Are you thinking about buying a boat?
Last year, the number of first-time boat owners rose by 10%, which caused difficulty for manufacturers in keeping up with the sudden rise in demand. Owning one now is even more special because of this. You get to enjoy your time alone or with friends and family while making fresh memories once you get your first boat.
With all the perks that come with owning a boat, it’s surely worth whatever price tag comes with it. However, only a few people ever tell you about the actual cost of boat ownership.
To make sure you keep enjoying your new boat well after the initial purchase, read what’s below. We’ve prepared a breakdown of the true cost of boat ownership. Keep using your boat with no worry by preparing for these expenses.
Annual Maintenance Fees
Aside from the upfront costs, most of your expenses will go to maintenance fees. Your boat’s engine, body, and steering components need regular maintenance if you want them to work as intended. Cleanliness is also a factor in how well your boat works and ages, so you’ll need to sink money into it, too.
There’s no set price for the maintenance of your boat. It will all depend on a few factors, like the size of your boat and the type of engine that you have onboard. You’ll also need to replace components like built-in electronic devices and the occasional boat propeller.
This isn’t even accounting for parts of the boat that may sustain damage. Hull repairs, broken windows, and defective equipment all need immediate replacement. Failing to do so will lead to the depreciation and fouling of your boat.
Not sure how much you’ll spend on these? Experts believe you need at least 2% of a new boat’s retail price for maintenance. For used boats, set aside 10%, since some components will be older.
Boat Insurance
You’ll always want to get insurance for your boat to protect it, yourself, and your finances. When you live in Arkansas or in Utah, then you have no choice but to get insurance for your boat. What’s great is boat insurance is often affordable, only costing 2.5% of your boat’s value.
If you live in certain states, though, insurance will cost more. California, Florida, and Texas have higher boat insurance rates. Their coastal waters have more traffic all year round, prompting the price increase.
There are ways to get discounts when getting insurance for your boat, though. Bundling your boat insurance along with others, such as auto insurance. Paying your insurance bill in full and upfront will help save funds, too.
Storage Costs
You have a lot of options to choose from when it comes time to consider storage. Primarily, you will choose between dry storage or having your boat moored by the dock.
The latter option is often most preferred as it makes it easier for you to access your boat. Marinas are popular storage options because of this, but this option often comes with a hefty price tag. Mooring your boat in the marina raises the total cost of boat ownership due to labor.
Marinas require you to pay for upkeep, which includes security and cleaning. You’re also paying for the space you’re renting for your boat. You must also spend on special equipment to protect your boat should the weather turn foul.
This is why more people prefer dry storage despite the increased costs. You save yourself the hassle of protecting your boat from the elements by opting for dry storage.
Here, you pay to have your boat stored in shelf-like storage alongside others. You’ll need to ask the help of an employee to fetch your boat using a specialized forklift.
The size of your boat and how accessible its slot is will affect the price of dry storage. For large boats with accessible slots, you can expect to pay up to 1,000 USD every season.
Winterization
Winter has an extreme effect on your boat, as it does with any other vehicle. Safely storing your boat means you need to winterize it, which adds to the annual cost of boat ownership.
Here, you’ll cover up your boat with a specialized film, which you apply like shrink wrap. Doing this protects it from the brunt of the cold damage it can incur during the winter.
You also need to empty the engine. Having fuel in your engine can damage it since it can expand when subjected to extreme cold. Add fuel stabilizer along with antifreeze to prevent this from occurring.
You can also have your boat stored in a climate-controlled shed. All these together can cost up to 2,000 USD per season.
Equipment
The cost of owning a boat increases drastically once you realize you need to stock up on gear and equipment. Traditional safety gear includes life jackets, signal flares, air horns, and paddles in case the engine gives out.
You also need items such as bottled waters, rations of food, and first aid kits in case you find yourself stuck in the water. Swap these out with fresh gear, too, as expired goods and equipment won’t be of much help.
Licensing
Of course, you’ll need a license to legally operate your boat. This is a hidden cost of boat ownership that won’t be too expensive, at least. Depending on the state you’re in, you’ll pay up to 50 USD for the course and exam.
Some states will add a registration fee before you can begin. Renewing your boating license is also a must. So, you can expect to spend up to 75 USD per year to keep your license updated.
Learn About the Cost of Boat Ownership Today
Owning a boat may come with unexpected expenses. The hidden cost of boat ownership need not catch you off guard, though. Read about the costs you can expect and spare the necessary funds today!
The actual cost of boat ownership isn’t the only thing to be on the lookout for. Learn more about boat management and other lifestyle guides by reading our other guides. Check them out and learn a thing or two today!
