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The superyacht industry is awash with yacht tenders of every variety. A must have necessity for all yachts, large or small. Demand for new boats has never been so high. But what happens to all those tenders that are now of a certain age, surplus to requirements, inherited by a new owner, soon to become superceded by a newer cooler model? Nigel Upton from Superyacht Tenders is here to explain what to do with your tender in this scenario, and explain tender valuations.
How Do We Assess Value?
Consider that an average of 3 to 4% of the mothership’s value is spent on suitable yacht tenders, we are talking about a sizeable sum of money when new.
A dedicated yacht tender is not comparable to other recreational boats on the market. They are unique and have a set of specific design features which sets them apart. The more bespoke, the higher the cost.
Now that’s not to say that after 5 years, a stand alone yacht tender maintains such a value compared with other less dedicated craft. Far from it. Depreciation on a bespoke yacht tender is sizeable and pretty significant on anything semi bespoke – or with custom features.
So what is a pre-owned yacht tender really worth and who is going to buy them?
The most popular option is to re-sell these pre owned tenders to other large yachts who are in need of a replacement or an additional boat. They are kept within their intended market. Within this sector, demand will be highest for this type of product and will retain the best value from re-sale. More often than not, they’ll be sold offshore maintaining zero VAT status.
At SYT, we have been providing a yacht tender appraisal service whereby we personally visit the yacht and inspect the tenders. This service is available for owners who are looking into the possibility of selling or exchanging – but want a realistic valuation of what they currently have onboard.
How depreciation works
Generally speaking, depreciation can easily reach about 40% within the first three – sometimes more. We generally see ownership cycles of around 5 years for a yacht tender after which point the tender is sold. It all depends on the type of craft and how well it can service another yacht’s needs. Dimensions, design, and overall condition are critical factors when purchasing pre-owned tenders.
The buyer benefits from purchasing what was a very expensive asset for a fraction of its new cost. At the same time, it enables the seller to move on and facilitate the purchase of a replacement tender. This is why the pre-owned yacht tender market has grown significantly over the years and there are some very good deals around for specific buyers.
What about older yacht tenders?
Once the tender reaches a certain age, reliability becomes more of an issue. When the cost of maintaining it outweighs the benefits of keeping it, then achieving a straightforward sale to another yacht becomes much more difficult without spending a significant amount on a refit and overhaul.
Some tenders sell very quickly via our brokerage division due to high demand for that particular model whilst others may sit on the market for some time without any significant interest. This is simply down to type of tender, age, market demand and perceived value. It’s quite often the case of inviting offers and being realistic with selling prices. A tender that is 10 years old is a lot more difficult to sell than something half that age especially if we are trying to sell it to another yacht. Many tenders of a certain age are sold into the recreational market but prices are often reduced accordingly. They need to be imported correctly with the applicable VAT applied.
If a client wants an immediate decision as they are considering a replacement model then our part exchange service is the most popular choice. The client receives a guaranteed price for their tender against a new purchase without incurring any additional costs associated with continued ownership.
We have the time, experience and service providers to prepare them for resale to a specific catchment market and incur the costs that many owners would prefer not to budget for.
Growing demand for tender services
At SYT we identified a growing demand within the industry to provide a comprehensive yacht tender sales, brokerage, and exchange platform inclusive of a full advisory service for our clients.
Specific services include:
– Yacht Tender appraisal service for all yachts.
– Purchase and Part Exchange services
– Brokerage listing and all associated sales marketing.
– Yacht tender finance and leasing services
– Transport and Storage Services
Superyacht Tenders is the place to go for your next tender.
For a discreet, confidential discussion as to how we can best assist you in buying, selling, or upgrading your tender, please contact Nigel Upton on nigel@superyachttenders.net
Email: info@superyachttenders.net
Phone: (London) +44 7756 867 806 OR (Barcelona) +34 659 556 991
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