The glamour of summertime boating and dreams of visiting the many fabulous boating destinations might make a boat purchase seem like a good idea. But before you decide to captain your own vessel, keep reading to learn why it may not be a wise decision.
The popularity of boating increased during the pandemic — it’s a good, socially distanced outdoor activity. This rise meant higher costs. The average cost of a new boat was $42,000 with $10,000 being the average used boat price.
Many people don’t realize the costs that come after buying, boat enthusiast Brian Donovan says. Many other boaters agree they were shocked when the bills started rolling in.
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Boats can be frustrating to keep shipshape. “Their engines are finicky and require frequent maintenance and occasional repairs. The engine needs care after every trip, especially in saltwater,” according to boat insurance expert Melanie Musson of Clearsurance. Most aspiring boaters likely anticipate simple relaxation cruising on the high seas, and this maintenance factor will seem less than relaxing.
There are lots of things that can go wrong on a boat. Expect to pay for repairs related to electrical, engine, and other mechanical systems, as well as bodywork. The longer you own a boat and the larger it is, the more likely you are to have to pay for repairs from a professional. After all, you don’t want damage to leave you stranded or, worse, sunk.
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Needing to pay for repairs is one thing — finding and ordering parts needed for repairs is another challenge. Water sports enthusiast Sam O'Brien says parts are hard to come by and often take time to arrive. In the meantime, you’re paying for a boat you’re unable to use.
Because a boat is exposed to the elements, it requires regular cleaning. “Cleaning my boat is much more difficult than cleaning a car,” says boat buyer Antony Diaz — who now wishes he could skip all the upkeep by renting instead as needed.
Navigating insurance is never an enjoyable task. Understanding and buying the right boat insurance is no different. Prices vary widely based on the level of coverage and the specifications of each boat. Needless to say, adding an additional monthly payment might make you rethink a purchase.
An easy-to-forget expense for owning a boat: You’ll need to pay a yearly registration fee to operate it on the water. The fees vary by state, type of vessel, and size, but having yet another ongoing expense is never a good thing if you’re looking to live frugally.
If you don’t own waterfront property or rent a slip, you also have transportation costs and hassle to deal with: Putting a boat on its trailer, towing it to the water, putting it into the water, and reversing that to get back home means spending a good chunk of the day on logistics instead of fun. Oh, and don’t forget the cost to register a boat trailer in some states, in addition to the boat itself.
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You’ll have to pay to drive a boat in most places. “It’s different from a normal driver’s license, and you’ll need to take a test in order to get licensed,” warns Liam Davies of Fishing Command. This means more money and time before you can even enjoy ownership.
If you think you’re done with expenses, think again. “Next up comes the tax for your boat,” Davies says. Taxes are dependent on which state you’re in — in Rhode Island, there’s none, but in South Carolina, owners pay a tax equal to 10.5% of the value of their boat yearly. Ouch, 10.5% every year? No thanks.
If you want to moor a boat, waitlists for a mooring can run years. “You might be lucky to get one,” Davies says. If you do, plan to spend anywhere from $250 annually to as much as $1,000 monthly for larger boats. And “if you get a mooring, you’ll need a rowboat, dinghy, or kayak to get to your boat.”
When winter rolls around, you’ll need to prepare a boat properly or risk damage. If you pay to have your boat winterized, it’ll cost around $300, with larger boats likely to be more expensive. While you might be able to save money with a DIY job, you still have to put in the time and effort to complete the task.
Unless you rent a slip at a marina or have a large area at home, you’ll have to pay to store your boat when not using it. Nicholas Swartz of Boat Anchor Hub warns of high storage costs. Depending on where you live, you can expect to pay anywhere from $50 to $200 per foot for a season of storage.
After buying a boat comes added expenses for supplies. You’ll need to buy things such as life vests, a safety horn, flares, and an anchor. Want an upgraded stereo system or supplies for water sports? That's going to cost you too.
After all these expenses, you still can’t use your boat for “free.” That’s because most boats require fuel, which adds another unending expense.
Some business owners buy boats they cannot afford in an effort to impress business clients, says Baron Christopher Hanson, a growth strategy consultant and business coach. Hanson says he has to convince some people to sell their mobile money pit before it takes them and their business under.
If buying a smaller vessel seems like a happy medium, think again. “I bought a small dinghy thinking it would be a good investment. I was sadly mistaken,” Yurii Brown says. Even though her boat is small, expenses are large and, Brown says, not worth the cost or the hassle.
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Being unable to use a boat as often as anticipated is a common theme among regretful boaters. Chris Klenner of Yak Logic recommends kayaks and kayaking gear for a living, but says even these small watercraft often sit and gather dust rather than being used.
Most boats experience depreciation, and buyers opting for pontoon and fishing boats may regret it more than most, say experts at The Mariner. “Pontoon boats and fishing boats will depreciate faster than many other boats, with the resale value dropping by about 25% to 30% percent after the first year or two of ownership,” according to a post on the site.
A boat purchase can be initially thrilling but lead to regret. Thomas Jepsen of Passion Plans is a buyer who doesn’t use his boat nearly as often as he expected. “It's much better to simply rent a boat,” he says.
Here’s a problem that might surprise you, since most owners naturally want to use their boats — but Stephan Jacob says he feels like, as a boat owner, he can’t take other vacations. “I hold back when I think of taking other trips because of how much it’s costing me to keep my vessel in tiptop shape,” Jacob says.
Music enthusiast James Bulllard loves to crank the tunes on his boat, but says he can never truly relax. Although at first it was fun to captain his own vessel, the novelty wore off quickly. “Being the permanent boat captain has become more like a chore, rather than a treat, especially when I have friends on the boat who are drinking,” Bullard says.
Being the “party person” for a group of friends might seem fun at first, but there are significant liability concerns with hosting boating events, says Val Streif of Get My Boat. If someone is injured or worse while on your boat, they or their family could come after you with a lawsuit. Some boat insurance policies cover only you or your immediate family as the driver, which must be taken into account when there’s a fun crowd aboard.
In some locations, including many Great Lakes states, boating is popular but seasonal and at the mercy of stormy or cold weather. Torben Lonne of DIVEIN recommends avoiding a boat purchase unless you live somewhere with consistently pleasant weather.
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Weather and seasonality are just part of why most boats sit unused. “Various studies indicate that the average boat is used only 8% of the year, sitting unused but still costing money for the remaining 92%,” Streif says.
Not many things could be worse than being stuck at sea with a rodent or insect infestation on your hands. “Boats are susceptible to being invaded by pests. Rats and mice only need a 10mm gap to squeeze through, and cockroaches thrive on boats in freshwater,” warns Ed Spicer, CEO of Pest Strategies. Not only are they gross, but these pests can cause significant and expensive damage.
As a socially and environmentally conscious fitness guru, Chad Alexander warns of the environmental downsides of boating. “Two-stroke motors can emit 25% to 30% of their unburned gas and oil mixture into the water,” according to a study by the Wisconsin Department of Natural Resources, which is why Alexander encourages people to get out and enjoy the great outdoors in a more environmentally conscious way.
Boats can harm fish species and water quality, but even the habitats of onshore animals can be disturbed by wakes created by boats. Nesting birds near the shoreline are especially at risk. Following rules regarding no-wake zones are one way to mitigate the impact.
Algae blooms can be dangerous to people and animals and in some cases arise because of boaters. In shallow areas, boat motors can churn up sediment from lake bottoms, which releases nutrients for algae to feed on and allows them to grow rapidly.
If you bring a boat from place to place, you could be inadvertently transporting aquatic hitchhikers that will turn into an invasive species. Proper cleaning, drying, and transportation can limit this, but is one more factor boat owners have to deal with.
There are personal risks associated with boating. Alexander lives in a province with only 100,000 people, yet says “each year it seems I hear about someone never returning from a boat trip.” U.S. boating deaths surged during the pandemic, increasing from 613 in 2019 to 767 in 2020, likely due to many first-time boaters entering the market. There was a sizable uptick in injuries and accidents, too.
Avid anglers may be unable to imagine not owning a boat, but many of the best fishing spots can be accessed without one. Anglers fishing from shore will find it cheaper, less of a hassle, and better for the environment.
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Once you buy a boat, the decision isn’t easy to reverse. As if to add insult to injury, boats are notoriously difficult to get rid of. According to Yacht World, it takes about eight months to sell a 26-foot boat, and the longer your boat, the longer it will take to sell. In the meantime, you’ll be stuck with all the problems and fees.
Despite being a water sports guru, O'Brien doesn’t recommend most people buy a boat. “Let me tell you from firsthand experience, there are two happy moments in the life of a boat owner: the day they buy and the day they sell,” O’Brien says. If even industry experts recommend against buying, it is probably wise to heed their advice.
If your dreams of boating are crushed, have no fear. There are options. Jamie Miller doesn’t own a boat but is a member of a boating club, which allows him to enjoy the benefits of being on the water with minimal expenses. Miller recommends clubs as a way for beginners to learn about boating safety and explore different vessels.
For most people, renting is cheaper and easier. Streif says she tries to make renting a boat simpler than ever at her business, whether it’s for a kayak or a luxury megayachts. “At Get My Boat, we have over 140,000 boats to rent in over 9,300 destinations,” Streif says.
If you plan to use a boat purely for pleasure, most boat owners say not to bother — that unless you’ll use it every day or for a business, it’ll be a money pit. Turn a boat into a business and you may see the financial benefit, though then you’ll have the stress of worrying about someone sinking your ship and your business together.
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