Boating Costs

5/18/2008
6:05 AM

Most of us watch the rising costs of fuel and wonder where it will end. I could get into the politics of why they are high, but I'll leave that for another blog. In my business, I watch it more from a boating perspective. How will it affect my business? Will it deter used boat shoppers and affect the boating lifestyle in general.

I still have many buyers shopping for boats; most of them are going to buy when they find the right boat. So for you shoppers out there, here is the scoop on boating costs, fuel in particular, and how it relates to boating.

1. Fuel costs are the least of the concerns you should have. Unless you are a charter boat fishing guide, you will not use a lot of fuel. The majority of boaters put less than 100 hours a year on their used boats; I am no different with the Patricia Ann, I put only 50 hours on her last year. Using 50 hours as a rule, I burned only about $1600.00 worth of diesel last year. But that was money well spent as cruising is our passion that gives Mary and I a lot of pleasure. Of course trawlers and sailboats get the best fuel economy, but what if you like a motoryacht or a nice offshore fishing boat? Once again, the time you'll be cruising at 22 knots will be low compared to the time you'll be idling, trolling or at the dock. Remember the trip I took last month on the 36 motoryacht from St. Petersburg, FL to Ft. Lauderdale? We only burned $1,400.00 in diesel and that was in rough seas. As an owner, its doubtful that you'd make that trip often.
2. Dockage will likely be the most expensive of your costs. Of course, it depends upon where you keep your boat as to the prices. Here in Florida the costs can be extreme. In Ft. Lauderdale, to dock the Patricia Ann at one of the upscale marinas would costs me $2400.00 a month or $28,000.00 a year. OUCH! In north Florida, my dockage is only $635 a month or $7,620.00 annually. I can take you to a nice marina in Georgia that would cost us only $280.00 monthly or $3,360.00 a year. So it just depends on where you are. If you can pick up a mooring ball, your costs will plummet to a few dollars a day; if you can anchor out, its FREE.
3. Insurance can be a costly package. As a full-time Florida resident, my boat insurance is very high due to hurricane threats. I pay about $4,500.00 annually. Obtaining insurance coverage in Dade and Broward counties is almost non-existent I am told. A new customer of mine has obtained coverage of his new trawler for about half of that but he must remain out of Florida from June 1 to November 30 (Hurricane Season). His cost will be about $2,300.00 a year.
4. Maintenance costs are always there, regardless of the age of the boat. My annual maintenance costs hovers around $3,500.00 annually. If you can perform the majority of the maintenance yourself it will be manageable. Remember, you have diving costs to scrape the running gear and replace zincs, oil changes, water pump replacement now and then, new hoses sometimes, and consumables such as varnish and paint. There are those issues that will come up like replacing canvas or blister repair that will be expensive but are done infrequently. If you stay on top of things, maintenance is just that - preventative!
5. And lastly, you may have a ship's mortgage as well. There are some very good rates out there right now. I have three mortgage brokers that can shop your loan to many different companies. If your credit is good, you'll get good financing. This cost will be near the bottom of your boat costs. Obviously, I cannot predict what that cost will be for you.

Well there you have it I think. I had a good conversation with a buyer this week and we talked about this very subject. We both agreed that boating is more than a passion; it should be classified as a sickness. Yes, us boaters have it in our blood and a rise in fuel prices will not likely deter us; we will just eliminate something else to compensate.

I'm leaving tomorrow to help my latest customers Mike and Mercy bring their new 43 Albin trawler home this week. It looks like I'll be making my third trip through the Keys in as many months. But hey, someones got to do it..:)

Stay tuned.

Mike