Part 3: Primary Purchase Considerations
If you are reading this article, chances are you have already started your boat search. One could easily bet that the most important or first search criterion of someone buying their first boat was either on the cost or the way the boat looks. Am I right?
Understanding where you are going to store a boat (Part 1: Boat Storage) and understanding the types of boat propulsion (Part 2: Propulsion) should be the important considerations; well before you start your boat searching by cost and looks.
BOAT PURPOSE
I often ask people who are seeking my advice on what type of boat they should buy; “what purpose or what is your main focus of enjoyment in wanting to buy a boat?”
Is your goal in buying your first boat to fish? How about cruising around visiting a local sand bar, beach, or waterfront restaurant (a party boat). Will you be boating by yourself, or will you bring family or friends? Where or what type or body of water will you be boating on? Are you wanting to boat at night? Do you want to charter your boat to earn money or pay for reoccurring boat costs?
While I can cover a great deal of reasons why someone is looking to buy their first boat, I cannot cover them all. Therefore, I will cover the more popular responses I get when I ask the “purpose” question.
Fishing is one of the most popular reasons to buy a boat. There are boats that are specifically designed for fishing; for example, the center-console, bay boat, or flats boat. The hallmark of these types of boats is the ability to completely walk around the boat without hindrance when an angler is bringing in their catch. These boats are always equipped with an outboard engine and the helm (steering wheel) is placed center of the boat where the seat is placed high; to allow for standing and sitting. These boats have many amenities to support fishing, such as small storage areas, rod holders, and live bait wells. Seating can be uncomfortable and limited. Afterall you rarely sit when you are saltwater fishing. The overall look of the boat is masculine and popular with male first-time boat buyers. It is very plausible that you can “technically” fish off any boat; however, these types of boats are designed for the fishing environment and the mess it brings. Conversely, if you goal is to equally enjoy the day cruising, party boat lifestyle; sure, you can cruise with a boat designed for fishing, but serious consideration should be made as to which purpose is more important to you now and in the future. I would take a comfortable boat over a fishing boat; but then again, I am not a fisherman.
Fun-in-the-Sun boats have a variety of shapes and designs. All purpose, bow-riders, deck boats, cuddy cabins, pontoons, and jet boats all fit in this category. The key element of these types of boats is the seat design and configuration (seating capacity), extra amenities such as a head (toilet), sink, fresh water, shower, swim deck, seat storage, covers, bimini, etc.), and amount of seating space and move around space.
Cuddy boats are a special design. These boats have a small, enclosed area (typically non-climate controlled) up front in the bow that can be used for storage, a place to escape from the elements, or a place to temporarily laydown. While the enclosed area can be used for sleeping, is better suit for resting or a quick nap; and 99% most people end up using the space for storage.
Bow riders, jet boats, deck boats and are the most popular style of fun-in-the-sun boats. As the name suggests, the bow rider and jet boat allow passengers to sit up front in the bow; thus, increasing the overall seating capacity. Deck boats, which are like bow riders have their bow squared off at the gunwale allowing for greater deck space. Both styles come in a variety of configurations, but the helm is always on the left-hand side and seated low much like an automobile’s driver seat.
Pontoons in coastal Florida are a slippery slope. I want to go on record and say: “I love pontoon boats (of a certain size).” For many male first-time boat-buyers, buying a pontoon is very much like buying a moped over a motorcycle. Pontoon boats are very versatile in their use and function. They typically offer the most seating capacity, space, and amenities in their size class. However, I would never recommend a pontoon boat (under 25 feet in length) to anyone that boats in coastal waterways; specifically, where the body of water extends beyond canals, rivers, and extremely small bays. If your pontoon boat has less than 150 HP engine, in my professional opinion, don’t take it out in large bodies of saltwater.
The best consideration I can offer when looking at buying your first boat is to identify your primary purpose; then factor in all the reasons you may want to be out on the water. If you are going to fish on your boat most of the time, then buy a boat designed for fishing. If you see yourself cruising around and visiting beaches and sandbars, don’t buy a boat designed for fishing, get a fun-in-the-sun boat and fish off of that. If you think a pontoon might be the answer; there are some positives with a pontoon that I will discuss later in the hull design section.
HULL DESIGN
There are several different hull designs to consider; flat bottom, “plaining-V,” “deep-V,” and multi-hull.
Flat bottom hulls are meant for shallow waters, minimal engine HP and operate at slow speeds; think lake, river, and canal fishing.
Plaining hulls are designed to push the boat up and ride on top of the water which ideal for speed; but require more engine HP. Deep-V hulls allow you to operate in rough open water adding additional stability. For power boats (boats with engines, the plaining hull is the most common type of hull for boats)
Boats with deep v’s tend to be very susceptible to changes in weight. For example, a heavy person or cargo will cause a deep-v hull boat to list (lean to one side). This lateral weight distribution challenge can be compensated using trim tabs; however, if trim tabs are not available, proper weight distribution must be observed.
Multi-hulls have multiple and distinct hulls allowing for even greater stability. You typically find multi-hulls with catamarans and pontoons allowing for greater stability. Pontoons, especially tri-toons (a pontoon with three hulls or pontoons) is a very stable platform.
Displacement hulls are boats that travel through the water instead of on top of it. Sailboats, cruise, and cargo ships are example of displacement hulls where the vessel typically has more or a great deal of power and moves slower.
Hull width is another characteristic that should be consider. The wider the hull, also known as the beam, the more stable and comfortable the boat ride will be on rough water. Boats with a ten- to 12-foot beam are far more comfortable in rough seas than a boat with an eight-foot beam. However, boats with a larger beam typically are larger boats; and thus, more expensive.
Budget
What should be interesting to the reader is how far down the list of considerations I list budget. While a budget is a critical deciding factor, understanding the topics I discussed earlier will better prepare the first-time boat buyer.
When I speak of boat budget, I am not referring to the obvious; you have “x” to spend, and the boat found in your searching comes in exactly at or just above “x.”
Someone buying their first boat should be aware of ALL THE COSTS in buying and owning their first boat. For many first-time boat buyers, you do have the choice of buying new. But, buyer beware, when buying a new boat, you will pay an exorbitant amount of money for a new and even a newly used boat.
For some boat buyers, size matters. In my experience, every first-time boat buyer within the first year of boat ownership wants a bigger boat. Like houses, bigger usually equates to better. A bigger boat is more stable, can carry more passengers and weight, has more features and amenities, faster, and the all-important envy-factor of others.
Before I start, there are certainly exceptions to every one of my rules. It is also my experience that some or many of my conclusions are based on my personal likes, dislikes, and interpretations; “one man’s trash is another man’s treasure.” You can find boats of all sizes, shapes, and configurations for under $20,000 and upwards of over $400,000.00. Age, size, propulsion, brand, type, amenities, location, etc.; all, factor in the pricing of a boat.
The 9-Year Search
From my experience, other’s experience, and as a general rule, based on one’s first-time buying budget, you can typically find the boat you want (apples to apples), used and right around 9-years old.
Meaning, what you really want compared to what you really can afford. However, since COVID in 2020, the new and used boat market has more than just fluctuated. Prior to COVID, year-9 is right around the time a boat starts having maintenance and repair issues; and the engine hours typically are halfway through their entire life cycle. But, for some, this can offer a significant cost savings.
While not all examples are the same, consider the following real-world example. A friend of mine wanted to get into the boat charter business, as a boat owner. He has some charter experience as a passenger broker but wanted to maximize revenue, so he decided to buy a boat specifically for chartering. In 2019 (prior to COVID) he paid $80,000.00 on a 2007 33-foot cabin cruiser yacht; while a 2019/2018 (new) of the same/similar type was listed around $500,000.00 that is a $420,000.00 or 80% difference in price for a used compared to a new. There were reasons for the lower listing, after all it was a used boat. However, there was mandatory investment put back into the boat. For example, the engines had to be taken out and overhauled ($35K), key systems and cosmetic features needed to be repaired and replaced from being a charter boat; all totaling about $65,000.00 spread over a couple of years; that’s still a 65% less that the cost of a new boat. While most would probably not find this an ideal boat purchase/owning experience, not all used boat experiences are the same. However, the point I am trying to make: There are ways you can save a bundle if you are open to an older used boat; and in my experience that significant price drop is around 9 years.
Boats are a poor investment. You buy a boat because of the experience; not to get your money back. While I am sure there maybe an example out there somewhere, I have never met a person that has seen any sort of monetary return on the investment (purchase) for a boat purchased for recreational purposes. This is an important consideration when establishing one’s budget to buy a boat.
Engine Hours
One of the driving forces for a boat’s value is the engine’s current condition. Short of having a qualified mechanic inspecting the engine with a microscope the best way to evaluate a used boat’s engine is to visually inspect the motor for obvious leaks, corrosion, water marks; anything that would give some sort of sign that the engine may have had issue in the past. Another important check is spark and compression check. I am not going to get in the weeds about how to do either; just know that these engine inspections should be done to ensure you don’t buy someone else’s problems.
Another tell-tell sign is the number of hours on the engine. Engine hours is the unit of measure to establish the over life expectancy. The average person uses a boat around 100 hours per season. Therefore, it’s not at of the realm that 900 hours on a 9-year-old would be considered normal use; and why the boat is more reasonably priced than a newer counterpart. However, a boat engine with low hours is not necessarily a good thing. In fact, I am often wary with boats for sale that have low hours. Boat do much better being use than sitting. I’ll explain later on.
Overall Condition
Another excellent tell-tell sign is the over all condition of the boat. There is a certain amount of dings and blemishes that would be acceptable with a used boat purchase. However, hulls, props (especially props) interior, biminis, covers that are damaged, beat-up, non-working can really shed some light on how the previous owner used, maintained and took care of the boat. Don’t be afraid to ask for service records! Boat’s should have service every 100 and 300 hours. If the seller can’t provide you with service records…Buyer beware!
SEA TRIALING
In my past, I bought boat that I thought was a steal. It was used, 7-years old, and only had 75 hours on the engine. The boat and motor were very clean, the hull was in excellent shape, the interior was immaculate. The boat had only one owner, bought off the showroom floor. In addition, the boat was kept in a high-and-dry its entire life. Simple math told me the boat maybe saw 10 hours per season; meaning it was hardly used. The high-and-dry kept the batteries charged and flushed the engines every month for the entire 7 years. I was very happy with this purchase. The only thing I needed to do after the money exchanged hands was drive it back to my home port, which was about an hour and half away. And I had a couple of buddies with me when I went and inspected the boat, and they couldn’t find anything wrong with it either.
In my excitement of getting a deal and pushing the sale… I didn’t sea trail it; I could have, but I didn’t. My ego for finding such a clean boat got in the way. I mean, why would I sea trial this boat, this boat was practically new.
Forty minutes into the trip was the first real chance I had to take the boat beyond 1000 RPMs, the engine pitch became low, power was sluggish and couldn’t get above 15 MPH.
When I opened the engine compartment, saltwater was spewing all over the engine and engine compartment. The large stainless steel raw water intake hose clamps had rusted and the pressure from the higher RPMs, snapped the clamps and water was gushing all over the motor, intake, and engine compartment.
In the end I was lucky. An additional 750.00 in repairs and a lot of late nights waiting to learn if salt water made its way inside the motor was the price I paid for not sea trialing the boat. I knew better! But, my excitement of getting an exceptional deal, like a first-time buyer’s excitement, bit me in the ass.
If you take anything away from this First-Time Boat Buyer series, always…Always sea trail a potential boat purchase, or have someone do it for you!
Is Financing the Way to Go
While avoiding financing might not be a choice for some, you will find yourself in a much better financial position if you are able to buy your boat outright. Like cars, some people can become emotional and think payments is a better option. I would never presume someone’s financial comfort level, nor would ever insert my bias about how one pays for a boat purchase.
However, what most first-time boat buyers don’t know…Is what they don’t know.
Let me take you through some of the costs new boat owners don’t consider that will add to the monthly boat payment.
Unforeseen Costs
If you read Part 1 - Boat Storage of this series, I talk about all the different types of storage and briefly touch up the unforeseen costs for storing boat.
Along with a monthly boat payment, every time you use your boat, it will cost you. The largest boating expense is fuel. Marine fuel is even more expensive than the super octane fuel you find at the gas station. Prior to the Russian-Ukrainian war (2022), marine gasoline, that is gasoline specifically designed for boat engines, averaged around 3.80 a per gallon: whereas of the time of this publication, marine gasoline averages around 6.00 per gallon. And, you never know what local or global catastrophe or geo-political event will cause fuel prices to spike.
If you read Part 2 Propulsion, I spoke about the lesser fuel efficiency of outboard engines. And the bigger the engine, the cost of running those engines goes up; and doubled, tripled, or quadrupled when you buy a boat with multiple engines.
As one example, a small bay boat or center channel boat will have a fuel tank around a 70-gallon capacity. That equates to 420.00 to fill your tank. Depending on how one uses their boat, that 420.00 could last a month maybe two. However, that is 210.00 per month (1/2 a tank) may not have considered in your monthly boat payment.
While insurance is not a requirement, having insurance maybe a requirement if you choose to finance your boat. Boat insurance is another monthly cost that will need to be factored in. The cost of boat insurance can range widely. For a new boat owner, I would always recommend boaters insurance that covers full replacement; at least for the first year. Another solid piece of advice I give to those buying a boat is to find a policy that will cover prop and other boat damage. It would be very hard to speculate an average cost of a boat insurance policy as there are many variables feed into the monthly, semiannual, or annual premium. What I can say is that a good guesstimate would be a minimum of around $35.00 dollars per month for decent boaters’ insurance.
Routine service, maintenance and repairs are another routine cost that many first-time boat buyers do not factor in. Like insurance, the total cost of maintenance will vary greatly depending on the boat, its use, and the owner. If you buy a used boat, increased maintenance and repair will be reality. While most can’t predict what these costs will be, I can promise you that you will have those costs, unforeseen costs, and costs associated with general maintenance and repair. There is a reason for that famous acronym.
B.O.A.T Bat Out Another Thousand!
As an example, it is a generally accepted rule to have your boat properly serviced every 100 hours (basic service, includes an oil change) and a every 300 hours service. A 100-hour service typically lasts the typical first-time boater one full Florida season (March to October). If you happen to be lucky enough to have a wet slip or live near the water, your annual usage could easily increase to 200-hours use per season. The average coast for a marine mechanic to perform 100-hr service is around 700.00 per engine, or 58.00 per month per engine if you have more than one. If you are one that likes to work on vehicles, you could drastically reduce this cost to a couple hundred of dollars and a day of your time.
The most important point I want to make about unforeseen costs is that you will have unforeseen costs. It’s a fact of boat life. When you have a payment, those winter months when you’re not using your boat will be painful; at least that what others have told me. I am not saying financing should be avoided. I am saying that a boat payment is not the only month boat related expense. Now, you know.
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