When considering the purchase of a large yacht, it is particularly important to understand the overall costs involved. How much is a large yacht is not only reflected in the amount at the time of purchase, but also covers a wide range of subsequent expenditures on maintenance, operation, fuel, and crew. As a one-stop platform specialising in yacht pricing consultancy, trading, transport and maintenance, Yachttrading has compiled a list of the main costs involved in owning a large yacht, to help you fully understand this not insignificant investment.
How Much is a Large Yacht?
Let's be clear, the price of a large yacht is closely related to its specific size, brand and configuration. Here are the reference price points for large yachts by size:
60-70 feet (approx. 18-21 metres): prices between €2.5 million and €6 million.
70-100 ft (approx. 21-30 metres): the price span is even greater, between €6 million and €20 million.
Superyachts over 100 feet (30 metres): entry price of around €10 million, with some flagship models reaching upwards of €200 million.
In terms of price, the size of a large yacht is an important factor in determining the purchase threshold. As the length increases, the price grows exponentially, especially into the realm of superyachts, which are extremely expensive to purchase.
For example, the world-famous Eclipse superyacht, up to 163 metres long, it is equipped with swimming pools, nightclubs, private cinemas, spas and helipads and other facilities, known as the ‘sea mobile castle’. Its cost is said to be as high as nearly 1 billion euros, is the peak of luxury in the yacht world.
And in some countries, the value added tax (VAT) on the purchase price of a large yacht can account for up to a quarter of the price of the yacht.
Operating Costs of a Large Yacht
The purchase price of a large yacht is only the first step in the commitment. Operating a large yacht also means incurring significant ongoing costs, which tend to be around 10 per cent of the purchase price of the yacht, including:
Fuel costs: large yachts consume a staggering amount of fuel. For example, a 70-metre yacht may consume around 500 litres of diesel per hour, and with an annual fuel bill of up to €350,000, fuel costs can account for a huge proportion of the overall operating costs.
Maintenance: Large yachts require regular overhauls to maintain performance and safety. for a yacht of around 50 metres, annual maintenance costs can reach €450,000. As yachts increase in size and complexity of systems, maintenance costs will rise accordingly.
Crewing costs: A professional crew is essential for the smooth running of a large yacht. While an average large yacht may only require a few crew members, a superyacht can have a crew of more than 50. Skipper's salaries usually start at €60,000 per annum, with superyacht skippers earning two to three times that amount. This is in addition to the cost of salaries, training and insurance for chefs, technicians, sailors and service staff.
A simple rule of thumb is commonly used in the industry to estimate the operating costs of a yacht, which is that the annual operating costs of a large yacht are approximately 10 per cent of its purchase price. In other words, a €5 million yacht will require approximately €500,000 per annum to keep it running and maintained.
As a result many large yacht buyers consider selling their yacht in the first few years after purchase and some yachts enter the charter market. A 50 metre super luxury yacht, for example, can be chartered for up to €200,000 per week, offering some return potential for the owner.
If you are considering purchasing a large yacht, be it a cruising yacht or a 100-metre superyacht, it is advisable to make a sensible plan at an early stage, taking into account your actual needs and budget. As a professional yacht service platform, Yachttrading can provide you with a one-stop solution from selection, pricing, trading, transport to post maintenance, helping you to start your own exclusive life at sea easily.
