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Five Costs to Add to Your Budget when Buying a Used Power Boat put up for Sale

Budget is a primary concern for most buyers when purchasing used power boats. In calculating an accurate budget, you need to divide costs into purchase and maintenance cost, and factor in other expenses that are likely to crop up alongside the up-front cost of buying the boat. The general rule of thumb is to allocate 60% of your budget to the actual price of the boat and the remaining 40% to other expenses that will be incurred. Here are five such important costs that need be included when planning your budget.

# 1 - Survey costs

When buying a used power boat, it is of prime importance to conduct a survey to determine the quality and performance as well as for insurance and financing purposes. This is usually conducted by a third party who gives you a detailed report on repairs needed, equipment that needs service or replacement, and even an estimate of fair market value. Surveyors charge on a per square foot basis, and bill you for any inspection undertaken irrespective of whether you have finalized your purchase decision or not.

# 2 - State and local taxes

As with the purchase of houses and automobiles, purchase of used power boats ( Nautible.com/Used-Powerboats ) also attracts taxes from local and state bodies. The rate of taxes varies from one location to another. For people looking to save money on this aspect, it is a good idea to take the delivery of your boat in a locality that levies minimum taxes.

# 3 - Maintenance

Maintenance is another factor that adds to the cost of owning a boat. The actual cost of maintaining a used boat varies depending on its type, the initial condition, usage and so on. Major areas of expense under this category include expensive bottom paint for protection when in water, engine tune-ups, oil changes, replacement of sail etc. Maintenance costs can be brought down to a good extent if you are willing to take up a part or whole of the repair and upkeep tasks yourself.

# 4 - Insurance

Boat insurances tend to be far more complex than regular ones and hence it is important to get your used boat insured with a company that specializes in them. Insurance for powerboats tend to be on the higher side, with a lot of variation in premiums from company to company as high as 200%. However on the brighter side, insurance companies that specialize in boats do offer some form of discount depending on your skills and equipment. Some offer discounts for diesel engine boats ( Nautible.com/FAQ ) while others offer the same if you have a built-in fire extinguisher or navigation panel.

# 5 - Dockage

Docking or mooring is important for proper upkeep of your boat. With a higher number of pleasure boats and shrinking marine space, it is likely that you incur higher costs in docking your boat at one of these places. This aspect too needs to be factored in when planning your budget. A slightly less expensive alternative to marinas is to park your boat at a boat yard between sails by paying a nominal seasonal fee.

In buying a used power boat, it is important to factor in the above mentioned costs, along with the actual cost of the boat into your budget, so that you are in for no surprises at the time of sale.