Key learning points
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On average, owning a boat costs anywhere from $5,000 to $8,000 per year.
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Renting is a good option for testing options and irregular trips.
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Buying is best for people who plan to sail regularly and can handle the maintenance costs.
If you would like to become a member of the 100 million Americans who go boating every year, you may be considering whether you should rent or buy a boat. Because there are many different sizes and types of boats, prices for renting and buying vary enormously.
There are pros and cons to both renting and buying boats, so you need to decide what works best for you. When comparing your options, consider your long-term sailing goals and your budget.
Considerations when renting a boat
Want to have some maritime fun without all the responsibility? Renting a boat is the solution. Renting allows you to enjoy a boat for a day or two without having to worry about its daily maintenance.
You can easily find all kinds of boats through sites like GetMyBoat or Boatsetter. But don’t forget that many rental companies require you to complete a short training before renting.
There are many types of boats, from small fishing boats to yachts and catamarans, so rental prices vary greatly. You can expect to pay at least $200 per day for a boat rental, but some cost thousands of dollars per day, up to $50,000 for a superyacht. If you only want to use the boat for a few hours, you may be able to rent a boat for part of the day for a little less.
Advantages
Renting a boat has a number of important advantages.
- Try out different boat types. When you rent, you are not tied to one boat or even a specific type of boat. You can rent a speedboat one day and try out a pontoon the next.
- Use the boat as much or as little as you want. You don’t have to push the boat out a certain amount to make it feel worth it. Go out for a few hours and if you like it, you can always rent the boat again.
- No maintenance or upkeep. Perhaps the best thing about renting is that you don’t have to fix anything or figure out where to store the boat when you’re done using it.
Cons
You may miss certain things if you rent a boat instead of buying it.
- More expensive over time. Renting a boat once is certainly cheaper than buying one, but if you plan to rent a boat multiple times, the costs can quickly add up. If you plan to boat often, buying a boat may be the most cost-effective option.
- The boat may not be in top condition. Whether you rent through a boat rental company or a peer-to-peer rental service, you have no control over the condition of the boat. Make sure you read reviews of any company you want to rent a boat from.
- You have less freedom. Each rental company determines where you can go and what you can do in the boat. For example, you may not be allowed to water ski or tub with a boat rental.
For whom renting is best
Buying a boat is a big expense, so if you don’t plan to use it often, it’s cheaper to rent. If you’re considering buying a boat but aren’t sure what you want, renting can be a great way to get familiar with different types of boats and decide if you like boating.
Considerations when buying a boat
Buying a boat comes with advantages: you always have a nice place to hang out on the water and you can take it out whenever you want. But when you become a boat owner, you are also responsible for maintaining the boat, which takes time and more money.
Boats are also expensive to purchase, and a loan will likely be necessary. The price tag largely depends on what type of boat you choose and whether you buy it new or used. You can expect to pay at least $10,000 for a small used powerboat. If you want to buy a new boat, the average price is between $40,000 and $60,000. However, that price tag can be much higher depending on the size and functionality of the vessel.
Advantages
Being a boat owner is responsible for a number of benefits, including:
- You can use it whenever you want. If you own a boat, you don’t have to adhere to the rental company’s schedule to take it with you.
- Customize your boat to your liking. The name, paint job and boat decor are all in your hands.
- Maintain the boat to your standards. You manage the maintenance of the boat and can easily keep track of maintenance, so you don’t have to worry about its condition.
Cons
Owning a boat isn’t all fun and games. It might not be a good idea if these disadvantages outweigh the advantages for you:
- Boats are a money pit. Some boat owners joke that “boat” stands for “take out another thousand.” All jokes aside, boats are expensive. Owners must pay for gas, maintenance, storage and off-season maintenance.
- You may feel guilty if you don’t use it enough. In 2023, only the average American boat was operated 54 times a year. So the other 311 days a boat is stationary. Spending so much money on it can make you feel bad if you feel like you’re not using it enough.
- Their value decreases over time. When you buy a home, your investment often gains value over time. However, boats typically lose value over time, just like cars and other vehicles.
For whom buying is best
It is important that boat owners can really enjoy their boat. Otherwise, they may regret their purchase. If you understand all the costs of owning a boat and it fits comfortably within your budget, owning a boat may be right for you.
5 questions to ask before buying a boat
You will need to consider how you will store and fuel your boat during the season, as well as how you will winterize your boat. Other factors to consider are the cost of fuel, how much of it you’ll use, and the monthly payments when you finance.
1. How do I prepare my boat for winter?
Since your boat will not be used for several months during the winter, you should prepare for this inactivity. Standard steps include:
- Replacing the engine oil.
- Draining the engine cooling water.
- Stabilizing the fuel with a fuel additive.
- Replace gearbox oil.
- Protecting the internal engine parts with a fogging engine spray.
- Lubricate and lubricate the engine fittings.
If you cannot perform these tasks yourself, winterizing your boat will be an additional annual expense that can range from $150 to $600.
2. Where should I store the boat in the winter?
If you are not using the boat in winter, you have various options for storage:
- Keep the boat at a mooring in a marina and pay the mooring rental.
- Place it on a trailer and store it in your garage or in your yard if you have the space, and if you have an HOA, that is allowed.
- Place it on a trailer and store it in a storage area.
- Place it in a dry dock at the marina.
Three of these options require an additional monthly payment. Take this into account in your budget.
3. How much is the annual maintenance and fees?
The average annual cost of owning and maintaining a boat is $5,000 to $8,000. This includes state taxes, insurance, driver’s license and registration, gasoline, maintenance and repairs, trailer and tow vehicle, safety equipment and education, navigation equipment, docking fees and winter storage.
However, the annual fee does not include the monthly payment you will have to make if you get a loan. Make sure you factor the annual cost of your loan in addition to these other expenses when determining how much your boat will cost each year.
4. How do I get rid of the boat breaking down while I’m on the water?
If you take your boat out on the water often enough, you will likely be stranded due to an engine failure or malfunction. You should plan for this possibility in advance. The plan should include the company that will provide a towing service and the repair shop where you want to have your boat towed. The cost of towing a boat varies from $250 to $500 per hour.
5. Will I use the boat enough to justify the cost?
The answer to this question differs per person and per wishes and needs. But if you’re like the average boat owner, you use your boat less than two months per year.
With an average cost of at least $5,000 per year, that works out to just under $100 per day of use. Depending on the rental costs in your area – and the type of boat you want to rent – it may still be cheaper to own. However, renting frees you from additional responsibilities, which may be worth the higher daily rate.
Financing a boat
If you want to buy a boat but don’t have the money to buy one, you may be able to get a boat loan or a personal loan. Talk to a local bank or online lender to see what their loan options are for buying a boat.
In general, a boat loan works in the same way as a car loan. The boat will serve as collateral for the loan, which can help keep interest rates low. If you are unable to repay, the lender may seize your boat.
If you opt for an unsecured personal loan, you do not have to provide collateral. However, it can be much more difficult to qualify for a loan amount – and an interest rate – that can cover the cost of a boat without being too expensive.
it comes down to
Boats are not a small expense and require some form of financing for most. Weigh the pros and cons of buying a boat versus renting one before deciding how to get out on the water.
Once you have decided how you want to enjoy the boating life, make a plan. If you decide to rent, compare major apps and local options. If you decide to buy a boat, determine how much money you need to budget. You can then, if necessary, view the financing options and choose a lender.
