How to Buy a Boat
Few things equal the fun of getting out on a body of water and being captain of your own vessel, whether it is a dinghy or yacht. This brief guide will walk you through the initial steps to consider when buying a boat. There are myriad types of watercraft making it a complex decision.
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Instructions
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Draw up a list of activities you plan to do with your boat. These can include sailing, fishing, water skiing, divingm portaging, wild fowl photography and huntingto name a few.
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Select your preferred method of propulsion. I've sailed now for more than 30 years. Currently I'm the skipper of a Cal 25-foot sloop. Although I motor in and out of Marina del Rey for expediency's sake, to me the essence of boating is when I turn the engine off and hear nothing but wind and water. Yet if you're a water skier, you'd do better to own a power boat. I've yet to see a skier chugging along at 5 knots.
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Be realistic about your budget. Boats are described as holes in the water into which you pour money. The costs never seem to stop. Just to keep my boat in the water, costs me $4K annually for slip fees, taxes and insurance, prior to any maintenance. One advantage I have over power boaters is because I don't use much gas, my fuel costs for a full day of sailing Santa Monica Bay runs me less than $3. I've heard horror stories from power boat skippers who claim to have spent $200 a day for fuel alone, yet the rush they get from unfettered speed seems worth it to them.
Your budget will determine a number of factors, including the number of people you'll be able to accommodate as well as the size of your boat.
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Decide whether you're buying new or used. This is largely a function of budget. New boats come with warranties that vary widely in their duration and what they cover. Reputable manufacturers are members of the National Marine Manufacturers Association, which sponsors multiple boat shows around the country, a great place to window shop.
A reputable dealer or yacht broker can be quite helpful as well. Don't rule out private party sales.
If you buy a used boat, be sure to have it surveyed by a reputable marine surveyor.
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Decide whether you'll pay cash or finance. Sometimes it can cost leass to finance. One of my friends structured a deal through his accountant where he periodically makes his boat available for charter, qualifying it as income producing property. Even though he financed his boat, his net cost of ownership for his tax bracket is quite low.
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