Things are really starting to heat up here in Southeast Texas! Sunny days and blue skies have returned, and it really has us thinking – wow, it would be great to get out on the water.
Perhaps, you’re pondering buying a boat this summer. But, like any money savvy DuGood member, you’re wondering if it will fit into your budget. Boat ownership involves much more than just the initial purchase price. Before you sail off into the sunset, here are #things to consider.
1. The Financing
First things first – you have to buy the boat! There are number of factors that affect a boat’s price tag. What will you use the boat for? The possibilities are as endless as the ocean – fishing, wake boarding, sailing… How many passengers do you hope to bring aboard? What should propel your boat?
In some situations, your monthly note can be very similar to a typical car payment, roughly $250. And, there are even circumstances where it can be tax deductible.
Whatever your purpose, keep it simple. Remember, your boat’s purchase price should only count for a fraction of your budget – or else you’re sunk!
2. Insurance
Unfortunately, there’s not a one-size-fits-all approach when it comes to your boat insurance. Your boats type, size, and level of coverage will all affect the price. Some small boats can be insured very inexpensively and can even be included as an add-on with your homeowner’s insurance policy.
Want to knock off a few dollars from your boat insurance premium? Who doesn’t love a good discount! Be sure to take a boater’s education course and get a little break!
3. Maintenance
It pays to take good care of your boat! Left neglected, it could really cost you down the line. What does good boat care look like? Here are a few items you’ll need to include on your budget and to-do list:
- Fresh water washings after each use
- Boat cover
- Oil changes
- Winterization
While buying a pre-owned boat may seem like a smart money decision upfront. If the boat isn’t in good condition, repairs and maintenance might come back to haunt you later.
4. Storage
Alas, though it seems like a glamorous life, most of us cannot sail the seven seas 24/7. Planning on docking your boat at a marina? Be prepared to pay the price by foot and per day. If you opt to keep your boat closer to home in the backyard or garage, you’ll see need to factor in a trailer and a vehicle that’s powerful enough to fuel it.
5. Fuel
Unless you’re planning a quiet paddle down the river, you’re probably going to need a little fuel for your next adventure. Even most sailboats have a small engine! According to the Active Captain guide, fuel has been running between $2.00 to $3.00 per gallon lately.
Using this example by Money Talk News blogger Jim Gold, here’s a clearer picture of what you might be looking at.
“Your 150-horsepower engine would burn about 15 gallons per hour at full throttle, less for cruising — so the cost of the proverbial three-hour cruise could still top $100 (that’s $2,600 a year if you take it out the average 26 times).”
6. New vs. Used
Boats depreciate in value dramatically during their first season of use. If you find a pre-owned boat in good condition, it could be exactly what you need to keep you budget afloat. If you’re interested in going this direction, be sure to have professional check things out. You can go through the National Association of Marine Surveys to get help determining a boat’s condition and value.
How DuGood Can Help
You’ve done your research, you’ve found a boat that’s the right fit, and now you’re ready to move forward. Congratulations! It looks like lots of fun adventures await you this summer.
If you’re ready to purchase a boat, you can get started right now. Applying online only takes a few minutes! Or, if you have a few questions, give our Lending Center a shout. They’ll be happy to call you back!
