The Real Costs of Boat Ownership
After you’ve rented a boat a few times and figured out how awesome being out on the water is, you might have realized you want to be a boat owner. And with this revelation comes so many questions. What type of boat do I buy? How big does it need to be? Where will I store it? And how much does a boat cost?
Costs of boat ownership include obvious costs like the price of a boat and trailer. But also less obvious costs like registration, insurance, mooring fees, and fuel. Be sure to read How Much Does A Boat Cost In Arizona? and How To Lower The Cost Of Boat Ownership In Arizona for more in depth information on these questions.
This article describes the real costs of boat ownership and offers some ways to save money you may not have considered. The bottom line is that owning a boat pays off in ways that are more valuable than money and in the end you’ll be glad you made the decision to buy a boat.
Standard Costs for Buying a New or Used Boat
Buying a boat isn’t quite as expensive as most people think it is. First decide on the type of boat you’re interested in based on what activities you like doing the most out on the lake. Then figure out how to pay for it.
Many boaters qualify for financing options with just a little financial planning. When considering the cost of boat ownership, you’ll need to calculate monthly payments, maintenance and repair costs, yearly expenses from the State, and any delivery fees you might have.
Cost Of The Boat - 4 Main Types of Lake Boats
The price range for a boat is huge. You can buy a little dinghy for a couple hundred dollars or a massive motor yacht for a million dollars. So figuring out what kind of boat you want is the best place to start.
For Arizona lakes, most people want to either do watersports, like wakeboarding, go fishing, or cruise and “entertain” aka party.
Wakeboarding Boats
If you like doing watersports, you’ll need a boat that is designed to make wakes and has other cool features made for wakeboarding. Wakeboarding boats start at around $60,000.
Deck Boats
Deck boats are similar to wakeboarding boats but have more amenities like a toilet, sink, and wet bar. They are made more for lounging and socializing and can keep up with water sports, too. Deck boats start at around $20,000.
Fishing Boats
Fishing boats have all the accessories, fishing chairs, and live wells to keep you happy and fishing all day long. Small pontoon boats for fishing have lots of deck space for the whole family and start at a very affordable $15,000. Or get yourself a nice Lund fishing boat with more bells and whistles starting at about $20,000 for a used boat.
Pontoon Boats
Pontoon boats are well known for being ‘party boats.’ And it’s because they have spacious decks and are usually loaded with amenities like built-in coolers, grills, and sometimes a toilet. Double decker pontoon boats can even have waterslides. Pontoon boats start at around $15,000 for a basic used boat.
Check our inventory to find out exactly what to budget.
Monthly payments
If you finance your boat, the payments will be based on the cost, the down payment (if you make one), current interest rates, loan service fees, and other variables. Choosing a longer period of time for financing makes the monthly costs less money. But depending on your interest rate, you may pay more over time.
Annual Maintenance and Repair Costs
Used boats inevitably need some TLC sometime in the future, and without a warranty, you’ll need to factor in the cost of service for the boat you want. New boats come with a warranty and many issues are covered.
Annual boat maintenance cost averages $1200 for DIY and $1,500 to hire help. Plus, annual required and recommended maintenance every 1-3 years which averages $1000 for DIY and $1580 to hire help. Making the total average $2200 or $3080 per year for boat maintenance on a 20 foot powerboat.
Annual Expenses Required By Arizona
In addition to a monthly payment and sporadic maintenance, you will also pay for boat insurance, licensing, registration, taxes, storage, marina fees, fuel, and any equipment or accessories you want.
Registration
The cost to register a motorized watercraft in Arizona for 12 months is $20 - $66 for residents, depending on the size of the watercraft. For non-residents, the cost is $100 - $495. An additional $20 fee is required for dealers.
Insurance
Arizona does not require boat insurance, but it’s always a good idea to have it. It can cost between $200-$500 a year. If you store your boat at home, your homeowners insurance might cover your boat. Be sure to get a quote from them before buying additional insurance.
Trailer
The trailer often comes with the boat. But if you do need to buy it separately, it can cost anywhere from $500 to $10,000.
Delivery
When buying locally, the delivery cost is usually included in the sticker price. This isn’t the case if you buy from out of State. Buying from a distant dealer could save you money but you’ll have to add-in moving quotes from several different services.
Mooring Fees
The average mooring fees for an annual lease in Arizona’s Marinas are $200 per month. Covered and uncovered wet slips and dry storage are available at most marinas. This often includes membership benefits and access to professionals to assist with boat maintenance.
Fuel
Boats take either diesel fuel or petroleum-based gasoline, which are the same types of gas you can find at the gas station. Any marina should have a fuel pump, but they usually charge more than the gas station.
Fuel costs vary depending on the day, it feels like, but most boats get about 3 miles per gallon. Consider the size of your boat’s tank and how many miles you plan to go on each day on the lake. This will help you do some simple math to determine how much money you’ll spend in fuel.
Boat Accessories
Boat accessories are things like a boat cover and safety equipment, like lifejackets and throwable devices. If you have a fishing boat, you may also need more rod holders, a Fish Finder, and a more comfortable fishing chair.
How To Lower The Cost Of Boat Ownership
To reduce the cost of boat ownership, focus on lowering fuel costs and mooring fees. These are the most significant fees and are the easiest to adjust.
To lower fuel costs, take the boat out less often and drive shorter distances. Map out your route ahead of time and keep the motor at a steady pace.
Reduce mooring costs by storing your boat at home and keeping it under your homeowner’s insurance instead of buying separate insurance.
Learning how to do simple boat maintenance yourself will keep costs down. Non-mechanical things, like upholstery cleaning, are generally safe to start. But let the professionals handle bigger jobs.
Tax Advantages of Boat Ownership
In 2018, US tax law was changed to allow business entities to completely write off boats purchased for business purposes. You can even write off the money you spend upgrading or improving the boat for up to a year after you’ve made the purchase. Taking clients on a boat trip will definitely be an impressive way to close the deal!
Final Thoughts
The real costs of boat ownership go beyond just the cost of a boat. Whether you’re buying a brand new top of the line wakeboarding or an old used dinghy to bob around in on Lake Powell, these are the real costs to consider. Reducing mooring fees and fuel costs are the easiest ways to reduce the cost of boat ownership.