It is said one of the happiest days in your life is the day you buy a boat. There is no question that owning a boat opens up a new world of fun and adventure.
It is said one of the happiest days in your life is the day you buy a boat. There is no question that owning a boat opens up a new world of fun and adventure.
However, if you are thinking about buying a boat, there are some things to consider. Many issues must be factored into your buying decision in order to get a good idea of the type of vessel you need, how much you will use it, and how much you can realistically afford to pay. When calculating the actual cost, you must consider all of the total over expenses.
One of the most important considerations is how much you can realistically afford to spend. Bear in mind the cost of boat ownership is not just buying the vessel, but all of the associated expenses and ongoing maintenance as well. The purchase price, taxes, registration, maintenance, insurance, storage space, and what you intend to use the vessel for must all be taken into account.
A favorite expression among boat owners says, “A boat is a hole in the water you through money into.” This is especially true of larger boats, and the bigger the vessel the more it will cost to both buy and maintain. From pre-purchase inspections to marina fees, many costs are calculated by the foot. Obviously, the cost and upkeep for a 16-foot fishing boat that you trailer to and from the lake for weekend outings during the summer will be substantially less than a 40-foot yacht that will be in the water at a marina most or all of the year.
The types of boats are as varied as what they can be used for. So, in order to pick the right boat type for your needs, consider what you want to use the vessel for. Are you thinking about a powerboat for fishing, water skiing, SCUBA diving, or river running? Are you thinking about a sailboat for the lake or ocean? If the ocean, will you be just cruising along the coast or making passages? While most boats can serve multiple purposes, a big, powerful ski boat would just be overkill if your main use will be fishing. A small sailboat designed for the lake wouldn’t be the safest choice for sailing the seas.
Once you have a firm idea of the type of boat you want, narrow your choices down with the necessary practical considerations to determine a realistic budget.
Consider if your boat will be an additional expense or if the money will come from some other activity your a boat will replace. As an example, will you be using your boat for weekend getaways instead of renting a cabin on the lake?
Deciding on whether to buy a new or used boat is a matter of personal preference and financial consideration. The price of a new boat can set you back more than the cost of a new car, but buying a used vessel will save you thousands of dollars in purchase costs.
However, when buying used, you must be aware of any needed repairs as the cost of fixing even a seemingly minor problem can eat up the savings in short order.
If you are just buying a used boat from a private party for less than a couple thousand dollars, then a professional inspection wouldn't be worth the cost. However, it is always wise to have a professional pre-purchase inspection when considering buying a used boat of significant cost.
In marine parlance, a professional inspection is called a “survey” and the inspector is referred to as a “surveyor.” Surveyors typically charge by the size of the vessel, by the foot. Be sure to shop around, as different surveyors can charge different rates. Also, be sure the surveyor is affiliated with one of the nationally recognized marine surveyors associations.
The boat survey itself will consist of two parts:
1) Structural and Mechanical Inspection
The surveyor will perform a thorough inspection of the vessel’s hull and all the major mechanical components, such as the engine, fuel tanks, steering, propeller, electrical systems, etc.
2) Sea Trial
The sea trial is a test drive to check that all the mechanical components operate properly, see how the vessel handles, how the boat performs on the water in various conditions, and that the engine has sufficient power.
While not all dealerships are the same, working with a reputable marine industry certified dealer can offer several advantages versus going it on your own.
Here are the main points to consider:
• Boat dealerships are usually very knowledgeable about the boats they sell and service and can answer any question you may have.
• Dealers typically provide service for the boats they sell.
• New boats will have a warranty.
• Dealers will typically handle the registration and title process.
• Dealers want repeat businesses and will make a genuine effort to keep their customers happy.
• Dealers can typically help with financing.
• A dealer will act as a liaison for you with the manufacturer if warranty work becomes necessary.
Visit several dealerships and talk with the salespeople to get a feel for their knowledge about the products they sell and their honesty. Likewise, check out the dealership’s service department and talk with the service manager.
Dealers take their boats to shows to sell them, so you can often score a really good deal at a boat show. Dealers will usually offer discounts and special deals or incentives that are only available at the show. However, if you expect to get the boat show price, you will usually have to buy the boat while the show is in progress.
While most boat manufacturers sell through dealerships, it is sometimes possible to buy directly from the boat manufacturer. While the purchase procedure for buying a boat straight from the manufacture is essentially the same as buying through a boat dealership, be sure the manufacture is NMMA certified to ensure their boats meet both the U.S. Coast Guard and the American Boat & Yacht Council minimum safety standards.
As newspaper ads have gone the way of the dinosaurs in many places, buying a boat from a private seller often starts with checking out the online classifieds. Sites such as Craigslist, eBay, Boats.com, and BoatTrader.com are all good places to start. While you can find many listings for boats in your immediate area, the internet allows you to shop all over the country and the world for the boat of your dreams at a price you want to pay. However, always keep in mind the web is full of scammers and be sure you are dealing with someone who has the legal right to sell the boat. Be sure to either go look at the boat in person or have a certified surveyor check out the vessel before you buy it.
The best deals on boats are when sellers are the most motivated, in the offseason. Just like cars, boat dealers need to get rid of their old inventory to make room for the new models and private sellers don’t want to have to store a boat they no longer want. In the northern part of the U.S., the offseason is in the winter months. However, in the deep southern states, like Florida, the summer, or “hurricane season,” is the best time to buy.
Don’t be afraid to negotiate. If you can't wait for the offseason, know that the average used boat sells for an average of 30 percent below asking price. If buying a new boat, dealers can oftentimes provide a discount if you order a boat instead of buying one out of their current inventory.
While you will typically be able to arrange financing through the dealership, you can sometimes get a more attractive interest rate from your own bank or through an online lender. Additionally, you may be able to get a better deal if you already have financing in place. If buying through a private party, then you will of course have to arrange for your own financing. There are many online financial calculators that will help you decide how much you can afford and are eligible to borrow, based on your credit, how much your monthly payments will be, and the total you will be paying in interest.
Registration costs can vary widely depending on the size of the boat and how your state charges for boat registration. Some states have a flat rate for boat registration, whereas others charge by the size of the vessel. Sales and or property taxes can also be added depending on the state of registry. It is a good idea to go to your state’s motor vehicle website or give your local DMV a call before you buy to avoid any unpleasant surprises after you have already purchased the boat.
Because boats have a nasty habit of sinking, boat insurance can be a little on the expensive side. Insurance costs will typically run around three percent of the vessel’s hull value. This means a boat with a value of $10,000 will cost you about $300 per year to insure and a vessel valued at $100,000 will set you back around $3,000 a year to insure. Shop around for the best deal.
The boat buying process is not something that should be rushed through. Be sure you have carefully considered what you intend to use your boat for, do your research, shop wisely, set and stick to a budget, and get a professional inspection if buying a used vessel. Stick to these guidelines and you and your family should have years of fun on the water.
Disclaimer: This article is for informational purposes only and is not intended to be a substitute for professional consultation or advice related to your health or finances. No reference to an identifiable individual or company is intended as an endorsement thereof. Some or all of this article may have been generated using artificial intelligence, and it may contain certain inaccuracies or unreliable information. Readers should not rely on this article for information and should consult with professionals for personal advice.