Analyzing the Real Cost of Owning a Luxury Boat
It is almost everyone’s accomplished dream to own a yacht, a boat or a luxury sea vessel. If not for the sheer freedom that comes with possessing such a coveted item, then for the recognized prestige and status elevation that a boat elicits from the general population. However, very few prospective boat owners ever stop to ponder about the real costs of owning a boat. Fortunately, competitive marine loan brokers, can help buyers understand what they are getting into.
The Financial Appeal
There are very few buyers ( in facy, just about 1% ) who can purchase a boat entirely by cash. Since the average price tag of a fully-fledged yacht can run into millions of dollars, a lot of owners will prefer to finance the purchase with the aid of a bank or cooperative loan than buy in cash. And just like a conventional auto finance, the repayment plan of a boat often attracts a considerable amount of interest considering that yachts are regarded as items of prestige rather than necessity. Therefore, if you’re not going to buy it through cash, brace yourself for a series of hefty monthly payments that could see you part with over 150% of the value of the boat by the time you’re done servicing the loan. On top of this, remember to add a humoungous boat insurance plan that typically varies from one insurance agent/company to the next.
The Maintenance and Overhead Costs
A boat is comparatively cheaper and easier to maintain than a regular motor vehicle. In fact, at times you only need to oversee a freshwater wash down after every use and keep the vessel well-covered in between trips. Having said that, routine mechanical and electrical maintenance is mandatory to keep expensive repairs and inconveniencing breakdowns at bay. You will have to hire a pro mechanic/engineer for this. The appropriate schedule of the routine maintenance is determined by a variety of factors which include the make of the boat, the manufacturer’s recommendation, and of course, the boat engine size. Whichever way that you choose to look at it, it is imperative that the boat engine is serviced after every 12 months or 100 hours of continuous operation.
The Operation Costs
Maintaining the boat is one thing, it is another whole different ball game to keep it afloat. Just like driving, expect to use a continuous flow of fuel whether you’re out on a pleasure cruise, fishing or out of a voyage. That explains why it is imperative to factor in the consumption of a boat before signing on the dotted line. It is self-inflicted financial sabotage to settle for a vessel with a history of chowing down an exorbitant amount of fuel. Apart from these fuel costs, you also will need to factor in the cost of accessorizing and equipping your new vessel. So, before rushing to acquire that new ship, take into consideration the costs of the various accessories, electronics, and a broad range of water toys that have to accompany its acquisition.
Apart from the dealer’s market price, there are plenty of other factors that you have to factor in ( as illustrated above ) before you head out to purchase that new or used vessel. It’s imperative to keep all factors in perspective and prepare your wallet and monthly budget accordingly.