- [Presenter] This 128 foot long super yacht
runs almost $14 million to purchase,
but that's just the beginning of its expenses.
- [James] It's a city, it's a resort, and it moves.
- [Presenter] But imagine if that resort sat on top
of one of the planet's saltiest, wettest environments.
Yacht owners can also expect to pay
10 to 20% of the yachts value each year
simply to maintain it.
Superyachts or yachts longer than 82 feet
can sell for hundreds of millions of dollars.
This means maintenance could be tens of millions per year.
Here's what goes into this superyacht's
estimated annual budget of nearly 1.9 million.
- [James] Welcome aboard Snowbird.
- [Presenter] Cost that up even before owner set sail.
- [James] Dockage fees are very expensive.
They range from $3.50 a foot to 7.50 a foot per day.
- [Presenter] Dockage fees can be so high for superyachts
in part because there's a large demand
for a limited number of spaces,
but if owners keep their yachts docked,
they could face other large maintenance expenses.
- All the works of the bottom of the vessel
gets scummed up with oysters and clams and barnacles.
A lot of these electronics,
they get fouled up if they sit dormant for a long time.
It's definitely better to use it than let it sit.
- [Presenter] While docked,
the yacht can connect to the Marina's power grid
for basic operations,
but when it's out at sea, this 368 ton vessel requires fuel,
a lot of it.
- For someone like myself, I call this boat yoga.
What we have here is the day tank.
This holds approximately 800 gallons of fuel.
See the red?
That's the amount that's in the tank.
- [Presenter] In total,
this yacht can hold almost 12,000 gallons of fuel.
Plus, other water vehicles like its jet skis
and support boat will need even more gas.
- Generally, we burn anywhere
from 60 gallons an hour to 120 gallons an hour.
- [Presenter] At around four and a half dollars a gallon.
- [James] It costs approximately $360,000 per year
to fuel Snowbird.
- [Presenter] But day-to-day maintenance
is actually the fourth largest operating cost
and it can get messy.
- Today we're gonna be changing out
the crankcase ventilation filter.
That keeps your turbos and your after cooler
from getting gummed up,
and it also helps reduce oil consumption
and reduce air pollution
by further combustion inside the engine.
This part probably costs $60, $70 to replace,
but it has immeasurable value
in prolonging the longevity of your motors.
Maintaining the engines on a yacht like Snowbird
typically costs around $60,000 a year,
and you're looking at parts, time,
and the materials involved to change the oils
and keep everything up and going.
- [Presenter] That's just below deck.
Superyacht owners also need to invest
in keeping the rest of the yacht in pristine condition,
like the teak flooring.
Teak is typically used on yachts
because it's a weather resistant luxury material,
but it's also challenging to maintain.
- [Josh] When we scrub the teak,
oftentimes it only lasts roughly a week or two
depending on the traffic on board.
It wants to go back to its natural color,
and, you know, between rain and rinsing it down,
you kinda wash away all of that,
you know, hard work that you've done.
Annually the teak flooring costs about $18,000 to maintain.
- [Presenter] Adding on smaller expenses,
you're already looking at just over $1 million.
But by far, there's one cost for maintaining superyachts
that completely surpasses the others, the crew.
The estimated budget for Snowbird's crew
is over $800,000 per year and that's because super yachts
must always have a crew even when docked.
- You have to take care of the teak
the paint, wash windows, machinery.
Rust never sleeps, maintenance never stops.
- [Presenter] Cost towards their health insurance,
travel expenses, uniforms, and cell phone bills
can add thousands to the budget.
Adding in crew expenses
brings the annual operating cost estimate
to nearly 1.9 million a year,
but that's only when there are no major repairs
or maintenance
while owners generally spend around 10% a year
in maintenance costs for new superyachts.
- [James] It's kind of a guideline,
but as she gets three years or five years,
or hits her 10 year, it's gonna be more than 10%.
- [Presenter] Every five years or so,
superyacht owners have to shell out
for one of their largest expenses.
- Paint jobs are sometimes from a hundred thousand
to a million bucks, depending on your size of your boat.
Paint is about $1,800 an inch,
- [Presenter] Salt in the water and air
corrodes the yachts paint.
To repaint the entire yacht,
it needs to be hauled out of the water,
then it can take months to complete a fresh paint job.
There are also other major potential expenses.
Some yacht owners need to spend
hundreds of thousands of dollars every few years
on detailed inspections.
And if a yacht fails in inspection,
repairing or replacing it could run $200,000 or more.
- Certain boats, you can't get the engines out.
You have to cut a hole in the side
and then reweld it, recertify the hole.
Now you're into the multi-millions to change out an engine.
- [Presenter] To recoup some of these costs,
superyacht owners will rent out their vessels.
The charter fee for this super yacht
ranges from $125 to $145,000 per week,
that covers the boat and the crew,
but renters also need to pay for additional expenses
like fuel, food, and customs fees.
Plus, there's a customary tip
of 18 to 25% for the crew members.
At best, superyacht owners
might break-even on maintenance costs
with income earned from chartering.
- I don't think it's a profitable situation.
At best, they're covering their salaries
and the boat's way as it travels.
Wear and tear is always there
and the money would have to go back into the vessel.
If you didn't properly maintain your vessel,
your value would decrease.
Most people that buy yachts of this size and this stature
really wanna take care of them.
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