New yachts are not an asset a typical marine lender can create a loan for—its currently plans and fiberglass molds. It soon becomes a collection of materials, engines and equipment that needs labor to build. So new yachts get financed as the build progresses with Progress Payments to that stage of construction. Just like a new home—foundation, framing, plumbing, electrical, interior, roof, etc.
Yachts need a tremendous amount of labor to construct the hull and house, engines, equipment, interior woods, appliances, electrical, and plumbing to blend it all into your new yacht.
Some cash buyers will self-finance the progress payments. We come up with the list of standard and options for purchase price, then a 20% deposit gets us started and generally 6 progress payments at milestones of construction. Hull finished and removed from the mold, payment 1, engines mounted in the hull, payment 2, plumbing and main deck interior, payment 3, etc.
Other buyers may discuss private lending with their bank to attach an asset in their portfolio that bank can collateralize on to make each payment as construction progresses to delivery. In both these cases, once the new yacht is completed and signed acceptance of your new yacht, typical marine financing can be brought in on the yacht, thereby releasing the short term construction financing and collateral agreement made through your bank or private lender.
Why buy a new yacht?
Besides the obvious “new yacht smell”, consider the other reasons.
Built specifically for your tastes, layout, and wish-list
“As soon as I drive it off the lot …”
Good news, we price our new yachts fairly and below what other brands charge for a reason. We have watched other sales outfits sell for large margins and low customer service. But they have great marketing. We decided to flip the dynamic and build a company that based on hard work, fair prices for our services, and a customer that gets a fantastic yacht they really enjoy.
The time it takes to build your new yacht is time you can use and then sell your current yacht, if you have one, and plan for the new one. A new build can take roughly 10 to 18 months to build. You would be surprised how quickly that time passes and we are launching it.
While someone might try and convince you to buy a boat now (so they can get paid right now) we have to be as patient as you do. We price our yachts fairly and add project management for initial quality and long-term quality in the years to come.
What asset as large other than a house can you have built with so many custom elements? A new yacht is a custom home that you can locate anywhere in the world you wish to travel.
You aren’t buying a used boat. While there are many out there, you don’t have to settle. For what you might spend on a used boat—we can build you a brand-new yacht.
Inventory is very low on used yachts, so new yachts are not only in demand but this, too, helps potential resale. When you are ready to sell your yacht, it will be among the few worldwide for that model year.
Because we aren’t afraid to tell you “No, we can’t do that idea”. We have seen builders try and accommodate a custom feature and it turns into a warranty nightmare, creates problems in other areas, and is more trouble for everyone. If we think something is going to cause you those problems, we’ll speak up and tell you. Gently. We want you to enjoy your yacht and also enjoy your resale. As the saying goes “No one wants a screen door on a submarine”.