Boaty Costs

[walker]

Hi

I think I have in the past read that the cost of running a boat (mooring aside) tends to average out at x percent of the value of the boat (no idea what x is). Assuming a newish boat, would anyone care to venture an opinion on whether that is a worthwhile rule of thumb and if so, what x is. I have to say it doesn't seem quite right to me - can it really be the case that say, a 50ft 'quality' boat that cost twice as much as a 50ft AWB would cost twice as much to run? Presumably replacements on the 'quality' boat would be more expensive, but by definition should they not also last longer? Let's leave depreciation aside for now!

All hypothetical of course but there is another premium bond draw tomorrow.

Cheers

Mark

 

[HoratioHB]

Sounds like b****cks to me. I would have though other factors like the age of the boat and where you are sailing are far more significant (and how much booze you need). We are buying new just because of this. Warranties on the hull rigging and engine plus knowing it hasn't been rammed into a rock or had the engine thrashed will hopefuly mean the costs over the first few years are minimised.

 

[Norman_E]

No "rule of thumb" can cover all boats, and percentages of value, or of new cost, are nothing but guesses. The only sensible courses of action are.

1) Draw up your own budget, adding up costs of haul out and re-launch, basic engine servicing, fuel costs, insurance, anti-fouling etc. Then add in the annualised cost of rigging and sail replacement, upgrades to electronics etc, then add a big contingency fund to cover all the things you forgot and emergencies like the extra lift out and re-launch I have just incurred because a sea cock broke.
It will probably scare you away from boating.

Or:

2) Just pay each bill as it comes and be philosophical about the fact that whatever you spend on the boat is for your pleasure, and reduces your descendants' inheritance tax bill.

The latter is the better approach.

 

[Channel Ribs]

[ QUOTE ]
Just pay each bill as it comes and be philosophical about the fact that whatever you spend on the boat is for your pleasure, and reduces your descendants' inheritance tax bill.

[/ QUOTE ]

Indeed.

Some people tell themselves that when they do buy The boat that it will be an investment. A dubious ploy, in my experience. /forums/images/graemlins/blush.gif

 

[jonjo]

Cost of capital and insurance are the only annual costs I can think of that relate to boat value and not LOA.

A 50hp engine costs the same to service whether it is fitted in an AWB or Malo. A sprayhood deteriorates at the same rate regardless of the boat. 3000 engine hours is 3000 engine hours.

As a boat ages people tend to fit replacement parts they feel comfortable with operating. A guy with a 25 year old Westerly Fulmar might take sail trim very seriously and fork out for a laminate genoa, whereas an owner of a posh yacht might operate his boat like a motor sailor and buy budget Dacron sails.

 

[LymingtonPugwash]

[/ QUOTE ]Some people tell themselves that when they do buy The boat that it will be an investment. A dubious ploy, in my experience. /forums/images/graemlins/blush.gif

[/ QUOTE ]

Only within hearing of SWMBO.....
Furthermore, that is also why one should always only ever take on people who know absolutely nothing about boats and sailing as their company accountants! /forums/images/graemlins/grin.gif All my boats have been bought through my businesses as good potential investments for the business! /forums/images/graemlins/laugh.gif

 

[Seven Spades]

Seems to work out at about £15/ft/month including the unexpected, servicing and antifoul. Mooring is extra.

 

[fireball]

Eek ... erm - no way is ours anywhere NEAR that much ... and that includes mooring and the unexpected, servicing and antifoul ... mind you - we get our hands dirty and do all the jobs ourselves.

 

[Searush]

For my AWB, I used to reckon 5% of capital invested (interest lost) plus £1,500 pa insurance & moorings (probably nearer £2k now) and zero depreciation (old boat, not lost any value in 20 years!) Provided I got 3 weeks sailing pa, it was cheaper than chartering.

 

[Birdseye]

[ QUOTE ]
Hi

I have to say it doesn't seem quite right to me - can it really be the case that say, a 50ft 'quality' boat that cost twice as much as a 50ft AWB would cost twice as much to run? Presumably replacements on the 'quality' boat would be more expensive, but by definition should they not also last longer? Let's leave depreciation aside for now!

All hypothetical of course but there is another premium bond draw tomorrow.

Cheers

Mark

[/ QUOTE ]

Got to be bollocks. If you look at a Bav, the bits you might have to replace (sails, engine, ropes , fenders etc) would cost you no less than the bits on a Najad and would last the same length of time. The quality difference is in the hull and interior fittings, neither of which you replace normally. On a 36 footer I would budget £2k pa for such costs on average.

Moorings would be the same for both. Say £1200 on our local marina.

Insurance would cost more for the Najad but depreciation would if anything be less. The other big difference is loss of interest / financing cost. 36ft bav, 80k (?) £ 4.8kpa, 37ft Naj £200k so £ 12kpa

So Bav = 2+1.2+4.8 = 8 whilst Naj = 2+1.2+12 = 15.2. The Bav is 10% the Naj is 7.6% both excluding depreciation.

Not done that sum before. I think I'll go chartering.


/forums/images/graemlins/mad.gif

 

[DinghyMan]

Percentages aren't always relevant - my mooring cost £550 to put in almost regardless of size of boat attached to it, mooring fees (£850) are done by length but a cheap boat isn't necessarily shorter than an expensive one, upkeep this year is probably more than a few due to me having bought it at Xmas and having done a lot of work on it. If I costed it as a percentage rather than as straight pounds it would be frightening as I didn't pay much for the boat in the first place.
The costs of much of the work done so far are purely parts as I've got a workshop and all woodwork is being repaired or just replaced with hardwoods from stock rather than paying someone to make bits for her, and with the "summer" we've had it's not too bad working in the workshop instead of being out.