Analyze the costs before you buy a boat

Owning a boat costs much more over time than the actual purchase and the fuel to run the boat. There are two types of costs associated with owning a boat: one-time costs like the actual purchase, titling and outfitting of the boat and ongoing costs like fuel, insurance, maintenance and docking.

When you purchase a boat, the first decision is to buy new or used. Used boats obviously cost less but may have fewer features and more wear than a new boat. Additionally, new boats often come with warranties. Buying a boat is similar to buying a car and shopping around for the best deal and the best financing can save you a lot of money up front. If you're buying a new boat, dealers often charge a "commissioning" fee to cover the installation of any special equipment, tuning the engine and other post-purchase items. You will also have to pay sales tax and some states have a personal property tax that must be paid on boats over a certain size.

Most boat owners a responsible about budgeting for the initial purchase and outfitting of their boats, but underestimate the ongoing costs, which are the bulk of the costs of owning a boat. Insurance is the most important of these costs and the most complex. Getting quotes from several companies will ensure you get the best rate. Also, agents that specialize in boat insurance will be able to help you understand any language specific to boats that you may not be familiar with.

Dockage is another ongoing cost, unless you are lucky enough to own waterfront property. Slip fees vary by size and amenities offered. For example, in San Diego a slip with water and electricity for a 32-foot boat costs around $300 per month. Many boat owners also do not realize that if they want to tie up at a different marina or dock than their own that there may be a docking fee.

Maintenance is such a persistent ongoing cost that it has become almost a joke among boat owners. Before you purchase your boat, you should study the owner's manual and the manufacturer's website to get an accurate idea of yearly maintenance costs. Maintenance costs include more than just engine maintenance. Consider the costs of replacing sun-faded fabric, hull painting and sail replacement as well.

Finally, you need to estimate gas costs. Many a novice boat owner has been tripped up by assuming that gasoline costs the same at a marina as it does at the gas station. However, gas costs are marinas are significantly higher than at the gas pump. Visit a few marinas to get a sense of what boat gas actually costs.

Using a european lease to buy a boat

If there is a single concept which has revolutionized the car industry in recent years, it is the idea of leasing a vehicle rather than owning it. Nowhere has this been seen more dramatically than in the business sector where leasing is now the standard for car ownership.

Leasing for boats has been available in Europe for several years, but it is a purchasing option that is little understood by the boating community in general, and particularly in the UK, despite the fact that it can offer significant VAT advantages whether the vessel is used for private or commercial use. The two most popular schemes are those used in Italy and France.

At the time of their introduction, both countries were suffering a decline in yacht manufacturing. In an effort to halt this decline, both governments introduced incentives for yacht owners to buy their vessels under leasing schemes, which provided significant VAT reductions. In addition, the schemes were based on the concept that the larger the vessel then the greater the saving, thus encouraging owners to buy larger boats.

The growth of yacht manufacturing in the Italian market in recent years has been spectacular, with a proportionate increase in leasing which was up 32% in Q1 of 2005, and now represents nearly 6% of all yacht financing.

Before explaining the details of these schemes, it is important to understand some of the concepts behind them, which should help to clarify some of the relevant issues.

Firstly, in simple terms, a lease involves a bank or finance house, buying the asset and then effectively renting it back to the client for an agreed period at an agreed price. This is defined as a transfer of services. At the end of the lease, the client has the option to buy the asset which then becomes a transfer of goods. For VAT purposes a yacht lease is a supply of services and is deemed to take place where the person who makes the supply is established: i.e. French bank in France, Italian bank in Italy etc.

Secondly, they are simple to set up and administer and can be in individual, joint, or company names. Finally, it is important to understand that there can be two VAT elements, namely the VAT on the purchase price and the VAT on the leasing repayments.

If we take the Italian scheme as an example, the Italian law states that VAT has to be applied to leasing repayments, only in relation to the time spent within EU waters. Given that it is impossible to determine this accurately, the Italian Revenue Agency (along with the French & Maltese) has agreed that an assumed period can be applied to a leasing contract, based on certain criteria. Under the Italian scheme this is a combination of vessel type and size, so for a motor vessel over 24 metres in length, a rate of 6% VAT applies (30% of the standard Italian VAT rate of 20%)

In other words it has been assumed that a vessel of this size (24 metres plus) would spend 30% of its time in EU waters (ie the European summer for example) and outside EU waters for the remainder of the year (the Caribbean for example) The table below shows the various rates which have been agreed under the Italian leasing scheme:

Motor or sailing over 24 metres in length VAT: 6%

Sailing between 20.01 - 24m VAT: 8%

Motor between 16.01 - 24m VAT: 8%

Sailing between 10.01 - 20m VAT: 10%

Motor between 12.01 - 16m VAT: 10%

Sailing up to 10m VAT: 12%

Motor between 7.51 -12m VAT: 12%

Motor up to 7.5m VAT: 18%

Category D (protected waters only) VAT: 20%

The French leasing scheme is very similar and is based on the same principles of assumed time in EU waters. Their categories are based on the Class of vessel as shown in the Certificate of Registry. The French VAT base rate is 19.6%, and the minimum payable under the French system is 9.8% for a Class 1 vessel (50% of 19.6%)

The most recent country to introduce a leasing incentive is Malta, and with a lower VAT base rate of 18%, their rates vary from a minimum of 5.4% to a maximum of 18%.

Having covered the basic principles of what a leasing scheme is, and how it works, we can now consider the mechanics of acquiring a vessel using a European lease as follows:

Example - Individual Purchase Of A New Boat From UK Broker/ Manufacturer

1.The client chooses the boat and agrees a price with the dealer/broker or manufacturer. 2.The client agrees a deposit and lease period with the bank. 3.The bank pays for the boat. 4.The boat is leased to the client who pays installments at the reduced rate depending on the scheme, vessel type and size. 5.At the end of the contract the bank sell the yacht to the client at the agreed 1% residual value. Full rate VAT applies to this payment as this is a transfer of goods. 6.The boat is now VAT paid.

The above example is for an individual (or group of individuals) purchasing a boat using a European leasing scheme. In two cases it is possible to have a VAT free lease as follows:

• A charter business buying a vessel which is used 100% for chartering in EU waters.

• An individual buying a vessel for use 100% outside EU waters

Detailed below are some of the main features of the leasing schemes:

• Leasing facility available from 300,000 euros ( no maximum )

• Initial deposit between 20% and 50%

• Lease maturity from 3 to 8 years

• Residual value 1%

• Available for both private and company ownership

• Available for both new and used boats

• Registration in virtually any country and any flag

• UK flag is available under the scheme

• Chartering is permitted within the lease agreement

As a specialist marine financial services broker, we are receiving an increasing number of enquiries from both the UK and Europe to arrange leasing schemes with our European banking partners. The schemes are straightforward to arrange and administer, and can offer significant savings in VAT. As a company we also offer a wide variety of more conventional marine mortgages as we believe that whilst leasing offers many advantages, this may not be appropriate for all our clients.

Motorboat insurance

Motorboat insurance is a specific sort of boat insurance intended for owners of motorboats. It safeguards against destruction, burglary, fire, and additional hazards.

Coverage for motorboat insurance usually includes physical damage, property damage, fuel spill liability, towing, personal effects, medical payments, ski coverage, watercraft liability, and uninsured boaters.

Motorboats are the most popular among boat owners. But they also have the highest accident rates. Over time, motorboats have become more complicated, and therefore more costly. Reductions for motorboat insurance may be available if a person has a new boat or is an experienced operator.

Policies for motorboat insurance may have a number of necessities and limitations in regard to hull value, lay-ups, where and when a motorboat can be operated, and the age of a motorboat.

Boating protection should be taken seriously. The greater precaution one takes while operating a boat, the less prone an individual will be to a mishap.

Motorboats offer their owners fun and excitement. But before one begins to embark on water adventures, one should make certain to have proper motorboat insurance.

By and large, motorboat insurance covers objects such as anchors, batteries, bilge pumps, boat covers, deck chairs, depth finders, PFD's, lights, emergency devices such as EPIRBs, fire extinguishers, fuel tanks, boat furniture, generators, horns, life preservers, masts, mooring equipment, motors, engines, oars, refrigerators, seats, solar panels, stoves, ovens, tarps and trailers.

However, some of the following items are generally not covered, which include cameras or video equipment, clothing, jewelry, watches, as well as other personal items like cellular phones.

How to buy a boat

How to Buy a Boat Tactics for ensuring a successful purchase. You've spotted the boat of your dreams at a boatshow, boat shop, fishing show(or was it in your neighbor's driveway?) and you're ready to buy. Before you plunk down a sizeable amount of change, there are a number of factors you should consider. First, you'll need to determine the type of boating you will be doing. This may seem an obvious starting point, but you'd be surprised how many buyers purchase a boat that doesn't fit their needs. The type of water you will be boating on and the climate are other important considerations. Small, sheltered bodies of water don't require a boat with as much freeboard and deadrise as those used on larger bodies of water where you will encounter bigger waves and rougher conditions. In a colder climate, the boating season is relatively short. To prolong it you may want a boat that offers more protection from the elements. In warmer climates an open boat with a Bimini top for shade may be the better choice.

Buy a New Boat or Used

(How to Buy a Boat|fishing|Boat Shop) Once you have determined the type of boat that suits your needs, the next decision is whether to buy it new or used. A used boat will cost less than a new one and often comes better equipped, but there may be added expense in repairs and upgrades. A used boat also has a proven performance and reliability track record that can be researched. On the other hand, a new boat comes with a full warranty. However, new boats depreciate the moment they leave the showroom floor. Buying new may be viewed as less of a risk to financial institutions, so terms, interest rate and down payment requirements may be better. If you decide to go with a new boat, boat shows are a prime shopping ground. Side-by-side comparisons permit you to evaluate several competing models at one location. You can also look for "Boat Show Specials" and negotiate deals between competing manufacturers. However, consideration should be given to the dealer you buy from. If he is located hundreds of miles away from where you live or if does not have a service shop, these "specials" may not be such a bargain. One good tip when shopping for new boats is to do it at the end of the model year. Typically toward the end of July dealers are trying to clear out old inventory. Another good tip is to search out the previous model year's leftovers once the new models have arrived. If you opt to purchase a used boat, your shopping can be done by browsing classified ads found in newspapers, magazines and on numerous websites, including boats.com. Many dealerships also offer used boats that have been taken as trade-ins. A dealership may offer a limited warranty on the used boat and has likely serviced it to some extent in readying it for resale. But because the dealer is a third party and has overhead, including sales commissions, the price is generally higher than what you would pay the owner directly.

Research First for boat shop

Once you have found a used boat that interests you, it is wise to call the U.S. Coast Guard at (800) 368-5647 and ask for information about manufacturers' recalls for that particular model. If a recall has been issued, ask the owner if the repair has been performed. If not, find out if the period of recall is still in effect. One important tip is to check the seller's proof of ownership. If the price is a "steal," the boat may very well be stolen. So check the necessary documents, and if they can't be produced, beware. Once you pass that hurdle, it's time to inspect the boat. A primary concern on a used power boat is its engine. A boat engine has to work much harder than its automotive counterpart, so pay special attention to its condition. If you are not mechanically astute, it is best to have a mechanical technician check the engine before you commit to a sale. This is especially critical if the boat has been used in salt water, which is much more corrosive than fresh water. But even a cursory check of the following items will provide some clue as to the engine's health. Visit a Boat Show Visit a local boat show. Take a look at all available options and board as many boats as you can. Discuss your wants and needs with dealers and experts at the boat show; they will answer any questions you may have about specific boat types and help you choose the one that will fit your needs and desires.

For a list of boat and sportsshows in your area, please visit our Boat Show Calendar Visit a Dealer If you're in the market for a boat, boat dealers are a great resource. Purchasing a boat from a dealer offers a number of advantages, including:

• access to multiple finance sources and/or special manufacturer and dealer finance programs

• year-round service departments

• extended warranty programs

• manufacturer and dealer incentive programs We also recommend buying from Marine Industry Certified dealers.

Learn more about certified dealers in you area Rent a Boat Renting is a great way to compare boat types and models before deciding which boat to buy. Boat rentals come in a variety of forms, from hourly and daily rentals to weeks-long charters. Rental operations may not offer a wide range of boat models, but they can provide a range of boat types for you to try. Rental fleets tend toward basic models, nevertheless, they can give you and your family a sample of the boating fun waiting for you on the water, and they are a great way to get your feet wet. Learn more about boat renting optons that will best fit your needs

Sail boat insurance basics

When it comes to insuring things those we own against loss or damage we tend to want the very best. After all, we worked hard to get what we have and we all want to make sure that we keep it and if loss or damage does occur then we want a way to replace it. Sailboats are no exception to this rule. As one of the more expensive toys we can own, Sailboats need to be insured just like we would our cars and our homes.

The major difference between boat insurance and car insurance is the amount of coverage a policy provides. This variation is simplistic in nature but can be very difficult if one does not know the very basis of the issue. The basis of sailboat insurance is the different things that can be covered by the different policies and individual companies. Of course all of this varies by the type of boat and the company and location of the boat but that is for another time.

The first thing to remember is the coverage that applies to your sailboat should always apply to the persons on the boat as well. This is called medical coverage and it works to protect you and anyone on the boat in case of an accident or sinking. The insurance company so that yourself and people with you will have their medical expenses pays this for if an accident occurs. The amount of medical coverage does have a maximum and once that amount is met then the insurance company is no longer liable for further expenses incurred. Most often the amount of coverage is more than enough to cover the medical bills, but there are some extreme cases where it far exceeds the insurance company payments.

Next you should look to cover the equipment on the sailboat itself. Car insurance does not have this feature but under sail boat insurance you can choose equipment that will be covered in case of loss or damage. For a sailboat this is most often the sails, anchors, riggings and on board electronics used for navigation. The reasoning behind this type of coverage is the fact that all of these things are necessary for the boat to be properly operated. So, in order to keep your boat in working order than you will need to make sure that those items are covered against loss. Theft from boats is a crime that grows every year so be sure to protect yourself from thieves.

Finally you should consider the liability to the people around you when choosing an insurance policy for your sailboat. If an accident occurs and it is determined to be your fault then you are liable for damages to the other person’s craft and their medical expenses if any. Liability insurance offers coverage for those situations to keep you from having huge expenses.

Charter boat insurance

Maritime law broadly defines the responsibility of charterboat operator as being responsible for all damages resulting from “negligence”. This all-encompassing definition leaves the operator exposed to the possibility of costly and endless court cases.

This why the value of selecting a charterboat insurance policy which protects your legal rights, property and that ensures damages to your boat are reimbursed, can not be underestimated.

How can you identify which components should be in your policy? First, identify all your business activities and the risks involved in operating your charterboat business. This information will help you decide the types of components, the range, and amount of coverage needed.

Hull and Machinery Clause

This refers to the coverage of the vessel, and all its’ parts. Its’ main purpose is to quickly get your business and boat operational after accidents. If you afford to pick a policy, which covers the following damages your charterboat, can sustain:

· Combustion, sinking or collision of your boat.
· Deck machinery, boat engines, and electronics.
· Coverage for an engine that breaks.

However, the following are not included in the hull and machinery component: Damage to your engine due to inappropriate use or neglect, wear due to every day use of the boat or reimbursements because your engine broke down.

Protection and Indemnity (P&I) Clauses

These clauses enable you to pay passengers and other people who could have suffered personal injuries or property damage caused by your vessel.

The basic clauses you should consider are the following:

Coverage limit

How much is your business worth? A wise agent will tell you, the best coverage limit is one that you can get. It does make sense since marine P&I policy covers you on a per incident basis, not for each person.

Shore excursion

If your insurance policy doesn’t have this clause, your passengers are not insured once they get off your boat.

Crew coverage

You must pay coverage for each crewmember, or you will be liable for the uninsured crewmembers’ injuries in the performance of their duties.

Passenger medical payments

A good clause to have, for you’re protected from irate passengers who even if they have suffered minor injuries, will file for big damages.

Personal effects

The loss of clothes, fishing equipment or cameras might seem a minor inconvenience, but not to the passenger who suffered the loss. This clause ensures that you are properly covered and your passenger’s leave happy.

However, talk to your agent so that you know what items are covered in the personal effects clause and if these are appropriate to include.

Remember, the right charterboat insurance policy for you is one that insures both your boat and charterboat business.

Cheap boat insurance

One of the absolute pleasures that an individual can attain is by possessing his own boat. Cheap boat insurance reflects that the cost of boat insurance is relatively low, but at the same time it grants substantial damage coverage against any mishaps which might damage the boat.

This coverage is extensive, and offers coverage for the boat, its equipment and supplementary gear, outboard motors, boat trailer and individual assets. A cheap boat insurance policy offers physical destruction coverage on an actual cash value or an agreed amount value foundation. Together, boat insurance policies tender vital coverage for the boat, but there are major disparities.

Actual cash value policies finance replacement costs, minus depreciation at the point of the loss. In the event of total damage, second-hand boat pricing directions and additional funds are used to decide the estimated market rate of the boat. Partial damage costs are calculated by getting the entire charges of the restoration, minus the deductible.

Agreed amount value policies mean that the owner of the boat and the insurance company have decided on the cost of the boat, and in the aftermath of a total loss the owner will be compensated with that amount.

Agreed amount value policies also replace old objects with new ones, exclusive of any assumption for depreciation. The majority of agreed amount value policies necessitate actual cash value on specific destroyed assets like sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units or outdrives.

Cheap boat insurance is an affordable way to shield an asset that might have cost a person his life’s saving.

Make Sure You Insure Your Boat

Boating is a recreation enjoyed by many and most people purchase boats for other recreations such as fishing or just lounging around the lake on a hot summer day; however, the recreation of boating is not immediately fun and games. You must also take responsibility for your boat and protect yourself and others, by purchasing an insurance policy for your boat.

Insurance companies vary when it come to the kinds of coverage they offer with their difference types of insurance policies, whether you are purchasing an insurance policy for your car or your boat. Because of these variations, shopping for an insurance policy for anything can be a very confusing process. When it comes to boats, though, there are four basic coverage options you should consider when you start browsing and shopping for the different insurance policies available for your boat, regardless of the variations,

Look for an insurance company that offers you an insurance policy for your boat that –

• Covers property damages to your boat. Maybe your boat becomes vandalized and covered in graffiti. Maybe your mast gets struck by lightening. Make sure your boat’s insurance policy covers these repairs.

• Provides liability coverage in the event that your boat causes damage due to your negligent operation and/or ownership.

• Covers the medical costs of anyone injured on your boat, or because of your boat.

• Offers uninsured coverage in the even that you, your passengers, and/or your boat sustain damages from another boat that is not insured.

Remember, just because you use your boat for recreation and enjoyment does not mean that accidents will not happen. Whether your boat provides family recreation or a personal getaway, make sure to purchase an insurance policy for your boat that will cover all four of the above situations before you hit the water; that way, you can enjoy yourself knowing you and your boat are protected after you set sail.

Boat Insurance

One of the supreme delights that a person can obtain is by possessing his own boat. It takes us to the past when adventure on the high seas was a real experience and man was the complete ruler of his dominion as a commander of his ship.

At present there are few places where a common man can be master and leader of his own fate, but a boat is one of them. But possessing a boat is not without peril or cost. Boat insurance is necessary for shielding such an expensive asset.

The two chief aspects of boat insurance are legal responsibility, or security and insurance; and property loss. In some respects, they are managed the same way as automobile or home policies.

When an individual insures his boat for liability, it guards an individual against harm to another person's assets brought about by the boat. It also has provisions for lawful protection, in case one is charged for something that is protected under the boat insurance.

However, there are certain delicate differences from an automobile policy when it comes to loss and damage insurance. The characteristic coverage for loss is either "actual cash value" (ACV), or "agreed upon" value.

Boat insurance, which is “agreed upon” for worth, has a money amount printed in the policy, which is the sum, compensated for complete loss. Limited damages are restored at "for new" prices, implying that there is no reduction imposed, apart from high wear matter like sails, and some machinery. This is the extra-costly alternative to cover a boat.

An authentic cash value policy indicates that if a boat is a complete loss, one will obtain the existing market price, not including the deductible, and suitable reduction for the age and state of the boat during loss.

Boat insurance provides detailed information on Boat Insurance, Cheap Boat Insurance, Motor Boat Insurance, Boat Insurance Online and more. Boat Insurance is affiliated with Trip Cancellation Insurance.

Boat Insurance and Insurance Consultant

Buying a boat is related to its purpose. You can buy a fishing boat, high speed ski boat. It depends on your choice and spending power. You want to enjoy a trip with the boat with your family. You should not forget to take the boat insurance as it is necessary and important both. Once you take the boat insurance, you hedged yourself against the unknown risk and your investment is protected. Insurance broker may sell you dream but during the emergency you will left alone. Hence understand the total risk and take adequate insurance coverage. Boat owners like you need to follow some simple rules so that you can properly judge all the recommendations made by insurance consultant.

It is necessary for you to know the basics of boat insurance and do little homework. You can Google in the net to find out more on boat insurance, insurance consultants and related quotes. Abundant information is available in the net.

It is utmost necessary to check the reputation of insurance broker. Check with other boat owners on insurance policy and insurance consultant. Please request for testimonial from insurance broker. A good broker is difficult to find. However, an honest insurance broker always sees your interest first. He can guide you in selection of a proper policy. You need help from insurance broker to identify cost efficient and effective boat insurance.

Try to find a boat insurance agent with a good reputation of getting the best possible policies for his clients and a good record in claim settlement.

Some broker might insist you to take boat insurance and home owner insurance together. This kind of insurance policy has several pitfalls regarding limit of coverage. Avoid this type of broker.

Do you have boat insurance

Sailing off into the blue yonder, has the salutary effect of blowing cares and stresses away with the winds. However, before you sail away in your new boat, consider the merits of these questions. Do you have boat insurance? Moreover, are your insurance needs fully met?

Marine insurance defines vessels according certain measurements. A boat is defined as one measured between 16 feet and 25 feet, 11 inches in length. If that’s the length and width of your seaworthy vessel, then you have a boat.

Here are the pertinent components your boat insurance policy should have:

Physical Damage Coverage

The insurer pays you for the repair or replacement of your boat, under the following circumstances: Theft, vandalism, lightning, fire, tornadoes, or hurricanes. Included in this coverage is the boat itself, outboard motors, engines, and your boat trailer.

Excluded from the coverage are the following items, which are not, considered a part of your boat’s operations: camera or video equipment, clothing, fashion accessories, or jewelries, food or beverages, cell phones, stereo equipment, portable television, personal computers or scuba gear. Alternatively, you can ask for separate coverage for these items.

Tip. Read the fine print and so that you know what restrictions could apply to your coverage. Can your boat be stored at your place of residence? Alternatively, should the boat be at your vacation spot? Where does the coverage begin? Some policies specifically limit the uses of your boat and list the exceptions.

Liability Coverage

You’ll find this coverage quite useful. You may also wish you‘d paid a bigger premium, when there’s an accident and your boat is liable for damaging another boat, property, or injury.

Uninsured Boat Coverage

This is the marine insurance equivalent of the road vehicle’s uninsured motorist coverage. In this case, your boat’s repairs are covered, in the event the owner of the property your boat collided with has expired insurance or worse, doesn’t have it.

Passenger Medical Coverage

This coverage pays for the medical expenses incurred by people on your boat. This is a must-have clause and the limit can be inexpensive, from $450.00 to $10,000.00, is quite common.

Towing & Assistance Coverage

With this coverage, you’ll get reimbursement for the costs you’ve incurred for availing of emergency services. Examples of these, your vessel breaks down, and a commercial outfit tows your vessel to the port, you’ve paid for delivery to replace your fuel, oil, or engine parts, or for someone to repair your engine.

The bottom line to all this? Be pro-active and arm yourself with knowledge, which among the different policies possible, your boat insurance should have.

Then, you’ll sail confidently into the sun, because your insurance policy will cover you where it’s most necessary.