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Thoughtful planning is essential when considering a big purchase like buying a boat. We’ll help you navigate the waters so you can choose the best option for your needs and budget!
Whether you’re a first-time buyer wanting to start small or an experienced boater looking to upgrade your craft, you can find the perfect nautical getaway by following some simple tips.
6 Tips for Buying a Boat:
Set your boat budget
When shopping for a boat, it’s important not to sink your budget. Beyond the initial price tag, you’ll need to think about additional expenses like taxes, registration, insurance, fuel, maintenance, storage and a trailer. These costs can add up fast, so adjust your budget accordingly – and only spend what you can afford.
If you’re financing your boat, aim to keep your monthly payment under 15% of your monthly income. Making a down payment of at least 20% of the purchase price can help lower what you owe and your monthly payment.
Get pre-approved for a loan
You have nothing to lose by meeting with a lender to get pre-approved for a recreational loan. The consultation is free and comes with no commitment, helping you learn how much you can borrow.
Getting pre-approved shows sellers that you’re serious, which could help you net a better deal when it comes time to buy. A local lender may also offer better interest rates, more flexible terms and lower fees than those offered by a dealership.
Test out the numbers with our quick and easy loan payment calculator. And by setting up automatic payments with a Gate City Bank checking account, you could receive a 1% discount!
Choose the right type of boat
Different types of boats serve different purposes. So before you buy, think about what activities you’ll be doing and which features you’d like.
Looking for luxury and relaxation on the lakes of Minnesota? A pontoon could be a great choice. Hoping to catch that monster muskie in North Dakota? A fishing boat with a big livewell might be perfect! From sailboats to speedboats to yachts, there’s a boat for almost every water activity.
A friendly reminder: stick to your budget. While you may be tempted to buy the nicest model, try to stay within your means.
Consider buying new vs. used
While new boats are in great condition and often come with warranties, they usually cost more. Used boats can save you money since they’ve lost value, but they may need more repairs and carry a bit more risk.
If you’re buying a used boat, have a marine surveyor check it to see its condition. Also, take the boat for a test drive to make sure there are no major problems.
Don’t skimp on safety, skipper
When buying a boat, make sure it has been inspected and tested for safety and quality. Look for certification labels from trusted names like the U.S. Coast Guard or the American Boat and Yacht Council.
Also, make sure you understand the local rules and have the right safety gear on board. For starters, you’ll want a life jacket for everyone, a fire extinguisher and flares.
Keep resale value in mind
Even if you don’t plan to sell your boat, it’s a good idea to think about its resale value. You might want to upgrade or need more storage later.
Research boats that keep their value, particularly ones from well-known brands. Also, learn what features are in high demand, such as center consoles – which offer better visibility, control, balance and access.
Buying a boat is a great way to have fun, enjoy adventure and create lasting memories on the water. By following these tips, you can be better equipped to make a smart purchase.
Let’s chart your course! Apply for a boat loan online, or contact one of our helpful lenders to get pre-approved today.
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