How to Buy a Boat

Now is a perfect time if you've ever wanted to buy a boat. Boating culture has been coming back in recent years, with sales of new boats hitting record highs.

There are several reasons for this trend. Boating represents an affordable and accessible way to spend your free time, and it's also a way for many people to invest in something tangible that can lead to financial independence.

However, if you're ready to join the boating community by purchasing your vessel, there are some important considerations before you leap.

Owning a boat involves high upfront costs, as well as operating expenses, on an ongoing basis.

This article will cover everything you need to know in your boat buying process — from budgeting and financing to insurance and maintenance.

Boat Search: What's the Best Boat for You?

Before you start shopping for boats, you'll want to research the different types of boating and their features.

This research can help narrow your options based on your lifestyle and preferences. Additionally, it can help you determine the typical cost of the boats that fit your needs.

But first, you'll need to select the perfect boat that meets your requirements. Some of the most common types of boats include:

• Powerboats: Any boat with a motor, such as sailboats, fishing boats, and speedboats.
• Sailboats: Any boat with a sail as the main form of propulsion, such as dinghies, sloops, and yachts.
• Rented houseboats: You can rent a boat for a vacation, complete with amenities and a crew to take you to your destination.
• Ferries: Floating vessels that transport passengers and cargo between landmasses or between a landmass and an island.

Finance: Understand the Costs

You should know the costs involved in purchasing a boat before entering a dealership to begin looking at boats.

The down payment is one of the highest upfront costs of buying a boat. You'll likely have to pay between 10 and 20 per cent of the boat's purchase price upfront and then take out a loan for the rest.

The amount of interest you pay on your loan will depend on various factors, including your credit score and the type of loan you take out.

You may also need to consider insurance expenses, depending on the type of boat you purchase. While some boats require more insurance than others, you should expect to spend at least $1,000 per year on insurance for a mid-sized boat.

Also, you'll want to budget for ongoing maintenance costs, such as fixing leaks and replacing parts as they break down. You can set aside a certain monthly amount to account for these expenses.

Boat Prices: How to Buy a Boat Without Overdrafting

The trickiest part of buying a boat is how to pay for it. If you don't have the cash to pay for your boat in full, you may need to take out a loan.

You must keep an eye on your expenditures to ensure that you don't exceed your budget, just like with any other loan. It's crucial to monitor your spending while taking out a boat loan to prevent overspending.

You'll want to carefully consider how much the boat is worth and what your payments might be.

Additionally, you must confirm that you can consistently make the payments on schedule. If you struggle to keep up with loan payments, you may want to consider refinancing or selling your boat.

Buying a Used Boat

Buying a used boat can be a great way to get a high-quality vessel for less than you'd pay for a new one.

The best way to find used boats for sale is through online classifieds and forums like Craigslist and Boats.com.

When you buy a used boat, you'll want to ensure it's in good condition and has a low risk of mechanical problems. To do so, look for warning signs that the boat may need repairs.

You'll also want to look for boats with low hours, which indicates that the vessel has been used lightly.

When buying a used boat, the title of ownership is an additional important factor. You want to ensure the person selling you the boat owns it and is not merely renting it or holding it in a trust.

Decide on a Budget and a Type of Boat

Depending on the type of vessel you're looking to buy, you can expect to spend anywhere between $8,000 and $1 million.

You can use this as a rule of thumb to determine a general budget for the type of boat you want to buy.

If you're looking to buy a new boat, you'll want to look for sales and discounts in the months leading up to the end of the calendar year. This is when many boat dealers have deals to clear out their inventory and make room for the new models.

You can also browse online classifieds any time of the year, but you may want to wait until the cold winter months are over to inspect the boat in person.

Determine Who Will Own and Be Responsible for the Boat

Before you even start shopping for a boat, you'll want to determine boat owner will own and be responsible for the boat.

You'll want to get the ownership details in writing, such as who will pay for the boat's maintenance and repairs. You may even want to consider drawing up a contract to outline the ownership rules, such as who can use the boat and when.

Depending on the type of boat you buy, you may also have to adhere to certain regulations, like having a certain amount of lifejackets on board.

It's essential to familiarize yourself with the laws and regulations of owning a boat, as you don't want to get in trouble for breaking a rule you didn't know existed.

Choose a Dealer and Do Your Due Diligence

Before shopping for a new boat, boat buyers should research and talk to others, including their friends and family, to get recommendations on reputable dealers.

You can also visit online forums, like the National Association of Boat Brokers forums, to find reviews and ratings on different dealers. Then, when you're at the dealer, take your time and thoroughly inspect the boat.

Check the engine for proper operation and watch for damage, such as rust. Also, remember that a dealer may not be able to lower the price once you're at the showroom.

Know Your Shipping Options

If you're buying a new boat and want to save money on the purchase price, you can consider having the boat shipped.

You can ask your dealer about shipping options when buying the boat to see if this is an option for you.

There are different shipping companies, so you'll want to research and find one that offers the kind of service you're looking for.

Start by researching reviews of various businesses. You'll also want to check the shipping company's website to determine what types of boats they typically ship and how much shipping costs.

Boat Delivery: From Showroom to Dock

If you're buying a new boat, you'll want to inspect it thoroughly and ask the dealer any questions about it.

Ensure that any assurances made by the dealer should be documented in writing. After you've bought the boat, you'll need to get it delivered.

Depending on the type of boat you're buying, you may have several options for how to get it to you. Depending on where you live, you may have the option of having the boat towed by a truck or hiring a tugboat to bring the boat to your dock.

If you hire a tugboat, you can help choose the route by providing the captain with a map of where you'd like it to go.

Bottom Line

The time and money required to own a boat are substantial. Therefore, it's crucial to conduct your homework and comprehend the costs of buying a boat before you start looking for a new one.

Before shopping, you should also decide on a spending limit and the kind of boat you want. These decisions will assist you in knowing what to search for.

Once you've found the boat for you, make sure to get it inspected thoroughly and make any necessary repairs.

Once you've purchased and delivered your boat, it's time to get ready for the next adventure: Using your new vessel to explore the world and make new memories.

You can leave a quote at any time by contacting our customer support staff. Please don't hesitate to contact us if you have any questions about buying a boat and its process!