How Much Is A Luxury Boat?
There are few things that are as flossy as buying a brand new luxury yacht. Have you ever wondered how much luxury boats and yachts cost to buy?
In this article we'll go over the money it takes to buy these fancy vessels, but before we do, we'll walk you through how they actually work.
In this guide, we'll teach you about the boat payment and the insurance that you will need to secure your new vessel. At the end of the article, you'll be in a position to start making up your mind on what to purchase.
Yachts come in different sizes. Some are incredibly tiny and extremely expensive, and others are huge and affordable. Some are designed as a family type boat, and others are for individuals who like to sail off into the sunset, feeling the wind in their hair.
How much does it cost to buy a luxury boat?
There are many different things that go into buying a luxury boat. There is the cost of the boat itself, the cost of insurance, maintenance, repairs, and taxes.
Take a look at these kinds of information for each boat below to get an idea of how much they can cost:
Art Deco Dream 23
- Body of boat: 40 feet long and six feet wide, mainsail size 24 ft., beam 3 feet
- Yacht’s engine: 5,200 cc Marine Diesel
- Maximum speed: 11 knots
- Power: 600 bhp
- Air conditioning: water heaters
- Maintenance: fuel pump and oil change annually
- Fuel Consumption: 7 liters an hour
Can I charter the yacht?
This is a good question to ask, because if you charter a yacht, then you can enjoy your own "private" sailing adventure. Chartering a yacht will allow you to enjoy your own sailing adventure, but will require the use of a captain.
Advantages of chartering a yacht
- You get to choose your sailing experience.
- You get a staff that can provide personal service and knowledge of the boat and seas
- The boat is insured, so you will be the responsible party.
Disadvantages of Chartering a Yacht
- You do not have full ownership of the boat, but you are responsible for its upkeep.
- You will be charged for your own service, fuel, and upkeep.
Chartering a yacht is a lot of work, and most captains offer hourly rates for people who wish to hire them. A couple of things to keep in mind when looking for a captain are to be sure that they are knowledgeable on what type of sailing boat you have, and make sure that they are licensed to operate the boat.
Why does the insurance cost more than the boat payment?
The insurance has to cover the boats liability in case of an accident. If someone is injured on the yacht, the owner will have to pay out of pocket for medical expenses, as well as damages to the yacht.
When buying a luxury yacht, remember that you are only renting it for the duration of the sailing season. You will not own it during the time that you are renting it.
Cost of insurance
For a boat like this, the insurance can cost as much as 5 times more than the boat payment. The insurance that is required will usually be written in perils or types.
This insurance will determine whether there are lightning strikes or hurricanes. The perils are more expensive because you are paying extra for this extra safety.
The more types of insurance that you purchase, the more you can save.
Insurance rules to remember
Here are some general insurance rules that you should be aware of:
- Always ensure that you have the correct insurance for your yacht.
- Every yacht should have a marine liability insurance policy that protects the boat against any damages caused by an accident or medical needs for anyone who might be injured on the yacht.
- No one should be allowed to operate a yacht on your yacht that is not licensed to do so.
- The vessel insurance policy will also cover any damages or costs that may come up while the yacht is being repaired.
Once you have a captain, the final step is to ensure that you keep all the rules, such as these in mind. Take the time to learn more about your yacht so that you can enjoy your time on it without worrying.
What does it cost to buy a luxury boat?
Looking at the average cost of a yacht and boat, the answer is in the thousands of dollars. This is a big ticket item.
The biggest cost here is the insurance, which is around $60,000. Then there's the boat itself, which you're going to be paying around $350,000 for.
If you go with the BMW i3, the total cost would be $68,000.
The good news is that when you buy a boat, the capital outlay is quite a lot less than that for a car. However, it's still not free, and one of the things you'll have to spend money on is yachting insurance.
It's one of those costs that's nice to know you'll have to have, but it'll likely require you spending a few hundred dollars a year to ensure your yacht's safety.
The other expense will be your insurance premiums, which is around $500 to $700 per year depending on how your boat is insured. This is because you're getting a new yacht that's generally a standard category of insurance, although you may have to pay a little bit extra for the yacht alone.
After you pay for insurance and the annual yacht insurance premium, you'll have the final bill for buying your yacht and boat to make it come in around the $200,000 mark.
In this scenario it's going to take a while for you to pay off your yacht and boat. The luxury boat business, after all, is only a tiny bit better than the supercar business.
The comparison in terms of time spent is not the same either, with the Monaco Grand Prix Grand Prix being one of the biggest and most famous races around the world, with 200 million people watching the race at some point.
Yet, you can watch the Monaco Grand Prix on Eurosport for free, and you don't have to pay the thousands of dollars it costs to buy a yacht in the United States.