A boat is a great luxury asset to own. It will add a new layer of life enjoyment and your leisure activities will never be the same again. You also get to experience why sailors love the open seas, as it’s a large open world out there with no roads and no highways. It’s just a blank canvas, waiting for you to cut through it on your new boat. But, it’s an expensive proposition, you need to have your finances in order to not have the purchase of a boat, sink your future aspirations. It’s not as easy as buying a car, but it’s not as difficult as buying a house and you’ve already done both.
Depreciation is a big deal
Just like cars, boats will lose value because they’re an asset that gets used. The road will have an effect on the car’s structural integrity, and the waters will have an impact on your boat’s hull. So before you consider what you want, be warned that boats will depreciate rapidly if they are not maintained. And the additional risk of saltwater allowing rust to flourish throughout the vessel is a big deal. Depreciation can also happen if you’re not properly storing the boat. Don’t ever rely on a marina or riviera port, to safely tie up your boat. It’s easy to pay rent for the parking privileges but you never know when a storm is going to put your asset at risk.
Can you afford it?
Once you have done a lot of research regarding brands, hull designs, and materials that last the longest, now you need to create a realistic budget. You should have an idea of how much your wealth will be affected by the purchase but also, how much money you could make if you wanted to sell it or use the boat for financial growth purposes. Speak with a company that offers Asset Finance services. They have a range of lenders who will work with you to find you the best possible quote and give you a loan figure based on the asset you have chosen to buy. They’ll also make sure the transaction process is smooth. Clients have previously given positive reviews of their services because their accessibility is very good, thanks to their hands-on approach. That’s what you want when you’re buying a boat, a company that is always there to guide you financially.
The additional costs
The reason why you must speak with an experienced asset financing company is, the additional costs always catch out to new buyers. You need to figure out what the transportation costs are of the boat, to your location. You need boat covers to protect the plush materials from getting wet, the boat registration fees so you’re legally allowed to drive the boat on the waters you’re planning for. Winterization is very important, so you need boat covers to protect it from ice and snow, but you also need to know how much it might cost for the annual maintenance of the engine, hull, decor, and electronic systems.
Buying a boat is a wonderful experience but it can be financially tricky if you’re too focussed on just enjoying the boat itself.