Navigating the Waves: Deciding When You Can Afford to Buy a Yacht

Dreaming of sailing the open seas on your very own yacht? It’s an exciting time with the thrill of picking the one you want and taking it for its first outing on your horizon. 

However, buying a yacht is always a sizable financial commitment, so knowing when you can afford to do it is important. If you think you’re ready to join the 1.3 per cent of UK households that own a yacht, we can help you work it out. 

Yachts cost more than just the initial price tag, with other expenses to consider such as boat insurance and mooring fees. Our guide will go through all the possible costs you may incur once you get the keys to your new boat, so read on to learn more about yacht affordability. 

What are the costs when buying a yacht?

As mentioned, there’s a lot more to consider than the yacht’s asking price. Some of the other costs to consider include: 

• How much it will cost to run – It’s estimated that running a yacht can cost as much as 20% of the initial price tag every year. This covers insurance, fuel, maintenance, crew and mooring.
• Extra equipment you need to buy – While some yachts may come fully kitted out when you complete the purchase, some may not. Safety equipment, anchor lines and lights are among the items you may need to purchase.
• How much it could depreciate – This won’t affect your initial costs but it’s worth bearing in mind that you could lose money on this purchase. Just like cars, yachts are subject to depreciation in the early years of ownership but this could slow down if you hold on to yours for a while.

Building a yachting budget

Now you know the costs, it’s time to create your budget. Consider the size of the yacht you want and all the overhead costs you’ll pay to run it. 

At this stage, it may be a good idea to speak to a financial advisor to help you create a budget that’s realistic for your situation. They can then advise whether you’re in a position to buy your first yacht or if you should wait a little longer.

Yacht finance options 

While buying a yacht with cash is the most straightforward method, there are other options if your money is tied up elsewhere. Marine finance companies and bank loans are alternative solutions when buying a yacht, but they’ll likely include interest rates in the deal. This makes the transaction a little more expensive but if you can fit it in your budget, it’s a great way to purchase your first yacht. 

Acquiring a bank loan or finance for the yacht usually requires a healthy credit score, however, so ensure you’ve built yours up to make the process easier. 

Are you ready to buy your yacht? If you’ve built your budget and can fit a yacht into it, start the search for your perfect vessel today.