The process of purchasing a yacht can be a long one. From your initial research, to shopping, to surveys and sea trials, the adventure of yacht ownership begins even before you take your first voyage!
Now that your “dreamboat” is yours, how do you stop her from becoming a financial nightmare! They key is two-fold — one, understand just what the real costs of yacht ownership are, and two, finding ways to minimize or defer those expenses.
Obviously a luxury motor yacht is expensive to purchase and to upkeep, but just how expensive is it really to own such a vessel? Roughly speaking, you can expect to spend about 10% of your purchase price annually to operate a luxury yacht. So the owner of a $10 million superyacht, can expect to spend $1 million on annual operating expenses!
Obviously the bigger and more expensive the yacht, the more costly she will be to operate. However, all motor yachts basically have the same primary expenses, such as fuel, dockage, maintenance and crew.
What Are The Greatest Costs to a Yacht Owner?
Of the most common expenditures, an owner is likely to spend the lion share of his or her operating expenses on fuel costs. According to the London Daily Mirror, a “typical superyacht owner, can expect to spend $400,000 on fuel, $350,000 on docking, $24,000 on insurance, $1m on maintenance and repairs and $1.4m on crew salaries in an average year of usage.”
This is before you add in other expenses such as taxes, the costs of cleaning and detailing after each voyage, and additional staff for entertaining such as bartenders, a master chef and kitchen help.
Obviously, a luxury yacht is expensive to purchase, as well as to operate and maintain. But, just because yacht owners are high-net worth individuals, that doesn’t mean they have to pay more than they should to enjoy their boat!
Can You Lower the Cost of Yacht Ownership?
Now that you have a better understanding of just how costly motor yacht ownership can be, the next obvious question is, “are there ways to lower my costs, and still enjoy all the benefits of yacht ownership?”
Indeed there is! Our On Demand yachting solution can help you minimize your costs and maximize your pleasure in many ways. As you have read above two of the most costly aspects of yacht ownership are dockage and fuel. Owners in our On Demand program gain accesses to dockage in our Marina Bay location, where we also sell marine fuel at a lower price than most other marinas in the area. You yacht will also be placed into a program of regular scheduled routine maintenance, which will save you money in the long run. We can also save you money with our On Demand crew solutions.
Finally, if you want to reduce the overall cost of owning your yacht by as much as 30%, consider signing up for one of our Charter Income Programs.
Operating a motor yacht can be costly. You can reduce your expenses, and avoid costly repairs by keeping her well maintained. On Demand yachting from FYM can help. If you would like to learn more, or if you have any questions or comments about this blog post, do not hesitate to contact our Yacht Management specialists, or call us at (954) 900-9968.