Im in a unique position where I can buy a boat in cash so I will have no boat payment.?

Question

What other boat costs do I have to consider. Berthing fees, boat insurance, gas but what else???

Answer 1

How about scheduled and unscheduled maintenance and repairs?

Answer 2

i can tell you that leaving the house to go boating for the day runs us in the ball park of about $100. in that hundred dollars are these items:

fuel ( at 2.65 a gal. here ) =95.40 ( split over 2 days = 47.70)

beer/soda = $20

snacks = $20

not to mention, sunscreen, towels, ropes, bumpers, life jackets, fire extinguisher, whistle, throw cushions, anchor/chain/rope, cleaners, buffing compounds, waxes, muffs, etc...

boating can be very expensive... and there is nothing worse than watching your boat sit in the yard because you can't afford to use it, service it or repair it....

Answer 3

I've owned a few boats and you've identified the major costs:

Storage & Insurace, although repairs and upgrades can cost quite a bit as well.    How much this will cost depends so much on the particular boat, where you will store it and where you will sail it.

Insurance:  Check first with your homeowners insurance if you have any and see if you can add the boat as a rider.  This is probably much cheaper than than purchasing a stand alone policy.  If that doesn't work, I recommend you try Boat US and Progressive next.    Going with a higher deductible will keep the cost down.   As you go from local lakes to the great lakes, to coast waters, to offshore, insurance premiums will go up drastically as might your ability to get insurance at all.  

Dockage varies so much depending on where you will dock the boat and what size boat you have.   I keep a small boat on local lake where the seasonal fee is $175 for the entire season.   Larger lakes and ocean accessible marinas may cost $2000/month or more depending on the boat size.

Maintenance probably will be reasonble if it's a boat for day use.  Once you have a boat outfitted to sleep on, etc the systems get more complex and the wear and tear is more.    I purchased a used 17-foot sailboat 10 years ago and have spend less than $300 total on it.  I owned a 26-footer for 7 years and spent about $800/year in improvments and maintenance.   My current 33 foot boat was purchased new, outfitted the way I want, so maintenance has been minimal, but I'm sure there will come a day when this is a major expense.

Running costs will vary so much depending on the syle you like to travel in as well as the fuel economy of the boat.   You just need to set down and do the math.

It's true a loan may give you a tax write off, but remember you only get to write off the interst which is money you are paying that is in addition to the actual price you would pay for the boat, so if you have the money on  hand, you would only be better taking a loan if you feel confident you will can invest the money at a better rate of return than the loan.   Some people are confident they can do this don't mind being leveraged to the hilt.   Personally,  although, it's often pushed my finances, I've always purchased my boats outright.  I love that all the decisions are mine alone, not the bank's and I'm not dependant on the future to support what I have now.

Enjoy.

Answer 4

Paying cash isn't always the smartest, if you can get a loan cheap enough (percent-wise), and put your money to better use or pay down higher-debt obligations.

Regardless, if you've got it, you'll need to pay for a place to put it, presumably it's got an engine since you mentioned gas, the occasional checkup (just like a car), insurance, perhaps a trailer and tow hitch if you're going to cart it around, life preservers, "stuff" for when you go out, whether food or drinks or whatever (be careful of drinking - driving boats with beer, although a time-honored pastime, can now get you a DUI that affects your regular license).  Basically, though, I think you have it covered.  Fuel and maintenance, storage or transportation, insurance, and you'll also need to register it with the state, whatever that costs (depends where you live).  Not much else.  That's the cool thing about boats.

Depending on whether you're going on in fresh water or salt water, you might need more maintenance and cleaning, and some way of tarping it or closing it off in bad weather, maybe a hitching buoy and a small dinghy if you don't have a dockside storage.  I think that's it, though.

Oh, and you have to come up with a good name for it!

Enjoy!