So, you’ve been dreaming of early mornings speeding across
the lake in search of big bass. Or afternoons anchored off a favorite diving
rock with the family. Or just taking it easy, socializing at the marina on warm
summer evenings.
Whatever your marine dreams, buying a boat can be the key to
opening an amazing new lifestyle on the water. But it’s also a big investment
with long-term costs.
Too often, first-time boat owners dive in at the chance to buy
a used boat at a “great deal” without stopping to calculate total cost of boat
ownership, such as maintenance, fuel and insurance. First-timers might also buy
used without realizing that new boats often come with boat financing rates that make for an
affordable monthly boat payment.
So which is it? New or used? Let’s take a look at some of the different
factors to consider when buying a boat.
Where to start
First, you need to figure out what type of boat you’re
looking for. From sociable pontoons to gnarly wakeboarding boats to a basic aluminum
boat with a 10 horse outboard—it all depends on what you want to do. Boat shows
are a great place to see what’s available. And there will also be some great deals.
But beware of buying on a whim (see the next point)!
Total Cost of
Ownership
Many new boat owners neglect to think about the true cost of
owning a boat, whether it’s new or used. Not only do you have the upfront cost
(which may have extras like a trailer, mooring cover, safety gear, toys to
enjoy the boat, and possibly an extended warranty) there are also significant
annual costs:
·
Transportation
and Storage – Will you be trailering the boat or renting a slip at a
marina? Winterizing it at a separate location? If you’re trailering it, is your
current vehicle up to the job?
·
Maintenance
– Depending on the age of the boat and whether it’s still under warranty there
can be significant maintenance costs. Even routine maintenance costs such as
winterizing can add up if you don’t have time to do them yourself.
·
Fuel
– This all depends on how big and fuel efficient your boat is, and how often
you’re using it, but if a typical 20’ bass boat has a 40 gallon tank, at say
$4.00/gallon (more at the marina) you’re looking at $160.00 every time you fill
up. No small change.
·
Insurance
– Premiums average about $275 US a year. Again costs depend on a number of
factors.
·
Miscellaneous
– Licensing, registration and other fees (e.g. ramp fees). None of these will
be a major cost, but just like your plate stickers on your car, they can add
up.
New vs. Used
If all the costs associated with owning a boat haven’t fazed
you, it’s time to look at “new vs. used”. Just like buying a car there are pros
and cons associated with each approach.
Buying New – Buying
a new boat from a reputable dealer comes with many advantages. Well-maintained
boats hold their value for a long time, which means dealers, who usually work
with a marine lending specialist, can offer attractive boat financing rates with a long term.
While car financing often tops out at 5 or 6 years, boat loans typically have
10 to 20-year terms—which means lower monthly payments.
Consider that a new boat will also come with a full warranty,
that you know the boat’s history, and that maintenance costs should be much
lower, and there are some definite “pros” to buying new.
Buying Used – Of
course, the big benefit to buying used is that the upfront cost will be
significantly lower. And if you’re
buying a used boat from a recognized dealer, you should also be able to secure used boat financing. You
may just find that the interest rate is a little higher and the term a little
shorter than with a new boat.
Other than cost, the other big thing to consider when buying
used is the condition of the boat. Just like buying a used car, you will want
to take it for a test drive and, even more important, get a marine mechanic to
check over your prospective purchase. In this case, this detailed inspection is
called a “marine survey”.
You may luck out and get a great used boat with attractive used boat financing. Just
make sure you do your due diligence first.
One other thing
Once you’ve got your new (or “new to you”) boat, and you’re
ready to make waves, remember to check your operator licensing requirements for
your state. In many states, it’s the law that you carry a boater education card
(commonly called a boating license) whenever you’re operating a powered watercraft.
You can get your boater education card online by taking an approved
boating safety course at
BOATERexam.com. You can check your state’s regulations by visiting
www.boaterexam.com/usa/ and choosing your state.
Happy and safe boating!
About the
author:
LEGAL DISCLAIMER:
The above-noted article is based on the
writer’s personal thoughts. Nothing in the aforesaid article should be
considered personal advice. The article may contain errors and the writer’s
opinion may change substantially or in part based on actual facts and any
number of variables. You should not make any decision based solely on the
writer’s comments in the aforesaid article. Any decision you make as a result
of reading the above-noted article is your sole responsibility. It is your
money and your life and your sole responsibility!
