The open water and sunny days are calling, but what are the actual costs of purchasing a boat, and is it worth it? Part of advising our members on financial decisions is revealing some of the hidden costs you need to be aware of before you take the plunge into a life on the water.
The Purchase PriceWhether you’re shopping used boats or new, sailboats or speed boats, obviously the biggest part of your overall price is the ticket price.
InsuranceBoat insurance generally covers collision, property damage, theft, and/or bodily injury liability. Your cost will vary by state, the type of motor and boat, and whether you’re boating on freshwater or open ocean.
Boat LicenseWatercraft licenses are required in most states for boats over a certain length. In Minnesota, boat dealers will help you apply for title and registration, and are good for three years.
TrailerIf you plan on visiting other lakes or taking your boat on the move, you’ll need a trailer, not to mention a vehicle that can tow something as heavy as a boat.
Storage in WinterWith many local options for winter rack storage, these storage facilities make sure to prep your boat, wrap it, and store it for a monthly or annual fee. Some boat owners choose to store their boats on their own property over the winter, which still requires winterizing and boat wrap.
Dock and/or Marina SpaceNow that you have your boat, where will you dock it? You may be purchasing a dock for your own property or renting marina or dock space on a nearby lake, both additional costs to take into consideration.
MaintenanceLast, don’t forget the costs for cleaning, repairs, and maintenance to the boat, sail, or motor.
For additional advice on making a boat purchase, or questions about recreational vehicle loans, contact us at Financial One.