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Boat Insurance

Can You Afford a New Boat?

The sleek, sexy, seductive lines of a new boat can overwhelm watercraft enthusiasts and throw out the rules of affordable boating. Before you begin making plans on how you’ll be spending your free time on a new boat, there are some essential factors that first-time buyers must consider.

Boating certainly isn’t cheap. A boat is considered a luxury item rather than a necessity and that brings the principle of supply and demand into play. The manufacturing process is more expensive, so they cost more.

A boat is far more expensive to operate and maintain than an ordinary car or truck, and they depreciate at a faster rate than any vehicle. Before you decide to buy your first boat, there are some serious considerations to examine.

Borrowing for a Boat

Don’t borrow to buy a boat. You can easily find yourself making payments on a craft that you may not use as often as anticipated. A fair number of boat owners have bought a new vessel, only to find their family isn’t nearly as enthusiastic about it as they are. If you’re putting all your money toward the cost of the boat, you probably won’t have the necessary funds when the inevitable repair bill presents itself.

The repayment term on a boat loan can be as long as 180 months and while that may seem like a good deal, you’ll be paying a significant amount of interest during that time. With the interest on the loan, you can easily find yourself paying twice the original purchase price and the interest on a boat loan is only tax deductible if the craft meets the criteria as a “second home.”


Boats depreciate in value quicker than a car and there are multiple factors that affect the depreciation rate and its resale value. Those include trim and interior, the motor, and age, along with any included electronic devices ranging from stereos to fish finders. Even the color can affect a boat’s value and depreciation rate.

New vs. Used

It can be tempting, especially for first-time owners, to throw all their resources into buying a new boat. A better option is to save up and purchase a used vessel. It’s possible to buy a well-maintained speed boat for under $10,000 and you’ll have just as much fun.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487