Boat PRICE vs. Boat COST: DON'T Buy A Boat in 2024 UNTIL You Watch THIS! [Boat Math] | BoatUS

[@SteelheadTed]

Don’t buy on payment amount, buy on total price and interest you’ll pay over the life of that loan. I was surprised you mention you could have lower payments on a more costly boat over a longer period of time. This could be true but as a strategy for buying a boat that isn’t a good way to think about it. If you fixate on payments you’ll pay way more than you should.

[@boatus]

Hey Ted. Thanks for watching and thanks for your comment. If you're looking solely at paying the lowest price for a new boat (like buying a car), you are absolutely correct. Mike's starting point for this video was a new boat with many zeros in the price tag. His math is about looking at the true cost of a new boat vs merely the price, which many people don't consider, especially if they trade up before the loan is fully paid off.

[@volkdan]

I thought this was very well put, in a short explanation of what to look at when buying a boat

[@boatus]

Thanks for watching, Dan. Glad you found it useful.

[@lennyrudow7519]

Fantastic video Mike, and so true! But I recognize that marina, and can't believe you didn't get a B-roll shot of that gorgeous blue/white hybrid bay boat just a little farther down the docks!!!

[@boatus]

It's a shame you were off fishing that day instead of hanging out with us, Lenny! 😂 But the kind folks at Turkey Point rolled out the red carpet for us, nonetheless.

[@cantbuyrespect]

With current loans being 10% and 240 months(20 years) it is impossible to get out from under the loan unless you have money set aside to cover the amount you will be upside down on it. For an example a 50k boat will be worth about 25k after 7 years but the loan will still have a 45k loan balance. That is 20k underwater. Good luck selling a 25k boat for 45k.

[@boatus]

You make a valid point, Derrick. This math isn't right for everyone and every situation. BUT if you are buying a boat that holds its value, what you're actually PAYING for it is going to be far less than the sticker price. Thanks for watching and for sharing your thoughts.

[@paulkersey2179]

I must be the exception, yeah its expensive to own a boat, but damn I have enjoyed everyone I ever owned. I tend to buy the less expensive models, (contrary to the advice in this video) use the hell out of them but try to keep them in as good condition, including regular maintenace, flushing, cleaning oil/lower unit etc as possible. I used them for waterskiing, wakeboarding, fishing, cruising and just try to stay within my means.

[@boatus]

Thanks for sharing your experience, Paul. There's no one *right* way, just different options to consider. The maintenance component you mention is a really critical one -- whether you plan to have the boat for a few years or a lifetime. In the end, though, the only thing that really matters is that you enjoyed it!

[@oldmill322]

Well done young man

[@boatus]

Thanks for watching, Richard!

[@vedderadder7890]

Excellent short format informative video. You are right about considering what you’ll sell it for when buying it. Another factor is all the upgrades you may do to it over your ownership that you are unlikely to get back. I bought a new sailboat for around $500k and probably added $300k worth of upgrades, SSB, Carpentry, Spinnaker sails and other sails and rigging, fuel polishing, etc.… That isn’t factored too much into the selling price. It’s like a remodel on a house. When you sell, you will never recoup the cost of those extras/remodels. I ended up selling the boat after 14 years for $250k. I have another new boat on order!

[@boatus]

Excellent point, Vedder. Thanks for sharing your experience. And good luck with the new boat!

[@benjamincarter9726]

Would a Boston Whaler Montauk fall into the category of a vessel that will hold its value well?

[@boatus]

While we can't give you a definitive answer, Benjamin, in very general terms, Boston Whalers do tend to hold their value better than other models. That said, it depends on a number of factors, including how well it was cared for/maintained. The value may also be affected by the economy and what is happening in the used boat market. We suggest doing your own research based on the specific boat. You can get an idea of value by searching the listings on any number of boat classifieds websites like www.BoatUS.com/Boats-4-Sale, powered by Boatmart, as well as the NADA Guide: www.jdpower.com/boats. I know it's not a definitive answer, but hopefully it gives you a place to start. If you're in the market for a new or used boat, be sure to check out our boat buying resources: www.boatus.com/expert-advice/boats-and-tow-vehicles/buying-and-selling-advice

[@rfenton19851]

The best plan is to not finance a depreciating asset. If you can't pay cash maybe you are trying to buy too much boat. Along with the initial cost comes the very high cost of ownership relative to other recreation vehicles. If you can't afford the boat to start with you won't be able to afford to take care of it. You will pay for this when you try to sell it.

[@boatus]

Fair argument, rfenton. It's a different philosophy, and it's a valid one in some situations. Your point about keeping a boat up during ownership, however, is extremely important. You could have a brand that holds 100% of value, but if you don't keep it maintained, the value drops significantly. Thanks for watching and taking the time to add your views.

[@johncarpenter1476]

So true. How many times do we see unmaintained boats in marinas? It's way too common.

[@jamesfick4529]

Paid cash for my two boats for this very reason. Also, what's the rule of thumb on how much you spend on licensing, operating costs, and upkeep? I've heard ~10% of purchase price. My experience so far is it's a bit lower than 10%, probably 5-7% but I haven't had to do major work yet.

[@rfenton19851]

​@jamesfick4529 i have heard the 10% number. Your lower numbers seem to jive with my experience. If you owned the boat long enough to have to replace the engines or other major systems I could see the 10% being a reasonable average.

[@mikemendes7598]

Yeah, there's a lot of wisdom in these comments. It makes sense to get a loan, even if you can afford to pay cash with interest rates low. Even at 6% - 8%, it still makes sense to keep your cash in investments making money for you.

[@boatus]

Thanks for your insightful comment, Mike. I was brought up with the same philosophy, but I understand it isn't right for everyone. Thanks for watching and taking the time to weigh in!

[@ovslumlord1]

Don't forget to calculate the 10% brokers fee to be incurred when selling

[@boatus]

True, Boardwalk. Mike probably wasn't thinking about that as his boat isn't the type you'd hire a broker to sell, but you make a very valid point. Appreciate it, and thanks for watching!

[@tannishacarr6371]

Hellooo do you have any fishing boat used available and cost please

[@boatus]

Hi there. We're a membership and towing company, Tannisha. We don't sell boats. That said, a good place to start is to look through boat sale listings powered by our partner Boatmart: www.boatus.com/products-and-services/membership/savings/boatus-boats-for-sale. Once you find one that suits your needs, be sure to sign up for a BoatUS Membership to take advantage of savings, excellent information for keeping your boat running great and staying safe on the water.

[@kkkjdnd2499]

Hey, why is he saying I'm only going to spend 20% of what it says on the sticker?!?

[@boatus]

Because if you buy a brand that holds its value, finance it, maintain it properly, and figure that you're eventually going to sell it and get some of that investment back, you are not going to outlay that full amount you see on the sticker. For those arguing that cash is better than financing, we did the math and if you invested the cash you would have paid instead of financing over the time you have the boat, you'd end up with significantly more money than you'd pay in interest over the term of the loan -- even with today's rates.

[@zackriden79]

no ones paying 100s of thousndansds for a 5 year old used boat that's 30 feet

[@boatus]

Maybe you wouldn't, but people do every single day.

[@zackriden79]

@@boatus nope the majority of pepole in my state being Florida can't afford 100k and the ones that can just buy one and shine keep up with the jones boats so i stand by what i said NO ones paying big money for old boats

[@zackriden79]

na this guy is bullshit , i go buy a 250k boat in 5 years its worth 100k

[@boatus]

In some cases, you're correct Zack. However, I think you missed the point: We're saying that a boat is not necessarily going to COST anywhere near the number on the price tag. If you buy a boat that sought after and maintains its value, you're going to get a higher price for it when you sell it. Stay tuned for a follow up to this video where we show the benefits to financing vs paying cash.