Do you enjoy spending your free time on the water? Are you an adventurous soul looking for your next outdoor experience? Buying a boat and going on an exciting ride might be the perfect venture for you.
Before buying a boat, it's essential to know how much one is and the costs associated with it. This way, you can better prepare financially and budget your expenses accordingly.
The balance (what you owe) of all your accounts also affects your credit score. If the loan you have paid off was your only low balance, then you will only have high-balance accounts left over, which can lead to a temporary drop in credit score.
Keep reading to learn how much a boat is and other budget information you should know.
The cost of a boat, also known as the vessel's value, can vary depending on a number of factors. Generally, you can expect boats to cost anywhere between $500 and $30,000. Fishing boats, rider boats, and deck boats are usually on the cheaper end. More expensive boats such as canal boats, cabin cruisers, house boats, and yachts can cost $100,000 or more.
However, the cost of a boat can depend on many other factors in addition to the type of boat. These include:
The cost of a boat is usually the same as the purchase price. Sometimes you can find a used boat at a discounted rate, but it might need some repairs or fix-ups to make it seaworthy once more.
Here are some common costs associated with owning a boat:
Some of these costs will depend on where you're docking your vessel. If you're staying in a busy area, prices will be higher than in remote areas. These charges can add up over time, which is why it's important to accommodate them into your budget if you plan on having a boat for an extended period of time.
Like car insurance and home insurance, boat insurance can vary based on the provider and location. Additionally, boats differ significantly in how much they would cost to repair after an accident, making personal factors such as your current health insurance very important.
You should also consider coverage caps and deductibles when looking at boat insurance quotes. Keeping your boat covered can prove beneficial in the long run, as you won't need to pay for repairs caused by accidents.
Even though there are different types of water vessels, such as kayaks and canoes, most people need a license to operate them. In most states, you'll have to pass a basic safety course and exam before qualifying for a permit. Some places offer an online boating safety course, which can help prepare you for this test.
Once you're given your boating license, make sure that you carry it with you whenever operating the boat in case law enforcement needs to see it. You should also keep your boat registration information current because many places require proof of ownership when on public waters. This information includes the vessel's number, manufacturer, model, length, and owner's name and address.
Getting a boat license may cost money, as not only do you need to purchase the physical license, you also need to pay for the testing process. This is a cost you should factor into your budget when buying a boat.
One final factor that influences how much a boat is involves storage. Even though boating season only lasts for so long, taking your boat out of the water and storing it is an ongoing expense.
Most people will need to pay monthly fees for a private storage unit, which adds up over time. If you don't want to deal with the hassle of maintaining your vessel, you can also opt for seasonal or annual storage at local marinas.
When you consider all these factors and some others, such as fuel consumption and regular cleaning costs, owning a boat can be more expensive than you think. There’s no denying that taking care of your vessel will require a serious investment on your part if you hope to make it last for years or decades.
A yacht is a luxury water vessel used for sporting activities or pleasure cruises. With plenty of options in terms of size, design, and purpose, this type of boat is known to be one of the most expensive.
For example, if you plan on purchasing a small but well-equipped yacht, prices will likely range from $300,000 to $1 million. Of course, there are even more expensive models out there that can cost upwards of 20 million dollars. A larger yacht with better amenities will require higher maintenance costs each year after purchase.
Boat ownership can be expensive depending on the type of boat you own, its associated maintenance costs as well as your insurance. However, owning a boat does not have to be expensive - you can purchase cheaper boats (or second hand boats) and discounted insurance policies.
You can buy a boat by searching the internet, looking at classifieds, or asking family and friends if they know anyone selling a boat. You should also consider joining hobby clubs to speak with other boat owners to get an idea about which type you may want.
If you’re having trouble preparing your budget, Cash Train’s personal loans can ensure you purchase your ideal boat without trouble. Cash Train's personal loans have an easy application process and are great for their fast approval time and maximum loan amount of $8,000.
With a long 20-month loan term and a friendly service team to help you along the way, Cash Train's personal loans are worth considering if you would like to purchase your ideal boat.
EXAMPLE: Our Cash Loans incur a 20% Establishment Fee and a 4% monthly fee, based on the amount borrowed. For example, a small loan of $1,000 over 3 months has fees and charges totalling $320 (1 x $200 + 3 x $40), resulting in a total repayment of $1,320. The minimum loan term is 2 months and a maximum of 12 months. An APR (Annual Percentage Rate) does not apply to Cash Loans.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.