The laws of supply and demand are the greatest reason why anything, including boats, comes with a high price tag. While there are expensive luxury cars, more of them are made than boats. That means that the lack of supply drives the price up on boats. Not enough of them are made to help drive the price down.
Boats are expensive because they are made of expensive materials and require a large amount of skill and labor in order to be produced. Moreover, boats must undergo routine maintenance which drives the true cost of boat ownership higher. Moreover, the value of a boat depreciates over time.
This may surprise you but that is the way companies do business. If they do not have the demand, they cannot buy more components to drive the price down. To learn more reasons why the boat you have your eye on is so expensive, just continue to read our article.
Are boats worth the money?
The answer to this question will depend on the purpose that convinced you to buy the craft in the first place. If you are just looking for a once-a-year get-a-way then most likely, the boat’s cost and the boat itself will not be worth the money you spend.
Of course, we are talking about the larger powerboats and not the little ones you use for fishing or touring different lakes. The cost of the little boats is very reasonable and does not compare with the larger powerboats.
If you are buying the boat to use for more than a once-a-year recreational or vacation activity, then it may be worth buying a boat. Opening a charter company makes buying a boat worth it.
But most people buy a boat for status or tax reasons. It is possible that the depreciation value will help you save a bit on your taxes. That makes buying a boat worth it to them.
For the common person, being the captain of your own boat can be a confidence builder. That result makes owning a boat worth it if you do not go beyond your budget. Plan well, so you can get the most out of your investment.
Are boats expensive to maintain?
This question highlights the one reason why so many people do not think buying a boat is worth it. They are very expensive to maintain. One of the biggest costs you will face is storage fees. If you do not have a large enough yard to store your boat yourself, you will be paying someone to store the boat for you.
Those costs range from $500 on up depending on your location and the storage yard owner. That cost may be for one year or a shorter period of time. Then there is the standard maintenance of taking care of the motor or motors, batteries, changing oil, and even the high cost of fuel.
This is not to mention the cost if you live in a colder region of the country and you need to winterize the boat. Don’t forget hull maintenance. Boats need their hulls looked after carefully so that they remain water-ready.
All of these must-do maintenances add up and we haven’t talked about polishing the fittings and other extras you have added to your craft. if you are not doing this work yourself, you have to add in labor costs. That is a hefty price tag as well.
How much does a decent boat cost?
If you are looking for a boat to go fishing or spend a lazy afternoon out on the water then the cost of the boat is reasonable. Until you get to those models that are on the upper end of that recreational scale. For this class of boat, you are looking at spending between $10,000 to $30,000 for a good one.
It is possible o get the boats in the class for a lot less but their quality will not be as good. If you are thinking about getting a cabin cruiser or a smaller boat that has the power to tow skiers, the starting price for the latter will be in that $20,000 to $30,000.
The cabin cruiser may start somewhere around $50,000 to $80,000. A good performance boat will start roughly at $60,000. Then, if you have a lot of money to burn, you can get a first-class yacht starting somewhere between $100,000 to $500,000.
These figures are just ballpark numbers as it is possible to find a sale that brings the price down a lot or someone wants to clear out older merchandise and so on. The prices quoted here are for new boats not used or on sale.
There is no doubt you can find a motivated seller and cut your purchase costs down. Also, your purchase price will depend on what class of boat you want to buy.
Are old boats worth buying?
Yes and no. Older boats do not come with the same fuel efficiency as newer boats must. That is a strike against buying an older boat. Older motors can use carburetors that do not get the performance that the newer fuel-injected motors get.
The purchase price may be worth owning a boat but the maintenance costs may not be. You are looking at doing more maintenance or repairs to older boats. Here are some of the possible repairs you will be looking at when you buy an older boat:
- engine repairs
- electrical system failures
- bilge pumps breaking or wearing out
- saturated foam cores
- wood rot
- bad stringers
- cabin leaks
- deck and hall joint leaks
There are other problems. To some people, these issues make owning an older boat worth it because they can fix it up and hopefully use it or resell it for a profit. If you are thinking of buying an older boat, you better be prepared to do a thorough inspection to catch all the problems before you buy.
That way you will know what you are getting yourself into. In the end, the worth of buying an older boat is up to you. Just make sure your spouse agrees with your purchase. Or you may have more trouble than just the boat costs.
Why are boats so expensive
There are two main reasons for the high cost of a boat and they have nothing to do with supply and demand. While that is a good reason for the cost of the boat, it is not the sole reason.
The first reason why boats cost so much is that boat building is very complicated and not everyone can do it. This is not like putting a car together. It takes years of training to master how to build a good boat.
Generally, boats are built by hand which slows the progress down. There may be some modern techniques created that use automation but not as extensively as it has for the auto industry.
The second reason is two-fold: one, you need skilled labor to handle every step of the process, and skilled labor is not cheap. Two, materials are not cheap. Plus, the safety and government regulations make it very difficult for anyone to just build a boat.
Then it can take months just to get the hull right. There are different applications that need to be done before it is ready to be attached to the deck. The size will factor in here as well. The larger the boat, the higher the costs involved in building it.
Those are the major reasons why boats cost so much. Some minor reasons include the customization aspect. Many customers want their boat to reflect their personalities and not the boat builders. So they order special concepts to be added to the boat to achieve this goal.
Alternatives to owning a boat
There are some cheaper and less responsible ways to having that boating experience than buying one. Here are just a few options you should consider:
- Rent- while the costs may seem a bit high, renting means you do not have storage, maintenance or repair fees to consider. Nor do you have to worry about paying for insurance
- Joint ownership- this is where you split the costs with a trusted friend. But this can be dangerous once disputes or conflicts in schedules arise.
- Join a boat club- this gives you access to boats without having the same costs involved in ownership. The details are up to the individual boat club
- Charter- here you have a captain and a crew looking after your safety and navigation. This can be a bit risky if you get the wrong captain and crew.
- Have friends who own a boat- this is the tried and true method of enjoying the ocean waters without the expense or worry.
Some final words
Yes, boats can be very expensive. Sometimes they run into the millions simply because the owner wants something special to enjoy his free time. Like Rome, boats cannot be built in a day and that labor-intensive work costs money.
If you want to own a boat, do some good research. That way you can enter into boat ownership with your eyes wide open and not be surprised by any hidden costs.
