Top Tips for Buying a Used Boat
Looking to buy a used boat, but don’t want to make a bad investment? Unless you’re an expert, it can be hard to know what you’re getting when you buy a used boat from an independent seller.
Luckily, there are a few things you can do to lower the risk of unexpected costs and repairs when you buy a used boat.
Here are our top tips for buying a used boat:
1. Set a realistic budget
Start by determining your budget, taking into account not just the purchase price but also maintenance, repairs, insurance, and other associated costs. A good rule of thumb is to allocate less than 75% of your total budget for the boat itself, so you have funds available for upgrades or unexpected repairs. For example, if your budget is $15,000, look at boats priced under $10,000 to leave room for these additional expenses.
2. Research the type of boat you need
Identify the type of boat that suits your favorite kind of watersport, whether it’s fishing, cruising, sailing, or towing tubes. Whether you choose a sailboat, an inboard motorboat, or an outboard motorboat, it’s going to have a big impact on the specific maintenance requirements ahead, and understanding these will help you choose a boat that aligns with your needs and budget.
3. Hire a marine surveyor
When buying a used boat, you absolutely should have it inspected by a marine surveyor. A professional surveyor will conduct a full inspection, identifying any hidden issues that might not be immediately obvious to the untrained eye. Most boatyards and fully equipped marinas offer this service for a low fee.
Tip: If the seller is reluctant or unwilling to allow an inspection, consider it a red flag and walk away from the deal.
4. Run a few tests of your own
There are a few tricks you can keep up your sleeve to quickly check whether a boat is likely in good shape before running a professional inspection:
Check the bilge
A dirty bilge often indicates a leak, whether it’s water entering the boat or fluids leaking out. This area can tell you a lot about the boat’s condition.
Check the engine
Take a minute to check the drive lube plug and the state of the gear oil. Gear oil should be gold or green; any other color suggests a problem that might require expensive repairs.
Also, have the seller start the engine to check how easily it starts and idles. Ensure all gauges and electronics are functioning properly.
Test the gimbal bearing
If possible, perform a water test and listen carefully to the gimbal bearing. Basically, you’re listening for a high-pitched growling noise that changes with the movement of the wheel. This noise usually indicates a worn gimbal bearing, a common issue in used inboard/outboard (I/O) motorboats. It’s caused by running the drivetrain with the trim up and will require a repair. While not a complete red flag, it is something you can use to negotiate a lower price with the seller.
Examine the condition of the cushions
Cushions are surprisingly expensive to replace and difficult to DIY, so their condition should be taken into consideration.
5. Take the used boat for a sea trial
Always take the boat out on the water for at least 10 minutes to test its performance. During this time, check for any leaks and pay attention to how the boat handles. After the sea trial, have the boat taken out of the water on its trailer and inspect the hull for any damage.
If you’re using a professional inspector, they will usually run this trial for you as part of the service.
6. Be prepared for additional costs
Even if a boat passes inspection and appears to be in good condition, it’s wise to be prepared for additional expenses. Welcome to boating! Consider allocating at least 25% of your budget for future repairs and upgrades. Staying prepared in advance will save you some stress and make it easier to enjoy your boat without financial strain.
7. Try a used boat survey template
Considering running your own inspection? Try using a boat survey template, like the one available here. This can help you systematically evaluate the boat (and your own knowledge base) and make an informed decision.
8. Explore boat insurance early
As you finalize your boat purchase, start exploring insurance options. The cost and coverage will depend on factors like the boat’s age, condition, and intended use. Here are some tips for insuring your used boat:
- Choose the right coverage: Depending on your activities, you may need different types of coverage, such as liability, hull coverage, or protection against uninsured boaters. Our insurance experts are a quick call away and can help you understand the risks and options available to you.
- Review the survey report: Another reason to get a professional marine survey done - you can share the marine survey report with your insurance company for possible discounts! A positive report may reduce your premium.
- Understand the deductibles: Make sure you know the deductibles for different types of claims, such as storm damage, theft, or collisions.
- Understand your responsibilities: Not all damages or accidents are covered under boat insurance if you aren’t handling or storing your boat correctly. Be sure to speak with an expert and read the fine print on your policy to understand your obligations for full boat insurance coverage.
By following these tips, you’ll be better equipped to make a smart used boat purchase and enjoy your time on the water. Remember to get the right insurance coverage to protect your boat. Your Western Financial Group boat insurance expert will help you get the coverage that you need at the right value for you.
