Buying a Boat
What will it cost?
Buying a boat doesn’t have to be painful – there’s a boat for every budget. Boat owners are often surprised that their dream boat cost less than they’d expected! New boats and pre-owned boats bought at a reputable dealership can be financed, so you can take advantage of monthly payments. As with cars, pre-owned boats typically cost less than a similar new model.
What are the prices for a new boat?
Naturally, prices for new boats vary depending on size and make, but many boat manufacturers and dealers can put you in the captain’s chair for considerably less than a monthly new-car payment. In fact, monthly payments for many entry-level boats can be less than $200.
If you are looking for a small sail boat for the kids to learn to sail, many local yacht clubs offer the option of renting while you learn, or the a rent to own scheme so you can pay as you go. Visit our Find a Boat Club page to find boat clubs in your area.
Should I buy new or used?
If it’s within your budget, we suggest that you shop new first. You will gain insight into which type of boat is best for you and the market price. You can then do a boat comparison on similar used models. With this information, you can zero in on your perfect boat! Click here for more on buying New or Used
If I buy used, how do I know the boat is in good condition?
For larger boats get a qualified marine surveyor’s inspection. Surveyor’s will check all systems, as well as the hull structure and can ensure that boat maintenance has been upheld. Call several insurance companies in your area for recommended surveyors. Click here for a list of valuers and surveyors. A list of marine insurance providers can be found here.
For smaller boats, and if you are new to boating it is best to go to a boat dealer who will fully check all maintenance and safety aspects for you.
Whatever the size of the boat, a sea trial is essential. You would never buy a car without driving it and the same holds true for buying boat without going to sea in it. It’s best to test the boat on a moderate weather day as most boats are likely to be okay on a calm flat day!
What should I look for when inspecting a boat?
Whether you’re buying new or used, there are a variety of things to keep an eye out for when you buy a boat. An out-of-water inspection is also beneficial to check for any irregularities in the hull. In general, any boat inspection should include an in-depth examination of the following:
- Boat engine
- Bilge
- Steering and throttle controls
- Electrical components
- Floors & Siding
- Propeller
- Deck hardware
- Fuel tanks
- Batteries
- Riggings, hardware, and sails
- Hull condition
- Propeller shaft
- Upholstery
Additionally, if you are buying a boat that’s used, you’ll want to check for floor rot, mildew, number of boat hours logged, maintenance history, and also its storage history,
A general rule of thumb is that if you can use it, you should test it. If you’re going to a buy a boat, you owe it to yourself to turn on those lights, test the heater, uncoil the ropes, open the hatch, check the steering, and raise the sails!
What about power needs?
When deciding what engine you will need on your boat, it’s best to consider what you will be using your boat for. Water skiers will need more power, whereas fishing buddies probably use less. Today’s buyer can also choose from new-tech engines that are more fuel efficient and environmentally friendly. It’s best to compare boats with different engine sizes and consult a good boat buying resource to make the best choice.
Where do I shop for my boat?
Boat shows are a great place to shop. At a boat show you can compare a wide variety of boat types, brands and models; you can discuss your needs with dealers, manufacturer reps and other experts. You can often take advantage of special show pricing, deals, rebates, and other incentives, and you can do it all in one place. Boat shows are a great source of education, family fun and boating resources. Visit our Find a Boat Show page for upcoming shows near you.
At Discover Boating we also recommend you visit a local boat show dealer. While is may be tempting to buy a used boat from a website, there are distinct advantages in buying your first boat from a dealer.
What is the best time of year to buy?
The best time is when you are ready! You can find a great deal on a boat at any time of year. Boat shows are held throughout the year to allow you to see the latest on offer from a wide variety of brands and dealers. The winter months and late spring are good times to consider a purchase, as many dealers are clearing out older inventory in order to make room for the new year’s models.
Just be sure you’ve done some homework and identified the right type of boat for your needs before you buy.
How do you find a good dealer?
Choose a dealer who is member of the Marine Industry Association that is convenient to where you’ll be using your boat. To find a dealer near you visit our Find a Boat page for NZ dealers and brokers for different types of boats. The dealer who goes out of his/her way to get you on the water, knowing you are qualified and ready to buy, should get high marks. There are significant advantages to buying from a dealer.
What is the best insurance coverage for my boat?
It is best to have an “All Risk” policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer’s defects, defects in design, and ice and freezing. Click here for a list of marine insurance providers.
How much should I insure my boat for?
You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called “Agreed Value” or “Stated Value” coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing “Actual Cash Value” (ACV) coverage, which means the value of your boat will be replacement cost less depreciation. Click here for a list of marine insurance providers.
What’s not covered by insurance?
Exclusions on a yacht policy generally include wear and tear, gradual deterioration, marine life, marring, denting, scratching, animal damage, osmosis, blistering, electrolysis, manufacturer’s defects, defects in design, and ice and freezing. Click here for a list of marine insurance providers.
How much should I insure my boat for?
Usually you should insure it for the purchase price plus additional equipment. Make sure you have included accessories and the auxillary motor in your policy. Click here for a list of marine insurance providers.
Can I take a boat for a test drive?
Absolutely. Just as you would take a car for a test drive before buying, you also should not buy a boat without first testing it on the water. If you’re new to boating, bring a marine surveyor or experienced friend along for this sea trial. It also helps to bring a checklist of inspection points and questions along with you as well.
See how the boat responds to variations in speed, turns, and wave angles. When taking a boat for a test drive, it’s also important to make sure the engine was not warmed up prior to your arrival – and also make sure that you run the boat long enough to rule out any danger of overheating as well. It helps if the sea trial can be done on a moderate weather day not when its dead calm.
I think I need a professional to assist with my boat inspection. Who should I call?
There’s so much to keep in mind when buying boats, which is why an independent marine surveyor can be a valuable boat buying resource. In fact, many banks and insurance agencies may already require that you obtain an assessment of a boat’s condition from a qualified marine surveyor. Both the National Association of Marine Surveyors and the Society of Accredited Marine Surveyors offer licensed professionals to help you evaluate a vessel’s features and make an educated decision about how to buy a boat.
What else should I do before completing the purchase?
- Check if there are any incumbrances (money owning) by previous owners (P.P.S.P.) Personal Property Security Register. Visit http://www.ppsr.govt.nz/cms One extra phone call could save you thousands down the track.
- Make sure the trailer lights and brakes are compatible with your own tow vehicle and insist on a new WOF. Any warranty that may still exist on a late model used rig needs to be transferred to the new owner. While it’s not always possible it is worth following up on.
- Insist on signing the required changes of Ownership Papers and don’t forget to insure the new rig including accessories and auxillary motor. Many of these final checks and paperwork details will be done for you if you are purchasing through a MIA dealer.
What are the most common mistakes that boat buyers make?
One of the primary mistakes that people make when they buy a boat is to simply buy the wrong kind of boat for their needs. A lot of this involves paying attention to the type of water you’ll be boating on, as well as the climate. Write down what you will be using the boat for, as well as the average number of people you expect to have on board. Make sure the needs and preferences of your entire family are taken into consideration – don’t buy a leisurely fishing boat if everyone else in your family is looking forward to waterskiing! Your local boat dealer can help you buy a boat that is right for your needs.
It’s also important to take the time to do your research. The more knowledge you have about the general type of boat you’re interested in – with regard to the particular boat you’re about to buy – the happier you’ll be with your purchase. Consult a boat buyer guide, conduct a thorough inspection of any vessel you’re considering and always choose quality over quantity or a flashy brand name. Fishingmag wrote an article about buying your first trailer boat for fishing, click here to read the article. Propeller magazine wrote an article about buying a ski/wakeboard boat as well as other articles on buying a boat. However there are many other online resources and books you could consult to help make your decision.
Finally, it’s important to establish a comfortable, trusting relationship with the person you are buying your boat from, whether it’s a dealership that knows to keep your individual needs in mind, or an individual offering a used boat through a newspaper ad or website. Both should be able to provide ready and knowledgeable answers to any questions that you may have.
