To prepare to buy a boat, buyers can consider the responsibilities and costs of owning a boat, including finance, maintenance, storage, insurance and annual rego. Boaters can enjoy an amazing lifestyle on the water. Boats are available in a wide range of sizes and types to suit many water-based recreational activities. But owning and operating a watercraft, no matter the size, comes with responsibilities and expenses.
Financing is a key aspect for most buyers, and we have that covered with our cheap interest rate boat loans. But there is more to watercraft ownership than just the loan repayments. To assist buyers to prepare a budget to purchase a new boat, possibly at an EOFY sale or an upcoming boat show, we outline some of the considerations and options for affordable boating.
Buy a Boat with Finance
Most buyers will require a loan to buy a boat. This is an area where savings can be realised with the most affordable rates, the right loan, and the most suitable lender. The most affordable loans are Secured Boat Loans. With the vessel used as loan collateral, lenders offer their lowest rates, especially on new models.
The best possible rates are offered to buyers with strong financials and good credit. Address these issues before applying. Rates vary across the market. Using an expert marine finance broker can ensure you have the best possible rate sourced from a wide selection of lenders. This ensures the lowest possible repayments, lowest possible total interest and therefore, the lowest possibly outlay for the purchase. Start preparing your budget using our Boat Finance Calculator to compare options on different models.
Don’t forget to include the essential safety gear that is required for boating in your state/territory. Gear includes lifejackets, flares, EPIRBS if boating offshore and other devices. Check with your state's marine authority for specific requirements.
Storing Costs of Owning a Boat
When you’re not using your vessel, you will need somewhere to leave it. The options may depend on the size and type of vessel and include a mooring, marina, storage facility, on the street or on your own property.
Trailer boats can present the most affordable vessels to store if owners have a place to park their trailer. Check local council rules about trailer parking in your area. If not using a trailer boat over winter, consider renting a storage unit. Keeping a vessel out of the weather may minimise wear and tear and reduce upkeep expenses.
Undercover, dry storage facilities are available at some marinas. These services lift vessels out of the water with powerful crane mechanisms and place them in multi-level storage cradles in large warehouse style facilities. When you want to go boating, simply contact the marina to have your vessel on the water and ready for your arrival.
A mooring is a traditional way to leave a boat when not in use. Availability will depend on the area. Check with the relevant marine authority in your state for availability and fees, and consider what service is available to get you from ship to shore. You may need a dinghy or RIB.
A marina berth can be a more costly option but may offer a range of services and facilities which suit many owners. Marina facilities vary with the site, and fees can vary with the level of luxury and security on offer. To stay on budget, consider a more affordable facility.
Annual Costs of Owning a Boat
There are annual expenses for owners to consider. Registration on the vessel and trailer will need to be renewed annually as will your boating licence. Fees may vary with vessel type and size and with the state/territory. Check your state government's marine authority such as in NSW, and Queensland.
When buying a boat with a secured loan, insurance is required. Marine insurance policies can vary significantly with what is and is not included and on premium prices. For assistance with souring an affordable policy, contact Club Marine or ask your Jade broker for guidance.
Marine maintenance and servicing will be required and will depend on the age and type of vessel. Some safety gear items such as flares and lifejackets, have expiry dates and will need to be replaced every few years.
Fuel is required for power boats and for the motors of yachts. When buying, look for more fuel-efficient outboard motors to reduce running costs. Sailing is more affordable on fuel than power boating – keep that in mind!
Boat Skipper’s Responsibilities
In addition to expenses, owners should be aware that they will be taking on key responsibilities with boat ownership and operation. Safety of all onboard is paramount and that means having life jackets for all guests and ensuring they all know procedures. Skippers are responsible for conducting the necessary checks before heading out on the water — especially the weather conditions.
Undertaking boat operation training or sail training can be advisable to ensure you know the rules and regulations and are confident to skipper your craft and enjoy your water activities.
For tips on minimising the costs of owning a boat, especially sourcing the most affordable finance, connect with Jade Boat Loans on 1300 000 003.
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.
