How to Buy a Boat on a Budget

Boating is the perfect way to spend quality time with family and friends—and that’s an investment that never loses its value. But, if cost is a significant consideration, try following these tips for buying a boat on a budget.

Steps

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    Have a plan. Know what you want and what you can afford. Do your financial homework and run a budget --- before you buy a boat. It’s the smart thing to do and will save you a lot of time. Be sure to allow for general maintenance, storage, insurance and other important add-on products you may require such as extended warranties.
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    Shop new first.It might sound counter-intuitive, but as with a car, there are pros and cons to both new and pre-owned boats. When buying boats, we recommend shopping new first even if you’re on a tight budget, for a number of reasons:
    • You’ll see the most current technology, latest design and naval architecture
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    • Electronics will be state of the art with the newest software
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    • New mechanical, electrical and plumbing systems(M.E.P)
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    Know that the benefits of buying pre-owed might also influence your decision:
    • Pre-owned boats cost less than new
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    • Monthly payment will be less
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    • Cost of insurance will be less
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    • The depreciation curve has flattened out
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    Visit a Boat Show. Visit a local boat show. Take a look at all available options and board as many boats as you can. Discuss your wants and needs with dealers and experts at the boat show; they will answer any questions you may have about specific boat types and help you choose the one that will fit your needs and desires. For a list of boat and sport shows in your area, please visit a Boat Show Calendar.
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    Finance your Boat - Boat buyers have many choices when it comes to paying for their purchase. Here are a few of the advantages of financing your purchase through your dealer with a National Marine Bankers Association marine lending specialist (www.marinebankers.org):
    • Competitive rates - Interest rates for boat loans continue to trend near historic lows in the US.
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    • Faster credit decisions—because you are working with lenders in the marine industry who lenders understand boats and their buyers. You can apply for a loan this morning and be boating this afternoon.
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    • More electronics and extras—marine lending specialists will allow you to finance optional equipment, electronics, extended service plans and life/disability insurance coverage with your purchase.
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    • Financing your boat purchase usually means you can afford a newer, larger or more powerful boat, a better trailer and all the gear that it takes to make boating safer and more enjoyable!
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    • Federal income tax deductions—If a boat qualifies as a residence for purposes of deducting interest expenses on a residence* a taxpayer can deduct any qualified interest for the tax year.
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Sources and Citations

Article Info

Categories: Purchasing Boats