How much does buying and owning a boat cost?

If you love cruising the open waters, fishing or just docking-and-dining, buying a boat may seem like a great idea. While the cost of owning a boat varies significantly, you can expect to pay $174,000 for the average new vessel, according to Galati Yachts.

Taking out a boat loan can make it easier for you to finance your purchase. However, there is more to the cost of owning a boat than the initial price tag. You must also consider maintenance, boat insurance, fuel costs and potential taxes.

How much does a boat cost?

Boat prices can vary widely depending on the type of boat, whether it’s new or used and its condition. Market conditions can also affect boat pricing, much like car pricing.

For instance, according to J.D. Power, the average market value of the previous 10 model years for outboard boats was about $49,914 at the end of 2024’s third quarter, which is almost $5,500 lower than the same quarter two years ago. Meanwhile, the last ten model years for inboard boats saw an average price of about $338,073, down about $94,000 from two years prior.

How does the type of boat I get impact costs?

The cost of owning a boat differs widely depending on type. For instance, a larger boat will naturally have higher fuel costs to run. Storing a larger boat may also be more complex and costly.

The more expensive and feature-heavy your boat, the more it will cost to insure it. According to Nationwide, faster boats often cost more to insure due to the increased risk. The length, age and type of boat can also affect how much insurance the boat needs. Your insurance can even be dependent on where you use the boat. Lakes, bays, oceans and rivers all present different safety risks.

Further, a larger and more technologically complex boat could mean higher maintenance and repair costs. There are simply more parts that could break.

Further, a larger and more technologically complex boat could mean higher maintenance and repair costs. There are simply more parts that could break. Bigger and more expensive boats may also require larger loans and longer loan terms to afford. You will pay more in interest to finance the boat in the long run.

Average boat prices in 2024

How much a boat is depends largely on the type of boat you choose. Jon boats are among the most cost-effective boat models, while yachts and catamarans are among the most expensive ones.

How to afford a boat

The best time to buy a boat is typically in the fall. Most manufacturers start advertising discounts in September or October and continue to do so into the winter months. Purchasing your boat during the off-season could help you cut costs significantly and take on less or no debt.

Even if you find a boat at a discounted price or buy the boat used, you may need help financing it. After all, midsized boats often cost around $30,000, which isn’t exactly pocket change. If you need to borrow money to cover the cost of your boat, there are several options.

If you need to finance your boat, the most popular options are a boat loan, personal loan or financing through a dealership.

• Boat loan: These personal loans are designed specifically with purchasing a boat in mind. They typically come with fixed rates so you make the same boat loan payment each month and may use the boat itself as collateral if the loan is secured.
• Personal loan: These fixed-rate installment loans can be used for any purpose, including purchasing a boat. Personal loans tend to be unsecured, so you may not have to use the boat as collateral.
• Dealership loan: These are boat loans that are offered right through a dealership and are convenient because you don’t have to choose your own boat loan lender. However, they may have higher rates, longer terms and require a larger down payment.

Other costs of owning a boat

When you buy a boat, you have to consider boat costs like maintenance, potential repairs and the cost of fueling and operating a boat. Additional costs associated with boat ownership include the cost of storing your boat, the cost of a trailer, safety necessities and miscellaneous items such as water sports equipment.

Boat maintenance and repair costs

Typically, annual boat maintenance costs about 10 percent of the cost of the boat itself. For example, a boat that costs $20,000 to purchase would cost roughly $2,000 a year to maintain.

Like cars, boats require regular maintenance to reduce wear and tear. Typical boat maintenance includes painting the hull, cleaning the deck and replacing broken or worn-down parts. Winterizing the boat is also important to protect it from the elements during the off-season.

Fuel and operating costs

You must also consider fuel costs, especially if you have a larger boat. Smaller boats typically just take regular or premium gasoline, while larger vessels may require diesel, which is more expensive. A five-hour trip in a motorboat could cost over $300 in fuel, whereas the average pontoon costs $3,000 a year, according to Better Boat. You can avoid fuel costs if you get a sailboat, which is entirely wind-powered, but most other boats require fuel.

Also, be prepared for additional operating costs, which include oil changes and regularly replacing your batteries, pump and lights.

Boat insurance, taxes, certifications and registrations

When you buy a boat, you also have to get boat insurance. You also need to get your boat registered, and you may need to get certified to drive it, depending on the state you live in. Some states also charge boat taxes, so research your local requirements before buying a boat.

• Boat insurance: It typically costs around 1 to 5 percent of the boat’s value. Using the example above, the average annual cost of insurance for a $20,000 boat would be between $200 and $1,000 a year.
• Boat taxes: They are required in some states. If your state charges a boat tax, you will have to pay it once a year. There may also be a one-time sales tax when you purchase.
• Certifications and registration: Depending on state requirements, you may need to pay for boat registration, including annual renewal. Your state may also require that you take safety certification courses to operate the boat.

Storage and mooring

An important but often overlooked element of owning a boat is properly storing it. Most people do not use their boat year-round, so you must have somewhere to store your boat during the winter months.

There are a variety of boat storage options. Indoor storage is more expensive because it offers tighter security and you do not have to worry about winterizing the boat to protect it from the elements. Outdoor storage is more cost-effective and can be more convenient in certain climates, but since your boat will be exposed, you’ll likely spend more on maintenance to keep it in good shape.

While storing your boat in your garage or driveway is likely the cheapest option, you will likely have to buy a trailer and winterize the boat. Note that Homeowners Associations sometimes have rules about parking boats in driveways, so make sure you are allowed to do so before settling on this option.

Necessities

In order to get your boat to the water, you not only need a boat trailer but also a vehicle that can tow it, such as a truck. These costs can vary depending on the size of your boat.

A boat trailer can range from $700 to over $10,000. In addition to a trailer and a towing vehicle, you must invest in your boat’s required safety equipment. This includes:

• A fire extinguisher.
• Life jackets for every passenger.
• A flotation device.
• A visual signaling device.
• A sound signaling device.

The exact safety equipment you need can vary by state, but these are the basics. Having a medical kit and flashlight is also a good idea. Depending on the size of your boat, you may want paddles on board in case your engine quits.

Tips for saving money on boat costs

f you really want to spend your weekends out on the water but don’t have the funds for luxury boating, there are some ways you can reduce boat costs.

Consider the boat you buy

If you find yourself strapped for cash, consider a smaller boat like a jon boat, fishing boat or speedboat. To reduce the cost of owning a boat, consider buying a used boat in good condition. For instance, a new current-year Tahoe T16 bowrider is about $27,000. The same model a few years older is about $19,000.

Watch costs

Expenses can quickly add up when you own a boat so it pays to watch costs. If you can, buy the boat off-season in fall or winter. See if you can get boat accessories and equipment, such as trailers, used and in good condition or on sale. Also consider fuel costs. Larger boats may need more expensive diesel fuel. If you want to really save on fuel, opt for a sailboat.

Storage is another way to save money. Store the boat somewhere on your own property to save on marina or storage fees. Be sure to keep up on regular boat maintenance and care to reduce the risk of costly repairs. 

Also, use your local state programs for courses and certifications. They tend to be much more affordable than private lessons.

Shop rates

If you’re taking out a loan, shop around for the best rates, even if that means not taking the loan from the dealership. Work with your insurance for any discounts, such as getting better rates if you take a boater safety course. A clean boating record can mean cheaper insurance. Choose the types of coverage, limits and deductibles that make sense for your boat and budget.

Save up

You can avoid paying interest on a loan by saving for the boat. It’s a luxury purchase and not an emergency. Some split the cost with friends or family and share the boat. Another alternative is to rent a boat. Renting can get you out on the water without the added costs of storage and upkeep.

Bottom line

Buying a boat is an exciting adventure, but it is also costly and time-consuming. There are so many extra boat costs beyond the buying price. Before buying a boat, consider all these costs and write a cost estimate/yearly budget. It is important to ensure you can handle all of the costs associated with having a boat before buying one.

Choosing a financing option like a boat loan, personal loan or dealership financing could help you plan some of the costs. However, you can avoid taking out a loan by saving up, buying a used boat for a lesser cost or splitting the cost and sharing the boat with a trusted friend or family member. You might also look into renting a boat if owning a boat is too expensive.

Whichever option you choose, make sure that you do your research and come up with a plan before making any decisions.