Annual Yacht Operating Costs
Out of pocket expenses to own a boat and keep it in a Chicago
harbor in the summer, store it in the winter, and maintain
it properly will at minimum come to several thousand dollars,
no matter what type of yacht you own. Assuming all cleaning,
pump out of the head, fueling and some seasonal and ongoing
maintenance work is performed by the owner, annual operating
costs are approximately:
| Operating
Costs |
|
| Costs |
Amounts |
| Insurance
|
$1,000 |
| Mooring |
$1,500 |
| Storage/Commissioning/Decommissioning
|
$2,000 |
| Maintenance
Average/Year Over Life |
$2,500 |
| Replacements
and Upgrades |
$1,000 |
| Fuel,
Supplies |
$
500 |
| Annual
Operating Cost |
$8,500 |
Purchase Cost and Mortgage
Figuring an acquisition cost, including sales tax, of $70,000
for either a new 28 foot mass production yacht or a well
maintained and well-equipped 36 foot previously owned yacht,
the mortgage required with 80% financing will be $56,000.
For a 15 year mortgage financed at 7%, the required down
payment would be $14,000 and annual mortgage payments would
be approximately $6,000
Annual Cash Outlay
After an initial down payment of $14,000, your annual inescapable
cash
outlay for each of years 1 through 15 is approximately:
| Total
Annual Costs |
|
| Costs |
Amounts |
| Annual
Operating Cost |
$8,500 |
| Mortgage
Costs |
$
6,000 |
| Annual
Cash Outlay Years 1-15 |
$14,500 |
The financial advantage of SailShare is overwhelming.
Even without considering year $14,000 down payment, you
save approximately $14,500 in cash operating
payments per year for each of years 1 through 15.
Yachts Are a Depreciating Value Asset
For many, the value of the asset mortgaged is even more
important than cash savings. When you mortgage your home
or other real estate, you expect the asset to appreciate
in value over time. Unfortunately, yachts are a declining
value asset! Figuring in real dollar depreciation of $3,500
per year ups the cost of ownership to approximately $18,000
per year. Contrast that to SailShare at $3,550 for the entire
season! Taking depreciation into account, SailShare saves
you seven times your cost!
But remember that the advantages of SailShare don’t end
here. With SailShare you avoid all the maintenance obligations
and hassles of boat ownership–pre, post, or during the season.
You simply show up and sail!
