The Hidden Costs When Buying a Boat

You may be tempted to stretch your budget to get a larger boat or more features. But wait. Have you considered the hidden costs you may pay when buying a boat?

Summary

When a friend started looking for a slightly larger boat, I began thinking about the hidden costs he'd have to pay. He found a larger catamaran that would cost around $300,000. Sure, it would be a stretch, but they thought it was possible--before they considered the extras.

So what are these extras? And will they affect you?

First, there is sales tax. It varies from state to state (or even by county). If he bought where we are, that would be 7.5%, or $22,500. Even though Florida caps sales tax at $18,000, that's still a big check to write.

And what about insurance? Hull coverage is a percentage of the boat's value, and you must pay it every year.

Of course, when buying a boat, you'll want to have a professional survey. Combined with the costs of hauling out, you're talking about thousands of dollars. That's for the basics. If you add in engine and rigging survey or oil analysis, you're looking at even more.

If the survey reveals issues or you simply want to upgrade to make the boat fit you better, that's even more money--before even leaving the dock.  

If you buy a larger boat, haulouts and marina stays will cost more over the life of the boat. And expect to pay 5 to 10% of the boat's value on maintenance every year.

My friend did the review and realized that while they could probably afford the purchase, the ongoing costs would significantly affect their cruising plans.

Don't get discouraged. Just look carefully at all the costs before you buy a boat. It's part of the delicate balancing act most cruisers make between money and satisfaction. For more details, listen to the complete podcast or read The Hidden Costs When Buying a Boat.

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Links: 

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Today's episode of The Boat Galley Podcast is sponsored by Lunatec, makers of the hydration spray bottle, odor-free dishcloth and self-cleaning washcloth. Lunatec offers practical gear designed to save water and reduce waste. A water bottle that doubles as a garden hose? A dish cloth that doesn't get stinky? Yes, please! Visit Lunatecgear.com to learn more; use code boatgalley to save 10% on everything. Lunatec: innovative gear for your outdoor adventures.

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Music: "Slow Down" by Yvette Craig