Maybe you’ve been thinking of buying a yacht? Or perhaps, you’ve already found the yacht of your dreams and made your purchase? Whether you are still looking for your perfect yacht or already own it, the question is how much does it really cost to own a yacht? Purchasing your yacht is the first expense you face, but there are others which come with the luxury of owning your yacht. Let’s look today at yacht ownership as we count the cost together.
Financing
Unless you plan to or did pay cash for your yacht, financing will be part of the purchase. To qualify for favorable financing of your luxury yacht, you’ll need a stellar credit score, along with a favorable debt-to-income ratio as well as indisputable liquidity. Once your financing is secured, monthly payments will become part of the costs associated with yacht ownership.
Running Costs
Running costs are the total of your operational costs and the maintenance for your yacht. Fuel for your yacht is a large part of running costs. It is based on the trips you plan to take annually as well as the ever-changing prices. Knowing your yacht’s fuel efficiency at various speeds can help you economize and plan for annual fuel costs. In addition to fuel costs, fuel additives as well as propane will contribute to operational costs. Plus, for your travels you’ll have expenditures for your slip when you dock at a marina for the night or more.
Maintenance is another portion of running costs which is hard to predict. Maintenance can include engine maintenance (both scheduled and unscheduled), as well as the cost of outdoor fabric replacement, as well as the replacement of vinyl, cables, and lines. Anti-fouling paint is a regular expense for yachts kept in the water and means haul-out fees as well. On top of that, there is the cost of cleaners, wax, polish, teak oils, and more. It is estimated that annually, 10 percent of the value of your yacht is needed for maintenance costs, which in turn keeps your vessel looking great and operating well, increasing your potential resale value.
The Crew
Depending on the size of your yacht, you may need to add a full-time crew to the cost of owning your yacht. Generally, those who own yachts larger than 70’, employ full-time crews to attend to daily maintenance and running of the yacht. While doing so is costly, it allows you, as a yacht owner, to enjoy all that comes with yacht ownership. Even those with smaller yachts often chose to hire a crew of one or two to help with daily maintenance.
Mooring, Transportation, and Storage
Another large expense for yacht owners is mooring, but the good news is it is a fixed cost based on the size of your yacht so you can plan accordingly. You can get an accurate estimate of the cost of mooring by selecting your home port and getting a quote. If your yacht won’t be in the water year-round, you’ll also need to factor in transportation and storage expenses for the months you won’t be using your vessel.
Insurance
Last, but not least, your yacht will need insurance. Like other insurance coverage, yacht insurance is offered in various forms at equally varying costs. For the best rates, seek out an agent who knows the ins and outs of yacht insurance and can answer your questions. Discounts are often available based on your experience and abilities, and the safety protocols in place on your vessel. You can even get an estimate of insurance costs using online yacht insurance calculators.
A Final Word for Yacht Owners
Now you have it, all the information you need to calculate the cost of yacht ownership. When it all adds up, you may find you are at a number nearing 25 percent of the value of your yacht’s value. Even so, yacht ownership offers perks unlike anything else. Plus, here in South Florida, those perks are available year-round and when you conveniently anchor your yacht at the Lighthouse Point Yacht Club, you also gain all the benefits of yacht club membership.