Why People Buy Boats During Economic Downturns
First of all thank you for your time to read this article.
Here I would like to mention why the most affluent people buy things like luxury motor yachts during economic down turns.
Why when there is panic being broadcasted in the news, which usually puts the general public on hold to buy a decent watch or to get their house renovated or to go for that holiday, the rich and the affluent get out there and so confidently go on buying their dream yachts? In fact, they move up a notch during these times and add extra items on their dreams too!
Simply put, during such times the motor yacht buyers get the maximum value in the product and they buy the yachts for prices which eliminates the initial devaluation of a new yacht, and adds value to the yacht for which they have a choice to sell it for a higher price after using for 1, 2 or 3 years in many cases. Sometimes they also trade-in their yacht to get a bigger one or simply they keep their yacht for long term because they enjoy it so much.
Unlike other buyers, this group of buyers also enjoy getting back very attractive prices for their yachts during resale when the markets are hot, even after many years. This is more likely when their yachts are unique and not common brands which are crowded in the 2nd hand market.
So basically, what could be more satisfying than to buy something you enjoy, and maximize your chances of making more money out of it.
If you are interested in buying a motor yacht, and you think at one point of your life you deserve a new, high quality beautiful yacht. Then its important to understand this concept and cautiously but fearlessly go ahead when economies are shaking.
I have a few tips what a buyer should be looking for, but most importantly the buyer should not wait for the markets to touch bottom to get the best price, because this is where 90% of people loose their opportunity. The same principle even applys when you invest in the stock market.
Below are the few tips that the buyers should look at if they want to get the best value possible.
1) The yacht manufacturer brand is a name that has been building boats for a long time.
(not necessarily the most famous one, but a company that has been making yachts for relatively long period, because unlike cars, large yachts are lot more complex things and are designed by taking in consideration many aspects of engineering and keen sense in space distribution. A brand that was started only a few years ago, is not yet established enough to have proper resale values and a reputation. It will be more difficult to valuate their yachts during resale. Eg, if I buy brand X, atleast I should see that in 2nd hand market around the world there should be a brand X yacht which is built in 1970s and is in working condition, and its listing price can tell you a lot about the boat's quality and the manufacturer)
2) The Brand has Quality Classification. Eg. Germanischer Lloyds etc. (This is not just for your safety, but its very important for insurance purposes, some insurance companies will not insure the boat if its travelling out of the country on its own hull, if its not Lloyds classified. Insurance companies also provide better insurace package for Lloyds classified boats, and its considered as a quality benchmark. Its also useful in times of insurance claims. but a buyer should understand that many aspects are related to the certification, from thickness of the hull, to the thickness of wiring and procedures of mounting the engines with extra supports etc, these are designed in such a way so the yachts are safe in rough waters and are reliable for longest period of time. This also increases the resale value of the yacht.
3) The designs are original and are made by a well known marine designer / architect. (this proves the fact that the factory does not hire amateurs to copy others, because there is no value in a copied product at all, plus buyers realise that company who spares no expense in hiring well known designers and executing its own original designs, will ensure the quality and lasting effect of the yacht a lot more than a copy cat)
4) The company has not changed ownerships recently. (this could be good or bad, but many times a good brand is compromised of its quality and building procedure to cover up costs by its new owner and to increase its efficiency in delivering more for cheaper prices, or simply the new owners have the money, but don't have the expertise in running a yacht manufacturing business. One of the best qualities are seen in long time traditional family owned European yacht brands)
5) The buyers should buy a quality brand that is trying to enter the market at the moment and their reason for giving excellent value is due to their strong interest in taking the market share. ( In such a case, the buyers get excellent value and also a very good resale value for years to come, which enables them to enjoy their yachts and yet keep holding on to the value and perhaps sell it for a profit if they choose, and move on to a bigger yacht)
6) The local agent of the brand is honest and straight forward, and have all maintenance capabilities to handle warranty and repair. (you don't want be charmed by a sales person to later find out they have no clue or interest in helping you maintain the yacht or will start quoting you high prices to do simple repairs)
7) The local agent of the brand is also interested in long term business development and is more transparent and is willing to offer the best value to the buyer. (this is a complex point, and mentioned because there are many brands which keep changing their dealers after every couple of years, and hence the dealers cannot make a long term plan to develop such a brand, so they cannot give the best value to the buyer, because they are interested in making their money while the dealership lasts. So do check the history of dealerships before you make a purchase)
8) Buyers should always avoid buying a brand which is too famous already and has a good share in the market. (The reason for this is, that if the brand already has its fair share in the market, then the companies have no special reason to give extra ordinary value, and moreover their brand is already crowded in the market which will not give any competitive edge to the boat when they try to resell the boat)
These are the few points that one should look at when buying luxury yachts during economic downturns to get the most out of your money.
I hope you found this article useful
For more info on boats. You can contact me anytime on baggy@asia-boating.com or visit our website http://www.asia-boating.com
Happy boating
Baggy Sartape
Article Source: http://EzineArticles.com/7094181