Published on December 21st, 2019 | by Sunit Nandi0
What To Consider Before Buying A Boat
Boat ownership is the dream of many maritime enthusiasts. In fact, the two happiest days of a person’s life are the day they buy a boat and the day they sell it. While the latter part of this quote will hopefully not apply to your case, the process of buying a boat is something that can be a bit tricky.
Taking the time to weigh your options, narrow down your needs and go through the appropriate steps beforehand will save you from headaches and regret down the line. Entering the uncharted waters of boat loan finance and learning a bit about the process of purchasing a boat will allow you to steer clear of any obstacles.
Let’s jump right in and look at some of the most important things that you need to consider before buying a boat.
Decide On A New Or Used Boat
For those who are new to the boating world, you may not have your heart set on a particular model or type of boat at the outset. The first thing that you need to get straight is whether you are shopping for a new model or if you can fulfil your needs through a used vessel.
Buying new is a good choice if you have the funds or if you have access to enough credit through a low rate boat loan. Boats that are brand new will come with an active warranty that will cover any potential problems that you might have during the first few years. As with cars, however, new boats undergo significant depreciation after they are purchased.
Used boats, on the other hand, are usually far less costly. The initial depreciation hit to your finances is not something that you need to worry about. However, if you are not cautious, you may find that your boat needs more regular maintenance and repairs if its condition is poor.
Decide On Financing
Boat financing is similar in many ways to lending in the automobile sector. There are now many providers who offer competitive rates for boat financing and, depending on your credit history, you may be pleasantly surprised at some of the available options.
Nevertheless, it is important that you find the right lender for your boating needs. While the purchase of a boat will usually be a major financial decision for any household, this will be more significant in some cases than others. For example, a typical lender will likely not be willing to provide you with the credit for purchasing a yacht if you lack the means of reasonably repaying several hundred thousand dollars. Since some lenders specialise in this type of luxury lending, it is important to do some research and find a suitable lender to accommodate the size of the loan that you will need.
Always Test Out The Boat
Since purchasing a boat, new or used, is a big decision, it is important that you are confident in the product before the sale is final. This is why you need to take the boat out for a test drive before you sign any sales agreement. Make sure to also inspect the boat thoroughly for damage and, if the boat is used, be sure to get a sense of the maintenance and repair history of the vessel.
Sail Into The Sunset
If you have been diligent in finding secure financing for your boat and you have inspected the vessel to your liking, then you can be confident in making the final purchase. Your boat will be all the more enjoyable to use if you ensure that you have done your due diligence throughout the purchasing process beforehand.