Personal Finance 5If you love spending time on the water, you may be thinking about buying a yacht. This luxury boat gives you the opportunity to spend quality time with friends and family in a serene environment, but it also comes with a big price tag and a lot of responsibility. According to Stewart Technology Associates, you must consider several factors before you decide to buy, such as gas mileage, whether you have the ability to customize the yacht, and if you should buy new or used.

Pre-Owned, Brand New, or Semi-Customized?

When you opt to buy a pre-owned yacht, it cuts down on the amount of time you must wait to take possession of it. If you have never bought a boat in the past, you may want to consider going through a brokerage firm. Your agent will help you negotiate a price with the seller as well as arrange for a test drive and inspection. To ensure that you end up with a yacht you like and can afford, it’s important to remain flexible throughout the buying process.

You also have the option of buying a boat brand new and customizing all of its features. If you do this, keep in mind that one decision affects all of the others. For example, choosing a yacht than can travel at 20 knots will provide a different cruising experience for you and your passengers than one that travels at 12 knots. The trade-off for this is that a yacht must burn significantly more fuel to reach that speed.

With the semi-customized yacht option, the shipyard already has already completed the basic design structure. Many potential boat owners prefer this option because it is less expensive, delivered faster, and allows for some opportunities to customize the vessel according to their own preferences.

Insurance Considerations

Like your car, you must register your yacht and request a title in your own name. The cost of registration depends on several factors, including the size of the yacht and whether it is new or used. You also need to have insurance on it, with a typical policy costing 1.5 percent of its value every year. It’s also important to understand that most boat insurance policies only cover the vessel itself and not actions you took that resulted in damage.

Docking Your Yacht

Obviously, you can’t be on your yacht 24 hours a day, as much as you’d like to be. For those times when you are working, sleeping, or otherwise engaged, you must arrange to dock your boat. As with registration fees, boat-docking fees depend on the size and dimensions of your vessel. This typically includes height, length, and width. You should plan on additional fees if you require electricity or sanitation services while your boat is docked.

Maintenance

Fuel and oil for a yacht are much costlier than they are for a car, truck, or other personal vehicle. At a minimum, you should plan to spend $300 every time you get its oil changed. The price of gasoline depends on the size of the boat and the capacity of its fuel tanks. Since most boats have tanks holding approximately 75 gallons, you should budget the cost of each fill in advance. Additionally, consider the costs of washing, painting, and repairs. Generally speaking, experts in the boat industry recommend setting aside 10 percent of the cost of the boat every year for upkeep and maintenance.

This article was contributed on behalf of Stewart Technology Associates, your number one choice when looking for help with cable dynamics. Check out their website today and see how they can help you!