BOAT BUYING TIPS

Begin by asking yourself what your boating needs are?

•	Are you into sailing, cruising, fishing?
•	Do you want accommodations and amenities to allow longer cruises?
•	If looking for a sailing vessel, ask if it is designed for cruising or racing and consider whether it offers good access, storage and ventilation for your needs.
•	What vessel style will accommodate your preferences – be sure and adequately explore the many varied styles available for both power and sailing yachts.
•	Are you looking for an express style in which passengers remain on one level, or cabin style which provides greater overall interior space?

Consider your priorities: expense, performance, safety, luxuries

•	No design can offer everything – often performance may sacrifice some luxuries, or greater safety features may cost a bit more. Think about these trade-offs and make conscious decisions about the qualities that best fit your preferences.
•	A single engine provides economy while a twin engine provides greater power and performance.
•	A gas powered vessel requires less immediate expense while diesel power supplies greater performance and security.
•	New or used? A used vessel may be priced lower but may incur higher maintenance costs.

Boat Financing

Who?

•	When financing your boat it is best to consult a reputable lender that specializes in marine financing.
•	Most lenders are able to “pre-approve” you which will let you know –in advance – how much boat you can afford. This will better prepare you for negotiations with the dealer or seller.
•	A larger down payment requires more cash out-of-pocket now, but will improve your equity position if you consider selling in the future.

Advantages of Financing

•	You may qualify for certain IRS tax advantages, such as a second home mortgage interest deduction, if your vessel contains bathroom facilities or eating and sleeping accommodations.
•	Your financial flexibility increases by taking advantage of the ability to finance your purchase rather than paying cash, because you have more opportunities to increase your earnings in other investment opportunities.
•	In addition, the greater your ability to finance, the more you can spend on a boat – as long as your budget can handle the loan terms with your current and anticipated future income.
•	Loan approvals will generally be processed within 24-48 hours and generally last for 30-60 days of the approval date.

Used Vessels

Generally if a boat is two or more years old, a lender will require a marine survey, which runs between $12 and $18 per foot, depending upon the type of vessel. You should always confirm the expertise of a surveyor to make sure their knowledge and experience qualifies them to analyze the specific type of vessel you plan to purchase.

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