Cost of ownership and other questions
The general rule of thumb is that the overall annual ownership costs of
a boat averages ten percent of the purchase price of the boat. So a
$100,000 boat, $10,000 per year ownership cost. This includes moorage,
insurance, fuel, haulouts, maintenance, repairs, upgrades and all the
other 1,001 things that have to be done to keep a boat on top of the
water. Some years will be less, some more, and ownership costs will be
mitigated somewhat if you are willing or able to perform some of the
maintenance and repair jobs yourself. But over time that ten percent
per year figure seems pretty accurate.
C. Marin Faure
GB36-403 "La Perouse"
Bellingham, Washington
Marin: I do not at all question the 10 percent estimate and this isn't the first time I've seen it cited. What I can't quite figure out is why a $500,000 boat would cost twice as much to maintain as a $250,000 boat. It would seem that a newer boat, of a similar make/model, would cost less to maintain than an older boat. We are looking at buying a boat and trying to decided whether to buy a new boat (with less upkeep and maintenance) for more money or an older cheaper boat (with more upkeep and maintenance). As the owner of an 1860s house, I can attest that the maintenance costs (even doing much of it myself) are significantly higher than the costs of a brand new, well-built home. Can anyone help me out here, or give me some references I can look at?
Jonathan Haas
"Faure, Marin" marin.faure@boeing.com wrote: The general rule of thumb is that the overall annual ownership costs of
a boat averages ten percent of the purchase price of the boat. So a
$100,000 boat, $10,000 per year ownership cost. This includes moorage,
insurance, fuel, haulouts, maintenance, repairs, upgrades and all the
other 1,001 things that have to be done to keep a boat on top of the
water. Some years will be less, some more, and ownership costs will be
mitigated somewhat if you are willing or able to perform some of the
maintenance and repair jobs yourself. But over time that ten percent
per year figure seems pretty accurate.
C. Marin Faure
GB36-403 "La Perouse"
Bellingham, Washington
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If you're comparing apples to apples, e.g., a $250k new boat to a $500k new
boat, you've got more/bigger engines, bigger genset (or two), more systems,
more hull to wax, higher insurance, dockage, etc. Comparing an old $250k
boat to a new $500k... who knows? Depends on how the older boat was taken
care of. I bought one brand new boat in my life... never again. You wouldn't
believe how many things are wrong from the factory. If I wanted a "new"
boat, I'd look for one that was 1-2 years old, so that the original
purchaser has taken the severe depreciation hit and done the shakedown for
you.
Anyway, my formula that has seemed to work over the years is as follows:
Assuming you buy the boat like most folks, with financing, take your note
and triple it. 1/3 is the monthly payment, 1/3 is for dockage, insurance,
fuel, and scheduled maintenance, and 1/3 is for unscheduled
maintenance...things that break down.
Keith
"Far better is it to dare mighty things, to win glorious triumphs, even
though checkered by failure... than to rank with those poor spirits who
neither enjoy nor suffer much, because they live in a gray twilight that
knows not victory nor defeat." - Theodore Roosevelt
----- Original Message -----
From: "Jonathan Haas" panc_jefe@yahoo.com
Marin: I do not at all question the 10 percent estimate and this isn't the
first time I've seen it cited. What I can't quite figure out is why a
$500,000 boat would cost twice as much to maintain as a $250,000 boat. It
would seem that a newer boat, of a similar make/model, would cost less to
maintain than an older boat.
The answer to this question depends on the individual. All cruisers are
different. Trawler Phil has great data he collected while truly cruising the
east coast. But if I were doing the same cruise on the same or similar boat
the results would be different.
The admiral and I eat out too often, and she/we would need to go home to see
her folks every month or so. That raises the bar. Yet another factor is that
I have somehow steered away from rum and now enjoy good wine. Unless I can
get back to my rum and tonics, the cruising kitty takes a real hit.
Last year we ran Skooch about 345 hours around the Chesapeake Bay as well as
back and forth to New Bern NC. This included several "Yacht Club Cruises"
which means marinas every night. My calculations put us at about 10% of the
boats value including eating out.
Not this year! Add on a stop to upgrade stuff at the shipyard and re-build
one Detroit Diesel. Let me see . . . another 15%. Ouch that's 25% in one
year.
Who started this thread :) ? All this can be solved by switching back to
rum.
Skooch Hatteras LRC 1980 42'
Worotn Creek MD
"The admiral and I eat out too often, and she/we would need to go home to
see
her folks every month or so. That raises the bar. Yet another factor is that
I have somehow steered away from rum and now enjoy good wine. Unless I can
get back to my rum and tonics, the cruising kitty takes a real hit."
Wine! I wish it were wine - I am truly cursed with an addiction to single
malt scotch!
Greg Steckel
M/V Different Drummer
President 35 Sundeck
Frog Mortar Creek, MD
www.chesapeaketrawlering.com
www.fmyc.org
----- Original Message -----
From: David Stahl
To: trawlers-and-trawlering@lists.samurai.com
Sent: Tuesday, August 22, 2006 11:14 AM
Subject: Re: T&T: Cost of ownership and other questions
The answer to this question depends on the individual. All cruisers are
different. Trawler Phil has great data he collected while truly cruising
the
east coast. But if I were doing the same cruise on the same or similar
boat
the results would be different.
The admiral and I eat out too often, and she/we would need to go home to
see
her folks every month or so. That raises the bar. Yet another factor is
that
I have somehow steered away from rum and now enjoy good wine. Unless I can
get back to my rum and tonics, the cruising kitty takes a real hit.
Last year we ran Skooch about 345 hours around the Chesapeake Bay as well
as
back and forth to New Bern NC. This included several "Yacht Club Cruises"
which means marinas every night. My calculations put us at about 10% of
the
boats value including eating out.
Not this year! Add on a stop to upgrade stuff at the shipyard and re-build
one Detroit Diesel. Let me see . . . another 15%. Ouch that's 25% in one
year.
Who started this thread :) ? All this can be solved by switching back to
rum.
Skooch Hatteras LRC 1980 42'
Worotn Creek MD
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Trawlers & Trawlering and T&T are trademarks of Water World
Productions. Unauthorized use is prohibited.
(SNIP) Wine! I wish it were wine - I am truly cursed with an addiction to
single malt scotch!
Jack Daniels used to have my number, but then I discovered George Dickel.
It seems they are neighbors and I honestly can't tell the difference, but my
wallet can. The diet coke remains a constant.
Regards....
Phil Rosch
Old Harbor Consulting
M/V "Curmudgeon" MT44 TC
Currently lying Bond Creek, NC
Let's hear it for single malt scotch!
How does one figure this average 10% of cost. Do we use our labor rates
(zero) for the work we can and should perform and carefully shopped for
parts and supplies? Or do we use the typically outrageous yard rates and
their inflated parts costs. Some costs we have great control over. Others
we do not. If you haven't learned when and how to change a fuel filter and
must use a $50 per hour mechanic to perform this relatively simple task
your costs will be much higher than the person who is able to perform these
tasks.
So, What are your annual costs?
Pablo