Charting the course to boat ownership

For many people, buying a boat ranks as high as home ownership or having a luxury vehicle in the driveway. The desire to host friends on the water, fish on quiet mornings or connect with family draws people to consider buying a boat.

According to data from the National Marine Manufacturers Association (NMMA), nearly 1.5 million Americans purchase a new or used boat every year. Turning that desire into reality requires careful planning. Navigating the market successfully also means balancing wants with the financial realities of boat ownership.

Choosing the boat

The first step toward getting a boat is deciding on the size and scope of the vessel. It's important to match the boat type to its primary purpose. For lazy days on the water, particularly bodies of water that have low to moderate currents, pontoons or deck boats are ideal. For hobbies like fishing or traversing oceans, center console style boats offer many advantages. Thrill seekers may want to consider a wakeboard boat, which is a specialized watercraft engineered to create wakes for towed water sports.

Size of the boat is another variable. The U.S. Coast Guard categorizes recreational watercraft according to a class system. Class A boats are under 16 feet. The highly popular Class 1 boats span 16 to 26 feet. Open water or ocean use boats should generally be vessels of at least 25 feet to safely handle rougher swells, says Formula Boats.

New vs. Used

Deciding on a new or used boat often comes down to weighing finances carefully. Naturally, a new showroom model will cost more upfront. However, a used boat may have unseen costs to ensure the boat is seaworthy. New boats may come with updated technology and a manufacturer's warranty, while used boats enable buyers to stretch their dollars further. When considering a used vessel, Boat Trader suggests hiring a certified marine surveyor to inspect the hull, engine hours and electrical systems before closing the deal.

Financing

Those who have the savings to purchase a boat outright can do so, but many need a loan to manage the purchase. Marine retail data indicates the average fixed interest rates for boat loans generally sit between 6.4 and 7.5 percent.

Additional expenses

Boat owners also must consider additional expenses beyond the cost of the boat. There is the required insurance for the vessel, registration, safety/towing service membership like Sea Tow, and marina costs for those who will keep the boat in the water for the season.

A boat is a lifestyle investment. By matching the vessel to one's specific needs and mapping out the full scope of recurring expenses, a person can ensure time on the water is enjoyable.