Dreaming of sailing on your own boat? Here’s what it’ll cost you

FeaturedMoneyTravel

Written by:

“Boat” can mean a surprisingly large number of things. The types of craft that fall under the category of boat range from kayak to mega yacht. Clearly, how much a boat costs to buy and maintain depends on the kind of boat you have in mind. Here’s a look at some of the factors that will influence the purchase price of a boat as well as the upkeep costs.

Related: Does loan purpose matter?

Image Credit: Spotmatik / istockphoto.

What Is the Average Cost of a Boat?

______________________

SPONSORED: Find a Qualified Financial Advisor

1. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.

2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals get started now.

______________________

 

 

 

Each type of boat has its standard price range. For example, a Jon boat, a flat-bottomed fishing boat commonly made out of aluminum, could cost anywhere between $500 and $3,000 dollars. The starting price of a sailboat is about $12,000. A fishing boat could cost up to $100,000, and yachts could set you back at least $300,000. With such a wide spectrum, the average cost of a boat doesn’t mean much.

Size, features, and accessories will go a long way in determining how much you’ll ultimately spend as boats can come in basic models or fully decked out. The reasons for cost are sometimes obvious, but sometimes not.

Image Credit: valentinrussanov.

1. Size

Size may be the most obvious factor that will play into the cost of a boat.

Generally speaking, the larger the boat, the more you’ll pay.

Image Credit: jacoblund / istockphoto.

2. Brand

Much like with a car, the price of a boat will vary depending on make, aka brand, and model. For example, Ranger produces a series of inshore boats built for salt water. Their 2022 2660 bay model costs $113,695, while their 2022 2360 bay model costs $81,395. Other brands may produce pricier models, while some may offer something more affordable.

Image Credit: demaerre / istockphoto.

3. Features

Often, the difference between models of the same make comes down to features, from sunshades and stereos to chart plotters and autopilot. These will all impact price, and more fully loaded models can cost significantly more than barebones counterparts.

Image Credit: Deposit Photos.

4. Condition

As you might imagine, a vehicle that spends much of its life in water requires a lot of maintenance to keep it in top shape. If you’re in the market for a used boat, those that are in better condition will command higher prices.

Image Credit: philipimage / istockphoto.

5. Demand

The laws of supply and demand drive the price of goods, and boats are no exception. The popularity of a particular brand or model can drive prices up, especially on the used market. For example, the COVID-19 pandemic sparked interest in boat ownership, driving up demand for new boats and motors and in turn driving up prices as inventories dwindled.

Image Credit: Spiderstock.

6. Location

The physical location of a boat can have a big impact on price. For example, used boat buyers in the market for a seafaring vessel may pay a premium for boats that are located inland, farther away from the corrosive effects of saltwater. Sellers in sparsely populated areas may not be able to sell their boat for as much, as buyers may have to travel to consider the purchase.

Image Credit: DepositPhotos.com.

Does a Boat Cost More Than a Car?

Obviously, not all boats cost more than cars. But the cost of a boat can be high because of required workmanship and materials, followed by the serious expense of maintaining it. The wear and tear of the water, particularly saltwater, is not to be underestimated, compared to what cars endure.

Image Credit: DepositPhotos.com.

What Does It Cost to Store a Boat?

Many boat owners pull their boats out of the water, especially in climates where ice damage is a possibility, and store them on dry land, either indoors or outdoors. Outdoor storage will likely cost $20 to $50 per foot of the boat for the season, while indoor storage could cost $50 to $200 per boat foot. Prices vary depending on location.

Image Credit: flyzone/istockphoto.

Hidden Boat Costs

How much does a boat cost? You may have heard the adage that goes something like “a boat is just a hole in the water you throw money into.” What this is really saying is that the purchase price of a boat is just the beginning.

There are all sorts of other costs you’ll be on the hook for as a boat owner, including insurance, mooring fees, the cost of storage in the off season, and more.

Image Credit: TommL.

1. Trailer

If you want to haul your boat behind your vehicle, you’ll need a trailer, so figure that into the cost of a boat. Price varies depending on material and number of axles. Price tags can range from $700 to $5,000.

Image Credit: Sundry Photography / iStock.

2. Insurance

In most states, you don’t have to have boat insurance. But that doesn’t mean it’s not a good idea, especially if your boat is expensive. To estimate the cost of insuring a boat, consider you’ll probably pay a premium equal to about 1.5% of your boat’s value. At that rate, a $50,000 boat will cost you $750 to insure.

Image Credit: SolisImages / istockphoto.

3. Mooring Fees

A mooring fee is the amount a marina or harbor will charge you to keep your boat in the water and connect to facilities such as electricity and water supplies. Cost will vary by location. In the U.S., mooring costs could be $12 to $50 per foot per year. In popular areas, mooring fees may cost hundreds of dollars per foot.

Image Credit: istockphoto.

4. Fuel

Water produces a lot of drag, which means engines have to work hard to power boats. And that can take a lot of fuel. As a simple rule of thumb, you can calculate the number of gallons of fuel a boat will consume per hour by dividing total engine horsepower by 10 for gas engines and 0.06 for diesel engines. A 250-horsepower gas engine will consume 25 gallons of fuel running at full speed for an hour. If gas prices average around $3.00 per gallon, that hour-long joy ride will cost you about $75.

Image Credit: eZeePics Studio / iStock.

5. License

If you’re a private boater, most states require that you take a boater safety education course, which can end up costing as much as $65. Commercial licenses for those operating a boat with paying passengers can cost quite a bit more.

Image Credit: DepositPhotos.com.

6. Maintenance

Boats require engine maintenance and cleaning as well as hull maintenance, which refers to the body of the boat. As with all boating costs, size and type of boat matters a lot. As a rule of thumb, boating experts estimate that maintenance costs will equal about 2% of the original purchase price of a new boat each year.

Image Credit: JCOLL / istockphoto.

7. Taxes

There are no federal taxes on boat purchases, but there may be state or local taxes, including sales tax, use tax, and personal property tax. Check with your state tax office to see what you’ll owe on a boat purchase. Note, it’s important to check in both the state in which you purchase your boat and the state where you keep it.

Image Credit: DepositPhotos.com.

Boat Financing Options

If you don’t have the cash to buy a boat outright, you still have some options.

Image Credit: FamVeld / istockphoto.

1. Boat Loan

A boat loan is offered by banks, credit unions, and online lenders and is similar to an auto loan. When you receive a boat loan, you’ll have regular monthly payments, including interest, that you’ll make until the loan is paid back. Terms and interest rate will vary depending on factors such as credit score, income, and size of the loan.

Image Credit: DGLimages / istockphoto.

2. Personal Loans

Lenders may also offer the option of personal loans. There are many uses for a personal loan, ranging from consolidating debt to starting a business to, yes, buying a boat. How you use the personal loan is up to you.

As with boat loans, you’ll repay a personal loan and interest on a monthly schedule. Terms and interest rates will also be largely determined by credit score. However, you do not have to have perfect credit to take out a personal loan. Fair credit personal loans and bad credit loans are also potentially available. Consider using personal loan prequalification to see how much money a lender may be willing to offer you.

Image Credit: Kesu01 / istockphoto.

The Takeaway

Buying and maintaining a boat can be a costly endeavor. It’s critical to understand what costs factor into the purchase price of a boat and the hidden costs so you can buy a boat that fits your budget. If the water beckons and you’re prepared to embark on this project, you have options to finance it, including personal loans.

Learn More:

This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.

The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Lantern by SoFi:

This Lantern website is owned by SoFi Lending Corp., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. (www.nmlsconsumeraccess.org)

All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.

*Check your rate: To check the rates and terms you qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown on this website are from lenders and are estimates based upon the limited information you provided and are for information purposes only. Estimated APR includes all applicable fees as required under the Truth in Lending Act. The actual loan terms you receive, including APR, will depend on the lender you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the lenders and not by SoFi Lending Corp. or Lantern. Please review each lender’s Terms and Conditions for additional details.

Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://www.consumer.ftc.gov/topics/credit-and-loans)

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

 

 

Personal Loan:

SoFi Lending Corp. (“SoFi”) operates this Personal Loan product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and DisclosuresTerms of Service, and Privacy Policy.

Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.

Student Loan Refinance:

SoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lender’s receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and DisclosuresTerms of Service, and Privacy Policy.

Student loan refinance loans offered through Lantern are private loans and do not have the debt forgiveness or repayment options that the federal loan program offers, or that may become available, including Income Based Repayment or Income Contingent Repayment or Pay as you Earn (PAYE).

Notice: Recent legislative changes have suspended all federal student loan payments and waived interest charges on federally held loans until 05/01/22. Please carefully consider these changes before refinancing federally held loans, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans.

Auto Loan Refinance:

Automobile refinancing loan information presented on this Lantern website is from Caribou. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including: you must meet the lender’s credit standards, the loan amount must be at least $10,000, and the vehicle is no more than 10 years old with odometer reading of no more than 125,000 miles. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness. Additional terms and conditions may apply and all terms may vary by your state of residence.

Secured Lending Disclosure:

Terms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can’t make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.

Life Insurance:

Information about insurance is provided on Lantern by SoFi Life Insurance Agency, LLC. Click here to view our licenses.

Image Credit: DepositPhotos.com.

More from MediaFeed

15 beaches with the clearest water you’ve ever seen

Image Credit: shalamov / istockphoto.

AlertMe