Finding the Boat You Want

Standing in a dealer's showroom or strolling the aisles at a boat show, with fully-loaded display boats at every turn, can be a daunting experience if you haven't put some thought into what you and your family want and what will fit your needs as well as your budget.

Because there are as many different types of boats as there are different boating activities, consider the following when making your selection:

• Boating interests of you and your family.
• Budget.
• Body of water where boat will be used.
• Your previous boating experience.
• Free time to spend on the water.
• Condition of boat, if used.
• Necessary repairs.
• Warranty coverage.
• Other owners' experiences.
• Dealer's reputation for giving good service.
• Availability of local storage and repair services.
• Routine maintenance costs.
• Ongoing expenses
• Length of time you expect to keep boat.
• Anticipated depreciation.

New Or Used?
Personal finances are often a key factor in the decision to buy a new or used boat. However, other factors should be considered.

After-sale service - or lack of it. The retail cost of a new boat includes the cost of providing warranty service. When a used boat is sold "as-is," the only thing that's guaranteed is that the owner will pay to fix any problem that crops up.

Financing. Banks and lenders view new boats as better risks than used ones, so loan terms, down payments and interest rates are usually more favorable.

Depreciation. After the first season on the water new powerboats depreciate an average of around 10% and new sailboats about 5%. Used boats, however, may hold steady, or even increase, in value with a minimal amount of work or equipment improvements.

Beauty may be only skin deep. Age and wear are hard to hide when a boat hasn't been properly cared for, so you can often get a pretty good idea of what you are buying. Talk to the owner's mechanic for the repair history. In contrast, the owner of a new boat is testing uncharted waters. Dealers say an average of a dozen problems crop up on every new boat they sell.

Prices Boat show "specials." Boat shows are great places to find low prices, but show "specials" may be no bargain if the dealer doesn't maintain a service shop or is located hundreds of miles away when repairs are needed. Try getting a good deal on a new boat in July at the end of the model year (the boat model year begins in August) but also look for good deals on new "leftover" models sitting unsold on dealers' lots from previous years.

The profit margin. When it comes to bargaining, keep in mind that dealer commissions on new boats are 10-20% over the factory cost. After-market equipment installed by the dealer is marked up roughly 40% and labor about 25%. The going dealer commission rate on used boats is 10%, so buying directly from an owner can reduce costs.

How do you know it's a fair price? Used boat price guides found at libraries, marinas and marine stores give high and low retail prices for each model year. In addition, they give price adjustments for physical condition, engine options and geographical location. But, classified ads may be better indicators of boat prices in your area. Monitor prices over a one- or two-month period to get an accurate picture. Finally, if you have your boat inspected before purchase, the marine surveyor will give you a valuation in his report.

The Cost Of Owning A Boat
Your boat's price tag and the interest on your boat loan, if you have one, are foreseeable, obvious costs of ownership. It's the not-so-obvious costs, however, that can take the wind out of your sails if you have not budgeted for them, whether they are one-time fees, like sales tax, or recurring ones, like storage, slip rental and insurance.

Keep in mind that the yearly cost of operating, maintaining and repairing or replacing equipment averages about $50 per foot, but can rise as high as $150 if you have a marina do all the work to maintain your boat in pristine condition. Age, use (racing, rather than daytrips, for example), material and quality of construction all affect annual expenses.