The Cost of Running a Boat
One question we often get asked is “How much will it cost me to run my boat?” Sometimes people are afraid of the costs – talking about costs being like a hole in the ocean into which you throw money. That, of course, is complete nonsense. A sensible approach to understanding and managing costs, leads to a sensible level of costs, just as in many other areas of life. This article provides a useful framework for managing your costs. Just like having a car has some running costs, so does boating. The secret is to understand and manage them, so that they stay comfortably within your budget. Rule of thumb It’s nice to get a simple answer to the cost question – If you want a simple answer, we would say budget between 6% and 10% of the purchase cost for annual running costs, excluding depreciation. This is an over-simplified answer but maybe it’s a good starting point. In a nutshell, if you can afford the purchase price, you can probably afford the running costs If you want a method of getting a fuller, more accurate answer, then read on… Categories of running costs Of course, you are interested in the level of costs. However, we recommend that you also categorise your costs by two criteria, which we call predictability and controllability. These are related but different; and this article looks at these two factors. Predictable costs are costs that you know with a reasonable degree of certainty in advance. For example, berthing costs are typically so much per metre, per year. You know the size of your boat and you can do the math, and so these costs are highly predictable. They are even predictable for several years in advance, as berthing costs are likely to rise only by about the rate of inflation. Many other costs fall into this “predictable” category, such as insurance costs etc. Some other costs may have only a medium degree of predictability. Fuel costs per litre are one example. They may certainly rise or fall, but are unlikely to halve overnight. Controllable costs are unsurprisingly, costs that you can control yourself. Total annual fuel costs are a good example of this. You can get them down to zero by not going out in your boat; although this is not an approach we would recommend. The nautical miles you travel and the speed you go at (and hence fuel consumption) are all fully controllable by you. Their predictability depends on how certain you are about how far you will travel in the coming year. Therefore, in the table below, they are shown in each of High, Medium and Low Predictability. On the other hand, your annual berthing costs have, at best, medium controllability. Given the size of your boat, the marina will charge you their rate, and there is not much you can do about it if you want to stay at that marina. Telling fibs to the marina about the size of your boat doesn’t work. They know the size of most boats – sorry folks! However, you do have some control, as you could move to a cheaper marina, change to a mooring instead of a berth or even move to a trailer. Some marinas even offer a park and ride system, whereby boats up to a certain size are dry-stacked out of the water – this is typically at a much lower cost than a traditional berth. If you think about your costs in this way – predictability and controllability – you will have greater understanding of how costs could behave, and therefore be able to much more easily manage your budget The numbers Of course, you now need to know the specific numbers to attach to the various costs. These are so variable as it depends very much on the type of boat. For example, a superyacht probably has crew recruitment, selection, retention, salary, and various on-costs to take into account. For the typical boater, this is not an issue – other than the need to supply the occasional G+T to willing volunteers who assist with berthing and other crewing activities. At Go Earth we can help you draw up a realistic budget for running cost for any proposed boat. Specific costs Be aware that certain types of boating have specific costs associated with them. In particular boating on a canal or river typically requires an annual license and a Boat Safety Certificate every four years. Also, steel hulled boats require blacking; and fibreglass boats require anti-fouling if kept in the water. Sailing yachts have rigging costs that do not apply to powerboats. These rigging costs depend in part on how energetically the yacht has been used and the stresses on the mast. Defraying costs There is another way in which you can reduce costs even more. At the high end, for a superyacht, you can charter your boat out. There are many agents that will manage this process for you. Go Earth can recommend suitable managing agents and give you an estimate of the possible income. Indeed, if you charter the yacht out a lot, you can even cover all your running costs; and still give yourself plenty of time on the boat. However, all is not lost if your boat does not qualify for the title of ‘superyacht’. You can rent your boat out via agencies such as Beds on Board and AirBnB. The deal here is that people stay on the boat as an alternative experience to a hotel; but do not take the boat out. The boat stays in the berth. Our company boat, a Jeanneau Prestige 34, is on both these sites and is a very popular choice. Go Earth can advise you on the pros and cons of this option if you are thinking of buying and then defraying the running costs in this way. Conclusion Boats do have running costs – but they are in essence no different from the costs
Getting Started in Boating
Dipping your toe in the water Never been boating before? Thinking of buying a boat? But not sure if it is for you? In that case, we have two useful suggestions to help you get started: Try an on-board experience for a short period Get independent, professional advice on what sort of boat would best suit you Try before you buy – onboard experiences There are numerous options you can try at a relatively modest cost. Go Earth offers the following ‘on-boat experiences’. The lowest cost is simply to stay on a 34 foot sports cruiser that we have moored in a beautiful part of north Wales. The boat will sleep up to 4 people in 2 cabins, each with a comfortable double bed. In effect you are using the boat as a small apartment and can stay from 2 days upwards and use it as a base for a different type of holiday experience. Note that driving the boat is not included in this package. At a slightly higher cost a 43 flybridge sports cruiser is available, with a skippered short trip up a beautiful part of the Thames is available. Again you can stay on the boat for 2 or more nights; with plenty of space for up to 4 people to stay overnight. Moving up the cost scale, but still reasonably economical, we offer a great charter in a power catamaran from the south of France – Cannes or St Tropez. This has 4 cabins, sleeping up to 8 people; and a skipper is included. In this option, the skipper stays with you all the time. The skipper knows the area very well, and can take you to some really great restaurants around the Nice/ Cannes / St Tropez area. This option is certainly much cheaper than many other commercial charters. We can also offer a bespoke service – if you discuss your requirements with us, we can design a cost-effective package to suit you. Any of the above will give you a real – and a pleasant – experience, and provide a strong foundation for ‘next steps’ . At a minimum you should have a nice short break – so think of it as a holiday. Introductory training If you want to regard this as a real learning exercise, and if your current knowledge of boating is limited, each of the above can be combined with our day’s course – Introduction to Boating. This is a combination we really recommend if you are new to boating. It is a good and sensible investment of your time and money to ensure that you make the best decisions and help you avoid any expensive mistakes. If your ‘crew’ (such as a partner) is also new, then maybe this is a great opportunity for both of you to discover boating, so this becomes a shared experience.Of course, if you are really new to boating, you will not be ready yet (or safe enough) to take a boat out by yourself. So, following one of the on-board experiences, you should take one of the many training courses available. Go Earth, as part of its course, can provide you with a training plan to ensure that you get the required level of future training. Refining your thinking The advantage of getting some actual experience on a boat is that it helps you think about all sorts of things that you might not have considered before. Below is a small random selection illustrating the sorts of things you might need to think about. Beds. Yes, beds. If you are going to stay on a boat overnight or longer, does the cabin layout and the bed suit you? For example:- Do you want to be able to get out of the bed either side? The smaller boats may have one side of the bed against the bow or a bulkhead, so the person sleeping that side has to climb over the other if, for example, they want to go to the loo in the middle of the night. Do you read in bed at night? If so, is there enough space above the bed for you to sit up in bed. In cabins in the bow, on smaller boats, there might not be enough room to sit up. On the smaller aft cabin boats, the cabin may be spacious, but the headroom above the bed may be limited. Check this before you buy. Friends staying? If you plan to have friends staying, you may want cabins that provide a degree of privacy. Do all the cabins have doors? On smaller sports boats, there may only be a curtain. Some smaller sports cruisers have the mattress on the floor (aka deck!). Not a problem at all if you are fairly agile; but it could be an issue if you are not. Ease of crewing. On motor boats, the main activities you may need the crew (such as your partner) to perform are putting the fenders out, and getting them back in. For this you need at least one good side deck or (on smaller sports boats) an easy to climb through opening front window. Check this out before you buy. Also, you ideally want somewhere to easily store the fenders – or at least somewhere to mount fender baskets that you may want to buy. There are many, many other practical things that you will learn about boating by having these on-board experiences coupled with suitable training. Go Earth will help you all along the way. Getting advice We recommend getting advice from a variety of sources. However, at Go Earth, we are the only professional and independent company dedicated to providing professional advisory and procurement advice to the boat buyer. A chat with us is free of cost, hassle or commitment.
