General Maintenance Question

I am in the process of purchasing a yacht. It will likely be between 50 - 60', Sea Ray, Sunseeker, Azimut, or similar quality. It will likely be a 2011 - 2015 aged boat. I know this is impossible to provide an exact answer I am just looking for an educated guess as I think about the cost of ownership. I have a handle on marina fees, boat payment, insurance, water/electricity at marina, etc. I am trying to get a rough estimate on simple maintenance costs per year. I will provide some information so that you guys can provide some insight. Lets assume a 2011, Sea Ray, 54', inspected at purchase and in good shape. Operates out of St. Thomas and runs 5-10 private charters per month. Purchase price for the boat is $900,000. On an annual basis, should I expect to pay $25,000 on maintenance? $100,000?

Any guidance would be greatly appreciated. I want to know what I am getting into. Thanks in advance.

Thanks for the reply. I wouldn't rely on the charter business to finance the yacht. I could finance it without any revenue from the charter business. Quick answer to your questions.

1. Trying to be conservative with 5 charters a month. It could be more and it could be less.
2. Haven't purchased a boat yet but would assume its not a charter boat
3. No, not an established operator. Would like to hire a local Captain that knows the market and pay them a salary and give them ownership so they could help with marketing.
4. No. No deal with a hotel/company that can feed me guests.
5. No, broker did not tell me this.

Thanks again for the help. Any insight on maintenance would be great.

$1,000 a foot. Wow. Higher than expected. Thanks for the input.

Thanks. Quick answers to your questions.

1. Yes, I've been to St Thomas (was just there in July) and did a full day charter with my family on a 55' Sunseeker.

2. It's very early in my research process now about the business. I'm talking to marinas, boat brokers, insurance folks, finance groups, and people like yourselves as I try to get educated here. I have not decided if this is something I want to do.

3. Ownership for Captain - I mean give him ownership and treat him like a Partner. So, his compensation goes up as the number of charters goes up. They assist with marketing/spreading the word about the service and helping to hire a first mate on a per trip basis, etc. Start them off with a base salary and heavily reward them for helping to build the business. Basically not treat them like an hourly employee. I don't know how well this would go over with a potential Captain.

4. I did research the different charter options in St Thomas. I also talked with the Captain of my charter for a while during my trip. My Captain during my charter was very good. He knew the island well, was great with my kids, and handled the first mate well. I would build a business around him.

Thanks. I mean 5 full day charters. I'm definitely in the early stages of getting to know yacht/boat brands so I am not close to buying something. With the Sunseeker, Sea Ray, and Azimut, can you help me rank them in order of quality? I assume Azimut is at the bottom.

I have not looked at Moorings programs. Can you tell me more about that?

Another question for the group. Assuming the boat is in good shape at the time of purchase, how old of a boat should I buy? No older than 5 years? No older than 3? 10?

Thank you. This is really helpful. Very much appreciated.

Any other groups out there like this?

This is very helpful. I really appreciate the feedback. I agree with you on the Moorings program. I spent 45 minutes with them on the phone today walking through the program and the cash flows. Its an interesting program but not for me.

Thanks again for the insight. I agree with you about what area of the boat is important for a day charter. My wife and kids (ages 12 and 8) did a full day charter in St Thomas in July. That is what gave me the idea for this business as I learned the owner lived in Malibu and was just the capital source. We spent the entire charter at the table, eating and drinking and looking around at the islands. We also did some snorkeling off of the back end. That is why I liked the Sea Ray, Sunseeker, and Azimut -- especially when they have the Flybridge because I think those have a pretty good set up for what you talked about. I was looking from 2011 - 2015 and you are right, they are still pretty expensive ($850 - $1.2M purchase price). Maybe I should look at 2007-2010 as well. The price drops pretty significantly and the numbers start to work a little better. As you said, it all comes down to how well it is maintained.

Thanks again. Really good stuff.

Thank you. Really helpful. Good advice on the Azimut. I knew it was not as strong as the Sunseeker or Sea Ray but wasn't sure how bad they are.