Buying a Boat: the Step-by-Step Guide

So, you are thinking about buying a boat—either a brand-new boat or a boat new to you. Of course, this will come as no shock, but boats are expensive, and the decision should not be taken lightly. This guide was assembled by marine industry professionals with decades of experience to help you on your journey. We hope you find it helpful.

Are You Truly Committed to Boat Ownership?

Let’s start with a little soul searching. Boating is a lot of fun, but boat ownership is a big commitment. If you enjoy being on the water but aren't sure how committed you are to owning a boat, start by renting. Boat rentals will help you explore your interest, and you can rent different types of boats to see what you enjoy the most. Also, boat with friends and help them to manage some of the tasks associated with boat ownership so that you can get a better idea for both the fun and the work involved.

Type of Boat and Budget

You’ve decided that you want to buy a boat, now it’s time to get to work. To start, you must make two critical decisions—the type of boat and budget.

What Kind of Boat Should You Buy?

Contemplating what kind of boat to get is the fun part, but it is also a little overwhelming. There are just so many great options on the market today. So, let’s walk through the decision-making process.

Boating Pie Chart

You will likely use your boat for multiple purposes, but an honest assessment of how you intend to use your boat will help you proceed down the right decision-making path. We like the pie chart approach to think through how you intend to use your boat and your priorities. After your intended usage is established, a dealer will quickly generate a set of boats for consideration. To serve as examples, the following pie charts illustrate three different boaters. What are the slices of your pie?

Fishing Dominant

Water Sports Socializer

Off-Shore Adventurer

Where Will You Boat?

Research the geography and waterways in your area to make sure that interests influencing your boat purchasing decisions are conducive to your region. This would include any bridges, their type and clearance height, as well as waterway depth levels and any tidal impacts.

If you purchase a boat with an intended use that doesn’t match what you have convenient access to, it could be a costly error.

Research Boat Storage Availability

Determine where you will store your boat and make sure there is availability. If your boat will be stored on a boat trailer in your garage, your answer is clear. However, rack space, indoor storage, or in-water storage are in short supply in some areas. We strongly recommend researching availability.

Establishing Your Budget

While likely not the most fun consideration within the boat buying process, establishing a budget is a necessary reality. You’ll need to research current boat loan interest rates in your area based on your credit score. A short-loan term boat loan is typically under 60 months. However, an average loan ranges from 8 to 12 years, and long loan terms are generally 12 to 15 years.

In addition to determining the monthly boat payment you can afford, you must add estimated storage, fuel, and maintenance costs to your calculations. For instance, if you can afford to spend $700 per month on your boat, you may only be able to afford a $450 per month boat loan payment once other costs are considered. It is critical to do your research to determine your total cost of ownership so that you aren’t surprised and end up with a boat you can’t afford.

If you are purchasing through a dealer, most dealers have a relationship with a lending institution and can make the process easy for you. If you are not working with a dealer or don’t want to finance through your dealer, various institutions specialize in marine and recreational vehicle lending.

Financing a Boat

Particularly with interest rates rising, there are a lot of questions and uncertainties around the issue of financing a boat. There are many options in the market, but we found a company called Credello helpful. Credello simplifies the process of shopping for a boat loan and provides customers with unbiased recommendations from vetted loan lenders. For everything you need to know about boat loans, check out their handy landing page that allows you to begin the process of finding the best lender for you.

Should You Buy a New Boat or a Used Boat?

The new versus used boat decision making dynamic has changed markedly—within the last 15 years or so, the percentage of boat buyers considering lightly used boats has dramatically increased. Much of this dynamic is due to the improved quality and reliability of both boats and marine engines.

Buying a used boat

As mentioned, today's boats and engines' reliability and sophistication make buying a used boat a lot less risky. There is, obviously, a savings when buying used; therefore, a buyer can get a bit more boat for a given budget. The downsides are the inability to make factory customization decisions. At the time of writing this article, used boats are also in short supply, so buyers may not find what they are looking for readily.

Buying a new boat

A new boat will be a bit pricier, but you can make factory and dealer-level customization decisions. Also, being the only owner means that you will always know how the boat has been treated and maintained.

Keep in mind that there will be build out timelines when purchasing a new boat not on the dealer's lot. These timelines vary quite a lot, so you will need to do some research, and your dealer will be well-positioned to share current information. Some boats have a two-year lead time; others can be acquired in 8 to 12 weeks.

Should You Work with a Boat Dealer or Purchase Independently?

If you are in the market for a new boat, you will need to work with a dealer. However, if you are interested in a used boat, you can either work with a dealer or purchase directly from the boat’s owner. The advantage of purchasing directly is that if you know the market, you might negotiate a slightly lower price. If you have significant marine or mechanical experience, these savings might be worth it. However, without this experience or know-how, purchasing directly can be pretty risky.

Peace of mind is one of the advantages of working with a boat dealer when buying a used boat. Before posting a used boat for sale, a reputable dealer will inspect the boat and offer an honest assessment of the boat’s condition. Most reputable boat dealers will not agree to sell a significantly compromised boat and will often repair minor things like burnt out light bulbs so that the boat is fully water-ready on closing day.

Finding a Boat Dealer

Like making any large purchase, you want to trust your boat dealer. Thankfully, there are more resources than ever to find a reputable dealer. For instance, look for reviews online and talk to boater friends to learn about their experiences.

Also, the internet offers a tremendous opportunity to do your research before contacting dealers. If, based on your research, you know a dealer you are talking to is not being honest, run.

You will also want to maintain a long-term relationship with the dealer you select, as you will likely need repair and maintenance assistance throughout your boat's life. Make sure that your dealer can serve maintenance and repair needs for years to come.

The Sea Trial

After your inspection or survey, one of the last steps in the buying process should be a sea trial. Any seller or dealer should gladly offer, or insist on, this step before closing. Whether you are purchasing new or used, a sea trial is necessary to make sure you are buying what you think you are buying in terms of ride, handling, condition of the boat, etc.

A reputable dealer will have a captain(s) to accompany you during the sea trial, which is not only an excellent opportunity to solidify your interest in the boat but to learn from seasoned professionals.

Since a sea trial is a lot more complicated than, say, test-driving a car, it is generally the last step of the buying process. However, it is a crucial step to avoid misunderstandings or regrets.

Taking Delivery

After you close, look forward to taking delivery and having fun! The old joke was that the two best days of a boat owner’s life are the day you buy it and the day you sell it. Boats and engines alike have become so much more reliable, making this sentiment no longer accurate. Now, the two best days for boat owners are Saturday and Sunday!

After taking delivery of your boat, sooner rather than later, you are going to need boat parts and products to maintain and to enjoy your time on the water to its fullest. PartsVu is here to help!