Yesterday was three weeks since my hip surgery and, as expected, I've had plenty of time at home to contemplate things while recuperating. Returning to business-as-usual after the respite, I realize that the questions I've heard most often concern the condition of the yacht sales business, the key one being: "Should I wait for better days or should I sell now and accept the price the market bears?" In the past, my answer has been that I believe the market is turning and that things are looking brighter; wait if you can.
I must say now that the market is what it is and prices are what they are. Waiting until the turning point may not be the best financial decision since no one really knows when the market will strengthen. Paying for maintenance, insurance, dockage, and interest (if your yacht is financed) could easily offset any future gain over today's price. My recommendation: Sell now and save the expense.
Of course, this is easy to say if the investment you have made in your yacht does not exceed today's value. In that case, any difference would have to be paid out of pocket -- painful at best and very difficult if no cash is set aside. However, if that is the case, I suggest speaking to the bank immediately to let them know your situation so arrangements may be made prior to receiving an offer. Usually the last thing the bank wants is another default. Looking ahead and forming a plan may help effectively close a sale.
On the other hand, if you are selling your yacht with the intent of buying another, the lower price you may take for your yacht most probably will be offset by the deal you realize on your purchase. And, if your yacht is a newer model and/or over 55', there is a good chance you may even be pleasantly surprised at its market value. Now is the perfect time for a sell-to-buy transaction.
Any thoughts?
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