12 Things to Consider When You Are Buying A Boat

 

 

Buying a boat is a big decision. And for many people, it can be a dream come true. But while this can be a life-changing experience, there are also many things you need to know before you take the plunge.

 

An informed buyer is a smart buyer. This guide has everything you need to know so you can buy the best boat for you and avoid any pitfalls along the way. Read on to learn more.

 

 

What to Know When You’re Buying a Boat

 

Buying a new or used boat can change your lifestyle. All of a sudden, weekends and holidays can be spent with the family on the lake. You’ll meet like-minded people who also enjoy boating, and if you choose the right boat, your investment will last for decades.

 

Just don’t forget to consider these things:

 

 

1. New or Pre-Owned

 

The first decision you’ll need to make is whether to buy a new or used boat. If you’ve been saving for some time, or money isn’t an issue, buying new boat is the better choice.

 

This is because new boats will come with a warranty. If your boat has a malfunction, you’ll be covered for any repairs, which is great for peace of mind.

 

However, in 2014 alone, 940,500 pre-owned boats were sold in the United States. Used boats are a much less expensive choice since they’ve already experienced depreciation.

 

For new boats, depreciation is highest during that first season that you use it. If you want an economical choice, pre-owned will save you money as long as you get the boat checked.

 

 

2. Size

 

There are many different factors to consider when you’re thinking about what size boat you will need. Here are just a few:

 

 

Where will you operate your boat?

 

If you’ll be boating on rivers and lakes, you’ll usually just be operating your boat during the daytime. A boat between 18 and 40ft will usually have basic amenities that will allow you to be comfortable for a day of boating.

 

 

How long will you stay on the boat for?

 

If you’re planning to stay overnight on the water, you’ll usually need a larger boat, which will have a galley, cabin, and other amenities.

 

 

How many passengers will you carry?

 

Are you planning to take a group of friends away for the weekend? Need room for a cocktail hour when you’re using the boat? Or are you just hoping for a place to sit by yourself and enjoy the peace and quiet?

 

 

What’s your budget?

 

It’s not just the initial boat buying costs that are larger with a boat- you’ll also spend more on:

 

• Maintenance
• Gasoline
• Moorage
• Dry docking
• Cleaning
• Boat Insurance
• Winter Storage

 

These  boat ownership costs will need to be calculated when you’re thinking about buying a boat.

 

 

3. Sail or Motor

 

This choice will usually just come down to personal preference. Motor powered boats are usually easier to drive, while sailing boats rely on the wind.

 

The type of boat you pick will depend on the activities you plan to use the boat for. If you just want to do some quiet fishing or gentle cruising, a sailboat can be perfect. But if you want to have the kids on the waterskis on the back of the powerboat or pontoon boat, you’ll need a inboard or outboard engine to make it happen.

 

 

4. Uses

 

If you’re finding it difficult to decide which type of boat you should buy, here are some questions to ask yourself:

 

• Do you want to be able to put it on a boat trailer?
• Are you hoping to impress guests and business contacts?
• Will you be taking your family on the boat?
• Do you plan to do water sports with your boat?
• Are you looking for a multi-purpose boat?
• How much boating experience do you have?
• Do you want to be able to operate your boat alone?
• What kind of monthly boat loan payment can you afford?

 

 

5. Time

 

One thing that many boat buyers fail to consider when buying a boat, is how much time they have to use it.

 

If you can only get out on the water once every month, or once every few months, it may be worth waiting to buy. This is due to how much you would pay in maintenance and the rate of depreciation. For some people, it may be worthwhile to rent a boat instead.

 

If you’re retired, or you legitimately think you’ll make great use of a boat, then buying a boat is definitely for you.

 

 

6. Financing

 

Instead of paying cash, many people are taking advantage of historic lows and using their cash elsewhere. Boat financing can be for anywhere from 10 to 20 years, although most are typically between 10 and 15.

 

Marine lenders will specialize depending on the size of the loan. Some will work with anything under $30,000, while others only go for those in the millions.

 

If you’re thinking about using finance for your boat, keep in mind that different marine lenders will have different requirements. They’ll need to know the value and age of the boat, and you’ll sometimes need up to 20% for your deposit.

 

Before choosing the right boat  and taking a loan, you’ll need to determine whether you can sustain it long-term based on your cash flow.

 

 

7. Insurance

 

Whether you choose to use finance or cash when buying a boat, it will need to be insured.

 

You’ll need to find an agent with underwriters who specialize in marine boat insurance. While it can make sense to shop around, your best bet is to work with an agent. They’ll typically have relationships with specific insurance companies and can help you compare rates and insurance policies to get a good deal.

 

The age, purchase price, and size of your boat will influence your coverage and premiums. If you choose to get a pre-owned boat, you’ll need to get a survey which shows the boat’s condition.

Some insurance companies even offer discounts for based on boat type, and if your a first time buyer.

 

 

8. Legal

 

Boat owners in Canada need to ensure that their boats meet the Canadian Small Vessel Regulations.

 

In order to operate a boat, you’ll need to prove you’re competent. This means carrying a Pleasure Craft Operator Card. You’ll receive this card once you pass a boating safety course which has been approved by the Canadian Department of Transport.

 

When buying a pre-owned boat, you’ll also have to transfer the pleasure craft license into your name (this isn’t the same as buying a Pleasure Craft Operator Card). You’ll need to prove ownership, fill out form 84-0172E, and provide a photocopy of your ID.

 

If the current owner of your boat can’t prove ownership, they’ll need to make a declaration under oath as to why they can’t produce proof of ownership or the bill of sale.

 

 

9. Storage

 

When buying a particular boat, one of your biggest considerations will be where you will keep it.

 

Some people may want to put their boat on a trailer so they can explore many different waterways. Others will want to keep it docked at a home port marina.

 

The bigger the recreational boat you choose, the stronger and larger the trailer and truck or car will need to be to pull it. The larger trailers will be around 30ft long and 8.5 ft wide.

 

If you choose very large boat, you may end up needing to hire professionals to move it. You may even need to get permits to move it from point A to point B.

 

You’ll also need to factor in the cost of storage when you won’t be using your boat for winter or long periods of time.

 

 

10. Shopping

 

Most people will start looking for a boat online. Most boat brands will have a long-time boat owners clubs. That means you can talk to different people who have bought that brand of boat in the past. They’ll also often give you great tips about buying a new or used boat and will usually let you pick their brains and ask questions.

 

You’ll often find that it’s cheaper to purchase a boat online. But in the early stages of your search, it can be a good idea to go to a boat show. This will allow you to examine a variety of models and brands in person. You can then talk to a number of experts to get their opinion on what you need based on how you’ll use your new boat.

 

 

11. Inspection

 

When you’re buying a boat, it’s up to you to ensure it’s seaworthy. This is particularly important when buying pre-owned boats.

 

First, start with a walk around. Your next step is to take it for a sea trial. This is to see if you enjoy the boat and if you notice any problems. If you’re an inexperienced buyer, you may not notice some important issues, which it’s so important to hire a marine surveyor.

 

Get the boat hauled out of the water so the surveyor can get a good look at the parts that are usually under the waterline. It’s well worth hiring the most experienced marine surveyor you can find, as they can save you from buying a lemon.

 

 

12. Inclusions

 

Finally, when you’re buying a boat you should ask the seller what will be included. The seller will usually give you a list of the equipment that will come with the boat. You can sometimes choose to take everything on board (and pay more) or go shopping for your own amenities).

 

Buying a boat is a major purchase and big decision, but it doesn’t have to be stressful. Get in touch today with any questions so we can help you through this exciting process.