Those of us in the boat business know that the fall and winter months are the best time of year to buy a new or used boat. The factories often offer great deals, discount last year’s models to make room for next year’s, and know that customers like to come in and kick the tires, so to speak, during the off-season.

Anticipating that some of you may be contemplating upgrading or getting into a new boat right now, we thought it a good idea to review some of the costs of boat ownership that many customers don’t think about. Especially when looking at one of those spiffy new models with all the bells and whistles. 

At the top of the list of boat ownership expenses is financing.  Some customers are able to simply write a check, but most customers will be looking for a loan. 

  • A boat loan from a bank or credit union is a personal loan with a fixed interest rate and monthly payments, just like a mortgage. Usually, the boat itself is used as collateral.
  • Some customers can arrange personal loans, fixed-rate installment loans usually collateralized by the customer’s own net worth and assets.

Next up is boat insurance, which is usually required. A rule of thumb is that boat insurance usually costs between 1 and 5 percent of the boat’s value, per year. So insurance for a $20,000 boat would be between $200-1000 per year.

In Colorado, any boat with a motor or sail must be registered with the state (Colorado Parks and Wildlife), Boats under 20 feet cost $60.25, 20-29.11 feet are $70.25, and boats over 30 feet are $100.25.

Colorado also requires boat owners to have their boats inspected and obtain an Aquatic Nuisance Species Stamp, which runs $25 for instate owners and $50 for out-of-state.

Annual maintenance is another cost boat owners must consider. Regular maintenance of your boat is essential to safe and dependable operation of your boat. Experts say that every 100 hours of operation, or about once a year, your boat should be checked for:

  • Oil and filter
  • Power trim and steering fluid
  • Engine zincs
  • Wiring and connections
  • Battery and electrical connections
  • Fuel delivery systems
  • Sparkplugs
  • Nuts, bolts and other fasteners.
  • Propeller (grease 3 or 4 times a year)
  • Steering system
  • Outboard engine 
  • Hydraulic fittings and systems

For used boats, the estimated yearly maintenance is about 10% of the boat’s cost. For new boats, it’s about 2%. On average, the maintenance budget you can expect is around $2000 a year.

Some other costs you may encounter:

  • Boat detailing
  • Trailer maintenance
  • Winterization service
  • Bottom paint
  • 100-hour service
  • Annual cost of fuel

Finally, there is winter storage, an important consideration here in Colorado.  You can keep your boat in your driveway on a trailer, which costs nothing beyond the cost of the trailer; put your boat in indoor  storage, a self-storage facility or at a local marina. You may need to check with your HOA on rules and regulations for boat storage where you live. 

The average costs are:

  • Indoor storage: up to $300 per month
  • Self-Storage garage: Up to $10 per foot per month
  • Marina storage: $55 and up per foot per month

Now when you put all those numbers in one place, it can look daunting. But we believe our customers should be well informed before making a purchase decision. And Colorado Boat Center stands ready to help every customer save where possible in sales and servicing your boat.

And consider that buying a boat is not just an economic decision. It is about getting into the boating lifestyle, providing your family and friends with hours of joy on Colorado’s magnificent waterways, and teaching your kids important skills they can utilize for a lifetime. Try putting a dollar value on that!

As always, CBC is here to answer your questions and help you get into the right boat for your budget and needs. We’ll be here all winter, so stop in and see us!