Understanding costs is crucial when purchasing a boat, as many expenses extend beyond the sale price. A common guideline is to budget 10% of your boat’s value for these expenses every year. Let’s explore the basics of what you can expect to pay to own and maintain a boat.
Boat Purchase
The cost of a boat will be negotiated between parties using their brokers. After you picked the boat that best suits you, you also need to consider additional expenses such as taxes, surveys, registration fees and for larger boats, the initial crew and management team. If the boat you’re purchasing is not local, you should also account for a delivery and or transport fee.
Boat Insurance
Boat insurance is required by all marinas. shipyards and any service center. Banks loaning customers money for a boat will also require it. Before you buy a boat, explore the coverage options available, including liability, comprehensive, crew liability, etc etc.. The cost of your insurance plan will depend on the boat type, age, usage, your experience, your crew and many other factors.
Ask your yacht advisor to help you choose and work with an insurance broker for this.
Boat Storage & Marina Fees
There are three common storage options for your boat:
- dry storage,
- wet slips, and
- mooring.
The cost of these varies depending on your location, the time of year, and amenities offered by marinas. When selecting storage, there may be fees for electricity, water, and security.
Boat Maintenance
Much like a car, boat maintenance depends on the boat type, size, and usage.
Routine maintenance of your boat will include:
- monthly check-ups.
- engine, generator, stabilizer services as defined in the owners manual.
- Usually new bottom anti-foul every 1-2 years.
- monthly hull cleaning.
- Quarterly wax and polish
- Overall keep up of components
- If a large yacht, class surveys and check ups.
As part of your budget, set aside funds for estimated costs for regular upkeep and any unexpected repairs.
Boat Taxes
The amount of tax you pay on your boat depends on what Flag you’re going to fly. For USA, it varies by your state of residency, in Florida, vessel sales tax is capped at $18,000.00 or 6% of the vessels price, which ever is lower. For offshore registry, it’s case by case, please consult with your MMG Yachts advisor.
Boat Expenses
Much like any other vehicle, specially jets, you’re going to have your fixed expenses and your variable expenses. Fixed expenses are ones that do not vary depending on how much you’re using the boat, for example; Crew wages, marina dockage, insurance, services and crew supplies. Variable expenses increase the more you use the boat, for example; fuel, provisions, port charges, pilots, additional crew etc…
Between your MMG Yachts advisor and your yacht manager, we could give you a clear forecast of expenses.
Takeaways
When purchasing a boat, there are many expenses to consider. Once you have decided on what type of boat you would like and how you will use it, you’ll have a greater understanding of the cost of boat ownership.
An experienced broker can help answer any questions you have. Looking to buy a boat? Click here to contact MMG Yachts.
Find more answers to common questions about what type of boat should you buy, wondering about the ideal boat size, yacht charters, sales, and management on our MMG Yachts’ FAQ page. It covers topics such as booking procedures, yacht specifications, ownership details, and more, offering valuable insights for clients and enthusiasts alike.