Understanding Boat Ownership Costs
Many people dream of becoming boat owners within their lifetime. It’s a great family activity and a pastime that can be passed down for generations. Although it can be thrilling to jump right into ownership, boats are a large investment and it can be helpful to understand the financial obligations before committing to the purchase.
The Sticker Price
The first expense you will encounter will be the asking price of the boat. The initial price is usually the largest amount you’ll have to pay, but it is typically paid overtime with a loan repayment plan. The asking price will depend on a few different factors, including the boat size, type of boat, age of the boat, and when you make the purchase.
Larger model sizes are built with more raw materials, meaning they cost more to make and will sell for a higher price. You’ll also notice that different types of boats are set at different price points, depending on the features and purpose of the vessel. Lastly, new models will be the highest price points, but buying during the off-season can help you get a better deal.
Boating Insurance
Once you purchase a boat, whether you buy it outright or with a lender, you’ll need to consider insurance coverage. At the very least you will need liability and damage coverage, but some newer models may require full coverage policies, especially if you financed the purchase.
You might also encounter different prices for insurance policies based on your geographic location. For example, if you reside in an area that is prone to storms like hurricanes, you might pay more for your policy.
Although more coverage leads to higher monthly payments, the cost of coverage can be cheaper than having to pay out-of-pocket for damage, theft, or other incidents.
Registration Fees and Storage
Just like automobiles, when you own a boat you have to keep its registration up to date. The registration costs can vary based on different factors, like the state, county, and boat type.
Along with the upkeep of registration, you may also have to consider storage costs. If you don’t have access to a place you can store your boat, you may need to find a place to dock it or find dry storage.
Maintenance Costs
Beyond the technicalities of keeping your boat updated, you will need to make sure the mechanics are also functioning properly. Your maintenance costs will include routine care, such as cleaning and painting, but may also include necessary repairs.
Becoming a boat owner is a dream for many and when you know the costs you can be better prepared to make the purchase. Our team at Hampton Watercraft & Marine, located in Hampton Bays and Eastport, NY, would love to share our inventory with you! We proudly serve the Eastern Long Island area.