Spotlight on Boat Brokers
Who boat brokers represent The majority of the time, you will be buying a boat or yacht via a boat broker. There are some key issues that you need to be aware of. Firstly, the boat broker represents the seller; not you as the buyer. His prime legal and fiduciary responsibility is to the seller; and to sell at the highest possible price he can get. While many brokers are professional, you really must expect them to act for the seller; not for you as the buyer. You may want to ask questions of the broker. Often however, you cannot get the information, or at least the accurate information, that you need. There may be many reasons for this. It could be that the broker simply does not know, as he may have many boats on his books. It is possible – indeed probable – that the owner has not told the broker everything. You may see what looks to be the same boat advertised with several brokers. It could well be. Again, there could be several reasons. In some countries (e.g. Croatia) it is common for owners to place the boat with several brokers. Some brokers operate as a sort of franchise system, where different companies operate under a common name and share data, and boat listings with one another. This can work against you if you happen to go to the ‘wrong’ broker. Paper work and the contract Paperwork is another issue. Often the broker has not got all the paperwork necessary to understand the actual service history of the boat. You also need to ensure that the various invoices support any claim of a ‘VAT paid’ status – in extremis, you could find yourself with a very expensive VAT if this is not properly covered. Note that if anything goes wrong, you have very little come-back against the broker – he is acting only as the broker, not the seller. So it is a case of ‘buyer beware’. There are important issues with the standard contracts that many boat brokers use. Before you sign anything, or pay a deposit, we suggest that you have a word with us. Our view is that many (but not all) of these contracts are unfavourable to the buyer; and can tie you down to a purchase that is not in your interests. Protecting the boat buyer – buyers representative In this complex situation, this is where can assist. Because we understand the system and its complexities and nuances, we can act for you to help protect your interests. In particular, we act to get the boat of your choice at the lowest viable price. This is where our ‘boat negotiation‘ service is so (financially) valuable to you. In a nutshell, we act for you as the buyers representative. Next step? If you desire more information, then feel free to contact us for a no-fee, no-hassle, confidential initial consultation. Simply either complete the enquiry form or phone the experienced team on +44 (0) 33 33 05 8424. We look forward to hearing from you.
Deciding What You Want From Your Boat
Deciding what you want from your boat One of the challenges when buying a boat, especially if it is your first boat, is deciding what you want. At Go Earth, we call this process “Requirement Analysis” – a term unceremoniously nicked from project management and software development. Breadth of choice So – you know that you want to buy a boat – but what sort of boat? There are more varieties of boat than, say cars. This means that – if you are to make best use of your money and get a boat that you will enjoy for a long period – you need to give it some thought. Let’s look at some of the variety of choices you need to make. All cars, for example, have 4 wheels – unless you are Del Boy! (And for the younger readers, do a Google search on ‘Del Boy car’!!). Boats on the other hand can have one, 2, 3 or even more hulls. In fact some racing yachts hardly use their hulls, as they are on foils. What about motive power? In cars, the choice is between petrol, diesel and electric. However, they are all broadly similar in that their output is rotary power – turning wheels. The differences between the main ‘power units’ on a power boat (engines) and on a sailing yacht (sails) could not be more stark. What about Price range? Again, the differences are massive. No matter how hard you try, it is really very di ffi cult to spend more than (to take an extreme) £2 million on a car. It’s dead easy to do this for a boat. Trade-offs The main trade-offs to consider when purchasing a boat of any type are: Size Age Price Subsidiary trade-offs are Condition, including service history Brand Other factors, such as the inventory seem to pay only a very minor part. Sometimes, great electronics or the availability of a dinghy and engine may be a minor factor. As a purchaser, you need to decide on the relevant importance to you of these factors. Age matters In respect of these trade-offs, boat are similar to cars. The older the car, the cheaper it usually is. There are exceptions – some classic cars (what we used to call ‘old bangers’!) may appreciate in value. However, the general rule still applies – there is a depreciation curve showing how price falls at the boat gets older. At Go Earth we have records of asking, and sold, prices for many models; so let’s take one random example, the asking prices for a Fairline Targa 48. We did an analysis of average asking prices for this model, and this is what we found. Illustrative Prices – Fairline Targa 48 In the table, the first column is the year, the second is the asking price, and the third is the annual depreciation compared with a model a year younger. These prices may be only approximately typical, but they illustrate that (as with cars) the newer the boat the larger the depreciation hit. We find that once you get to the older boats, and if you buy wisely (using Go Earth’s negotiation services!), you can suffer zero depreciation for several years. Size matters There is, however, one big difference between cars and boats. Cars are all very broadly the same size. Even the largest SUV is probably only twice the size of the smallest micro car. The size difference in boats is immense. This leads to a major impact on price. As a very approximate rule-of-thumb, the price of a boat increases as the cube of its length (as a boat increase its size in all 3 dimensions). So, a boat that is twice the length of an other one, could be 8 times the cost. Given that all boats shrink when you put them in the water (yes, I know that does not literally happen – I just mean that a boat on hard-standing always looks bigger than when it is in the water), deciding on the size of boat is a very important part of the decision making around defining your requirements. Flybridge or Sports Cruiser? Let’s take just one specific example of the sort of decision you need to make. Suppose that you are in the market for, say, a power 38 to 42-footer. Two of the main styles of boat are flybridges and sports cruisers. Which suits you best? If you are going to do this comparison, it may be helpful to know the typical main characteristics of each type. This is a summary: Flybridge Depending on the brand, there may be a limited range of models. By having a flybridge, this usually gives you more overall deck space, as you have a deck on top. Easier to manoeuvre in a marina, as you can see mostly around you from the flybridge. Two helm positions. Arguably, more traditional looking. Need to cover the flybridge with a tonneau cover in inclement weather. Flybridge is a nice space to entertain in good weather. However, the steps up to the fl ybridge can be steep, though. Better view of the scenery and surroundings from the flybridge. Slightly more susceptible to side wind, owing to higher windage. Can make berthing the boat slightly trickier in open marinas with high wind Slightly more susceptible to side wind, owing to higher windage. Can make berthing the boat slightly trickier in open marinas with high wind Cruising in warm weather from the flybridge is very pleasant. At larger sizes, flybridges tend to be the most popular choices. Higher – therefore bridge clearance can be an issue, primarily in inland waterways. More expensive per foot length, owing to an extra deck (i.e. the flybridge); but possibly cheaper per square metre of deck space. Flybridges tend to have better galleys. Sports Cruiser Possibly a more extensive choice. Less deck space. Fixed point to steer from – possibly limited visibility at some angles. One helm position. Sleeker,
Boating at Goodwood Festival of Speed
There is no doubt that the boat show scene is changing. The very long-established London Boat Show is sadly no more, and many people are saying that the typical boat show format needs to be developed and updated, and to broaden its appeal. In particular, the traditional boat shows tend to appeal to the same sets of people and follow the same format year after year. In order for the recreational boating industry to develop further, and offer more to a wider set of people (such as you, the reader), then it needs to appeal to a new set of potential boaters. Indeed, unfortunately some of the traditional exhibitors are moving away from the traditional boat shows and not exhibiting any more. The Goodwood Festival of Speed (FoS) is addressing this with its new marine section. More on this later… Goodwood Festival of Speed For those that don’t know the FoS, it is the largest show in the UK, with over 200,000 attendees. Yes – it is about twice as many as Southampton Boat Show. It takes place on the huge estate of the Duke of Richmond, north of Chichester. The show ground is about three times the size of the Southampton Boat Show ground, with plenty of variety and action to interest the visitor. It has truly massive reach across social media, with 28 million video views, and 350,000 visitors to its website during the show. The FoS has been going for 25 years, and is supported by a huge, comprehensive and effective marketing effort. Indeed, the marketing is so effective is that they have to limit the number of tickets; and are sold out before the show. One of the concerns about boat shows is that they are somewhat passive. You go around looking at the trade stalls and the boats; but there is a limit to what activity you can see. Some shows have tried to address this by offering, for example, on the water experiences. The FoS is different – it also has some really spectacular events which are at the core of what it does, such as: Incredible displays by the Red Arrows Fast – really fast (and loud) – displays by the Eurofighter Typhoon Races up the famous hill climb course by historic cars, motorbikes, racing cars and all manner of 2 and 4 wheeled vehicles (although sometimes one wheel and sometimes six!). For just one example, the video of Terry Grant doing the entire hill climb course on two wheels – in his Range Rover – is worth watching. Please don’t try this in your local high street! Stunt bike riding Attended by many very famous names in sport, especially motor sport. Many of these people also have an interest in boating and may even own superyachts themselves. Boating? You may ask where boating comes into this. Up until this year, the FoS has focused on land and air. This year it is extending its reach into boating. It has identified that many of its existing visitors are also very interested in boating. Indeed, Go Earth has successfully exhibited there for the past 3 years for precisely this reason. It is not unusual for FoS to extend its reach. It was several years ago, in 2012, that it added the successful aviation section as an integral part of the FoS – covering both fixed wing and helicopters, as well as aircraft parts and the usual supporting trades. So, the addition of boating is a logical next step. In fact, many of the big names in car manufacturers have an interest in boat development; and there is cross-over between the senior figures in both industries. In 2018, Sunseeker appointed a new CEO who was ex-Aston Martin Lagonda; and the ex-CEO of Sunseeker moved to Lotus cars. A few years ago, Princess Yachts appointed the ex-MD of McLaren as its new CEO. This cross-over between automotive and boating is common and deep. Both industries have similar interests in technology, such as engines, engine management systems, use of exotic materials such as carbon fibre, the use of electronics and the provision of luxury lifestyle products. Even more mundane items, such as cleaning products and oils have applications in both automotive and marine. (Yes, I know that cleaning product and oil technologists will speedily point out that their products are not ‘mundane’!). The boating section will be a dedicated area, complete with a boating advice centre offering free impartial advice to the curious visitor and pointing them in the direction of relevant exhibitors. There will be a select band of exhibitors offering an interesting mix of stands and attractions. This will attract some new people into boating, as well as being of interest to existing boaters. Therefore, it will complement, not compete with, existing boat shows by offering a new and different angle. One notable feature of the FoS is the willingness of people to spend money! One stand, for example, sells classic cars – some costing 6 figures upwards – direct from its stand. By the end of the show typically over half its stock on show has ‘sold’ stickers on. We envisage similar results with boats. Slightly lower down the price bracket, we think that some visitors will want to buy both auto and boating products. Interested in attending? The next festival will take place between 9-12 July 2020. For more information visit the official Festival of Speed website. Interested in exhibiting? We have been contracted by Goodwood as the official Marine Exhibition Agent for the event. Our aim is to showcase the best that the marine industry has to offer and we’d love you to be a part of that. Please contact us for more details at martin.berman@boatsearch.earth
The Boat Buying Process – Getting Expert Advice
There is no doubt that buying a boat is not a cheap exercise. It is therefore important that you get the best expert, impartial, professional advice available. This article is intended to help you get that advice, covering the full end-to-end process involved in buying your boat- whether it is your first boat or your next one. I already know what I’m doing… Maybe you do. In which case, read no further! Or, just maybe, you can save yourself a lot of time, hassle, risk and money by working with the appropriate professionals. Go Earth can assist you in this, both by providing the necessary expertise and advice, and by finding you other required professionals. However, even if you are an experienced boat buyer, on maybe your third or fourth boat, can you really beat the professionals whose job it is, and who have done this perhaps hundreds of times? In fact, if you have bought boats previously, you will know from experience that you may have made a few, possibly expensive, mistakes that in retrospect you should have avoided. Well, let me assure you – there are plenty more mistakes that can be made! The role of boat brokers There is no doubt that the best boat brokers can be an invaluable source of information. They will have experience and knowledge. Also, if they are members of British Marine, they are expected to abide by the British Marine Code of Conduct. However, there is a big issue for the boat buyer – and it is best to be honest and upfront about it. The job of a boat broker is – obviously – to sell boats, and in particular to sell the boats on their books, or that they have access to. Further, the boat broker is of course under legal contract to the boat seller. Indeed, if you were using a boat broker to sell your boat, you would expect them to act in your interests. None of this is unreasonable or surprising. As a buyer, however, you need independent advice from professionals that will act in your interests – that is the critical point – and that is where the following services can assist you. This is not intended to be critical – merely a statement of the realities. A deal will be made simply when the interests of the buyer and the seller meet; and both parties need someone to represent their respective interests. The boat procurement process In our view, this typically consists of some or all of the following stages: Requirements analysis Boat search The initial viewings Boat negotiation Sea trial and survey Any rectifications needed Boat transport Sourcing other third party services General, independent, consultancy and advice Project management of some or all of the above Let’s briefly look at the first few of these stages: Must have Should have Could have Won’t have (this time) We use our experience and knowledge of the market to help build up the requirements; and give advice on what is sensible and viable within your constraints such as budget. Boat search Once we have some idea of requirements, we can start searching for boats that meet these requirements. I can hear you saying “Anyone can do a search on Google nowadays”. That is partially true – where the ‘partially’ bit is very important indeed. At Go Earth, we have built up our search expertise, using our database of thousands of boat sources (brokers and others) and our bespoke software so that we can do a more thorough, more effective search than any individual can. The outcome of this is that you will get a wider choice of suitable (i.e. meet your requirements) boats. As a result, you should be able to get more cost-effective boats – potentially saving you thousands or tens of thousands or… (insert your own numbers here!) As a result of this, you should be able to draw up a shortlist of boats in which – on paper – you are seriously interested. The next thing is to view them. The initial viewings The sad fact of the matter is that many of the boats that you may visit may not live up to your – reasonable or unreasonable – expectations. There are two ways to handle this. The first way is simply to visit lots of boats until you find one or two that seem suitable. This is perfectly fine if you have the time and inclination, and can travel to the boats. However, if your time would be better spent on other matters – such as running your business – a second option is for Go Earth to do what we call a ‘pre-visit’. We visit the boats for you, whether in the UK or abroad, and report back on them. In this way, you can eliminate those boats that would be a waste of your time. This second option is only worthwhile for boats of a reasonable value and where your time is valuable. Boat negotiations Let’s assume that you have one, two or maybe three boats that you would seriously consider purchasing – if the price is right. You need the most cost-effective purchases. This is where Go Earth’s negotiating service comes into play. With your agreement and authority, we will negotiate the price for you. Price negotiation is an essential part of the process. Brokers do prefer to be able to tie you down to a price as soon as they can. This is not surprising – it’s their job after all. Negotiation can become very emotional, especially considering the sums involved. Go Earth can help take the emotion away, provide a buffer and enable negotiations to be conducted so that you end up with the best viable deal. We also provide the broker with assurance our client is serious about buying – provided the price is right. In this sense, it is a win-win for all. At this stage, any agreed price is of course
