With boating season already here, navigating the exciting journey of buying a boat requires careful planning. Various costs beyond the purchase price, such as maintenance, insurance, storage and unexpected expenses, make understanding how to budget for a boat essential for a smooth sailing experience.
The experts at Boatmart, a marketplace for buying and selling boats of every shape and size, are here to guide you through the process.
Boat types
First, determine what type of boat will best suit your hobbies, lifestyle and budget. The spectrum is broad, from small dinghies to luxury yachts.
Factors to consider include:
1. Intended use. A simple fishing boat will suffice if you plan to use your boat for lake, river or creek fishing. But if you’re into water sports or ocean cruising, you might need a specialized, more expensive model. Consider your needs and go there.
2. New vs. used. While a new boat may require a higher upfront cost, it’s likely to demand less maintenance during the initial years. On the other hand, a used boat may be more affordable but could necessitate additional upkeep in the long run.
3. Size. Larger boats tend to have higher initial purchase prices and ongoing expenses, such as maintenance, insurance and storage fees. Consider these factors when evaluating the overall costs of ownership.
Upkeep
Just like cars, boats need regular maintenance to preserve your investment. Regular upkeep consists of engine tune-ups, antifouling, cleaning, summer storms and winterization. Here are some ways to minimize maintenance costs:
1. DIY upkeep: If you feel confident enough to tackle simple upkeep and maintenance, you can complete them yourself. However, for more involved tasks, it’s advisable to utilize experts.
2. Regular care: Regular checkups to spot problems early can help you avoid more significant repairs later.
Insurance
Insurance is a big piece of owning a boat. Your choice of coverage will affect the total overall cost of your insurance. Here are some things to consider:
1. Coverage type: Regarding insurance, third-party liability could be a good option, as it’s generally less expensive than full coverage. This insurance prevents you from having to pay for any potential accidents or harm caused by your boat.
2. Boat value: Your boat’s value affects the insurance price. In general, more expensive boats require more expensive insurance.
3. Boat use: Use frequency, where you go boating, and the boat’s primary location can change the premium. For instance, if you use your boat for low-key lake trips, you might pay less than someone who goes offshore fishing. Understanding these factors helps you choose the correct coverage.
Storage and transportation
Where you store your boat and how you transport it between bodies of water affect its overall cost of ownership.
Consider the following:
1. Storage: If you live on the water and have a dock, keeping your boat at a marina is generally more expensive than keeping it at home. The cost of marina storage depends on boat size and type, location and services. Choosing between outdoor or indoor storage can also impact price. Indoor storage is often pricier due to offering more protection and security.
2. Transportation: Towing your boat? Remember to include the cost of a trailer in your budget and the added cost of vehicle fuel when towing.
Unexpected costs
Like any significant purchase, setting money aside for emergencies is key. Unanticipated expenses can include sudden repairs, part replacements and damage from bad weather. A helpful guideline is to set aside 10-20% of your boat’s worth each year for these expenses.
To search for boats and to learn more, visit boatmart.com.
Purchasing a boat is a thrilling journey. With good planning, you can avoid financial worries and enjoy lifelong memories on the water.
