Think it through. Be honest about how often you’ll really use a boat and whether it’s worth the costs. For many owners, boats provide years of happy memories. Others overestimate how much free time they’ll have to enjoy their purchase. Choosing the right boat for your lifestyle, whether it’s a pontoon boat for recreational use or a luxury yacht for entertaining, can also have a major impact on how, when and where you’ll use it. Also, remember that the resale value may be impacted by the boat’s depreciation over time. Once you’ve considered those factors, research reputable manufacturers and dealers to ensure you’re making a high-quality purchase. 

Calculate the costs. The boat’s sticker price is just the beginning. You’ll need to factor in additional costs and responsibilities of ownership, like insurance, storage, towing, cleaning and recurring maintenance. And will you operate and maintain the vessel yourself or hire someone else to? With all those expenses in mind, you might decide to occasionally rent a boat instead.    

Analyze your finances. How much boat can you afford? A general rule of thumb is that your total monthly debt service (mortgage, car payments, student loans, credit cards, etc.) shouldn’t exceed 40% of your gross monthly income. If a boat payment would push you over that limit, you’d be wise to scale back. And don’t forget to consider the down payment. Most lenders require 10-20% up front, so you’ll need to decide where that money will come from and whether you’re comfortable spending it.  

Compare financing options. Most boat dealers offer financing, but you can choose your own lender. Some banks may offer a lower interest rate, which could knock thousands off your total cost, or discounts on interest rates for existing customers. Working with a familiar bank can also provide the convenience of having multiple services under one roof and a more comprehensive assessment of your financing decisions.