Many retirement goals involve carefree adventures on a boat. But that doesn’t mean you have to wait until then to start living the dream. If you’re ready to buy your first boat and jump into the boating lifestyle, this guide is for you.
First things first: why do you want to buy a boat? Knowing the answer can help narrow down your options and your budget, as well. Many people own a boat for leisure, whilst others want a boat for fishing. Some prefer to have a boat to offer charters so they can create a new revenue stream and earn money. Have a clear objective, as it will allow you to determine everything else along the way.
With your purpose defined, you can figure out the type of boat you need. You have plenty of options, from a powerboat that lets you traverse through the waters quickly to a sailboat to enjoy sailing. A human-powered vessel is also an excellent choice for exploring difficult-to-access spots whilst staying close to the water.
Other things to mull over include the following:
The boat’s power depends on your need for speed. The more powerful the engine is, the faster it can go. Remember that your choice here will determine how much your budget should be, as the engine is typically the most expensive part of the boat
The pros and cons of buying new (or used) boats will always be a hot topic amongst boat buyers. If you’re on a tight budget, the obvious choice is a used boat. As with anything used, you have to be careful as many second-hand vessels are not maintained well and can have a variety of hidden issues. However, much of the depreciation has already occurred, so used boats have better value than unused ones.
Used boats can also be suitable for you if you have a specific model you wish to buy. Popular models quickly go out of inventory, or perhaps the manufacturer stopped making that particular boat you want to purchase.
Although used boats are certainly much cheaper, you know exactly what you’re getting with a new boat. There’s more flexibility here since you can build and rig it as you desire. You can also select the features that fit your needs. Above all, reliability and warranty are two things you can enjoy with a new boat.
Now onto the not-so-fun part of buying your first boat. Most people who plan to purchase a vessel own a car, so they are no strangers to operating and ongoing costs. The price of the boat varies immensely depending on the size, motor, make, and features. Here’s a rough guide on the average cost:
Boating also comes with other essentials, such as a marine flare kit, fire extinguisher, and life jackets. You will need a trailer, as well, which can cost upwards of $1,500. Don’t forget the overall upkeep cost, which varies on the location, size, and age of the engine and the boat itself. A ballpark price for a yearly service is around $200. Aside from maintenance, you also have to think about the storage costs, ranging from $100 for an on-water berth at remote locations to $1,000 for a prime spot in the city.
With the costs to consider, buying a boat may be outside your budget at this moment. No need to worry because there are several helpful boat loans that you can apply for. Taking out a boat on finance can help spread the initial cost of the purchase over time. The right financing can give you greater flexibility and lower upfront costs.
However, not all loans are created equal, so it is necessary to compare your options. You can use our calculator to calculate the cost of repayments, which gives you a good idea of how much you can afford when getting finance for a boat.
We recommend that you apply for pre-approval early on. You and the finance lender agree that you will be provided with an agreed-upon amount once you have found the boat you’d like to purchase. This agreement lets you enjoy a hassle-free process because you can shop for your first boat with the knowledge of how much you can spend.
With your dream boat within reach, it’s time to take a sea trial. This step is essential, and don’t forget to take it out of the water, as well, so you can walk around the hull to inspect this part, which is where most of the erosion takes place.
If your budget allows it, it’s wise to hire a surveyor. As a first-time buyer, you may not be familiar with boats. A surveyor can help you in making the best purchase decision. Even better, make sure to take the surveyor with you on the boat during the sea trial.
Before buying from a dealer, private seller, or at an auction, ask for a written agreement. This simple document should state what’s included in the sale. Since you have a preapproved loan, you can negotiate the price with the dealer. Have a counteroffer, and don’t be afraid to use your bargaining skills, which will significantly help lower the cost of the boat you want to buy. If you’re purchasing a used boat, confirm that no outstanding bills are associated with the vessel.
If you qualify for a car loan, there’s a high probability that you will be eligible for a boat loan. Loans Unlimited can assist you in finding the one that works best to fit your budget, preferences, and needs. Contact us today!
Loans Unlimited are Perth and Western Australia’s premier loan and finance brokers. We have helped thousands move towards their financial goals by offering lower rates and faster approvals when it matters. Financial services are provided by Total Biz Pty Ltd T/A Loans Unlimited ABN 78 624 937 882 ACL 506875.
* The comparison rate shown is for a secured loan amount of $30,000 over a term of 5 years based on monthly repayments. Warning: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Any calculations or estimations do not constitute an offer of credit or a formal credit quote and is only a calculation of what you may be able to achieve based on the information you have entered. It does not take into account suitable product features or loan product types. Rates + repayments shown are based on user inputted data. All applications for credit must be verified prior to the formal assessment process. All applications for credit approval are subject to lender credit approval. Approval is not guaranteed.
