The question of whether a former charter yacht is a good purchase option or rather a bottomless pit is one that concerns many of our customers, because Croatia in particular, which with a fleet of around 6,000 boats is considered the densest charter area in the world, flushes countless yachts onto the used boat market every year.
As an appraiser for boats and yachts, we naturally see a large number of vessels from both worlds – the charter market and from private owners. And from our many years of experience, I can say that, as is so often the case in life, the answer is not simply black or white.
A blanket aversion to ex-charter boats is just as inappropriate as blind euphoria for supposed bargains. After all, they do exist, the well-maintained and serviced charter yachts that are in no way inferior to many an owner’s yacht – and there are also neglected owner’s boats that make you wonder whether the term “collector’s item” wasn’t meant rather cynically.
So it all depends on the individual circumstances. Let’s take a look at these together:
The decisive factor: who do you buy from and who owns the boat?
A key point when buying an ex-charter yacht is its origin. Large, renowned charter companies with a professional infrastructure and permanent staff simply cannot afford to neglect their fleet technically. Every breakdown during the season costs not only money, but also reputation. And for this reason, these yachts are generally subject to strict maintenance schedules.
While it can happen with smaller charter companies that they improvise during the season due to time pressure or a lack of spare parts and a less than professional repair remains to be criticized in the course of the inspection.
Another indicator that should not be underestimated is the question of whether the yacht was owned by the charter company or whether it belonged to a private owner and was listed under a charter management contract.
Experience shows that charter companies often take a closer look at their own boats. They have the long-term well-being of their own assets in mind. While the check-out of boats in charter management is sometimes a little “quicker” – at the end of the day, the owner is often left with complaints or repairs.
Mind you, this is an indicator that may not always be true, but it certainly justifies a closer look behind the scenes.
Condition and typical defects: Where to look closely?
Charter yachts are used intensively – and not always by experienced crews or skippers, which of course inevitably leads to a higher degree of wear and tear compared to owner yachts.
However, the good news is that this is usually limited to cosmetic defects or damage. In terms of technology and maintenance, however, ex-charter yachts can regularly keep up with their privately used counterparts and often even surpass them. As mentioned at the beginning, this is because they want to avoid downtime during the season.
But what exactly are the differences?
Well… In order to provide an objective answer to this question, we have analyzed and compared the defect data from 50 expert reports from both ex-charters and owner-operated boats. With some surprising findings, as illustrated in the following chart:
As was to be expected, our evaluation confirms that ex-charter yachts are at a disadvantage compared to owner-operated yachts, particularly in terms of their visual condition (hull and interior).
Ex-charter boats also show slightly more structural defects, which is certainly due to a higher frequency of groundings.
On the other hand, they score points in all technical aspects, which once again underlines the usually more comprehensive maintenance.
Leaving aside the few cases with structural defects, one can confidently conclude that the repair of cosmetic damage on ex-charter yachts is often less expensive than the elimination of various maintenance backlogs on owner yachts.
Again, this calculation does not always have to work out – but it should certainly be made by an interested buyer.
Price negotiation: Sober cost accounting versus emotional commitment
Another phenomenon that can be observed time and again concerns price negotiations:
Charter companies view their boats as a sober investment object. And the sales price is usually set between the purchase price, the charter income generated and any reinvestments as well as the current market conditions. You know the environment and will strive to prevent too long a downtime by setting a “realistic” price.
In contrast, I very often find that people are far too emotional when negotiating the price of an owner’s yacht because they associate many fond memories with the boat and apparently include something akin to “compensation for pain and suffering” in the sale price. Naturally, potential buyers do not necessarily want to honor this.
In addition, charter companies almost always sell through brokerage firms, which also have experience in dealing with surveyors and have tailored their contracts accordingly. This means that a preliminary contract is usually concluded in which it is also clearly regulated how the result of the survey is to be dealt with.
The bottom line is that price negotiations for ex-charter boats are often easier, as sober cost accounting without sentimentality is the main argument.
Proof of value added tax
Irrespective of the discussion about status issues, it is always worth taking a closer look at the VAT certificate.
It is not uncommon for me to find myself sitting in front of folders of documents, manuals and repair invoices at the end of an appraisal of an owner’s yacht, only to discover that the proof of VAT deduction promised in the advertisement is not available after all. This exposes the buyer to a not inconsiderable risk of subsequent taxation – especially as there is still no clear and, above all, EU-wide case law on the subject (yes, this is the case – regardless of what various clever articles would have you believe).
When you buy an ex-charter yacht, on the other hand, you receive an invoice with VAT shown and the matter is documented and settled once and for all.
Quo Vadis Charter Market - SNAPPING ANTE PORTAS?
Last but not least, I would like to mention another interesting aspect for potential buyers of ex-charter yachts:
Anyone who was (or is) traveling in Croatia last year and especially this year will have noticed that things are noticeably quieter in the usual strongholds of the industry than they were two or three years ago.
Industry insiders also confirm that bookings have fallen by around 30% compared to 2023. At the same time, there are currently no signs that the economic conditions in Europe will allow us to expect a recovery in booking figures any time soon.
Against the backdrop of constantly rising maintenance costs and mooring fees, it is therefore to be expected that the fleet will undergo a slimming down process from the fall and that many boats will be listed for sale.
Anyone familiar with the law of supply and demand will recognize that this will not be to the detriment of potential buyers.
The key points in a direct comparison: ex-charter yacht versus owner's yacht
Ex-charter yacht
Technical maintenance
Ex-charter yachts usually have good technical maintenance, especially with larger and renowned providers
Repair or refit costs
Repairing cosmetic defects is often cheaper than eliminating maintenance backlogs
Professional sales processing
Contract drafting by experienced brokers and more objective price negotiations
Clarity on value added tax
By invoice with VAT shown
Cabin layout
The cabin layout is generally designed for the maximum number of crew and is therefore less spacious than on owner yachts
Cosmetic defects and blemishes
From minor impact damage to wear and tear on the interior
More difficult resale
Due to widespread reservations
Owner's yacht
Layout and equipment
Mostly more spacious cabin layout and better equipment (comfort and navigation electronics)
Care and visual condition
At least when it comes to maintenance and visual condition, owners generally take care
Easier resale
Buyers often reward a verifiable private owner history
Risk of maintenance backlogs
Out of sight out of mind - less prominent installations are often neglected during maintenance
Sales processing sometimes complicated
From providing the necessary documents to drafting contracts and negotiating prices - private owners or sellers can sometimes be a bit of a hassle.
Unresolved VAT issue
Especially with somewhat older boats, it is often difficult to prove that VAT has been paid in the context of private sales.
Conclusion: An opportunity for informed buyers
In summary, it can be said that an ex-charter yacht can be an attractive option if you are thinking of buying a used boat.
The key to success lies in a careful selection of the provider, an understanding of the typical characteristics and, last but not least, a careful inspection of the ship – preferably by a professional surveyor.
If you can live with the functional layout designed for maximum occupancy and focus on a solid technical basis, you can acquire a well-maintained and reliable boat at a fair price.
Don’t be put off by horror stories, but don’t be naive either. If in doubt, always consult an independent expert. After all, what counts in the end is not whether a yacht was chartered or owned, but its actual condition – and this needs to be assessed objectively and expertly.