How Much Does It Cost to Own a Boat - A Comprehensive Owner's Guide
How Much Does It Cost to Own a Boat? A Comprehensive Owner's Guide
Last summer, I watched a guy at the marina write a $4,200 check for an engine repair on a boat he'd bought for $8,000.
"Nobody told me about this part," he said.
He's not alone. The purchase price of a boat is just the beginning. Between storage, maintenance, insurance, fuel, and the repairs you don't see coming, the true cost of boat ownership catches most people off guard.
This guide breaks down exactly what you'll spend—so you can decide if the water is worth it.
Purchase Price vs. Ongoing Costs
The first thing that comes to mind when considering owning a boat is the purchase price. By making online price comparisons and asking around, you already have a rough idea of how much your dream boat costs. But is that all you need to consider?
Owning a boat doesn’t end with paying the purchase price. You also have to consider the ongoing expenses, which can cost more than the initial boat price. A simple thing such as trailering a boat can add to these expenses, depending on how often you do it.
The purchase price of a boat depends on many factors, which include:
The size of the boat
The type of boat you want
What you intend to do with the boat
How much time you’re going to spend on the water
How frequently you’ll use the boat
For instance, if you intend to buy a boat for a family adventure, you need to consider the number of people in the family and the type of boat needed to suit your needs. Think about how long you’re going to spend on water. If it’s a few days, you need a boat to accommodate everyone during this period, such as one with a kitchen and sleeping spaces.
The purchase price of a boat varies with the size, type, age, and condition. Buying a new boat can range from $500 to $500 million, depending on these factors. If you buy a second-hand boat, expect to spend between $50 and $500,000.
Of course, this price can be higher or cheaper. For example, a brand-new cabin-free motorized fishing boat can cost up to $35,000. A yacht can run from $250,000 for a used one to about $500,000 for a brand-new one.
Remember, the cost of a boat doesn’t end after you pay the purchase price. Some additional expenses that come with owning a boat include:
Maintenance costs
Storage costs
Fuel expenses
Insurance coverage
Equipment and accessories
Taxes, title, and registration
Boat trailing expenses
So, when searching for a boat, you must consider the purchase price vs. the ongoing costs. Being able to afford the upfront cost of buying a boat is one thing, but can you afford to maintain one?
Are Boats a Good Investment?
A boat is a major life purchase; hence, it's an investment even if you won’t use it for commercial purposes. But is it really a good investment?
Many financial experts don’t consider a boat a sound investment because of the ongoing costs of maintaining it. Also, since it is a depreciating asset, many do not view it as a wise purchase because you’ll spend more to own it in the long run.
But wait! Owning a boat is about more than just the financial side of it. Consider the other value a boat can bring to your life. Some of the benefits that people have from owning a boat include:
Personal fun: Some people can’t get enough of water adventures. You need a boat if you love being surrounded by blue skies and water. When personal enjoyment with family and friends gives you that adrenaline rush, no dollar amount can exceed such experiences.
Commercial value: Owning a boat can provide you with a side income. When you’re not using it for a family adventure, consider renting out your boat for an attractive cost to another family. If you take advantage of the rental feature, you can also offer water tours, fishing, or sporting activities and earn some extra money.
Good resale value: A well-maintained boat tends to have a very good resale value. You can recover close to what you initially paid for the boat if you keep it in good condition.
A boat can be one of your best investments if you use it to its full potential. The adventure and tranquility of owning a boat surpass all the financial investments you put into it.
Can I Afford a Boat?
It is natural to dream, but are you in a good financial position to turn your dream of owning a boat into reality? When you think about the purchase price of a boat and all the expenses of owning one, can you still afford it?
Of course, you need a solid budget before making this huge investment. Aside from the purchase price, list the monthly expenses for repairs, maintenance, insurance, storage, equipment, and accessories. Budget for a certain percentage, such as 20% of the value, to cover these expenses.
Also, think about the face value of your boat. More expensive boats tend to cost more on storage, maintenance, and gas than cheaper ones. If you buy a luxury boat, you’re also buying the life that comes with owning one.
To figure out whether you can afford a boat or not, you have to think about the following factors:
Your credit score: If you’re securing financing for a boat, you must consider your credit score to know how much you qualify for. If you have a high credit score, you’ll qualify for higher financing and pay a very low-interest rate. A score of 690 or higher will likely get you the best deal.
Consider your DTI: Your debt-to-income ratio will play another role in determining whether you can afford a boat. To calculate your DTI, add your monthly debt payments and divide them by your gross income. If you get anything less than 43%, you stand a good chance of being approved for a loan to buy your dream boat.
Your budget: How much you plan on the purchase price for a boat and the ongoing costs is important in determining if you can afford it. Don’t go above your budget just because you can afford it. Sticking to your budget will save you from the looming stress of owning a boat.
Generally, affording a boat means buying and maintaining one well without affecting your living expenses. Consider the initial purchase price, financing implications, and the expenses of keeping the boat on the water. If you find it hard to afford one after reviewing these factors, give yourself more time.
The Upfront Cost
The first thing that comes to mind when you think of buying a boat is the upfront cost. Other things, such as maintenance and fuel, tend to come later. So, what is the upfront cost of owning a boat? And why are boats so expensive?
A less expensive $150 floating boat will do for modest near-the-shore adventures. For a luxury cruise sure to turn heads, budget for thousands of dollars in upfront costs.
The upfront cost of a boat will depend on numerous factors, such as the brand, type, size, and extra features. For example, if you plan to purchase a luxury boat with all the amenities that money can buy, you’ll probably have to pay for an arm and a leg to get it.
You can control the price depending on your primary purpose of using the boat. For instance, you won’t want to spend money on all the technology and luxury amenities to enjoy a simple cruise on a holiday weekend. You can save on various accessories, such as lights and entertainment, if you only spend a short time on the water.
Some of the factors to keep in mind when deciding the upfront cost of purchasing a boat include:
Brand: Boats are available in different brands, affecting their prices. The cost of a small boat, 6-10 feet, can cost anywhere from $500 to $800. If you’re looking for brand-name superyachts, prepare to spend millions of dollars from the start.
Style: If you care much about the style of your boat, recognize that the most stylish ones will cost more. Higher-end boats will cost more than less elegant ones.
Size: If you want a bigger boat for your family and friends, prepare to pay more than you would for a simple one that accommodates three to five people. Any boat over 12 feet will need a bigger engine, which means a higher purchase price.
Used vs. New Boat Prices
There’s a huge price difference between used and new boats. Buying a new boat can be more expensive than buying a used one of the same type. Of course, the condition of the used boat will also factor into the price difference versus a new one. A second-hand boat that has only been running for two years will be more expensive than one that has been around for more than five years.
New boats come with luxury features and the latest technologies. They are generally immaculate because they’ve not experienced any wear and tear. The engine is still at maximum working capacity, and other amenities have not been touched. All the shine, beauty, and glamour are much more expensive.
Aside from the high costs, new boats tend to depreciate faster. In the first year of using your new boat, it will depreciate at about 10% and then reduce to around 8% to 6% in the subsequent years.
Even though they are a risky investment, used boats are much less expensive than new ones. You can find a good deal on a used boat on platforms such as Craiglist, BoatTrader.com, and Facebook Marketplace. Frequently, you can buy a good used boat for less than 50% of the cost of a new one.
Compared to new boats, used boats depreciate at a much slower pace. A used boat has already experienced much depreciation and tends to retain its value more than a new one.
The risk of buying a second-hand boat can include higher maintenance costs. Unless it is well-maintained, you risk buying a boat with pre-existing issues, from appearance and functionality to safety. Buying a new one guarantees peace of mind that you won’t get if you opt for a used one.
Different Boat Types & Sizes
Another significant factor determining how much upfront you’ll pay for a boat is its type and size. Boats come in different sizes and types; some can be too expensive, while others are quite affordable.
This table outlines various boat classes and their respective classes:
Boat Class | Boat Size |
Class A | 16 feet |
Class 1 | 16 - 26 feet |
Class 2 | 26 - 40 feet |
Class 3 | 40 - 65 feet |
Many factors will determine the boat size most suited for you, including previous boating experience, storage space, activity, docking space, and budget.
Once you decide on the size, the type of boat you choose is another factor that will highly determine its purchase price. The common types of boats include:
Pontoon boat: Many owners start with a pontoon boat to enjoy water adventures. These boats are perfect for fishing or just traveling in the water. They’re not good for water sports because they are very slow. Pontoon boats cost between $10,000-$80,000.
Sailboat: A sailboat is another common type used for recreational activities such as cruising and racing. These boats are very economical, as you can use the sails and not fuel. You can get a quality sailboat for as low as $5,000.
Yacht: A yacht is usually associated with luxury and prestige. Yachts have high-end facilities and entertainment features, allowing people to live comfortably inside for lengths at a time. All this luxury does come at a price. A small-sized yacht can cost a whopping $500,000.
Fishing boat: Buying a fishing boat will ensure you enjoy unlimited fishing adventures. They tend to have a small seating area with an open deck space for storing caught fish. A new aluminum fishing boat can start at $25,000, while a fiberglass boat can range from $32,000-$35,000.
Speedboat: Speedboats, also known as motorboats, are equipped with engines. Because of its powerful engine, a speedboat tends to go very fast but consumes a lot of fuel. You can get a new speedboat for $30,000-$75,000.
Cabin cruisers: Cabin cruisers are also packed with all the best features money can buy. They work like mobile mini vacation homes, perfect for family adventures. A new cabin cruiser starts at about $100K and ranges to $500K.
The Best Value Boats for Your Money
To determine the best value for your money, return to the question, “Can you afford a boat?” Having looked at various boat prices, you can see that some boats are quite affordable, but others are expensive. But no matter how cheap or expensive a boat is, you must still consider the intended use.
For example, you can’t buy a fishing boat for racing. So, even if a fishing boat is cheaper than a speedboat, you’ll still go for the latter because it will fulfill the intended purpose. You won’t get value for your money if you’re buying a boat you won’t use.
So, the best value for your money is one that fulfills its intended purpose. For instance, it won’t matter if you pay a hefty price for a cabin cruiser or a yacht as long as you spend a wonderful vacation with your loved ones onboard. So, when choosing the right boat, consider how it will serve you before considering its monetary value.
The Ongoing Costs
Whether buying a new or a used boat, you must look beyond the upfront costs. Keeping the boat active and ensuring it serves you well come at a cost. Knowing all the expenditures of owning a boat will help you devise a better plan so that these expenses won’t catch you off guard.
So, before buying your dream boat, consider the following ongoing expenses.
Marinas and Storage
Where will you keep your boat when it’s not on the water? If you plan to store it at a marina, you’ll have monthly fees for the storage. Marina costs vary, including indoor or outdoor storage, the storage period, and other services such as cleaning and security.
Storing your boat can range from a few hundred dollars to more than a thousand dollars monthly. For instance, storing your boat at a privately-owned storage facility might cost less than mooring it at a municipal or private marina. Additional fees with boat storage include utility fees, maintenance fees, car parking fees, and live aboard fees.
Fuel Costs
The fuel costs that your boat will use will also depend on the type and how often you use it. A sailboat is much more economical regarding fuel because it can run on wind power. On the other hand, a speedboat will tend to have additional costs because it consumes more fuel to power the engine.
You might also spend more on boat fuel if you carry a huge load or encounter unfavorable sea conditions. And remember that fuel prices often fluctuate with the current economic situation, so plan your boating trips accordingly.
Apart from the fuel, you’ll also have to pay for other operational expenses such as oil, pumps, lights, batteries, and specialized equipment. One thing you can do to reduce fuel costs is to use a fuel consumption gauge. Also, consider buying newer model boats designed for better fuel efficiency.
Equipment & Accessories
To take your boat out on the water, you’ll likely equip it with different accessories. Some accessories are for your own use, while others are essential for running the boat.
The good news is that some of these accessories are one-time expenses. However, you must factor them in because they contribute significantly to overall boat costs.
Some accessories and equipment to consider for your boat include:
Lifejackets
Fishing tackle
Watersports equipment
First aid kits
Towels
Personal locator beacons
Marina radio
EPIRB (Emergency Position-Indicating Radio Beacon)
Extra fishing rod holders
Fire extinguishers
PFDs
Electronics
Visual distress signal
Sound-producing device
Boat cushions
Tackle storage
Coolers
Of course, the accessories you need depend on the boat type, your purpose for using the boat, and how long you will spend on the water. Your needs also depend on the season, so you might only need some things at a time. Budget for the equipment as you need it, and treat your boat to an accessory upgrade occasionally.
Licenses and Education
A boat operator license and a boater’s safety education course are mandatory in many states. When boaters are educated on operating a boat and safety measures, they’ll be less likely to get into an accident on the water.
The weather conditions can change at any time, and it might be difficult to control the boat if you don't have the training you gain from taking safety courses. These courses remind boaters about safety rules, operational laws, and general boating knowledge.
Every state has specific boater education requirements that you should review. Don’t just take the course because it’s a requirement; consider the benefits. You can select online or in-person classes for free or for a small instructional fee.
After training, you’ll also need to pay title fees and registration. Your boat registration is the identification number on its bow. Getting your boat registration and title varies from state to state, so look into your state's requirements. Registration and title costs range between $20 to more than $200, depending on the vessel's type, size, and purpose.
Maintenance Costs
Whether you buy a used or new boat, you have to maintain it well to keep it in good condition and retain its resale value. Boat maintenance includes cleaning, waxing, engine tune-ups, and painting. You might also have to deal with repairs, such as electrical and plumbing issues.
Yearly boat maintenance can cost about 5% to 10% of the boat's total value. The cost might be less or more depending on factors such as frequency of use, boat age, and weather conditions. You can also handle some maintenance issues yourself to save money.
Remember that a new boat will cost less to repair than a used one. However, as the boat ages, it will depreciate and require more maintenance. Also, if you use your boat in freshwater, you’ll save more on maintenance and cleaning than if you use it in salt water.
Insurance
You need to insure your boat against unexpected occurrences, such as an accident or damage. The right coverage will give you peace of mind whenever you are out on the water or have your boat in a storage facility.
The costs of insuring your boat also depend on several factors, such as the type, size, and frequency of use. Other factors influencing the cost include add-ons such as towing, salvage, docking, and storm coverage.
Boat insurance coverage varies from state to state and with the insurance company you choose to work with. Conduct extensive research and read reviews before choosing an insurer for your boat. Once you identify one, let them give you a quote so that you can estimate your annual premiums and if they fit into your budget.
So, What's the Total Cost?
Buying a boat will be expensive or cheap, depending on what you want and how prepared you are. It’s important to research the purchase of various boat types and the ongoing costs before you make the bold step.
You might pay twice the actual boat price if you calculate annual fuel costs, maintenance, storage, repair, accessories, and more. For example, if you bought a yacht for $250,000, the ongoing costs might add up to $500,000 annually.
Remember, this figure includes one-time costs such as registration, training, and equipment. The amount might not be the same for subsequent years since you won’t have to register your boat again or take certain educational courses.
The total investment also depends on your lifestyle. Apart from mandatory costs, other expenses accompany spending time on the water. These include food, drinks and ice, a tour guide, and other things to make your boat adventure enjoyable. Consider all the factors of owning a boat and fit them to your situation, then calculate your total cost.
The Bottom Line
Here's the truth about boat ownership: the boat is the cheap part.
Before you buy, add up the real numbers: purchase price plus annual storage, insurance, maintenance, and fuel. Then add 20% for surprises—because there are always surprises.
If that number still works for your budget and your life, welcome aboard. If it doesn't, there's no shame in renting. Some of the happiest people on the water don't own a thing.
The best boat is the one you can afford to enjoy—not the one you that owns you.