Hidden Costs of Boat & Jet Ski Ownership to Budget For

Summary:

Owning a boat or jet ski comes with more than just your loan repayments, factoring in all ongoing and upfront costs is essential to staying financially alert.

• Insurance, registration, licensing, maintenance, and storage are all recurring expenses that quickly add up.
• Fuel, safety gear, accessories, and launch fees can significantly impact your total ownership budget.
• Researching other costs early, like insurance quotes and storage options, helps you budget smartly and avoid surprises.

The dream of owning a boat or jet ski is exciting. You’ve found the perfect one, and you’ve likely thought about how to finance it, but it’s important to remember that the loan isn’t the only cost involved. There are other expenses that come with owning a jet ski or boat, and knowing about these upfront costs can save you time and stress and, more importantly, keep your budget afloat.

Insurance: Your Safety Net on the Water

Like a car, your boat or jet ski needs insurance. For secured loans, where your boat or jet ski is used as collateral (also known as security), comprehensive insurance is usually a must-have and something most lenders will require if you are getting jet ski or boat financing. Having insurance protects you financially if your personal watercraft is damaged, stolen, or causes damage to someone else’s property.

The cost of insurance can vary based on the type of jet ski or boat you get, the value, where you live, and, specific to boating, your experience.

A smart tip is to get insurance quotes even before you buy so you know what your potential costs might be.

Registration and Licensing: Keeping it Legal

Think of these as the legal “tickets” for your personal watercraft. Boats and jet skis need to be registered, and this usually involves annual fees. You’ll also need to make sure you have the proper licence to operate your jet ski or boat. These are ongoing charges that happen yearly, so make sure to factor them into your budget.

The Queensland Government has helpful information on “Boat and Personal Watercraft Licences”.

Trailer: Don’t Overlook the Extra Gear

If you’re towing your boat or jet ski, you’ll also need to consider the trailer. A trailer requires its own registration and roadworthy checks in many regions, and you’ll need to budget for these ongoing fees. Beyond registration, trailers require proper maintenance to keep them safe and compliant; think tyre replacement, bearing lubrication, brake checks, and rust prevention.

Storage is another important consideration. Not everyone has enough space at home to store a trailer along with a boat or jet ski. You may need to pay for secure parking, a storage facility, or a dedicated area at a marina. Costs for trailer storage can vary widely depending on your location and the size of the trailer, so it’s important to factor this into your overall budget.

Maintenance and Servicing: Keeping Your Ride in Top Shape

Just like any vehicle, your boat and jet ski need regular care to stay running smoothly and safely. This includes routine servicing, like oil changes and engine checks, and general upkeep to prevent bigger problems down the line.

Some things to think about are winterising your boat if you live in a colder climate, cleaning the hull, and checking the electrical systems. Maintenance costs can quickly add up if you don’t properly manage them and are essential for the longevity and performance of your personal watercraft.

Storage: Where Will You Keep Your Jet Ski or Boat?

Not everyone has enough space to store their boat or jet ski at home. If you don’t have the space, you’ll need to budget for storage. This could mean paying for a mooring (which is securing your boat using anchors, chains, ropes, etc.) at a marina or a dedicated storage facility. Storage costs can vary widely depending on your location and the size of your personal watercraft, so take the time to research your options so you can properly budget.

Fuel: The Power of Your Adventures

The most obvious factor is being aware of fuel costs. The cost of fuel for your jet ski or boat can be significant, especially if you plan on using it often. Your fuel costs will vary depending on the distance taken and the type of engine it has. A helpful tip is to keep track of your usage to make it easier on yourself for estimating your continued fuel consumption.

Other Potential Costs:

Here are five more things you need to be aware of beyond your major costs for owning a jet ski or boat:

1. Safety Equipment: Life jackets, flares, first-aid kits, and other safety gear are crucial and often legally required.
2. Accessories: Ropes, fenders, anchors, covers, and cleaning supplies are all necessary items that add to your overall costs.
3. Launch Fees: Some public ramps or private marinas charge a fee each time you launch and retrieve your watercraft.
4. Depreciation: Like cars, your boat or jet ski will lose value over time. While not a direct “cost” you pay, it’s something to consider for future resale.
5. Transportation: Remember, if you don’t already have a trailer, you’ll need one to transport your boat or jet ski. Keep in mind that trailers also require registration, possible insurance, and ongoing maintenance to stay safe and roadworthy.

Ready to Turn Your Dream of Owning a Boat or Jet Ski into a Reality?

Now you’ve factored in all the costs, don’t let questions about financing hold you back. Our experienced lending specialist team is here to help navigate the complex process for you.

Apply now!

For a complete roadmap to securing your jet ski or boat finance, be sure to read our blog “Your Ultimate Guide to Financing Your Boat and Jet Ski”.