Did you know that 95% of the 12 million registered boats in the U.S. are south of 26 feet long and cost less than $50,000? But the ownership cost includes more than the purchase price.
In addition to the purchase price, there are expenses that include the following:
- The boat tax depending on the state you live in;
- Registration;
- Insurance;
- Mooring;
- Fuel;
- Maintenance and repairs;
- Storage; and
- Trailer.
You’ve probably heard the joke about a boat being like a hole in the water where people throw money. But that doesn’t have to be your boating experience. If you diligently research and make informed decisions, your boat ownership experience can be a rewarding one.
Are you thinking about buying a boat? If so, consider these five questions. You’ll be well on your way toward a buying decision when you have answers for the following:
- What’s Your Budget?
How much do you want to spend on a boat? You’ll want to head into the process with a realistic budget. That requires research. You need to figure out what kind of boat you want and then look at price ranges for those kinds of boats.
Don’t just pick a number out of the sky and think that’ll help. Do your research and set a realistic budget. Don’t forget that the purchase price is just the start. You don’t want to face the scenario of struggling to keep up with the ownership costs.
- Do You Want a New One or a Used One?
According to one source, an estimated 1.1 million-pre-owned boats were sold in the U.S. last year. So, buying new isn’t the only option. Locate a reputable retailer that sells new and used boats.
You could save thousands of dollars by going the pre-owned route. Unless you have good reasons for only looking at new boats, consider getting a used one that’s in great condition.
- What Size Is Right for You?
It’s also essential to consider what size boat is right for you. To determine an appropriate size, consider how many passengers you intend to go boating with, the length of time you’ll be on the boat at any given time, and even how far you plan to travel in the boat. Do you need space to host anyone overnight? Figure out how you’ll use the boat before selecting the right size.
- How Are You Going to Pay for it?
If you can get the boat you want without having to finance it, great. But if you need to finance all or part of the purchase price, you’ll want to explore your options. Different lenders have different requirements. Think about the length of time you’ll get to pay it off, how much the monthly payments will be, and your cash flow expectations over the payback period. Again, you don’t want a situation where you struggle to make payments for your boat.
- Where Are You Going to Store it?
It’s also important to consider where you’re going to store your boat. Do you intend to keep it on your property, docked in the water, or stored at a boat storage facility? Whatever you choose, you should ensure you clean your boat before storing it for the winter. Clean it, fix up any scrapes or scratches, and apply boat paint where needed. You can store it after ensuring it’s ready.
These are some of the questions you should ask yourself before buying a boat. If you go about it the right way and make an informed decision, you’ll be able to enjoy a lot of fun out in the sun with family and friends. Buying a boat is a big decision. Make the right choice the first time around.
