Owning a boat is a great investment, but it can also be very expensive. Whether you plan to go fishing or just go for a ride on your new boat, you will need to pay a significant amount for maintenance.
Boats require frequent cleaning and maintenance due to their moist environment. The cost of maintaining a boat is even higher if you plan on storing it in saltwater.
The cost of owning a boat can seem daunting, but it is well worth the effort. It’s fun to spend time on the water, and the options are nearly endless.
In addition to enjoying the great outdoors, boating is also an excellent investment, with many American families taking advantage of summertime boating activities. Although the cost of owning a boat can be high, you can enjoy a variety of recreational activities while soaking up the sun on the water.
What Are the Cons of Owning a Boat?
If you’re wondering what the cons are of owning a boat, consider these points.
- Boats are expensive and require a lot of maintenance.
- If you don’t plan to use the boat frequently, you should consider renting it rather than purchasing it.
- Boat maintenance costs, depending on the size and model of the boat, can be expensive.
- Cost of boat insurance.
- Eventually, you may have to sell the boat in order to pay for the costs. So, whether you plan to use it often or not, it’s important to choose the best option for your needs and budget.
Cost of Boat Insurance
The Cost of Boat Insurance depends on several factors, including the type of boat you drive and the activities you participate in. Some recreational boating activities may be low-risk, such as fishing on weekends, while others may be high-risk, such as high-speed water skiing or parasailing.
High-risk activities tend to increase premiums, so be sure to understand the risks involved and the appropriate coverage amount. Here are some tips to help you compare insurance quotes and find the right boat insurance for your needs.
There are three different types of boat insurance policies available. Boater’s Liability Insurance pays up to the federal limit for liability, which is $939,800. Additional coverage options include medical payments and uninsured boater insurance, which pays for accident-related expenses.
Boater’s Liability Insurance covers any personal property you may damage while on the water. It also includes collision and comprehensive insurance. The policy may cover repairs on a total loss or replacement value. Some companies may require that you purchase collision and comprehensive insurance policies.
If you have a boat that is older than 25 years old, you may wish to consider purchasing an agreed-to-value policy. This is usually cheaper upfront, but will not factor in depreciation.
Can Boats Go Up in Value?
Many experts believe that boat prices can increase if the supply of new boats catches up with demand. While demand is still high, prices may slow down in the next few years. By 2023, new boats may be priced at a plateau. However, prices could jump again in a few years. For now, a 20-foot boat can cost as much as $15,000, so there is still room for price appreciation.
When looking at prices, compare boats with similar models. Note whether the boat is used for freshwater or saltwater. Does it have special equipment? If so, look at asking prices. Is the boat unusually equipped? Can it be sold for more than the original price?
Detailed information on the boat’s condition is essential. For a higher price, consider selling at the beginning of boating season. But remember, don’t oversell yourself! Leave some wiggle room to negotiate.
Do Boats Decrease in Value?
If you are planning on buying a boat, you must consider how much it will depreciate. The price of used boats decreases the most. Boats depreciate after a few years, and you need to be prepared to face a loss of up to 30 percent of the initial cost.
The depreciation curve for a new boat varies depending on brand, model, and age. In general, a new boat will lose up to 40 percent of its value in the first 8-10 years, and will lose as much as 50 percent after a year. After that, depreciation will slow down to around five percent annually.