The price of the boat depends on so many factors; one among them is the place you are buying it. The boat you are looking for might be expensive at your place, but the same boat might be cheaper in some other regions (like in Europe). So, are boats cheaper in Europe, and why?
Boats are cheaper in Europe because more boats are available there(including used ones), reducing the price due to more supply than demand. However, buying a boat in Europe and using it at your place could sometimes result in paying more money on transport, taxes, electric changes, etc., than gains.
Supply and demand are crucial in any business. The price alterations (reductions) are mainly due to the demand; if there is a demand for any product, there’s a business potential; otherwise, there is no potential. In Europe, the reverse of that is present in the boating industry (less demand and more supply).
There are many boats available in Europe, mainly used boats due to their boat and yacht charter industry. The boat or charter industry will constantly be upgrading or buying boats, and used ones will be released in the market for sales. So, more boats imply the price fluctuates, and it could go down.
In any market, if there is more supply than the actual demand, the price drops down. That’s the main reason why boats are a bit cheaper in Europe compared to other places like in the USA, Canada, etc. However, it doesn’t mean that every model will be cheaper in Europe; it depends on that model’s market demand.
It also doesn’t mean that you can simply fly to Europe and buy a boat and save lots of money. Bringing the boat back to the US (or any), paying taxes, wire conversions (220V to 110V), money transactions, accommodations in Europe, etc., all of them require some money, and sometimes it could take more money than your savings on that boat.
So, it may or may not work for everyone. However, buying a boat for $100K’s or $200k’s or more could actually save some money. But on a boat less than $30,000 or $50,000 (it is not positive), you might not save any; instead, you might spend more than your savings on that boat.
There will always be places with an oversupply and other regions with higher demand. Oversupply + High or moderate demand results in good sales. Rest will make trouble either to the buyer or manufacturer.
It also depends on the place in Europe you buy. The boats in the Mediterranean region are much cheaper than in northern Europe. There are many countries in Europe, and the boats are often cheaper in Croatia, Turkey, and Greece. Many people buy in those regions compared to other regions.
If you buy a boat locally, you can also manage the potential costs by thorough inspection (before paying for a surveyor). You may be able to shop around local tradespeople or by getting off-season discounts; you can’t do that when you’re in the USA, and your boat is in Croatia or Turkey.
So, if you are patient enough and have the money and found the boat you are looking for, then go for it. However, once it arrives, you have to pay duties and taxes. Finally, you’ll have to have it changed to your local marine laws. And change the onboard electrical system from 220v to 110v. So, “THINK.”
Finally, depending on the type of boat you are looking for, several other factors will also determine the vessel’s pricing (the same make and model as its American counterpart). These factors include the boat’s age, the location you are buying in Europe, and the time of year.
Related post – Are boats cheaper in the winter? Check this article to know why they are cheaper in the winter and how much money you could save while buying one in winter.
Check this short video to know all the insights of buying a boat in Europe (like what all needs to be looks for, etc.)
Will you actually save money buying a boat in Europe?
First, to be clear, boats are cheaper in Europe compared to other regions like the USA, Canada, etc. But at what expense will you save money, and how much will you save while buying a boat in Europe? Will you actually save money buying a boat in Europe?
Although boats are cheaper in Europe, sometimes you might not be able to save money due to taxes in your regions, electrical conversions (220V to 110V), money transactions, transportation charges if you don’t know operating it, and accommodations (flights, stays, etc.) in Europe.
You need to go there and stay there for that period, and all the traveling expenses, 220V to 110V conversions, money transactions, and shipping will take money. So, in return, you might spend more money on these things than your savings on that boat. Unless you are buying around $100k’s or more, you might not save on smaller ones.
If you buy a boat locally, you can also manage the potential costs by thorough inspection (before paying for a surveyor). You may be able to shop around local tradespeople or by getting off-season discounts; you can’t do that when you’re in the USA; your boat is in Croatia.
We can’t simply get huge discounts on boats; you need to put all those efforts into getting that. If you are lucky enough, you might save huge sums buying a boat in Europe; otherwise, you might end up paying more than the boat savings on others. We will now see them in a detailed way.
Taxes will take some percent
When buying a brand new boat in Europe and taking the vessel out of Europe straight away, you will not have to pay VAT tax (sales tax in Europe). When the boat gets to the US, you have to pay 1.5% of the boat’s value in (duties) import tax to customs when goods enter a country.
However, if the boat was originally manufactured in the US, or if a previous owner imported it to the US and then moved it back out to Europe, you won’t have to pay the import tax if you are buying that boat. The import duties are taken by the federal government (country), not the state.
The state charges other taxes like sales and use (property tax) tax if you keep the boat in the state for a specific period of time, usually 3-6 months. Sales tax could max 10% of the boat’s price. Alaska, Delaware, Montana, New Hampshire, and Oregon don’t require sales tax. Property tax will be $100 or more per year.
Likewise, depending on the state you live in, you might have to pay around 10% to 15% of the boat’s price on taxes. On average, $10,000 to $15,000 on a $100,000 boat will go for taxes, and the money you saved on purchasing it in Europe might cover some percent in taxes.
Shipping will take some percent
If you are looking to buy a boat in Europe and bring it back to the US, it’s probably not nearly as cheap as it sounds most of the time. However, if you are looking for a boat to sail in Europe, it’s a great time to buy. Since you will be bringing back the boat, shipping will cost you some money.
If you are buying a sailboat and have enough experience, you can bring it to the US by yourself in weeks. If you are new to boating and worried about shipping, you might need to spend around $15,000 to $50,000, depending on the boat, to land it in the US.
The shipping cost also depends on the size and cost of the boat. Shipping is going to be expensive, and it will eat most of your savings on that boat. And if it is a sailboat and your mast is one piece, it needs separate authorizing depending on length, which is another expense.
Suppose there is any damage that occurred while shipping; it will be difficult to claim the insurance because insurance will be given after seeing and inspecting the vessel that entered into the US. So, you should think about all these things prior. Shipping is the only part that concerns most.
Electrical conversions (220V to 110V) will take some percent
It is important to understand the underlying concept that if you try to run the same amount of power through a wire using half the voltage, it takes twice the amps. More amps mean more heat and could possibly require larger wires. So, properly sized wires are even more important.
Europian is 220V at 50Hz vs. 110V at 60Hz in the US. Changing wiring and systems to go from 220v to 110v will be expensive. You best look into that before going forward. A 110V wire will be thicker compared to a 220V wire due to current (not voltage), so the total amp load on a circuit must be sized for 110V.
Outlets will be in a different pattern. So any boat under consideration needs to be looked at separately as they’ll be outfitted differently. Otherwise, you can install a transformer to convert the 220V to 110V on the onboard circuits. Then you have to deal with any built-in components (battery charger, A/C, frig, etc.) to see if they can be run at 60hz.
However, most of the marinas or docks in the USA provide 2 phases which will give 220V and 110V across the phases. The best is to find someone who’s using a 220v boat locally before you automatically jumping into the cost and trouble of converting your wirings.
Accommodations will take some percent
Finally comes the accommodations cost in Europe. Unlike online shops, boats can’t be ordered online just like that. As a buyer, you need to go to the shop and inspect it; since your shop is located in Europe, you have to go to Europe. It requires money for traveling, stays, food, etc.
You need to spend $1,000s on the flights and 100s for staying at the hotels and food bills, cab bills, etc., and also you have to take weeks off work to do it. Overall, you might be spending around $5,000 or more on the accommodations; all this is just to look at a boat. Then bringing it back to the US is another story.
If you buy a boat locally, you can also manage the potential costs by thorough inspection (before paying for a surveyor). You may be able to shop around local tradespeople or by getting off-season discounts; you can’t do that when you’re in the USA; your boat is in Croatia.
So, apart from losing all this money buying a boat in Europe, you have to get some discounts on the boat. Otherwise, it is a waste of time and money. So, roughly calculating all the costs will give you an idea of whether it’s a good or bad idea to buy in Europe than in the USA.
Money transactions will take some percent
To do all those things, you need money. Since you are in other regions (in the USA), first, you need to switch the dollar into European currency (Euro or Pound in the UK), and then it needs to be transferred. All those conversions and transactions will take some percent as a fee to do that.
The dollar to euro exchange rate can change at any time, and there are other transaction fees involved when you try to buy European stuff using dollars. Just one small tip, don’t use banks to do your dollar transfers. Use one of the currency traders, and this could save you around $5,000 or more on $100,000 transfers.
You can expect to lose anywhere around or up to 5% due to all those transactions, exchange rates, and wire fees unless you plan to board the plane with a suitcase full of dollars, which can also be problematic when it gets confiscated, or any legal issue could occur.
You need to be able to make a profit out of the purchase (in Europe) apart from paying all these extra bills. Otherwise, you will be wasting your money and time. So, do your calculations before purchasing the boat and check whether you will save money doing that or not.
The key takeaways from the post
Boats are a bit affordable in Europe compared to the US due to more supply and less demand in Europe (more supply drives the price down). Sometimes the whole process results in paying more money on shipping, taxes, electric changes, money transactions, etc., than actual savings on the boat in Europe.
If you buy a boat locally, you can also manage the potential costs by thorough inspection (before paying for a surveyor). You may be able to shop around local tradespeople or by getting off-season discounts; you can’t do that when you’re in the USA; your boat is in Croatia.
All those shipping charges, extra taxes, 220V to 110V wire conversions, (dollar to euro) money transaction fees, and accommodation could take all the money you might save on the boat. So, buying in Europe and using it in the US might work for some people but not for everyone.
Many people will do it all the time; if you are patient enough and have the money and found the boat you are looking for, then go for it. However, sometimes, when the dust settles, you might pay a lot more to buy in Europe and bring it to North America. Consider all these things before doing that.
