Boat Ownership Basics

Owning a boat can open a world of adventure on the water. Whether you’re dreaming of weekend fishing trips, family water sports or peaceful sunset cruises, a boat can become the centerpiece of countless memories. 

But boat ownership involves much more than picking out your favorite model. Smart boat owners know that success starts with understanding what you’re getting into upfront. From choosing the right boat to budgeting for ongoing costs like maintenance and storage, preparation can make all the difference between a great investment and an expensive headache.

Finding the right boat for you

When you’re considering purchasing a boat, narrowing down your choices is easier when you focus on how you plan to use it. Here are some common types of boats and their uses:

• Fishing boats: These are built for anglers who desire function over features. These boats have rod holders, live wells and lots of storage for tackle. Center console boats let you fish from any angle, while bass boats are built for speed in shallow water.
• Bowriders: With seating at both the front and back, bowriders are perfect for families who want to ski, tube, swim and cruise all in one trip. They usually seat 6 to 8 people.
• Pontoon boats: These focus on comfort and stability over speed. Their flat, roomy decks make them great for entertaining, relaxing and swimming. They’re also easier for new boaters to handle, but they’re not great in rough water.
• Cuddy cabin boats: These offer overnight options with small sleeping areas and basic features. They’re the perfect vessel if you want to stay on the water beyond day trips.
• Personal watercraft: Watercraft like jet skis offer thrills and easy transport but limit you to one or two riders. You might also consider kayaks or canoes if personal watercraft are more your speed.

Buying and financing a boat: New vs. used

Once you’ve decided on the type of boat you want, you’ll need to choose between buying new or used. Here are some features of each:

• New boats come with warranties and the latest safety features. You’ll also get clear financing terms and won’t inherit someone else’s problems. However, newer boats can lose value quickly, just like cars, and cost much more upfront.
• Used boats offer more value for your money. You can often get a boat that’s only a few years old for a good deal less than the new version’s price. However, you’ll need to be more careful about inspections and title checks. You might also face repairs sooner than with a new boat.

For financing, many lenders offer boat loans just like car loans. Terms usually run 10 to 20 years based on your boat’s value. Some buyers also consider personal loans for smaller boats or use home equity loans for larger purchases.

Before you buy, always get a marine survey. It’s like a home inspection for boats and can help prevent costly surprises. Also, factor in sales tax, title and registration fees when planning your purchase budget.

Handling a boat registration

You’ll need to register your new or used boat with your state, just like you would a car at the Department of Motor Vehicles (DMV). Every state has different rules, but most boats with motors need to be registered and display registration numbers on the hull.

Registering usually involves filling out forms, paying a fee and providing proof of ownership like a bill of sale or title. Some states also require safety inspections or emissions testing. Registration fees depend on your boat’s size and your state’s rules.

You’ll get a registration certificate and decals or numbers to display on your boat. Keep your registration current—expired registrations can result in fines if you’re stopped by a marine patrol. Most registrations need to be renewed every 1-3 years.

Maintenance and calculating costs of boat ownership

The purchase price is only at the beginning when it comes to boat ownership costs. Understanding the full financial picture can help you budget properly and avoid surprises down the road. Be sure to factor these costs into your boat budget.

Boat maintenance and repairs

These are the bulk of your annual ownership costs. They include routine engine work, oil changes, winterizing, cleaning, regular service and replacing parts like impellers and belts. Saltwater boating needs more care due to rust. Freshwater is easier on your equipment.

Storage and docking costs

Costs vary based on where you live and what you prefer. You can opt to store your boat at home, at a dock or in an off-site storage facility. Storing your boat at home saves money but needs enough space. It may also break HOA rules. Marina slip costs vary greatly depending on the size of the boat. Dry dock storage usually falls somewhere in between.

Boat insurance

Insurance can be a good way to protect your investment and is usually required if you finance your boat. Annual costs depend on your boat’s value, where you use it and your coverage level. Saltwater and hurricane areas cost more to insure.

Fuel costs

These can add up quickly, especially with larger engines. Most boats burn much more fuel per mile than cars. Factor this into your budget. A day of waterskiing or cruising may lead to a high refueling cost.

Unexpected costs

These can happen with any equipment. Budget for unexpected repairs like engine problems, electronics failures or accident damage. Having an emergency fund prevents small issues from becoming major money stress.

Learning how to operate your boat

It’s important to learn how to handle your boat safely in different conditions. Unlike driving a car, boats move in all directions and water conditions change constantly. Here’s what you need to know before you set sail.

Basic handling skills are your foundation

Boats don’t have brakes, so you need to learn how to approach docks using reverse and momentum. Practice in open water first, then work on tight moves like docking and anchoring. Wind and current affect every move you make, so understanding how they push your boat is crucial.

Navigation basics keep you safe on the water

Learn to read nautical charts, understand channel markers and use GPS well. Know the rules for right-of-way situations, especially around other boats, swimmers and restricted areas. Many states require boating safety courses, which are great resources even when not required.

Safety equipment isn’t optional

The Coast Guard requires life jackets for every person on board, throwable flotation devices, fire extinguishers, sound signals and navigation lights for night use. Larger boats need extra equipment like flares and first aid kits. Check requirements for your boat size and local waters.

Emergency preparedness can save lives

Learn how to radio for help using VHF Channel 16, handle basic problems like engine overheating and respond to medical emergencies. Always file a float plan with someone reliable who knows when to call for help if you don’t return.

Enjoy your safe and responsible boating 

Boat ownership can be one of life’s great pleasures when you approach it with the right preparation and mindset. Success comes from matching your boat choice to your actual needs. A smaller, well-kept boat that fits your budget and skill level can bring you far more joy than an expensive boat that stresses your money or sits unused.

Remember that every experienced boater started as a beginner. Don’t be afraid to ask questions at marinas, take extra training courses or start with shorter trips close to shore while you build your skills.

When you’re well-prepared and realistic about what’s involved, boat ownership can provide opportunities for relaxation, adventure and making lasting memories with family and friends.

Navy Federal Credit Union helps you set sail with confidence

Financing a boat is a major decision, and Navy Federal is ready to help you approach it the right way. Explore our boat loans to learn about rates, terms and the application process. Whether you’re buying new or used, we can help you navigate the financing process with confidence.

Beyond financing, we’re here to support your vehicle ownership journey with helpful resources. Our MakingCents articles cover everything from budgeting to making smart ownership decisions. With the right insights, you can have peace of mind while you enjoy time on the water.