Buying a boat may look tempting, but one should not just follow the instinct while purchasing it. Rather one should implement full logic and rationale while buying it. If you are looking to buy a yacht there should be practical analysis of the associated cost of the boat so that the budget does not cross the threshold. Owning a boat also comes with additional costs that should be kept in mind while purchasing it. An in-depth evaluation of the cost of the actual boat and its associated cost should be conducted to avoid any financial crunch at the time of purchase. A boat definitely has a lot of associated cost which is not very clearly shown or explained to the buyer at the time of purchase.
The following points will help you to know the varied associated costs of the boat so that you can evaluate the total cost of owning a boat.
Operating and fuel of boat-
The fuel cost of the boat solely depends on the type and size of the boat. Whether the boat is a motor yacht, sail yacht sports or day cruiser, its type will determine the fuel cost. The bigger the size, the higher will be the fuel cost. There are also other operating expenses associated with the boat such as oil, pumps, batteries, lights and other vital tools. All these types of equipment also need periodic maintenance which will be another additional cost. All these costs need to be evaluated before the deal so that you can have a peaceful purchasing process and for this evaluation process, it’s good to hire an expert who can professionally evaluate its exact costs.
Registration cost-
Each country has its own registration and titling cost. It is of utmost importance to check the registration cost of your country and state also. The registration fee varies from country to country. Once the yacht is registered, you will be given an identification number and for this, you need to pay a certain amount.
Insurance cost–
The cost of insurance should also be analyzed while pre-purchasing a boat as this will help you to evaluate the total cost of the boat while making a buying decision. The cost of insurance depends on the age of the boat, size, type, level of coverage and others.
Moorage or docking cost–
The boat needs to be stored in a safe and convenient place. While storing or docking in water, the owner needs to sign a contract and pay monthly fees or annual fees. This fee is calculated according to the size of the yacht. Similarly storing the boat on land will also cost you a certain monthly or annual fee. These need to be pre-considered while purchasing a yacht.
Trailer-
The cost of a trailer is an important factor which determines the overall cost of the boat. While with some boats the trailer comes with the boat while in other cases the owner needs to purchase it separately. A trailer is often required to haul the boat in and out of the water. In addition to the cost of the trailer, it also has maintenance and insurance costs which need to be calculated.
Boat taxes-
Each country has its own tax on buying a yacht or boat. The buyer needs to calculate the annual tax of the boat which they are interested in buying.
Pre-purchase inspection and survey cost-
Marine surveyors are accredited professionals who survey and inspect the boat in the pre-sales stage for any potential loopholes. They help to decide the valuation of the yacht. Their service is optional but it’s a pre-necessity in order to make the best purchasing decision. The fee of a marine surveyor should also be considered while purchasing a yacht.
Maintenance cost–
Every yacht has a certain annual cost which needs to be borne by the owner. It is difficult to analyze the exact maintenance cost of the boat. Normally the maintenance charge is 5 to 10% of the total cost of the boat. Pre-estimation of the maintenance fee will help to figure out the total cost of the boat while buying it.
Conclusion-
Yachts have a lot of associated cost that directly affects the buying decision. All the varied types of costs which are associated with the boats should be considered such as operating costs, insurance and registration costs, maintenance costs, taxation, inspection and survey costs, and trailer or other equipment costs. Pre-evaluating these costs will help to figure out the exact total cost of the boat.
