Owning a boat can be a costly affair and keeping the purchase in line with your initial budget constraints can be very difficult. Boating tends to lose its appeal very quickly when the very watercraft you purchased begins to drain your financial resources.
Let’s look at some of the more important points that need to be considered to make an informed boat purchase.
An important consideration to factor in when purchasing a boat is its future value. Determining future value is extremely difficult but it’s a worthwhile exercise.
Though the depreciation of a boat, when it leaves the showroom floor, is not quite as bad as that say of a luxury motor vehicle, one still has to be cognisant about depreciation.
It’s clear that banks know that depreciating assets such as boats will usually see a greater portion of that depreciation happening in the first couple of years, thus their requests for 20% or 25% deposits to cover any shortfall, should the buyer default on his payments and the bank have to repossess the boat and flog it on auction.
So, if you are purchasing a boat that is highly desirable in its design and will retain good value, even years down the line, then you are hedging your bets in your favour.