Yacht maintenance: what does a yacht budget consist of?

On the Internet you can find many articles about where, what and how to go sailing. However, when it comes to creating a budget, for some reason many authors lose sight of one of the most important expense items - the maintenance of a yacht or catamaran. 

There is an old proverb: “A yacht is a bottomless pit into which you periodically throw money.” The same proverb applies to any expensive hobby: cars, motorcycles, guitars, audio systems. And despite the fact that in general the proverb is true, you need to take a sensible approach to the issue of financial expenses on your favorite yacht.

Another interesting quote comes from British banker J.P. Morgan: “Anyone who asks about the cost of maintaining a yacht usually cannot afford it.” Although this statement may seem harsh, it emphasizes the importance of careful budget planning before purchasing and operating a yacht.

What should you consider when creating a maintenance budget?

When creating a budget for yacht maintenance, it is important to consider a number of critical factors. A generally accepted guideline figure cited by yacht dealers and bloggers is approximately 10% of the cost of a yacht or catamaran. However, it is worth understanding that this is only a starting point, and in practice the costs can be much higher.

Condition and newness of the yacht

The more dilapidated and damaged a used yacht you get, the more money you will have to pour into its restoration and fine-tuning. Further maintenance may also be more expensive than for a brand new yacht that has recently left the slips. 

Another advantage of the new yacht will be the availability of a warranty from the shipyard, as well as from the manufacturer of the equipment on board - from engines to refrigerators. Keep in mind that the more investments you make at the start, the lower your annual expenses in the future. This is not an absolute rule, but it works in most cases.

Marina, port, pier

A place in the marina is also not free. The yacht must be left somewhere until it is used for its intended purpose. The cost of a place in a marina depends on the size of the marina, the quality of service, its popularity and the country. Also don't forget about wintering. If the winter in the country of deployment is cold, then the yacht will have to be mothballed - this is another expense item. 

Maintenance

The largest expense item. This includes almost everything: buying sails, painting the hull, replacing rigging, installing air conditioners, cleaning the engine... A trip to a specialist will cost more, but the quality of the work performed will be at the same level. Some things you can do yourself - for example, washing the deck. 

The formula is simple: the more you can do yourself, the cheaper the maintenance will be. In this option, you only have to pay for consumables. The downside to self-service is that you must have sufficient technical skills. If you do not have them, then it is better to turn to specialists. 

However, self-service does not exempt you from visiting a specialist. You will need to have the condition of the yacht periodically assessed by a more experienced person or professional.

Insurance

The amount of insurance depends entirely on the declared value and type of insurance. The more expensive the boat, the more insurance will cost. There are many ways to reduce your insurance costs, including waiving it. However, we do not recommend doing this.

We recommend reading our article about the most common reasons for contacting an insurance company.

On-board systems

Today there are a great variety of systems on yachts and catamarans: navigation, emergency, electrical (for refrigerators, etc.). The larger and more complex the systems on board your boat, the higher the maintenance costs will be. A large number of wires and equipment increases the cost of maintenance.

Fuel consumption

Even if you plan to travel exclusively by sail, you will still need to use the engine from time to time. The problem is that many boats of the same size can consume different amounts of fuel. Before purchasing a boat, research the engines and fuel consumption of different models. The difference in spending is unlikely to be critical, but you will probably be able to save some money.

Pink tax

In the early 1990s, the California Research Bureau estimated that women's haircuts and clothing costs, on average, 10% more than men's. This is how the term “rosé tax” came about. A similar problem exists in yachting. 

Almost all items, from bushings to dishes, whose names contain the words “yachting”, “yacht”, “sea”, “marine”, “skipper” or the names of shipyards are much more expensive. Life jackets, fishing rods, first aid kits, and water toys fall into the same category.

If you have the opportunity, look for alternatives to branded items at an affordable price. They will be approximately the same in quality, but the cost may pleasantly surprise you. At the same time, you should not save too much, as there is a high risk of getting a low-quality fake.

Results and options for the development of events

If we summarize all of the above, one conclusion suggests itself: many expenses on your yacht can and will be spontaneous. Because of this, there is a real situation in which for 11 months of the year the costs of maintaining the yacht really did not exceed 10% of the cost, and in one month, by absolute coincidence, you will have to pay more than expected. 

We recommend that you read our article on how you can save money on yachting without compromising your morale:

If the cost of maintenance remains too high, then you can always go on a charter trip instead of buying a boat. Obtaining a yacht license and charter once a season will cost much less than monthly expenses for maintaining a yacht. 

Another thought that is worth reminding all future and current yacht owners: it is easier to prevent a problem than to carry out expensive repairs. Regular maintenance will protect you from sudden breakdowns and wasting money on your yacht. 

New video on the Interparus channel 🎥

We continue to modify the Tanna 47 - this time we’ll talk about awnings and how to minimize the use of air conditioning on a yacht. Enjoy watching!

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03.08.2024