Buy a Boat on a Budget
Boating is the perfect way to spend quality time with family and friends—and that’s an investment that never loses its value. But, if cost is a significant consideration, try following these tips for buying a boat on a budget.
Steps
- Have a plan. Know what you want and what you can afford. Do your financial homework and run a budget --- before you buy a boat. It’s the smart thing to do and will save you a lot of time. Be sure to allow for general maintenance, storage, insurance and other important add-on products you may require such as extended warranties.
- Shop new first.It might sound counter-intuitive, but as with a car, there are pros and cons to both new and pre-owned boats. When buying boats, we recommend shopping new first even if you’re on a tight budget, for a number of reasons:
- You’ll see the most current technology, latest design and naval architecture
- Electronics will be state of the art with the newest software
- New mechanical, electrical and plumbing systems(M.E.P)
- Know that the benefits of buying pre-owed might also influence your decision:
- Pre-owned boats cost less than new
- Monthly payment will be less
- Cost of insurance will be less
- The depreciation curve has flattened out
- Visit a Boat Show. Visit a local boat show. Take a look at all available options and board as many boats as you can. Discuss your wants and needs with dealers and experts at the boat show; they will answer any questions you may have about specific boat types and help you choose the one that will fit your needs and desires. For a list of boat and sport shows in your area, please visit a Boat Show Calendar.
- Finance your Boat - Boat buyers have many choices when it comes to paying for their purchase. Here are a few of the advantages of financing your purchase through your dealer with a National Marine Bankers Association marine lending specialist (www.marinebankers.org):
- Competitive rates - Interest rates for boat loans continue to trend near historic lows in the US.
- Faster credit decisions—because you are working with lenders in the marine industry who lenders understand boats and their buyers. You can apply for a loan this morning and be boating this afternoon.
- More electronics and extras—marine lending specialists will allow you to finance optional equipment, electronics, extended service plans and life/disability insurance coverage with your purchase.
- Financing your boat purchase usually means you can afford a newer, larger or more powerful boat, a better trailer and all the gear that it takes to make boating safer and more enjoyable!
- Federal income tax deductions—If a boat qualifies as a residence for purposes of deducting interest expenses on a residence* a taxpayer can deduct any qualified interest for the tax year.
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References
- Shared with permission from http://www.discoverboating.com
