So, you’re thinking of buying a yacht? Or maybe you’ve already taken the plunge and found your dream yacht? Either way, now, the question is, how much does it cost to own a yacht? The actual yacht purchase is only the first expense in owning it. Here are the other expenses you can expect as a part of the luxury of owning your yacht.
Unless you plan to or have paid cash for your yacht, financing will come into play to get you the yacht of your dreams. You’ll need to have a high credit score, a low debt-to-income ratio, and some genuine liquidity to get favorable financing for your new vessel. Once you have secured your financing, those monthly payments will be part of the ongoing costs of owning your yacht, an important fact to keep in mind for the months and years ahead.
Running costs include operational costs and maintenance on your new yacht. Obviously, fuel is at the top of the list, but is hard to calculate with constant fluctuations in price worldwide, as well as the number of trips you’ll take annually. Calculating fuel efficiency and utilizing that knowledge can help. During your travels, should you plan to dock for a night or longer, you’ll need marina space, another added cost. Depending on your yacht, fuel additives and propane may be other operational expenses to consider. Maintenance is another factor in the cost of your yacht and includes engine maintenance, cost of replacing outdoor fabrics, lines, and cables as needed, plus other miscellaneous items such as anti-fouling and repair of mechanical issues that arise without warning. There’s also cleaning costs as well as upgrades.
Whether or not you require a crew is dependent on your ability to perform the daily maintenance needed as well as the size of your yacht. In most cases, owners of large yachts employ a full-time crew, so they can enjoy the perks of yacht ownership and not spend all their time attending to their vessel. Hiring a full-time crew is costly, but should you choose to run your yacht alone, you may still want a crewmember or two to help you get the job done while saving money.
Mooring is another large expense associated with owning a yacht. Though unlike other expenses mooring tends to remain fixed annually, based on the size of your vessel. To get an accurate idea of what mooring will cost you, first you should choose your home port and ask for a quote. Another consideration is whether your yacht will remain in the water year round. If not, you’ll need to add in costs for transportation and storage during the off-season.
Finally, your yacht will need insurance coverage. Yacht insurance, like other insurance, comes in a variety of forms and costs. You’ll want to find an insurance agent who understands all the nuances of yacht policies so he or she can answer your questions with ease. Keep in mind, there are discounts available based on your skill and experience, as well as the safety gear with which your yacht is equipped. You can estimate your insurance expenses with today’s online insurance calculators.
So, how much does is cost to own a yacht? It all depends on your yacht! But now that you know all that is involved in calculating the actual cost, it shouldn’t take you long to make some fairly accurate calculations for your dream yacht. Bon Voyage!