Annual Boat Expenses

[cjd]

Someone once said " If you have to ask how much, you probably cant afford it". I am going to ask anyway.
What annual expenses should one expect to pay for say a 40 footer on average for fuel, yearly maintanance/upkeep, slip rental, winter storage, and insurance.
I am in the Baltimore/DC area.

Thanks,
CJD

 

[SeaEric]

Depends upon how high maintenence the boat is, and how much you may do yourself. In general, $1,000. a month/$12K per year should probably do it for the fixed expenses. Fuel is a wild card though.

 

[Nonchalant1]

I have seen a rule of thimb to count on 10% of the value of the boat, per year. Too many variables get into this, but that number works for me.

 

[Genesis]

That's pretty close.... provided you don't use it a whole lot; if you do fuel can be push that number significantly.

 

[Passages]

Never thought about it that way but my annual expenses for my 42C are right at 10% of purchase price (not including loan payments).

But I don't think that's a universal rule of thumb. If I bought a newer boat at $300,000. I doubt my annual expenses would double to $30k. Insurance would go up a bit but slips, storage & maintenance would not.

For a 40 something footer, 70s-80s vintage, which has been reasonably well maintained, figure $1000/month plus fuel.

 

[cjd]

Thanks alot!
Is that based on a boat that is in use year around? I figure I would be boating 5 months out of the year. Should I figure half that or am I fishful thinking.
CJD

 

[SeaEric]

I'm on the Chesapeake. Most of the costs are yearly and apply whether she's sitting or running. Except for the fuel.

 

[Genesis]

I have a very accurate picture of what my boat costs, because I keep everything I spend on her in Quicken (I charge virtually everything, then pay it off at the end of the month, so I have every thing I buy in the system)

Last year I spent $21,000 all-up on Gigabite. The slip and insurance costs were slightly more than half of that. Fuel was a bit over $3,000. We did not run much last year due to the storms (there was a 2+ month period where we could not GET diesel here), but the price per gallon of fuel was MUCH higher than it has been in previous years.

The year before was an outlier, in that I had an $8,000 "surprise" in the form of new exhaust collectors..... but leaving that off, the total bill was a bit higher, mostly due to some retrofitting (all new hoses) and more running time (fuel expense). Again, insurance and slip costs were about $11k.

Fuel, since 2003, has roughly doubled in terms of annual expense, but in 2003 we ran more hours than in '04 or '05. The actual price per gallon is up about 130% since '03, and it does show up in the numbers.

In the years since I've owned Gig there has never been a year where there has not been some form of a "surprise." They all end up bettering the boat significantly (e.g. last year I stuck in Floscans - that was a $2500 set of hardware), but if you don't expect $5-10k per year in "surprises" on a 45 footer you're asking for it, because when (not if!) you get one of those you're going to be trying to figure out how to pay for it.

 

[Nonchalant1]

Thanks alot!
Is that based on a boat that is in use year around? I figure I would be boating 5 months out of the year. Should I figure half that or am I fishful thinking.
CJD

It works for me for a year with a 6 month boating season, plus inside heated winter storage (a significant expense) because I like to work on my boat in the winter.

Doug

 

[MikeP]

On our previous boat, a 36, we averaged $14,000 per year over the 4 years we owned her. That does not include fuel. It's important to note that if you have someone else perform the usual maintanance and repairs, the cost will be dramatically higher. If you do the work you are paying only for parts which you can usually get at a "reasonable" price on the internet. If they do it, you are paying their parts price plus labor plus other costs...

Here's an example from a local marina:
10AM - Generator won't start: owner calls mechanic - "No compression" per mechanic - $6500 quoted for genny rebuild

2PM - (Same generator): owner asks friend to troubleshoot - clogged fuel filter - 6 bucks for fuel filter.

 

[Genesis]

Exactly.

If I had "someone else" do the work on Gigabite you could easily add $10k per year to my operating expenses. The labor to pull and replace those exhaust collectors alone was a couple of man-days - at $70 per hour that adds up FAST.

The only thing I pay other people to do is bottom jobs. That's a NASTY job and its well worth the $K to have someone else do it over my cost to do it myself.

 

[Passages]

Karl,
You don't bottom paint? I switched to ablative (Micron Extra) few years back and now it only takes a quart @$65 and about 1-2 hours of touch up annually. Not painful at all.

 

[Genesis]

Where are you that you get away with THAT? Around here even with ablative when I have to come out for paint its a real job anyway.....

 

[Passages]

Long Island Sound, in water April - November. Lot of critter growth on unpainted surfaces. Ablative works and never needs sanding/scraping.

(Sorry about the mini-hijack)

 

[StratPlan61]

For me, it averages between 7%-10% of the boat's purchase price per year. It hasn't changed much over the years. When I save a little on slip fees, I get whammed on insurance. When I find a reasonable mechanic to use, I end up replacing a major component or have a serious repair. When I think I have 'escaped the pinch' for a year, some unexpected whammee slams me - geez it's great isn't it?? Not complaining - just sharing my personal experiences. Yep, no matter my best intentions, it's 7%-10% every year.

Bear'
1984 61' MY Strategic Plan

 

[SKYCHENEY]

The best way to make a rich man poor is to buy a boat. But, if I didn't own a boat, I might have to spend that money on some sort of therapy.

 

[MikeP]

To paraphrase the old saying,

Question - How do you make a small fortune with a boat?

Answer - Start out with a large fortune!

 

[Passages]

The best way to make a rich man poor is to buy a boat. But, if I didn't own a boat, I might have to spend that money on some sort of therapy.

Yep, hard to rationally cost justify owning a boat - unless your crew (not just you) has the "Passion".

With my kids 6 years away from college, I suggested to my wife just last week that maybe we should sell Passages and start saving more for tuition. She has just started up a new business and as anyone who has done that knows that the first year of a new venture is characterized by long hours and tight cash flow. Boy did I get an earful. She lit into me with 'The boat is more than just a toy for you, it's our summer cottage, something that gets our son away from Playstation and our daughter some healthy outside activity.'

The Admiral loves the islands and the Block Island ferry just doesn't do it for her. My father & Brother fly in annually for a 4 day fishing trip which becomes the topic of conversation for the rest of the year. We meet great new people on the water and there's something special about the waterbourne community that's hard to find on land.

This kitchen conversation drew in the kids from the TV room who emphatically pleaded 'Dad, you can't sell the boat, You promised you'd teach me to bring it in the slip. I won't be able to see my boat friends. You were going to take me tuna fishing.' I think they started to cry. OK, OK we're not selling the boat! I can't argue with all of you.

Therapy - for the whole family, and a bargain at that.

 

[Pascal]

way to many variables... fuel, dock, insurance, etc... maintenance cost will vary depending on what you can do yourself and ... luck. in addition to the condition of the boat.

so far, during the first 2 full years i've averaged under $5k a year in maintenance, plus $10k for the slip, $4k insurance, fuel about $5k but i only use 10gph at hull speed.. i use the boat every week end and sometimes during the week, not a lot of hours though, 150 to 200 a year.

if i did longer runs at faster speed, fuel cost woudl obviously go up. dockage and insurance is expensive in south florida... offseting the low mainteance costgsand theboat was in good shape to start with.

 

[Nick]

Works for us too!!!! My wife and kids echoed your's. Quality time!

Re costs:

I try not to run the numbers too often but the fixed costs for slip, winter storage and insurance run about 11K for our 37 in New York, not including the financing, fuel, maintenance and of course the trips and toys!

Sure wish it wasn't 36F today!!

Nick