There’s an old bromide beloved of experienced boat owners that says the definition of a boat is: “A hole in the water into which you throw all your money.”
Ha Ha Ha. Hmm.
There is no question that buying a boat, and maintaining that boat, and operating that boat and storing that boat … all of those things require money. Also licensing, financing, taxes, gear for … the list of cha-chings for boat owners is long.
Of course, the reason we do it in the first place is because we love the boating lifestyle. Zipping across the pristine waters of one of Colorado’s beautiful lakes and reservoirs, feeling the wind in your hair, admiring the beauty of the surrounding mountains, looking at the joy in the faces of your kids and spouse and friends. Trying to catch the lunker of the year. Fetching up on a beach for a picnic and cookout. Spending the night at anchor.
All those things and many more are the reasons we love to get out on the water in boats, and any one of those experiences makes the expenditures totally worthwhile. If not, we’d all save our boating money and go play golf instead! Ugh!
But that said, it is never a bad idea to look at ways to save money when we can, and that holds true for boaters too. Unless your name is ‘Fort Knox’ none of us has unlimited funds, so developing a plan and a budget for the boating part of our lives just makes sense.
Before you buy
If you are thinking about getting into boating for the first time, or upgrading to a bigger boat, it helps to set a goal and know what you want.
What kind of boating do you plan to do? Fishing? Taking the family out for afternoon jaunts, with some tubing or skiing? Partying on a pontoon? Your first goal is to choose a boat that meets your boating goals. This will help determine what kind of boat you need and how much you need to spend.
Your boating budget should take into account your overall household budget–the necessities of life–so you can assess accurately how much you can afford to spend on a new or upgraded boat. Figure annual maintenance of your boat to cost about 10% of its cost. But if your boat is used and in need of some upgrades and maintenance, add in a bit more.
And you need to think about how you will finance your boat. There’s cash up front, financing through a bank or finance company, or even through the marina. Our sales associates here at Colorado Boat Center will walk you through all the options and possibilities so you have a clear picture of the costs of financing.
Once you own
After you’ve made your purchase decision, there are many ways to think about saving money with your boat. Some are intuitive, some you may not have considered.
- Look into tax deductions. If your boat has a head (bathroom) a galley (kitchen) and a berth (bed) it is possible to claim your boat as a second home and deduct the financing costs from your taxes. You’ll need IRS Form 1098 to deduct finance charges and points.
If you work from your boat, you can deduct home office costs. If you use your boat to entertain clients, some business expense deductions are possible.
But be forewarned: the IRS is not likely to look with favor on these attempts to reduce your tax burden, and you will need to keep immaculate records. We strongly recommend that you talk with your tax accountant or lawyer first.
- Learn how to run your boat at maximum efficiency. Do you know how to use your trim tabs? Do you throttle up to 75% instead of 100%? There are plenty of ways to save gasoline and other operational resources and you should know them all.
- Keeping your boat well maintained will save you money in the long run. Making sure your engines are serviced and running smooth will save gas (not to mention peace of mind). There are hundreds of parts all over a boat that degrade over time and making sure these are checked and replaced on a regular basis will help your boat run smoothly and prevent costly maintenance surprises.
- In the interest of knowing how to run an efficient boat, take a boater’s education course. You will learn a lot about how boats work and the best, and most efficient, way to run them.
- Consider different storage options. Shrink-wrapping or dry rack storage for the winter can be costly. Keeping your boat on its trailer in your driveway is cheaper, but there are tradeoffs in wear and tear and springtime reopening costs. Check all the options and make an informed decision according to your budget.
- Learn to do it yourself. It’s great to have the Colorado Boat Center service department ready to do all that’s necessary to ‘take care’ of your boat. And we always stand ready to help every customer. But there are so many minor maintenance chores that every boat owner, even the most unskilled mechanically, can do on his own boat. Many boat owners come to love the feeling of satisfaction in taking care of their boats. It also saves a lot of money.
- Fuel up on land. Buying gas for your boat from a land-based service station is almost always cheaper than visiting the fuel dock at the marina. Just make sure you don’t buy the E-15 ethanol blends for your boat, which can be destructive to marine engines.
- Assess your insurance options. You will need a policy to cover your boat against damage and accident. Sometimes you can add a rider to your homeowner’s policy, sometimes you need a specific boat policy. Check out this article on insurance options from Discover Boating: (https://www.discoverboating.com/ownership/insurance).
Boating is a wonderful lifestyle activity. And it’s within financial reach of most people. Do some planning, set a budget, talk to your friends who own boats and come see us at Colorado Boat Center. We will help answer all your questions and help you find the (affordable) boat of your dreams, just as we have for our thousands of friends and customers along Denver’s Front Range since 1990!
