In this harsh economic climate, everyone is looking to keep
costs low – whether it’s on housing and travel, utilities and
communications or even the weekly food shop. Prudent accounting,
however, should not be restricted to just everyday essentials,
which is why yacht
insurance provider, Towergate Insurance Marine, has put
together some practical tips for yacht owners which could save
costs in the long-run.
The idea was prompted following the story of 59-year-old David
Ford from Devon who bought his Sigma 33 yacht ‘Lucy’ on internet
auction site eBay for £14,000. What the novice sailor didn’t know
was that it was moored in the Greek Island of Poros and he would
have to navigate a 3,400 mile journey to bring it home.
Buying
Consider the efficiency of your chosen craft – is it a gas
guzzler? It may appear a bargain, but your costs will soon rack up
if it’s literally swallowing fuel. Check whether the craft carries
a CE mark and obtain some insurance quotes beforehand.
If relying on marine finance for your purchase, compare the
differing loan rates and find out who’s responsible for registering
the boat.
Check out www.stolenboats.org.uk – an online database of
stolen boats and marine equipment. Information is provided by the
marine industry and the police and then cross-checked with the
police national computer.
Be sure you know when you become legally responsible for the
craft as this is when your insurance cover must become active.
When buying new from a dealer, visit several to understand their
price ranges. A dealer with a full service department may charge
you more than one who doesn’t and be mindful, that like cars, new
boats will depreciate in value. If offering a craft in
part-exchange you will not achieve the same full market value as
when selling independently.
Check whether the dealer is a member of the British Marine
Federation and recognised by the boat manufacturer. Ensure the
contract details the price as fixed and know what’s included -
extras can push the overall cost up.
Don’t pay more than 25% up-front, put in place a staged payment
plan, ensure sea trials are conducted as part of the build and
don’t part with that final payment until everything is completed.
Agree a delivery date and set up penalties if delivery is
delayed.
Is the company you’re dealing with a boat builder, builder’s
dealer or agent? It’s important to know for warranty claims.
If buying second-hand, check out what’s available online so you
can compare the prices of differing models, this will stand you in
good stead if you’re involved in a face to face negotiation.
Be mindful that the asking price isn’t the actual selling price
– the yacht’s condition, service history, equipment, engine hours
and specification will all influence its value.
When putting in an offer, emphasise the price is subject to a
marine survey and if necessary, a sea trial. Scrutinise the current
owner’s documents and question whether there’s any outstanding
finance on the craft – if there is, this must be settled prior to
purchase.
Ask for a contract. If there isn’t one, the British Marine
Federation has a downloadable standard contract which is approved
by the Royal Yachting Association. Also ask whether ‘clear title’
is guaranteed. If it is, find out how this can be proved.
Sole ownership of a yacht may be beyond your budget, so if
you’re intending to use the craft for no more than four to six
weeks a year, a shared ownership agreement is worth considering.
This will reduce your running costs and weeks are usually allocated
between a maximum of eight syndicate members, giving you a good
spread of sailing weeks across the year.
Surveys
When buying a new boat, it’s often a good idea to employ a
marine surveyor to monitor its build and carry out a pre-delivery
inspection. A new house would be put under close scrutiny before a
purchase, so why not a yacht? It’s far harder to put things right
after you’ve taken delivery.
With second-hand yachts there’s even more reason not to leave
things to chance. Boats over a year-old should be given a full
pre-purchase condition survey. It’s particularly important if
you’re securing finance and the survey will highlight any areas for
repair prior to purchase, allowing you to haggle over the price if
needs be.
There are more limited and less expensive options, such as
external hull inspections (osmosis check) and partial condition
surveys, so it’s important to find out what they cover, before
appointing a surveyor. If you’re in the know, it’ll be easier to
identify which type of survey is appropriate for your craft.
Some rigging, electronics, the engine and sea trials are not
always included in a pre-purchase survey, so ask the surveyor to
clarify exactly what’s included before appointing.
Use a qualified marine surveyor – independent of seller and
buyer. If using marine finance, the company may recommend one.
Otherwise look out for those with marine survey qualifications;
they’ll be members of the Royal Institute of Naval Architects and
the Yacht Brokers Designers & Surveyors Association (plus
they’ll have indemnity insurance).
To save costs, if a survey on the boat has been carried out
fairly recently, ask the surveyor who carried it out to provide you
with an update. Costs vary dependent on boat size, and remember, as
surveys take place when the boat is out of the water, it’s your
responsibility to make arrangements for the boat to be hauled out
and inspected.
Mooring
Consider your mooring needs – do you want top-quality berthing,
extensive onsite facilities and state of the art security or are
you happy to spend less and opt for a boatyard or swinging
option?
Reduce marina mooring costs by paying the annual fee early;
savings of up to £150 can be made. If you opt to pay by a monthly
direct debit, the overall fee could increase by up to £250*. Some
marinas offer deals such as; free ashore storage, cost-price fuel,
insurance and boatyard services discounts, complimentary boat
movements and free visitor nights.
Boatyards are traditionally used for boat refits or repairs,
servicing and maintenance, but in some cases they’re a great winter
storage refuge if you’re using a swinging mooring in the summer.
Costs are typically 10%** of marina berthing prices and many have
their own workshops to carry out repairs. Many marinas offer
boatyard facilities.
A swinging mooring is the cheapest way to moor your yacht,
although some kind of winter storage may also be needed. Provided
in areas of sheltered water, buoys are attached to chains connected
to a heavy sinker on the sea or river bed. The yacht is attached to
the buoy and ‘swings’ around in the water, following the tide.
Choose from a ‘mud berth’ (the lowest price) whereby your yacht
is left in the mud when the tide goes out, a ‘half-tide berth’
where half the time the craft is immersed or ‘all states of tide
berth’ which means the boat is afloat the whole time. In the first
two cases, access is dependent upon tide times and whatever your
berth, a dinghy-type craft will be needed to board your yacht.
Mooring quotes will not include moving and lifting the boat,
particularly important if you’re planning to store your craft over
winter.
Maintenance
Regular attention to maintenance will prevent small repairs and
niggles turning into something larger and more costly. It pays to
get into a routine!
Service your engine and check the battery, filters, impeller,
air filter, oil, fuel tank, gearbox, control cables, linkages,
fastenings and the stern gland. Are the sacrificial anodes (bolted
onto hull or shaft to prevent corrosion) worn? If so replace – you
will not want corrosion.
Similarly inspect the rigging, sails, skin fittings, hoses/clips
and electrics (including navigation suite and lights), gas system,
water tank and equipment. Update charts and have a nautical almanac
with you.
Lifting/Drying Out/Anti-Foul
If your yacht is berthed in a marina and there’s an accompanying
boatyard, you’ll be given a discount when undertaking a lift, wash
and block-off and when re-launching.
Hull Scrub and Paint Around
When undertaking a hull scrub/paint around, don’t forget to use
an anti-foul compound to protect your hull against attack from
barnacles etc. Use a good quality anti-foul compound and once the
hull is smooth it will reduce friction and water drag, which in
turn, makes the yacht more fuel efficient. Anti-fouling should be
undertaken yearly.
Craneage
Ensure you know where the yacht you want to buy is moored and
the costs associated with moving it. Craneage and transport costs
are determined by the yacht’s size, so big may not always be best
on your pocket.
Gadgets
Gadgets and gizmos are great, some are essential, others are
nice to have. Three of the most important items to have onboard
comprise a chart in a waterproof wallet, a watch and fuel.
Within your navigation suite you should have; a VHF radio,
magnetic compass, a log to measure speed, depth sounder,
GPS/spotter and if budget allows, an auto pilot.
Prices range from mid hundreds to several thousands of pounds,
but before taking the financial plunge, ensure your chosen
equipment fits into the space allocated on your yacht. And
remember, you get what you pay for, so cheapest may not always be
best. If comparing prices, check the items are the same
specification and quality – a lower price may be because it’s not
on a like for like basis.
Your safety equipment should include; life jackets, buoyancy
aids, a fire extinguisher, fire blanket, flares, first aid kit,
life buoy, torch and waterproof flash lights.
Anything else is a bonus and a collection of gadgets can be
built up over time. Web forums can alert you to pieces of equipment
that are effective, plus those you can do without.
Fuel
Boat fuel efficiency is vital, and as well as regular engine
maintenance and the annual anti-foul, there are other ways to
ensure your craft doesn’t burn fuel excessively; reduce the weight
in the craft by leaving boat supplies and equipment you’re not
planning to use ashore. Cruise rather than race; this can
dramatically reduce fuel consumption and check the tides and wind.
Going against the elements requires greater effort from the boat’s
engine.
Check out online yachting forums, they’ll often advise of the
cheapest places to buy fuel and those with deals. And don’t forget
many marinas offer berth holders fuel at cost.
Insurance
Make sure you’re insurance cover reflects your needs and
remember, if towing your boat to a new mooring location, you’ll
need marine insurance beforehand.
Know the difference between third-party and wide-ranging cover
(the lower the cover levels, the cheaper the premium) and ask what
benefits are included. It’s not advisable to cut corners on
insurance to save costs – you may find you’re not covered when you
go to make a claim which defeats the object of the money-saving
exercise in the first place.
On the benefit side, Towergate Insurance Marine automatically
covers at no extra cost localised sailboat racing such as the Round
the Isle of Wight Race, but others may charge extra. Why pay more
for something that’s automatically included elsewhere?
Similarly, ask if there are any discounts for boats moored in
marinas. Most insurance providers have agreements with specific
marinas which could reduce your premiums by up to 20%. And some
marinas, such as Premier, waive the excess for berth holders making
a claim for an incident incurred in any of its locations.
You can also save costs if your boat is kept ashore.
If you’re a new boat owner, you’ll need training. Reputable
insurers expect you to show you’ve reached a certain level of
competence, either gained through years of experience, or following
completion of a RYA course.
Mark your possessions on board – preferably using an electronic
system such as Datag.
Thanks to www.sailinginfo4all.co.uk for their input to this
piece.
* Based upon Premier Marine Gosport and Brighton annual marina
berthing costs for a 33ft yacht - October 2011
** Based upon Premier Marine Gosport and Brighton annual
boatyard berthing costs for a 33ft yacht - October 2011
