Nowadays, boats have become more expensive than ever, and even wanting a decent size boat requires you to pay in five figures or more. Spending so much on boats is a good investment? Are boats money pits? Well, you are in the right place, and you can learn that by continuing this article.
Boats are money pits if you view them from an investment perspective because you may have to sell them for a lot less than the amount you’ve spent on them, and with their depreciation, you will lose more. But, if you are a boat lover and want to spend time in the waters, they are not money pits.
There are some instances where some people have spent $50,000 or more on a $30,000 boat (in its lifetime). And certainly, most of them don’t worry much because they are enjoying the peaceful time with families on the waters. However, if you view that from an investment point of view, boats are definitely much bigger than money pits.
Before buying a boat, think about its purpose; if it is for having fun, 200% recommended. But if it is for investment purposes, you might not get much out of it unless you are buying a trendy, classic model boat or limited edition models, which will have a good resale value compared to others.
We will now see the average costs a boater may spend on a boat. Below is a table showing those costs.
| The money you need to pay for | 20-foot boat average costs (monthly) |
| Storage | At home – $0 Outdoor uncovered storage – $30 – $80 Covered storage – $50 – $100 Indoor storage – $100 – $200 Marina – $100 – $500 |
| Maintenance | Winterization – $300 – $600 (DIY < $150) (one-time) Motor repairs – $500 – $1,000 (annual) Waxing – $500 – $1,000 (annual) |
| Insurance | $100 – $500 (annual) |
| Fuel costs | $1,250 – $2,500+ (5 months) [20 hours a month with 5-10 gallons per hour, 1 gallon – $2.5] |
| Safety equipment | VHF, Chartplotter, Life Jackets, Fishfinder, etc. – $1,500 $3,000 (one-time payment) |
| Registration & other legalities | $50 – $100 (one-time payment) |
| Boat cover | $300 – $1,000 (one-time payment) |
| Trailer | $1,000 – $3,000 (one-time payment) |
| Washing and cleaning | $100 – $300 (annual) |
| Boat anchor and rode | $300 – $1,000 (one-time payment) |
From that, you can clearly see that you have to spend anywhere between $5,000 to $10,000 on a 20-foot boat per year. And by adding more elements to your boat (tools, aesthetic related, etc.), it could even reach $15,000 or $20,000. Those are the average values one might spend on a boat on a yearly basis.
There are many ways to decrease those yearly costs; we will see them later in the post. However, if you buy a small Jon boat or Aluminum boat, you will spend a lot less than a fiberglass boat. The rule stays the same, buying an expensive boat requires more money for its maintenance over time than on a less expensive boat.
Related Post – The Average Cost Of Maintaining A Boat Per Year. Check this article to know all the maintenances you need to do on a boat and the overall costs of those maintenances per year.
Check this video on how they have spent $100,000 in 5 years on a $16,500 boat (used one). I am not judging that you will (need to) spend that much on a boat. Some boat enthusiasts like them enjoy spending time in waters on a boat and don’t worry much about expenditures vs. having fun.
The downsides of having (buying) a boat
First, we will start with the downsides of having (buying) a boat and then seeing its upsides. By knowing the downsides of buying a boat before buying a boat, you can bypass a few of them, such as DIY maintenance or others.
Boats are expensive, it’s a fact, but you can get unimaginable discounts (deals) on almost every new vessel if you are smart. If you are passionate about spending time on the water, go for a deal that doesn’t hurt your wallet, cut costs in every way possible and take good care of your boat => FUN with a boat.
Boats depreciate (slower than cars, though)
Boats depreciate in value over time, and every vehicle does depreciate over time. However, you can’t prevent depreciation entirely, but you can slow it down by buying a boat that is desired by others, maintaining it well, and even selling it when the demand is high will leave more cash.
Sometimes, you might not even get $20,000 on a $100,000 boat due to its maintenance issues or low demand, or others. So, if you’ve bought a boat from an investment point of view, then you’ve probably made the wrong decision. It will not give you much profit at the time of resale.
Every vehicle does depreciate over time (with some exceptions), and it’s hard to prevent that. It’s a matter of how much they decline rather than why. Focusing on why the boat depreciates will be the key, and you can slow down the boat’s depreciation rate easily by knowing that.
Unlike boats, cars are used daily by many people. Daily usage could increase the car’s natural wear and tear. However, you can maintain it well by doing regular checks or any. Eventually, the car’s performance or look will be degraded (reduced) if it is used quite often, depreciating its value quicker than boats.
Related post – Do boats depreciate? Check this article to know more about the boat’s depreciation and how you can make some good money out of it while selling it.
Boat maintenance is complex & requires more money
This one of the regions on a boat you may spend most of your money on. At the same time, you can save a lot of money on doing it yourself or taking proper care of your boat. Being in a moist environment most of its time, boats require a lot of maintenance.
Since boats are used in the moist environment (water), it often needs regular checks after every ride and regular maintenance. Boating in saltwater and hesitating to clean the boat after every or two or more rides will leave salt and dirt in the engine interiors, causing corrosion or any.
Similarly, regardless of the water (salt or fresh) you are boating in, a boat engine sucks raw water from the lake to cool the engine, and in that process, it can suck any dirt, weeds, mud, etc. To clean that, it requires you to flush the boat outboard or inboard or sterndrive after every ride.
Avoiding these types of cleanings after every ride, not changing the gear oil every season, not inspecting the hull after every ride, etc., will degrade the boat’s condition, depreciating its values quickly. So, do regular checks and maintenance for your boat to reduce the depreciation rate and to save money later on.
Boats need to be stored properly
Unlike cars, you can’t leave a boat in the driveway or outside your home; it needs to be stored well and needs to be prepared well before storage (like winterization before winter storage). Weather can ruin a good-looking boat. A boat can fade out easily if it is kept outside without a boat cover.
If you have enough space at home, you can keep your boat there, and you can save thousands of dollars annually on other storage options (Indoor or outdoor storage, Marina, dry-stacked storage, etc.). Like anything else (car, bike, etc.), covered storage is preferred for a boat.
Most importantly, the boats that are kept outdoors exposed directly to external environments (sun, rain, snow, insects, birds, etc.) need a cover, but boats kept in enclosed storages don’t need one. Still, it’s a good practice to cover your boat if you aren’t going to use it for days.
So, storing the boat is another thing you need to consider before buying a boat. During the peak times (summer), marina or other storage options will ask you to pay thousands of dollars for a season, which is another expense of owning a boat.
Fuel expenses will be more for a boat
Boats operate at high RPMs or HP continuously for long periods, whereas cars can’t operate at high RPMs for longer periods. Take your car offroad for a few hours @ 30-40mph. See how well it holds up. Boats take a beating; NO vehicle made can take the beating a boat does and stay together.
Taking that much beating all the time in the water will result in drinking gas like water. Many fast motorboats use between 20 and 30 gallons of fuel per hour when cruising at speed; average that to 25 gallons per hour, and a five-hour trip could cost you more than $300 per outing (@ $2.50 per gallon).
Assuming you use your boat once a week, that’s more than $16,000 in gasoline alone per year. However, if you go slow, it will consume a lot less. Still, if you go boating often (daily or 3-5 times a week) throughout the season, you will be spending thousands or tens of thousands on gas alone.
The fuel used in the boats is a bit more expensive than those used in cars and other vehicles, further increasing your fuel bills. Depending on the fuel used in your boat, the prices vary a little. So, fuel expenses will be more for a boat than other vehicles.
Boat tools require more money
Simply buying a boat isn’t enough. You need to buy some tools along with it like life jackets, VHF radio, Anchor, Trailer, chart plotter, anchor ropes, fire extinguisher, flares, etc. All of them combined can take $5,000 to $10,000 or more, depending on the brands you are looking at.
A boat trailer alone can cost $2,000 or more. However, if you keep your boat in the water (at the marina or elsewhere), a trailer is not required; otherwise, you need one. And the trailer maintenance is also crucial. If it is not maintained well, it also gives you some costly repair bills.
Boat anchor and the anchor rope alone will cost $500 to $1,000 or more, depending on the brands you are looking at. The boat anchors and chains need to be galvanized to prevent corrosion, and its maintenance is also crucial. If it is not maintained well, it also gives you some costly repair bills.
Finally, safety equipment like life jackets, VHF radio, chart plotter, fire extinguisher, flares, visual and sound signaling devices, etc., are crucial. That could take anywhere between $1,000 to $3,000 depending on the brands you are looking at. All these types of tools combined can cost $5,000 to $10,000.
The others
Every year around 5000 boating accidents are happening, and the expenses resulting from a boating accident can be immeasurable. Small damage to your outboard can cause you a $1,000 or more bill. Insurance will pay the most percent of your boat damage bills (if you have one).
Fortunately, the boat insurance costs only a few hundred dollars per year, though in some cases, it may be more than $1,000, depending on the type of vessel and the history of the owner/operator. On average, it can cost you $350 each year for a small boat.
Whenever boat maintenance is considered, washing and cleaning it is vital. You need some cleaners, scrubbers, etc., which costs some money. Even the registration and legality-related documents will cost some percent.
Ultimately storing your boat at home rather than at the marina or storage and by DIY maintenances, you will save a lot of money yearly. Boats are worth the investment if you are buying one for recreational purposes; otherwise, there are money pits.
The upsides of (having) buying a boat
Now we will see the upsides of purchasing a boat.
Buying a boat is not a money pit from a recreation point of view. You can do a lot of things on board with your family, and it will be fun. Many people spend thousands of dollars each year to have fun in the waters. At the same time, from an investment perspective, they are money pits.
Boating is a fun recreational activity. Being in the water is fun, and everybody likes a little flash in their life after a hectic workweek. It offers plenty of possibilities to have fun and relax. Whether you love wakeboarding, waterskiing, snorkeling, or fishing, there is a limitless amount of recreational activities on the water.
Boating is stress-busting. According to Wallace J. Nichols, marine biologist, “our brains are hardwired to react positively to water, and being near it can calm and connect us, increase innovation and insight, and even heal what’s broken.” Owning a boat helps you slow down, get connected, and break the hold of life’s daily stressors.
Boating teaches you many things. You can learn water-related activities like wakeboarding, waterskiing, snorkeling, or fishing, and there is a limitless amount of recreational activities on the water if you have a boat. Not only is boating exciting but you can also get some exercise from all those water sports.
There are far more species in the water than you would find on land. Owning a boat provides the opportunity to see some of the most iconic aquatic species up-close and personal in their natural habitat. The joy of watching scores of dolphins stream past your boat or rare turtles snuggling up to you is beyond anything you can experience in the city.
GO DOWNSIZE
There are so many ways you can enjoy being in the waters. If you buy a boat that you can afford without exceeding the budget, you can have a lot of fun with your purchase. The major problem is many people take out huge loans to buy big boats they don’t need and won’t be able to use. Avoid that and don’t go beyond your range.
The final thoughts
If you are buying a boat from an investment point of view, boats are money pits because you may get way lot less resale value than the amount you have spent on it due to depreciation, maintenance, etc. But boats are definitely not money pits if you are a boat lover and want to play with your boat.
It all depends on the perspective you are looking at. You will discover that there is something special about being on the waters that the non-boaters can never understand. If you place great emphasis on recreational activities, you won’t regret your purchase, even if it is equivalent to wasting your money.
Before buying a boat, think about its purpose; if it is for having fun, 200% recommended. But if it is for investment purposes, you might not get much out of it unless you are buying a trendy, classic model boat or limited edition models, which will have a good resale value compared to others.
Boats are expensive, it’s a fact, but you can get unimaginable discounts (deals) on almost every new vessel if you are smart. If you are passionate about spending time on the water, go for a deal that doesn’t hurt your wallet, cut costs in every way possible and take good care of your boat => FUN with a boat.