How Much Does A Boat Really Cost In 2022?

How Much Does A Boat Really Cost In 2022?

Thursday, January 6, 2022

The one upside of all this extra time indoors is our increased appetite for the great outdoors – no wonder boating is tipped to boom in 2022!

Here’s what it will set you back to hit the water this year.

Upfront Costs Of Buying A Boat

Ask “how much does a boat cost?” And you’ll likely hear “how long’s a piece of string?”

The reality is, boat prices vary dramatically depending on the boat’s age, size, use and model.

While you can nab a pre-owned, motorboat for fishing for around $15,000, you’re looking at a hundred grand plus for a new sailboat in Australia.

To set your budget, consider what you want a boat for, how many people will join you, and where you’ll store it.

Make sure to talk to seasoned sailors, too – they have a good feel for what’s a good deal.

Learn More About Buying A Boat In Australia

Insurance

A boat’s a big investment that deserves protection.

Premiums vary depending on your vessel’s size, age and speed, and who you’re insured with.

Assessors will also take into account where you’ll store your boat and where you plan to take it, as well as policy additions, like salvage, towing and storm coverage.

Also, decide whether you’re opting for “actual cash value” – which costs less upfront, but means a smaller payout – or “agreed value” (equal to the cost of the boat when you buy it).

Boat Trailer

Your boat needs a way to get from home to H2O – which means buying a trailer.

Costs vary based on size and model but expect to pay anywhere from $600 to about $8000.

Before shopping, know your boat’s length and weight, so you can determine how many axles are needed.

Decide also whether you want to submerge your trailer – so your boat floats off – or not (roll-off).

While roll-off trailers are more expensive, they don’t spend time in (salt) water, so maintenance costs come down.

Bear in mind that towing accessories like a hitch, spare tire, and mirrors add up, too!

Boat Registration

Like a car, your boat must be registered (excepting recreational craft in the ACT and Northern Territory).

Rules and costs vary between states and vessels, but in NSW, you’ll pay from $68 for a 3-meter boat, whereas in SA, it’s from $18.

While state authorities make registration a (relatively) simple online process, you can save yourself the hassle entirely by buying from a dealer who handles rego for you.

Maintenance And Repairs

Factoring in maintenance is part and parcel of investing in a boat, so budget for the wear and tear of adventure by setting aside about 10% of the cost of your boat every year.

Schedule a service every 100 hours on the water, or once a year, and keep costs down by doing small repair jobs yourself.

Small acts, like washing your boat and flushing the engine will save money in the long run, too.

Depreciation

Many factors affect depreciation, such as vessel type, material, and even the time of year you sell.

On average, a new boat loses 18% in the first year, up to 36% over 10 years.

Avoiding the initial loss is one of the many reasons you might look to buy second-hand.

New or used, you can limit depreciation by upgrading the engine, weatherproofing, regular cleaning, and protective storage.

Storage

You might want to live on your boat, but your boat has to live somewhere!

Dry storage (from $400 per month, uncovered) will protect your boat from animals and the elements, lowering insurance and maintenance costs.

Meanwhile, an on-water marina berth means your boat is always water ready but cost up to $1000 per month.

Remember, the condition in which you store your boat determines how much work it needs when you come to use it!

Flush the engine, replace the antifreeze, and employ anti-mould measures to make de-winterising less painful.

Finance Repayments

Boat ownership isn’t cheap, so consider buying on finance for flexibility and up-front savings.

Influencing factors include your credit score, savings, type of boat the loan is for, and whether the loan is secured or unsecured.

Finding the right finance can become a full-time job in itself, so enlist the help of a broker, who can save you hassle and money.

More: Calculate Your Finance Repayments

Ways To Save On The Cost Of Buying A Boat

There are ways to ensure your sailing time isn’t spent thinking about the deal you could have gotten.

Buy used – this of course reduces upfront costs, but beware of lemons that can cost you in the long run.

Shop around – not just for your boat, but for your dealer too.

Visit expos – these are a great place to do your homework, and often spell big one day deals

Get the right finance – if you’re planning to finance your purchase, getting expert assistance from a broker could save you a lot in the long term. Begin a no-obligation finance enquiry to get started.

While boat ownership isn’t cheap, it is really fun.

Plan well, finance smart, and you’ll be called “Captain” before you know it!

More: 6 Financial Questions You Should Ask When Buying A Boat

Free Boat Buying E-Book

Step by step boat buying guide reveals everything you need to know about buying a boat in Australia. Enter your details below to download instantly.

E-Book cover