Thinking about buying a boat? Purchasing your own family boat can be exciting—but it can also be overwhelming. If you're a first-time boat owner, it's important to ensure that you fully understand the yearly cost of ownership before you commit to a purchase.
Yearly Cost of Ownership For a Boat — Is Boating Right For My Family?
Initial Costs of Boat Ownership
Just like cars, new boats are more expensive than used boats (but used boats may require more immediate maintenance). The type of boat (as well as the size of your boat) that you purchase will also influence your initial purchase price.
What Happens After I Buy a Boat?
After you purchase your boat, you'll need to purchase insurance, set aside money for fuel costs and repairs, and contact a local marina or dry storage facility to set up a home base for your boat (unless you have space at your residence to store your boat).
Lifetime Ownership Costs
You'll have several costs that you'll need to factor in to understand the total cost of your lifetime boat ownership, including:
- Insurance: There are a wide range of factors that can influence the insurance premium for your boat, including your boat's value, type, how often you use your boat, and where you use your boat/where your boat is stored. If you have a boat with an especially high value, you can expect to pay a higher insurance premium.
- Maintenance: You can expect to spend 2-3% of your boat's value on maintenance each year. Much like a car, a boat requires regular engine servicing, systems checks, and other repairs. Major repairs and upgrades can run into the thousands.
- Fuel Costs: The amount of fuel you need for your boat will depend on the type of boat that you have and how often you use it. Smaller boats require less fuel, while larger boats may require several hundred dollars of fuel for each outing.
- Storage: If you're able to store your boat at your own home, you'll only need to consider the space that will need to be set aside. If you're considering dry storage, you can expect to pay between $500 and $2,000 per year, depending on the size of your boat and the location of the storage area. If you're storing your boat in a marina, you can expect to pay between $1,000 and $10,000 per year.
- Registration and Licensing Fees: In most states, boat owners are required to register their boats. Typically, registration costs between $50 and $500 per boat annually. In some areas, like here in New Hampshire, you may need to get a license in order to operate your boat, and you may need to take classes and exams in order to get your license.
- Equipment: Some safety equipment might come with your boat, but it's important that you check and upgrade safety equipment as necessary. You'll need to budget between a few hundred to a few thousand dollars depending on the size of your boat and how many people you typically take out on the water.
- Launch Fees: If you do not have a permanent marina slip, you'll need to pay a fee each time you use a public or private ramp. Typically, you can expect to pay between $10 and $50 for each launch.
- Winterization: If you live in an area with colder weather, you'll need to winterize your boat. This process may require covering your boat, having the engine serviced, and more. These costs can range from a few to several hundred dollars.
Consider These Financial Commitments During the Buying Process
As you can see, there are many factors to consider when working out the lifetime cost of owning a boat. Generally, when you consider insurance, maintenance, licensing, fees, storage, and other costs, you can expect to pay at least a couple of thousand dollars on your boat per year. Newer, larger, and more upscale boats tend to incur higher annual costs than smaller or older boats. You'll also need to consider how often you'll be using your boat, as a boat that's used for fishing charters will require far more upkeep than a boat that's used a few times each year for fishing with friends.
Call North Water Marine Today!
At North Water Marine, we're here to help you get the most out of your boat, and we'd love to talk with you! Whether you're exploring the idea of owning a boat, already own a boat, and are in need of service, or are curious about the storage solutions we offer, we've got you covered. Click here to learn more about what we do and get in touch. We'll see you soon!