Trading in your boat when buying the next one
A trade-in is convenient and usually pays less than a private sale. Ask for the trade-in value in writing, separate from the price of the next boat.
Updated 2 min read
Key points
- A dealer's trade-in offer is lower than a retail sale, in exchange for speed.
- Ask for the new boat price and the trade-in value as two separate figures.
- Time the sale and the purchase to avoid paying two berths and two insurances.
How a trade-in works
A dealer or builder takes your boat as part payment for the next one. You hand over one boat and take delivery of the other, with one set of papers and one handover. The dealer then resells your boat, which is why the offer is below what a retail buyer would pay.
Compare the two routes
- Get a value for your boat from your broker. See What is my boat worth? How brokers price a yacht.
- Get the dealer's trade-in offer in writing.
- Ask for the price of the new boat before any trade-in, and again after.
- Compare: trade-in route net cost against selling your boat and buying separately, after commission and costs. See Listing agreements and the costs of selling.
Dealers can blend the numbers: a high trade-in value can come with a firm price on the new boat, and a discount on the new boat can come with a low trade-in value. Two separate figures make the comparison visible.
Advantages
- One transaction and one counterparty.
- No viewings, sea trials or buyer surveys on your boat.
- A fixed date for handing over the old boat.
Disadvantages
- Lower value for your boat.
- Less room to negotiate if you need the dealer's help on the new boat.
- The dealer's inspection can reduce the offer at handover.
Selling first or buying first
- Sell first: you know your budget, and you do not carry two boats. You may be without a boat for a while.
- Buy first: you pick the best boat, with a period of overlap. You pay two berths and two insurance policies, and you carry the risk that the first boat sells slowly. See Marine insurance: cruising limits, agreed value, winter storage.
- Offers conditional on a sale: a seller who accepts one takes a risk. See Evaluating offers and contingencies.
Paperwork
The old boat still needs its pack, title clearance and de-registration. See The seller's document pack: VAT, registration, CE, service history and Closing, paying off finance and de-registration. The new boat follows the buying steps in Buying a yacht in Spain: the full process and timeline.
Related guides
General information, not legal, tax or financial advice. Rules change; check your own case with a professional or ask us.