing all handover procedures, immediately replace the vessel's hull locks and AIS identification code to completely eliminate any residual risks associated with the previous owner's access rights.

Common pitfalls for beginners

Impulse buying

Seeing a special offer or limited edition and getting carried away? Resist the urge! Yachts are not fast-moving consumer goods; the pain of buying the wrong type or exceeding your budget will linger for a long time. I once came across a statistic stating that beginners who rush into buying an unsuitable yacht model due to promotions may face resale losses of up to 30%-40% of the original price. For example, if you primarily buy a yacht for family leisure but mistakenly buy a racing yacht, the likelihood of such an error is quite high!

Ignoring legal documentation

Just as driving a car requires adherence to traffic laws, operating a yacht also requires compliance with relevant legal regulations. If you plan to sail globally, be aware that regulations vary by region, which is a high-risk blind spot for beginners. If you unfortunately violate regulations, the penalties could potentially destroy your annual sailing budget.

Therefore, before setting sail, ensure you understand all legal regulations in the sailing area. You can check the localized details of the COLREGs Convention through the International Maritime Organization (IMO) website. Another crucial point: operating a yacht without a valid license may result in insurance claims being denied. Remember this!

The “Perfect Yacht” Fantasy

Used yachts inevitably have flaws. Instead of pursuing perfection, focus on finding a yacht with acceptable issues at a reasonable price. Remember, when buying a used yacht, the most important factors are structural safety and engine condition. For example, if the interior is a bit outdated, I prefer to use the savings to gradually renovate it, which feels more rewarding. What do you think?

If you plan to buy a used yacht, there are more considerations than when buying a new one. The five most common mistakes include focusing solely on the purchase price while ignoring ownership costs, choosing a yacht that doesn’t align with your actual lifestyle, skipping vessel inspections to save costs, falling into “too good to be true” used yacht deals, and failing to conduct thorough pre-purchase research. These are all critical factors to consider during the purchasing process!

Maintenance Guidelines You Need to Know

Robert Smith, yacht valuation expert and editor-in-chief of Yachtfolio, once revealed a rule of thumb: 80% of yachts that depreciate by 50% within three years have maintenance deficiencies. In other words, yachts that lose half their value after only three years of use are most likely due to inadequate maintenance, resulting in damage. This clearly shows that after buying a yacht, if you want to maintain its value, maintenance is crucial!

In fact, the core of daily yacht maintenance lies in systematic damage prevention and corrosion protection. According to the maintenance guidelines of the Lloyd's Register of Shipping, the following points should be noted in daily maintenance:

1. Weekly use of specialized seawater cleaning agents (such as Salt-Away) to rinse the hull, deck, and all metal components (steering gear, anchor chain, etc.) to prevent salt crystal corrosion. Monthly inspection of rubber seals (hatch covers/portholes) and application of silicone-based maintenance agents to prevent aging.

2. The engine compartment must remain dry and well-ventilated. After each voyage, replace the seawater filter, inspect engine oil for contaminants (recommended use of 5W-40 fully synthetic oil containing an anti-emulsifier), and record the freshwater cooling system pressure value (normal range: 20-40 psi).

3. The electrical system must be protected against saltwater corrosion. Quarterly inspections of terminal resistance (standard <0.5Ω) and battery load voltage (12V system full load voltage drop should be <10%) are required, along with a load test on the generator (50% or higher load for one hour).

4. The hull antifouling paint must be repainted every 12-18 months depending on the water type (cold water/tropical), which can significantly reduce speed loss caused by barnacle attachment.

Summary

As we have discussed throughout, every step is crucial—from assessing your needs and clarifying your budget, to rigorously executing the boat selection and inspection process and avoiding potential pitfalls, to mastering maintenance techniques. If you are purchasing a yacht for the first time, you may have many questions. However, after carefully reading this guide, whether you are purchasing a new or used yacht, you should have a better understanding of how to “buy” one. Now is the time to put this guide into action and embark on your exciting sailing journey!

Riley Miller

Riley Miller is the owner of the “Serendipity” yacht, a contributing columnist for “Yachting Monthly,” and has published 17 in-depth analyses on yacht cost management. He also serves as an advisory committee member for the European Second-Hand Yacht Association (ESYA) and holds the International Yachting Certificate ICC-UK-2019C-17429, with certified cruising areas covering the Mediterranean and the western coast of the Atlantic.

Disclaimer

The information, advice, data, and personal experience shared in this article (“Content”) are intended to provide general reference and preliminary guidance for potential yacht owners purchasing a yacht for the first time. Please note:

1. Not a substitute for professional advice: The content of this article does not constitute personalized advice in the fields of law, finance, taxation, insurance, ship engineering, maritime regulations, or any other professional field. The purchase, ownership, and use of yachts involve complex professional knowledge and regional regulations, with specific circumstances varying greatly.

2. Timeliness and Accuracy of Information: Market data cited in this article (e.g., price trends, cost ranges), regulatory requirements, technical standards (e.g., maintenance recommendations), etc., are based on information available at the time of writing (2025). This information may change at any time. Readers are responsible for verifying the most current and accurate information regarding the intended purchase location and intended waterway of use prior to making any decisions.

3. Regional Differences: The costs associated with purchasing a yacht (e.g., berthing fees, taxes), owning a yacht (e.g., insurance rates, maintenance costs), regulatory requirements (e.g., licenses, navigation regulations), and maintenance practices vary by country, region, and even specific port. The cost examples mentioned in this article (e.g., Dubai) or regulatory references (e.g., IMO, COLREGs) are provided for illustrative purposes only and should not be directly applied to all situations.

4. Individual Circumstances: Each yacht purchaser has unique financial circumstances, risk tolerance, usage requirements, technical expertise, and location. The budget ratios, vessel selection recommendations, and maintenance schedules outlined in this article are provided as experiential references and cannot be guaranteed to apply to all individuals or specific vessels.

5. Third-Party Information: The institutions, publications, expert opinions, or external links mentioned in this article are provided for reference only and do not constitute official endorsement or recommendation by the author or publishing platform. Readers should independently assess the applicability and reliability of such information.

6. Assumption of Risk: Purchasing, owning, and using a yacht involves significant financial investment, operational risks, and potential liabilities. Any decisions or subsequent actions taken by readers based on the content of this article or any other source of information are made at their own risk and responsibility. The author and publishing platform shall not be liable for any direct, indirect, incidental, or consequential losses or damages arising from reliance on the information in this article.

7. Strongly Recommended to Consult Professionals: At each critical stage of purchasing a yacht (budget planning, vessel selection, vessel inspection, contract negotiation, registration transfer, insurance purchase, and routine maintenance), it is strongly recommended that you consult and engage qualified professionals in the relevant fields.

source: Buying a Yacht for the First Time? Everything You Need to Know