10 tips to save money: How much does owning a motor yacht really costs?
You are thinking of buying a motor yacht? Besides the enticing dream of sea spray on your face, the calming rhythm of the waves, and the endless horizon stretching out before you, the journey up to this point often begins with a much less glamorous phase. The budgeting.
In this guide, we'll voyage through the financial aspects of motorboat ownership, illuminate some of the lesser obvious costs and offer a practical perspective on the overall investment. Moreover, we've curated a list of no less than 10 cost-saving strategies that really work, drawing from a wealth of industry insights and hands-on experience.
Becoming a yacht owner: the effects of upfront costs
If you are already actively researching the wide range and various choices for your new powerboat, you may already be familiar with the scope of the initial budget needed to acquire the yacht of your dreams. Embracing the joys of motor yacht ownership ineed begins with understanding those initial costs. Your choices made at this stage are an important stepping stone to shaping ongoing expenses. Because as the market is offering an incredible array of yachts, from economical pre-owned motorboats that have already proven their worth in the waters to the elite, brand-new yachts complete with the latest maritime technology and luxurious amenities, follow-up and running costs are fundamentally driven by your buying decision in the first place.
There are a number of important factors you should keep in mind which are impacting motor yacht prices:
New vs. used: Whilst a new motorboat is usually equipped with latest technology and guarantees of being in perfect condition, it does depreciate faster. The ratio of the boat´s value going down is greater in the first years than afterwards. Conversely, if you buy a a used boat, this could turn out to be a more economical choice. On the other hand, second hand yachts often carry higher maintenance or refurbishment costs. Expect the initial defects warranty of the shipyard elapsed after 2 years, whilst some manufacturer´s guarantees for specific parts and equipment of a used boat might still be active.
Yacht size: of course, the size of the motorboat is a significant determinant of its cost. Generally, larger boats are higher in price than smaller ones due to the materials used and the increased complexity of their systems.
Type of your motorboat: Yachts do come in different styles, each designed for a specific use: There are cruising yachts, dynamic sports cruisers, commanding flybridge yachts, fishing boats and many more. Some motor yacht require special equipment, some not. Engines and propulsion systems are among the most costly single parts to be installed, take the IPS-propulsion as an example. On the other hand, sophisticated engines and propulsion systems with an intially high cost may save money later due to low fuel consumption.
GRP, aluminium, carbon fibres or steel: The material used in boat construction significantly impacts the initial and ongoing maintenance costs. For instance, aluminium and steel boats may have a higher initial price and demand consistent maintenance. On the other hand, fibreglass boats are cheaper to make in large volumes and offer the benefit of less frequent upkeep.
10 cost-saving strategies that really work
Having touched on the subject of initial purchase prices, let´s take the next step and look at the running costs. For many owners-in-being, this is in fact a book of riddles. Unlike your house or car, a yacht will need a budget to cover running costs. As a rule of thumb, expect 10-20% of the purchase price as your annual expenses. If your boat is on the 10% or the 20% side depends on many factors, like the ones mentioned above, and of course, the area where the motor yacht is based. We have compiled ten hints for you to keep down those expenses, proven by many owners.
Cost Saving Tip #1: Plan ahead – only work with the pros
An informed choice today can save significant expenses down the line. As much as it is fun and excitement to work yourself through the world of motor yachts, seek help of dedicated experts. A professional evaluation of the boat you have in mind can unearth potential issues, giving you a realistic picture of the boat's condition and any possible maintenance or repair costs. To ensure cost-effectiveness, prioritise a pre-purchase survey for used boats.
Try to get a complete picture of the ongoing cost of boat ownership: you've likely established a plan to tackle the initial purchase costs. Either by paying the full price of your yacht upfront or setting up a loan scheme with manageable monthly payments. But the financial planning doesn't stop there. An account for the ongoing running should preferrably be as complete as possible.
Cost Saving Tip #2: No bargain with maintenance will save money in the long run
Apart from the demurrage or crew-costs, which could be determined relatively easy, the bulk of budget will be utilized for maintenance and engine service. Maintaining your motorboat in top shape involves a spectrum of activities that ensure its longevity and operational safety. Above all, the boat motors should always have top priority. Regularly scheduled engine checks and services are a matter of course. Frequent hull cleanings, propeller inspections and electronic equipment tests are just a few examples of the routine maintenance required. But how much does it cost?
Typically, a bill for boat engine service in the UK can vary between £100 and over £500, depending on the engine-type. For a motor yachts this is recommended at least once a year or after every 100 hours of operation, whichever comes first. Professional services often conduct a comprehensive inspection, including fluid and filter changes, spark plug checks or belt adjustments, among others. Don´t bargain on this one – the engines of your yacht are the beating hearts, you want them to be strong.
Proactive maintenance is the secret to cost-effective boat ownership. Regular checks and servicing can help identify potential issues early, preventing costly breakdowns and prolonging not only the life of your motorboat but keeping up its value over time.
Cost-saving tip #3: Choose berthing locations wisely
Berthing and storage fees are regular aspects of boat ownership that are worthwhile to consider. These expenses can vary greatly based on the location your yacht is moored, the marina's amenities and status and the season of the year. For instance, harbouring your motorboat in a premier spot during the peak season might have a different price tag compared to off-peak storage in a less frequented area.
When putting your motor yacht in storage, you may not only just consider budgetary aspects but also look at the technical facilities of the location. Using your off-season and storage time for above mentioned maintenance and service efforts may require certain technical facilities and service providers on the premises or nearby. In general, investigating seasonal storage rates for your power boat and considering to use marinas during off-peak periods can save considerable amounts of money.
Cost-saving tip #4: A dive into yacht insurance premiums
Motorboat insurance should be a non-negotiable expenditure: A yacht is a very valuable asset that needs to be protected by various insurances. You want to have a peace of mind and be covered for the various hazards of damage or fault that can happen to a motor boat, so choosing the insurance should not be done under the prime intent of saving money. However, seeking offers from various providers specialized in yacht insurance may reveal a certain scope of cost saving potentials.
The cost for insurance protection is influenced by factors such as the boat's value, type, size and your experience as a boat owner. Other important variables include the intended use of your boat, the navigational area and the storage location during off-season.
As some insurance providers offer discounts for multiple policies, you may want to bundle your boat insurance with your other policies.
Whilst securing all required boating qualifications and licences is an essential part of the process for safe operations, it could potentially impact your insurance premiums too.
Cost-saving tip #5: Getting down the operational costs of your yacht
Operational costs include all expenses needed to run the motorboat. That said, it is mainly the fuel, engine oil and general maintenance. The figures can vary widely depending on the engine size, the frequency of use and the average speed at which you cruise.
If these numbers are on the higher side, it's a good sign you're traversing the globe on the one hand, but also a higher drain of your budget on the other. You may want to balance your strive to indulge in the real heart of the sailing experience and reduce cruising speeds to a more economical range. This often only requires surprisingly little adjustments and can have a great impact on fuel consumption and engine wear and tear.
Cost-saving tip #6: Tied-up yachts cost money
As much as you may want to fulfill the suggestions hinted in tip #5, a complete standstill is otherwise not recommended. Avoid long periods of inactivity for your motor yacht. Because regular use of the boat´s engines will help to maintain their health. This will also potentially prevent expensive repairs down the line for other onboard systems, which are connected.
Apart from storage costs or demurrage, a boat that isn´t in use will deteriorate faster, impacting the resell value of the vessel greatly. If you have to tie your yacht up for a longer period of time, make sure that the boat is professionally mothballed and prepared for that storage period.
Cost-saving tip #7: A clean yacht is a good yacht
Whilst maintenance will make sure that all runs nicely, a clean motorboat is a different game. Spruceness goes beyond mere aesthetics: a clean yacht is a vital key for its longevity. Protecting your boat against saltwater corrosion or the harmful effects of dirt and marine growth is an important part.
If you prefer to hire professional cleaning crews or enjoy to do it by your own from time to time is up to you as a boat owner. In any way try to maintain a regular schedule. DIY cleaning may be done monthly, professional hull cleaning is recommended bi-annually. Be aware that some areas may require more cleaning efforts due to external factors or weather patterns.
Cost-saving tip #8: Don´t save on your yacht´s safety equipment!
As much as we love to indulge in the luxury of a carefree summer´s cruise, safety should always have first priority. As a yacht owner you should invest only in high-quality, durable safety equipment. While the upfront cost might be higher, it can save you money in the long run by not needing to replace these items frequently. And of course, if things go wrong, you may want to rely on fail-safe high quality emergency equipment!
That said, investing in essential equipment such as life jackets, first aid kits, and fire extinguishers is crucial. Include latest technology, emergency technology to your yacht´s specification list: active AIS, personal EPIRBs for life jackets and even state-of-the-art collision prevention technology such as A.I.-assisted FLIR-cameras can make a true difference, especially for offshore yachts.
In any case, check the requirements by maritime regulations. A research into the specifics of the navigational area your motorboat will be based in can also reveal necessities in this respect. Be aware that your decisions will greatly influence how you, your family, your guests and the crew are safeguarded against unforeseen circumstances.
Enhancing onboard safety will make sure your peace of mind as a yacht owner.
Cost-saving tip #9: Regulatory motorboat running costs
A little less exciting than the last item, optimising regulatory boat running costs can save you money indeed. These expenses are related to permits, licences and fees associated with owning and operating your yacht.
Among those could be annual registration fees, marina fees or environmental management charges which apply in some areas. Familiarise yourself with all potential fees and permits associated with boat ownership in your area to avoid surprise charges. Choosing the location where your motor boat will be based can significantly increase or decrease the amount of fees you may have to pay.
Cost-saving tip #10: Your boat on the road
Sometimes it may be necessary to arrange for a road transport. Those should only be executed by high specialised heavy duty road haulers who know their way around. The costs for transporting your motorboat over land, whether for storage, repairs or changing cruising locations, are primarily influenced by the boat's size, weight and the distance travelled.
It's also crucial to consider the necessary permits for oversized loads, cost for support vehicles or Police escort. Special insurance premiums for the transportation period may be required.
Try to enhance efficiency by combining the transport of your yacht with other necessary activities, such as scheduled maintenance.
Quick guide: Summing up yacht running cost saving tips:
Pre-purchase surveys: Seek professional assessments to identify potential issues before buying a used boat, avoiding unexpected repair or maintenance costs in the future.
Proactive maintenance: Regularly service your boat to detect potential problems early, helping to avoid breakdowns and extend the life of your motorboat.
Smart berthing and storage choices: Research seasonal storage rates and consider opting for marinas during off-peak periods.
Insurance bundles: Consider bundling your boat insurance with other policies, as many providers offer discounts which can lead to considerable savings.
Optimise operational costs: A smoother use of your boat´s speed potential will significantly reduce fuel consumption and safe money.
Regular boat use: Avoid lengthy periods of inactivity by using your boat regularly, which helps keep the engine and other systems healthy and can prevent repair costs.
Clean your yacht regularly: Either by your own DIY activities of the help of professional yacht cleaners. This will not only secure a spotless appearance but also ensure less deterioration.
Invest in durable high-grade safety equipment: Choose high-quality, long-lasting safety gear for your boat. While the upfront costs may be higher, frequent replacements can be avoided, saving money in the long run.
Understand regulatory costs: Stay informed about all potential fees and permits related to boat ownership in your region.
Combine boat transportation: Schedule your boat transportation in line with other necessary activities like maintenance or storage.
Unplanned and unscheduled: Extra and unexpected boat running costs
Most of the before mentioned budgets can be pre-planned pretty easy, based on a thorough research. But beyond those usual running costs, there might come up the need to unlock budgets to cover unexpected expenses. Some of which may be due to external circumstance, some may originate in your own decision to opt for a special upgrade for example. In view of this, here are some possible situations to consider:
Costs | Description | Range (GBP) |
|---|---|---|
Weather-related damages | Repair costs due to storms, hurricanes, etc. | £200 - £20,000+ |
Emergency repairs | Immediate boat motor service, systems, or damage costs against propellers, hull breaches, etc. | £200 - £10,000+ |
Towing and salvage costs | Costs of towing a broken-down boat or salvage after sinking/grounding. | £150 - £5,000+ |
Travel and transportation expenses | Costs related to overland transportation of your motorboat. | £100 - £2,000+ |
Performance maintenance | Upgrades for maintaining/improving boat speed and handling. | £100 - £5,000+ |
Extended warranties and service plans | Cover parts and labour for specific system/component repairs. | £100 - £3,000+ |
Boat customisation | Includes interior redesigns, exterior modifications, and engine upgrades. | £500 - £10,000+ |
High-end electronics | Advanced navigation systems, marine radars, and high-end entertainment systems. | £100 - £10,000+ |
Luxury upgrades | Aesthetic upgrades like high-quality upholstery, teak decking, etc. | £200 - £10,000+ |
Fishing equipment | High-quality rods, reels, fishing tackle, and bait. | £50 - £1,000+ |
This is an incomplete list as the scope of unexpected events happening is sheer endless. It may be advisable to have an emergency budget ready at all times to being able to cover those expenses. A good rule of thumb can be to make this budget as big as the most expensive single item of your boat´s equipment. For motor yachts this can be the price of an engine or IPS-unit. Having 5-10% of the boats initial purchase price available is indeed a safe bet for peace of mind.
Can shared ownership decrease motor boat cost?
Shared ownership, either with friends or – sometimes professionally managed by specialised service agents – can reduce the amount of both the purchase price and the running costs for each individual involved, as fees are split evenly.
Whilst this may indeed be a welcome effect, shared ownership also means that the amount of time spent on the yacht as well as the freedom of choice regarding the specific dates is limited: the more owners share a yacht, the more matching and coordination will be necessary.
To make co-ownership work, the main factor it depends on is the parties involved. The success of shared ownership relies on clear communication, trust among all the owners and well-defined terms of use and maintenance responsibilities.
But of course, fractional ownership indeed offers an attractive alternative to financing a motorboat without bearing all the full costs.
How much does it cost to run a boat? - The bottom line
Of course, our guide cannot give a concrete number. It may work as a base from which you start to execute mindful planning and practical budgeting. The joy of boating clearly begins with the initial purchase. But it is just a start. Managing the other expectable ownership costs will paint the full picture to help budgeting your yachting project. To make every penny spent enriching your experience, preparation is the key to smooth sailing and mitigating surprises.
If you have any lingering doubts that need clarity, don't hesitate to contact your local dealer for expert guidance. Their seasoned advice can be invaluable in confidently navigating these financial waters.