For some reason, boats get a bad rap. We’ve all heard the saying “the best day of a sailor’s life is when he sells his boat.” Growing up I believed only rich people had boats and thought they were a huge waste of money. Many personal finance experts also advise against buying a boat because they believe it’s a bad financial decision. 

I’ll admit that purchasing a boat isn’t the best choice if you buy a new one, especially if you finance it. But if you dream of owning a small boat so you can tool around your local lakes, there are ways to purchase one on the cheap. Here’s how my partner and I purchased a small boat for under $1,000 and reduced our ongoing maintenance costs to save money.

We Bought a Used Boat

Just like cars, boats are depreciating assets. If you purchase a new boat, you can expect it to lose 10% to 15% of its value in the first year of use. By the fifth year, your boat will likely be worth 30% less than what you bought it for. But if you purchase a used boat, you can take advantage of all that depreciation to get a nice vessel at a discount. 

My partner and I scoured Craigslist and Facebook Marketplace for months looking for a good deal on a boat. We finally found a small Alumacraft that came with a motor and a trailer for just $500. The motor needed a tuneup and the exterior of the boat and trailer needed some TLC. Because we were willing to fix up a diamond-in-the-rough boat, we were able to save a lot of money on the purchase price.

We Chose a Small Boat

To save money, we looked for small boats that would allow us to do most (but not all) of what we wanted. Instead of stretching our budget to get our dream boat that would allow us to cross the Great Lakes, we settled for a small aluminum boat. Our Alumacraft allows us to go trolling in most of the lakes in our area. We can even drive it along the coastline in the Great Lakes, we just can’t go too far offshore.

It’s better to start small and decide if you like boating before you go all out and purchase a more expensive boat like a yacht, sailboat, or motor boat. Don’t take on debt to buy a boat because it’s a nonessential purchase. Buy a boat that’s within your means and pay in cash. Don’t forget to factor in all the ongoing costs you’ll have as a boat owner such as maintenance, insurance, gas, and storage. 

One of the advantages of buying a small boat is that we can keep it in our shed during the winter, so we don’t have to pay for storage. We didn’t need to upgrade our car to tow our boat—our fuel-efficient hatchback has enough towing capacity to haul it. There are lots of public boat slips in our area, so we don’t have to pay for a spot to dock. Additionally, we save money on gas because our boat is light and has a small engine. It only costs about $30 to fill up the tank and enjoy a full day on the water. 

In Michigan, we’re not required to have boat insurance. But if you live in a state that mandates insurance, you’ll save money on premiums by purchasing a smaller, less expensive boat rather than a large one. 

Our Boat Helps Us Save Money

Not only does our boat have very few ongoing costs—it also helps us save money in other areas. Our boat enables us to catch more fish than we could from the shore, which lowers our grocery bill. Fish is one of the most expensive items in the grocery store, so being able to take it off our shopping list has saved us quite a bit of money.

Although we haven’t tried it, you can also rent out your boat to bring in some extra income. Websites like Boatsetter and GetMyBoat allow you to list your boat and set your own pricing and availability. These boat rental marketplaces give you the flexibility to earn money from your boat when you’re not using it to offset the costs of ownership.

Is Buying a Boat a Good Decision?

Overall, we feel like buying a boat was a good decision. So far we haven’t spent much on our boat besides the initial purchase price, some routine maintenance on the motor, and fuel costs. We’ve been able to catch more fish than we did from land and pressure can some of it to enjoy throughout the winter months. With the way fish prices have been increasing, our boat will probably save us more money than it costs to maintain in the coming years. We might even experiment with renting our boat out since we live in a tourist town surrounded by water.  

Do you think buying a boat is a bad financial choice? Why or why not? Share your thoughts on boat ownership in the comments section below! 

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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.