Picture this: You're driving down the coast or to the lake glancing at your rearview mirror every 5 minutes admiring the pontoon boat you purchased last week. You finally arrive at your destination, put your truck in park, and launch your new boat into the water. While buying a boat can be an exciting experience, it's important to approach the purchase from a financial perspective to ensure you're making a sound decision. Here are some do's and don'ts to consider when buying a boat:
Do:
Set a budget. Boats can vary quite a bit in price range, so it's essential to set a budget before you start shopping. Consider the purchase price and any ongoing expenses such as fuel, maintenance, and insurance.
Don't:
Finding a boat that fits your budget, lifestyle, and dreams could take some time.
Do:
Consider financing options. If you can't afford to pay for the boat outright, consider financing options such as a boat loan. At Farm Bureau Bank, we offer terms up to 240 months, competitive rates, and protection plans.
Don't:
Overextend yourself. Make sure you can comfortably afford the monthly loan payment and ongoing expenses without sacrificing other critical financial goals, such as saving for retirement or emergencies.
Do:
Get a marine survey. Before buying a boat, consider getting a marine survey to assess the boat's condition and identify potential issues. This can help you avoid costly repairs or maintenance down the road.
Don't:
Ignore ongoing expenses. Buying a boat is just the beginning of the costs associated with boat ownership. Be sure to factor in ongoing expenses such as fuel, maintenance, insurance, and storage when determining the total cost of ownership.
Do:
Consider the resale value. While buying a boat based solely on its features or appearance may be tempting, considering the boat's resale value is essential. A boat that holds its value well can be a good investment if you decide to sell it in the future.
Don't:
Forget about taxes and registration fees. These can vary by state and can add to the overall purchase price.
Do:
Negotiate the price. Like buying a car, you can negotiate the price of a boat. Do your research to determine the fair market value of the boat, and be prepared to negotiate with the seller. If you want a solid upper hand in the deal, get pre-approved before entering any dealership!
By considering these do's and don'ts, you can approach the purchase of a boat more responsibly and make a selection that fits your budget and long-term financial goals. Learn more about our financing options and apply online today!
Tags: financial tips, personal finance,