How to Buy a Fishing Boat - Cash Or Finance?

Before you take the boat buying plunge let me clue you in on two of the most widely spoken quotes in the boating world. "The happiest day of a boat owner's life is the day they buy the boat and the day they sell the boat" and "Boats are nothing more than holes in the water, into which you throw money."

Remember that boating is a hobby. So as you purchase a fishing boat you shouldn't go overboard with it. Unlike your house, boating isn't really worth going into debt for. Boats do not appreciate. First time buyers who aren't sure about boating should always make sure they spend well within their budget.

Also consider these optional items, depending on your water sports preferences: water skis, wakeboards, wet suits, towables (tubes), tow ropes and gloves, weight system for wakeboarding, pylon, boom, tower, etc.

To get the most value from your boat, it's always a best to put aside your recreational dollars, sell a few of your belongings, and simply save up for a while. Next, carefully shop the boating market. After you save up 3,500 - 25,000 dollars, go ahead and buy the boat you want.

Whatever you do, make sure you don't invest all of your money on the just the boat itself. When you purchase the boat, you'll need to have enough money for taxes, registration, storage, towing insurance, gas, equipment and even minor repairs if your boat requires them.

Buying a boat, either new or used, paying cash is always better than financing. When you pay cash, you can save money, as there are no finance charges. Financing charges can get high, very high in fact if you don't know a lot about it.

If you must finance your purchase, it's a smart idea to use a home equity loan instead of a personal loan. This way, it'll be tax deductible. Always be on the lookout for boat show financing, and never, ever use it. Several boat show financing ploys will extend the loan out over the course of 10 - 15 years.

A new boater will either stick with boating or get out of it all together. Usually, most boaters don't keep their boat for more than 10 years, which is reason enough not to get an extended finance loan on your boat.