Getting Started with a Luxury Yacht

Yachts are a considerable investment, not only in terms of time-length but price, too. While a fractionally owned yacht may give you peace of mind with ownership, high-end yacht charter companies can offer a less involved option for time on the water. Asking due diligence questions of yacht clubs is important in deciding whether fractional yachts, charter, or whole-ownership is right for you.

Seven Reasons to Use a Fractional or Charter Club

1. Club memberships include white-glove service
2. Newer yachts purchased every 3-10 years
3. Maintenance and repair fees covered
4. Fractional share sizes scale with price
5. Insurance included with membership
6. Docking costs are covered
7. Some fractional clubs let you sell unused fractions

Look at the Numbers

Fractional yacht clubs and charters alike will charge steep annual maintenance fees. According to yachtsurvey.com, maintenance on a relatively new 40’ yacht demands around 4% of the total purchase price per annum. While factors like maintenance, concierge, and crew are part of club fees, you should also know whether you need access to a fleet of yachts or just one. The Helium Report directory of fractional yacht clubs is a useful starting point for researching further costs.

Cautions Before the Voyage

Wear and tear from other members using the yacht is managed by the club, but in a worst case scenario your boat could be out of commission through no fault of your own. Additionally, demand a report on the captain’s experience to ensure a safe trip. While clubs have a high standard for their captains, your own due diligence is essential.

What to Ask of Yacht Providers

1. What concierge services are provided?
2. How many members share the yacht?
3. Does the insurance offer legal protection?
4. What are the annual maintenance fees?
5. Should I use a sail or motor yacht?
6. Is WiFi available on the yacht?
7. What kind of financing is available, if any?
8. Are there additional fees?