If you’ve spent time on a family or friend’s boat, or enjoyed a few weekends with a boat rental, you may have decided that you want a boat of your own.
Every person needs a moment to recharge after months of hard work in the city. The build-up of stress can significantly affect your productivity and many therapists will quickly tell you to take a vacation away from the stressful environment of work and city life. The vacation does not need to include a trip to some exotic destinations in Africa or the Caribbean.
You could consider boating for recreation and relaxation.
The first image that pops up when they hear about private boats relate to the big yachts owned by millionaires. On the contrary, the boating industry contains a variety of boats that cater to the needs of people of different economic statutes.
Having spent some time on a friend’ boat, chances are you enjoy it so much you probably want your own boat by now. You, however, need to know the facts, particularly the financial facts before you make the purchase.
Here’s what you need to know before you make your next purchase:
Identify the Purpose of the Boat
What are your interests? Fishing? Partying at the sea?
You need to identify your purpose before having a boat. The approach will help you to buy a product that will be able to fulfill your goals. It will help to maximize your fun away from the city.
If you love fishing, you should consider a fishing boat. The size of the boat will depend on the number of people you will accommodate for the fishing trips. For those that enjoy having parties at the sea, you could select a Pontoon boat to cater to your needs.
Alternatively, a cabin cruiser will help to accommodate you and your family for several nights at the sea.
For the few that enjoy water activities such as skiing, you could consider a ski or wake boat for your water sport needs.
Initial Costs of the Boat
The costs of a boat will depend on several factors such as size and the equipment you will carry on the boat.
You do not need to buy a mega yacht to make your holiday fun. Get something smaller. Get something affordable.
You could finance the boat using your own money. Your savings could help to facilitate the acquisition. However, ensure that you do not invest a huge percentage of your money in the initial purchase as boats have many expenses you will need to meet.
Alternatively, you could consider financing the purchase. Many companies such as Bonsai Finance offer finance to prospective boat owners. The process will enable you to ease the financial strain as you attempt to buy your first boat.
Costs Associated with the Purchase
Like vehicles, boats also require insurance. What will happen when your boat incurs an accident? Insuring your boat will help to cushion against potential losses.
You could insure it against theft. You could insure it against fire. You can discuss with your preferred insurer on the services and options offered for boat coverage.
Make sure you assess the value of the boat while getting an insurance cover. Don’t over insure your boat as it could drain your finances for nothing. Additionally, strive to check for better rates every year.
The high competition in the insurance industry means that many providers will often lower their rates to attract customers.
You might also need to settle boat transportation charges depending on where you make the purchase. Boats procured from vast distances will need transportation to your location. In many cases, you will be required to settle the bills.
Other Expenses Incurred Before Owning a Boat
You may need to get some education and boating license before you get your first boat. Many states insist on safety courses to reduce sea accidents. Local authorities also issue licenses to regulate boat owners in the locale.
You will need to pay for the license and safety classes before you can start operating your boat.
Expenses Associated with Owning a Boat
Before you have your first getaway with your first boat, you need to know of some other costs associated with boat ownership. You will need to invest some money in getting the appropriate boat accessories.
For example, you will require life jackets and signal flares to help in the event of accidents. The equipment will help to ensure you have a smooth ride in the open waters. Remember that many states consider the safety equipment as necessities for a new boat.
Tired of the expenses already? There’s a little more left.
Having a boat will subsequently attract maintenance costs. Every machine requires maintenance. Just like vehicles, you will require to service the engine after every few months.
You will need to pay for cleaning. However, if you prefer to save on some of the costs, you could spend some time cleaning the boat yourself. This is one of the ways to own a boat without going broke.
Apart from maintenance, you will need to cater for storage expenses. In-water dock space can range from $1,000 to about $5,000 every year. People in colder parts may even need more money to cater for wintering – a process that keeps the engine safe from extreme cold.
Although, if you have storage facilities near water, you won’t need to hire some storage space.
Lastly, as you enjoy your boat escape, you may need to pay taxes. Yes, you heard it, the taxman has no bounds. Many states such as South Carolina will require you to pay about 10% of the boat’s value as tax.
Ready to Buy Your Boat?
You now have the appropriate information on how to have a boat. Set aside some of your savings to buy a new boat to facilitate family boat trips. If you do not have enough funds, get financing services. The time spent away from the stressful city life will help to rejuvenate your body. Don’t hesitate to own a boat. Buy one, enjoy yourself and remember to keep some money for the expenses.
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