Although each buyer and buying situation is unique, there are certain questions that are frequently asked. Covered here are the answers to your catamaran buying questions!
My goal is to break the ice with a few of these commonly asked questions. Please feel free to contact me at (954) 449-4654 or staley@catamarans.com any time; I would be glad to answer any of your questions on a personal level and provide you with the information you need to reach your cruising goals at the best value.
Q) What should I look for when buying a cruising catamaran?
A) Consider these three:
1. Your Purpose. What are your plans for your catamaran?
Your catamaran’s layout will depend on how many people you will have on board and if you will be placing your vessel into charter. (You will likely want a large owner suite if privately cruising or more cabins for more charter revenue.) Will you be cruising worldwide or coastal? Will you be living aboard or using for vacation? Your plans for your catamaran will dictate which layout and models will best suit you.
2. Progressive Modern Designs
view video: http://www.catamarans.com/news/2008/03/staley/index.asp |
3. Resale Value
Most of my clients expect to finish their travels after a few years then sell their catamaran. By purchasing a well-known brand you will likely sell your catamaran faster and receive a larger portion of your investment back. Some of my clients have had situations where they sold their catamaran for close to what they paid for it and some have even turned a profit. The Lagoon 400 offers this opportunity now.
Talk to me about your plans and I will help you reach your cruising goals at the best value.
Q) What is the best way to save on a new yacht?
A) Save money by buying early
Lock your Pricing to Avoid a Price Increase:
Did you know that when you confirm an order for a new Lagoon your pricing will be the same until closing? Your order confirmation essentially locks your pricing and protects you from any future currency fluctuations.
Buy a new model early in production:
Builders always underestimate what it will cost to build a new model. Reserve a hull very early in production when a new model is introduced. After the first 20 hulls are built the price normally goes up 5%-20%. This means that at resale you can sell your catamaran for what you paid for new if you're buying a hot model and well-known brand.
Insider TIP: Although a new model launch does not occur often, this opportunity is available for you now. We are taking refundable deposits for the new Lagoon 400 set to launch mid 2009. The first 10 hulls are already committed so you will not have hull #1 and can still take advantage of the introductory pricing. If you decide not to proceed your deposit will be refunded within 24 business hours. Download our Refundable Deposit Form and call/email me with your questions: staley@catamarans.com (954) 449-4654.
Q) Should I hold off purchasing a new catamaran built in Europe due to the weak US dollar?
A) Yes, EXCEPT if you want a Lagoon.
You may think you are too late because of currency exchange rates. And while you are correct for almost all brands built in Europe, Lagoon catamarans are an exception. As part of the Beneteau Group, which also has a production facility in Marion, South Carolina, they are unique to the Euro/Dollar crunch. Why?
The Beneteau Group advance purchases US dollars each year based on sales predictions in the USA. As a result, Lagoon can offer catamarans in the US at a fixed rate that does not fluctuate with current exchange rates. You will notice the price of Lagoons are the same price they were in October 2007. However, we have just been warned that Lagoon plans to make a price increase for all models in the next 30 days. **This is your chance to order a new catamaran at last year’s prices. We only have a few 2008 models left and are actively taking orders well into 2008.
Q) How can I demo sail my catamaran model?
A) You can wait for an organized demo day sail, charter your model for a longer sail term, or place a deposit for an offer contingent on your demo sail.
The type of demo sail depends on your sense of urgency and the experience you wish to have. If you are still in the initial stage of comparing models you may benefit best from our organized demo sails. Please let me know your intentions of this as demo sail slots fill up quickly and on short notice. I can keep you posted as to when we have one in the works so you don’t miss out.
If you are unfamiliar with a particular model or with sailing a catamaran you may benefit best from chartering. This will give you a longer sail term in order to get a feel for how your catamaran sails. If you are close to a new purchase, I recommend making an offer contingent on your charter and the re-imbursement of your charter fee if you move forward with your purchase. This gives you both the piece of mind you may have needed and saves you money! In some cases we can find a privately owned catamaran in your area whose owners would be willing to take you for a sail.
There are also various sailing schools that offer courses on catamaran sailing. I can help you arrange this so there is no need to wait on your dreams to join the cruising lifestyle.
Q) Is it really worth placing my catamaran into charter?
A) Most times, placing your catamaran into charter management will offset your maintenance and dockage fees.
If you decide to provide crew, this will add an additional cost for employment. You will need to take several factors into consideration to determine whether this is the right option for you: Will you provide crew, be your own captain or bareboat? What is your preferred cabin layout? What is the reputation of the catamaran model? What is the reputation of the charter company? Will your catamaran be accepted by the fleet management? What is the revenue split? What are your owner use terms?
I can help you make the right choice. Having managed a 90 boat charter fleet and 100 slip marina in the BVI and Puerto Rico for several years, I am very familiar with the business and have made plenty of contacts in the Caribbean. Tell me your plans and I will get to work providing you all the details.
Insider TIP: Only 8% of Lagoon catamarans are sold into charter, keeping the charter demand high and holding value at resale. The best catamaran for charter is a 4 cabin/4 head layout. This will provide you more revenue than a 3 cabin owner version and will also be easier to sell at resale than a typical 5 cabin charter layout. A newer model will also charter much better than an older model. For example, our new Lagoon 420 models had almost $100K worth of charter bookings confirmed even before arriving to our fleet in the BVI. The Catamaran Company has an excellent reputation for the condition of their charter fleet. If you are considering placing your catamaran into charter you can place an order up to a year out on a new Lagoon catamaran or consider these catamarans available for sale and already earning revenue in our fleet:
2007 Lagoon 420 hybrid “Shrek”
2008 Lagoon 420 diesel “Fiona”
Q) What is the cost of a broker’s services?
A) The cost to a buyer for a broker’s service is nothing.
Brokers work on a commission and that commission comes from the Seller’s listing fee (industry standard is 10%). If the broker representing the buyer is not the listing broker, then a commission split is agreed beforehand between the two. Your broker’s goal should be your satisfaction, not the sale of a boat. If a certain boat does not meet your needs a good broker will work with you to find the one that will.
Q) Can I use several brokers?
A) There is no law against working with multiple brokers.
Every broker has his/her own style. Find one that meshes well with your expectations and work with them closely to ensure your wants/needs are met. You will find it a real convenience not to have to re-explain your objectives every time you find a new yacht that interests you. A licensed broker can represent you as a buyer’s agent for any yacht listed for sale. There is no substitute for a developing a relationship with a broker who will listen to you and not only find you a catamaran, but ensure it fits your plans.
Q) What is the best way to start shopping?
In this day and age, technology reigns. Your best research can be done at home via the internet. YachtWorld.com is the largest listing system in the US and is a great place to start. CAUTION: There are many yachts that show up strictly as bait and either don’t exist or are listed with another firm. Your broker can verify if the yacht you see online really exists.
Your broker also has access to many avenues not available to buyers, i.e. direct contact with owners who have not yet listed their boats for sale, sold vessel data, trade-values, etc. Voice your desires to your broker so that you explore all your available options and find your next catamaran at the best value.
The best time to shop for a new catamaran is a year before your desired ownership and the best time to shop for a pre-owned catamaran is roughly 2 months before.
The Catamaran Company currently has over 120 listings Download PDF and we can represent you in the negotiations and transaction of any catamaran in the world. Contact me now to receive a list of catamarans currently on the market that fit your criteria: staley@catamarans.com (954) 449-4654.
Q) How much travel is needed for a purchase?
A) With proper planning you can limit the amount of travel needed or arrange not to travel at all.
Inspection before travel
Most clients prefer to be present at the sea trial and survey of their prospective catamaran. If the catamaran you are interested in is not in your home location, you can arrange for a professional surveyor to inspect the hull, mast, etc. before traveling (a pre-inspection survey). You can expect the cost at about $200 and can be applied as a credit for a full out-of-water survey. This will save you time and the expense of travel if the catamaran’s condition is not acceptable.
I recommend making an offer subject to your personal inspection BEFORE arranging any travel or surveys. This ensures you and the seller will agree on the price and offer terms before you take the time and expense of arranging travel, surveys, etc. Contact me for more details: staley@catamarans.com
Arranging your survey and sea trial
Most of my clients have a busy schedule, which is why a cruising catamaran is so appealing. I always suggest coordinating your survey, sea trial and personal inspection all on the same day. This will make the most out of your visit and prevents organizing multiple trips.
You do not need to be present at closing
The seller is the only party in the transaction that must sign Bills of Sale. These are normally sent Federal Express 4 days before closing and held in escrow, as is the balance for closing from the buyer.
Insider TIP: The Catamaran Company has partnered with boat-chek.com to offer you inspection reports from an independent certified NAMS or SAMS surveyor at a reduced rate of under $160 for a yacht almost anywhere in the world - saving you time and money.
Your boat-chek report will consist of:
- Detailed images of the yacht overall and its technical items
- A report based on an in-the-water condition evaluation, highlighting overall condition of technical items and cosmetic appearances inside and out.
The fee is under $160 (much less than a normal survey report). In addition, you receive a discount for a full survey if you use the same surveyor. Here's an example of a boat-chek report. Contact me and I will walk you through this process.
Q) Does it matter where the catamaran is registered or documented?
A) No. The Catamaran Company’s purchase and sale agreements are written so that the buyer purchases the vessel “free and clear of all debts, claims, liens, and encumbrances of any kind whatsoever”.
We require that the seller, at their expense, shall obtain a clear title and shall complete any documents necessary for the de-registration of the vessel from its current documentation. This allows the buyer to document/register the vessel as an individual or corporation without relying on the seller to complete his/her obligations after the sale has been completed.
Q) What is required for yacht financing? Is it just like a home purchase?
A) No. Marine lenders have stricter financing requirements for marine loans.
- Credit scores are typically higher, needing a 680 minimum Beacon score
- Require a minimum 20% down payment
- Rates are normally 6.5% - 7.25%
- Terms are usually 15 – 20 years
- Charter income is not recognized
Certain lenders are a better fit than others, depending on the situation. I can recommend a marine lender that may be able to help you with your specific situation.
I am always happy to help with free advice even if you are not purchasing your yacht from me. Please feel free to call/email me any time with your questions. Also ask for a copy of my newly revised “Insider’s Guide to Buying Catamarans”.
I look forward to helping you find the catamaran you're looking for and helping you negotiate the best value.
