A guide to buying a boat for the first time

How to buy a boat

1. Research the type and size of boat you want to buy

Consider how you'll use the boat, including your desired activities and number of passengers. If you plan to store the boat, it's also important to think about what size of boat fits your storage options. These considerations help you narrow your search from a selection that may feel overwhelming.

2.Determine your budget and payment options

Figure out how much you can spend on a boat and the best way to pay for a boat. Determining your budget for a boat is a personal choice that considers your ability to pay in full or make timely payments in addition to other costs, including maintenance, repairs, storage, boat insurance, and more. If you don't have cash on hand to buy your boat outright, you have a couple of options:

Personal loan: Whether it's from a bank, credit union, or lender specializing in marine financing, a secured or unsecured personal loan offers manageable monthly payments instead of paying a large lump sum upfront.

Financing through the dealership: Securing a loan from the dealership is a popular way to finance a boat because the dealership handles the loan process, which can mean an easy buying experience.

3. Find boats for sale

Once you've narrowed your choices and determined a budget for buying a boat, it's time to check out some boats. If you're looking for the widest selection of new or used boats, several online services offer searchable inventory from across the country. Boat Trader, Boatzon, and MarineMax each offer new and used boat listings that can be sorted by boat type, location, price, and more. Some of these online services also offer financing.

If you prefer to see a selection of boats in person, you can visit a boat dealership or boat show, where manufacturers and dealers show off their best selection and educate potential buyers on the boat features and technology.

To get the best price on a new or used boat, a popular strategy is to buy a new or used boat in the offseason during the fall and winter months when private sellers are more motivated, and dealers may offer discounts. Learn more about the best time to buy a boat.

4. Negotiate the price and make an offer

You've found the perfect boat. Now it's time to close the deal and handle the paperwork. You can negotiate the price of a boat if you're buying a boat at a dealership, a boat show, or in person from a private party. Consider your timing and be prepared to walk away. This may be difficult to do, especially when you've spent time and feel emotionally invested, but it can be essential in getting the best deal.

5. Purchase boat insurance

Only Arkansas and Utah (and Hawaii under some circumstances) mandate boat insurance, but many marinas, public and private, require proof of a boat insurance policy with liability coverage to utilize their facilities for any extended time. Also, if you're financing your boat, your lender will typically require boat comprehensive and collision coverage. Liability coverage may help you pay for injuries and/or property damage if you're liable in a boating accident. Comprehensive and collision coverage may pay to repair or replace your boat if it's stolen, damaged, or totaled. Learn more about if you need boat insurance and how boat insurance works.

6. Register your new boat

Check with your state to learn how to register your boat. It may be through the Department of Motor Vehicles (DMV) or a department that focuses on outdoor recreation (e.g., the Department of Fish and Game). When buying a used boat from a private party, you'll want to make sure that it's their boat to sell and that there are no liens (claims to secure debts) against the boat.

If you're buying a boat from a dealership, they will often help you get all the paperwork sorted and fees paid. Whether you're buying a boat from a dealership or a private party, you may need to obtain the title to the boat and register the boat, depending on your state and the size and type of your boat.

What are the best types of boats for beginners?

• Dinghy: Dinghies are generally small craft that you can propel by oars, sails, or a small outboard motor. Depending on the style and intended use, a dinghy can be up to 20 feet long and carry a significant load of passengers.
• Pontoon: Pontoon boats have a wide design with floats on either side, which makes them exceptionally stable. This stability can make them good boats for families. Find out about buying a pontoon boat.
• Bowriders: Bowriders have a sleeker, more tapered design. Bowriders don't have as much deck space, but they're more agile and usually offer a sportier ride, and perfect for towing water skis and other water sports equipment.

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