What costs are associated with purchasing a yacht out of the fleet?

Commonly asked questions about extra costs associated with purchasing a used boat from our fleet are answered here!

 

What are other costs associated with purchasing a fleet boat?

 

  • Deposit
  • Travel/ Accommodation
  • Survey/Haul out
  • Closings costs
  • Balance of funds
  • Insurance
  • Dinghy/Outboard

 

When you purchase a yacht that is phasing out from the fleet most of the costs involved are covered by the phase out. Once an offer is agreed upon a 10% deposit is then sent to our escrow account to secure the offer and put the yacht under contract. This deposit is refunded should you decide to reject the deal or vessel.

 

You will then look to organize travel and accommodation to see the vessel perhaps if not already done so. This showing is typically timed for the Buyer to be present for the survey and sea trial. The Buyer will pay the surveyors fee, and the short haul cost for the boatyard during the inspections. The next step is a Conditional Acceptance of Vessel (CAOV) which lists items to be included during the phase out and work list for the closing. Most points that come up in a survey are covered in the phase out and there is no cost to the Buyer. Once a CAOV/AOV is signed the deposit becomes non-refundable and the balance of funds will be due upon closing.  The Buyer may choose to have their surveyor come back to inspect the vessel once the phase out work is completed just before closing to give their final sign off.

 

In the lead up to closing the Buyer will finalize details for insurance. The yacht is insured by the base until closing and handover, and the Buyer should their own insurance binding scheduled to start at closing. The cost will vary depending on intended usage, and your broker can direct you towards providers to get quotes. You will also have to decide on how you wish to take title and register the yacht. There is closing fee of $250 which will be assessed to your closing statement. You may also choose to use a documentation agent to check current title, complete paperwork, and submit paperwork to register the boat in your name. The costs may vary depending on how you intend to register, your broker will be able to advise contacts for this.

 

At handover you will have a few days to get onboard and provision to be ready to leave the base. The yachts come with their charter inventory so you have all the basics to go sailing but as most of the boats leaving fleet do not have their own tender this is one of the first items to add.

 

Is there any sales tax?

 

Locally in the Caribbean there is no sales tax on the purchase price, the final agreed price is the price you pay. However, depending on how you are taking title and registering/locating the boat after closing there may be duty or sales tax due once the yacht comes back to your home. For example if a US buyer takes the boat home to Florida and local sales taxes applicable as well as import duty. Most US flagged boats from the fleet have never been in US waters so duty never paid and would be due if relocating to the US.

 

How long will it take for my offer to be accepted?

 

Once you have made a written offer it will be submitted to the seller. In this day of good communications we would typically expect to seller to be able to receive and have a response within 48 hours. However often due to travel, communication may be a bit slower in some cases and a final agreement by everyone takes a few more days to come together.

 

Giles Wood

Giles’ first memory of sailing was sitting on the bow of a dinghy when he was 5, while he sailed around the bay with his Dad. He has been sailing ever since. After studying engineering at university he worked as a sales manager selling classic and sports cars. He cast off his lines 15 years ago and returned to the water. As an MCA/RYA Yachtmaster Ocean Instructor, he has been around the world skippering, racing, and teaching. He brings his enthusiasm for sailing to brokerage. After 10 years in the brokerage based in Tortola he has a lot of experience with the boats and the process to pass on.

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