Buying a boat is a big decision. Economically, it’s expensive. There’s also the question of lifestyle. Will you use the boat frequently after you buy it? Some homework needs to be done before you start applying for boat loans and haggling for a reasonable price on a new or used watercraft. Begin by asking the following questions at the boat dealership:
1. Do I get a warranty, and what does it cover?
New boats come with warranties. You’ll want to ask what those warranties cover and how long they’re good for. There may be separate warranties for the boat and the motor, so be sure to clarify that. The boat manufacturer should cover the hull and electronics, and the dealer may offer an “extended” warranty to give you additional coverage.
2. Can I take the boat for a test drive?
Never buy it before you drive it. This might get a bit sticky at a new boat dealership where boats are displayed in a showroom, but you should ask the question anyway. The last thing you want to do is buy a boat and then find out later that you don’t like how it handles. You wouldn’t do that with a car. Don’t do it with a boat, either.
3. What is the frequency and cost of maintenance?
This is a big deal. Boat maintenance can be expensive, and there are certain things you should do on an annual or even monthly cycle. Ask detailed questions about this because unexpected maintenance costs cause most buyer’s remorse from boat owners. Know what you’re walking into so you don’t experience regrets with your new or used boat.
4. Does the boat dealer offer storage facilities?
Most boat owners need to pull their craft out of the water at some point. This is particularly true for people who live in colder climates where winter prevents you from using your boat. Ask the dealer if they offer storage services. If not, ask them for a referral and make some calls to check on storage costs. Like maintenance charges, they can really add up.
5. How much will it cost to insure this boat?
This is a question the boat dealer may or may not be able to answer. Do not accept a “guess” or estimate in this area. Call an insurance agent, give them the make, model, and year of the boat, and get an exact price for your annual insurance. Major carriers, like Geico and Progressive, have websites where you can enter those details online to get a boat insurance quote.
6. Is dealer financing available?
Many boat dealers have their own internal financing, but you may need to seek out your own loan options to get the boat you desire. Check out your local banks and credit unions to get a personal loan. You can also apply with an online lender that specializes in boat loans and can offer you a competitive rate and reasonable terms, even if your credit score isn’t on the high side.
The Bottom Line
A new boat is no small purchase, so it’s important to ask all of the right questions before you sign the dotted line. Explore your loan and finance options thoroughly before making a purchase.
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