The yacht charter industry is experiencing a bit of a boom. The research firm “Future Market Insights” report on the state of the charter market from 2014 to 2020 predicts major progress for the industry. The report stated this is largely due to the increasing demand for yacht charters, coupled with rising disposable income of consumers, which in turn is being supported by the growing number of yacht charter destinations. This is all fueling the growth of the overall yacht charter market, now, and through 2020.
Why should that matter if you are thinking about selling your yacht? It is good news for sellers because there is a new and growing crop of yacht buyers who are realizing how they can offset the costs of yacht ownership through charter income.
If you have taken advantage of the benefits of chartering your yacht, then you know how you can leverage that as a selling point. If you have not taken your boat into charter, here are some tips on how you can explain the value of chartering to a potential buyer.
- Offsetting expenses – Chartering your yacht should not be seen as a major generator of income, (unless you have purchased it strictly to start a charter business). But, in general, it should pay for dockage, routine maintenance, and insurance. In other words, placing your boat with a good charter broker could reduce your operating expense by 30-70%, which can be significant!
- Use is good – It may seem a bit counterintuitive, but infrequently used yachts tend to have more maintenance issues. Fuel sitting in tanks and a million other things like that are bad for the boat – giving one’s yacht regular “exercise” is important. Putting a yacht into a charter program also enforces a stricter maintenance regimen which can pay dividends down the road.
- Keeps your crew sharp – Chartering enables a crew to hone their skills (after all how many weeks a year is an owner using his boat?) while also earning extra income via charter tips. After all, a happy crew is a better performing crew.
- An ego boost – There is a kind of “psychological benefit” of sharing a yacht, if only for the day or week, with other people. Most owners put tremendous thoughts and care into choosing their yacht, maybe customizing it or decorating the interior….and actually feel good that other people get an opportunity to enjoy it, particularly if the yacht is under-utilized by the owner.
- Tax advantages – This benefit is definitely one that needs to be explored by an accountant…but there may be significant tax benefits associated with putting a boat into charter. Some tax deductions that would not otherwise be available materialize because certain costs essentially become business expenses.
Even if you have never considered chartering your yacht before, as the market remains strong in 2017, if you are considering selling your yacht, now is the best time to make her available for charter.
Charting will get your boat seen. A boat that is available and marketed for charter has a higher profile relative to one that is only available for private use. A prospective buyer of a motor yacht might want to take her out for a “try it before you buy it” charter first.
Chartering a luxury private yacht is an experience like no other. Our team will go to great lengths to assist our clients in planning every detail of their journey to create the ultimate charter experience. Our Consultants will suggest the perfect yacht with exceptional service and incomparable cuisine and will prepare an itinerary of idyllic destinations as well as propose activities for all to enjoy.
Additionally, our Charter Consultants will negotiate the most competitive terms, help in arranging all logistics before, during and after the trip, and make sure that our clients have everything they wish for during their vacation.