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Important considerations when comparing boat loan
Balancing the cost and utility of owning a boat through loan
It is imperative that you balance the cost of owning a boat on loan taking into consideration all the aspects including maintenance, storage, and mooring. It would be only then you would have the true cost and usefulness of owning a boat. There are many things that you have to consider and not just the purchase price of the boat. The purchase price can be somewhat controlled by you by opting for a boat according to your affordability regarding the size, specifications, and features. Therefore, the cost of the boat would make a huge difference of loan you may have to take.
Taxes registration and insurance
Add to the purchase price the tax and insurance would make the price of the bat even higher and therefore you may have to take a loan of a higher amount. Moreover, the state tax laws may vary from state to state and also depends on the number of days spent in a particular state. Therefore, once again the cost varies. Insurance rates are usually less than two people of the insured value of the boat and are variable once again depending on the climatic conditions of the place where the boat stays. For example, if the area is prone to hurricane then the rate would be higher. Other incidental charges are added to the cost of the boat like registration fees which is another cost that varies from state to state and once again the cost of the boat increases.
Mooring cost varies
The wait list for mooring can span for years, and if you get one early, then you have to spend a considerable amount of money which once again varies according to the size of your boat. It would also consider the specification of your boat. You can save a bit of the mooring cost if you can find a yard where you can store the boat between sails. Such yards charge a seasonal fee which may be charged according to the area in foot your boat covers. Apart from that, you have to include the charge that you have to pay for a small boat or a dinghy to get your boat in and out during mooring and cost of such boats vary as well.
Storing your boat
You may store your boat in your backyard during of season or in a winter storage facility, but then again you would require a trailer to haul it to and fro your backyard. Therefore, you require budgeting well for such winter storage unless you have a warm season all the year round. There is also an annual maintenance fee for such storage for shrink-wrapping it and setting on blocks. If you even think of storing your boat in your backyard, then you may have to deal with the neighbour and hire a professional to solve the dispute regarding the eyesore.
Running and maintenance
The running and maintenance cost of your boat should also be considered during the evaluation of the true cost of your boat. When talking about the maintenance, you should keep aside ten per cent of the boat’s price as an estimate. When you run the boat, you would use gas and the cost of gas would also come up to a considerable amount. Even for sailboats, there are some amounts of gas required for few specific operations as no sailboat is entirely powered by the wind. Moreover, if your boat is motor powered, you better add charges for oil changes and mechanical repairing as well.
Navigation and safety items
Every boat requires some essential safety items on board as per the law like life jackets which should be more in number so as to accommodate the visiting crew as well. Apart from that a safety kit, fire extinguishers, visual flares, horn and other items would also cost you some amount. The cost of sailing and operation would also depend on the route you want to navigate. If you stick to known waters and close to the harbour then you could probably skip the expense of GPS, but such GPS is essential for an overnight trip and for ventures which are far away from the port. You would then have to install a computer and a low-end marine GPS.
Finance your boat
Therefore, when all costs and charges are added, then you would see that the amount of loan amount is quite high. Lenders may use different agencies to review of such history, and therefore you should check it out with all of them beforehand and rectify any errors. You should come with a good down payment as well to lower down your loan amount and get a chance to bargain for the interest rate as well. Verify your income so that you can have a rough estimate of how much you have to pay and also increase your eligibility factor.