Rent vs Buy a Boat - which is better?

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I am looking trying to figure out which one is better to own or buy a boat. I came across a calculator which allows me to customize all the costs associated with different scenarios and this is the results I got. Do they seem accurate? Here is the calculator's address in case anyone wants to try other scenarios: sailo.com/calculatorTwo scenarios for a 6years old boat priced at $50K.Boat price - $50,000Boat type - sailBoat length - 25’Boat year - 2010Financing terms - 6 yrs, 7% interest rate, 20% downLocation - New YorkDuration of ownership: 10 years 

  1. Scenario 1: Use it 20 days/yr and don’t charter it:

Result: Cost of ownership over 10 years - $170K (total cost to me)

  1. Scenario 2 - Use it 20 days per year and charter it out for another 20 days/year:

Charter price - $714/dayNr of days used/year: 20Number of days chartered/year: 20 Results:

  • Cost of ownership over 15 years for 20 days of use/yr: $418K
  • Charter profits for 20 days/yr: $152K
  • Offset ownership costs after chartering: $221K
  • Comparable renting price for the same boat over the same time period: $164K (total cost to me)

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Eh what?!  Was he the guy who posted about the terminal illness?

ZenNUTS (Sep. 07, 2016 @ 4:22p) |

i think you're like the 4th or 5th person to say that in this thread!

rufflesinc (Sep. 07, 2016 @ 4:23p) |

The two happiest days in a boat owners life are when he buys the boat, and when he sells the boat.

atikovi (Sep. 07, 2016 @ 4:30p) |

If it Flies, F#^&#^&'s, or Floats
 
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conventional wisdom: if you have to finance toys, you shouldn't be buying them.

So, boats are one of those things that if you live in a climate where you can only use it for three months out of the year... does it make sense to get into any situation where you are paying for it every month of the year?

If that is your case, would it be cheaper to just rent a boat for the period of use?

The old saying, if it flies, floats or fornicates, it's cheaper to rent...

mwa423 said:   The old saying, if it flies, floats or fornicates, it's cheaper to rent...
  I have always said, If it has wheels or a skirt, you cant afford it.



But to op's question.

The FatWallet Answer can and should be, neither, you should make friends with a sailor and just use his boat.



Personally I have owned a few sailboats and currently live aboard one on the east coast.  Rent VS buy is a huge decision with so many variables. I would really need a ton of additional information to give you an opinion. feel free to pm me.

Who pays $50k for a used 25 footer?
A friend of mine has a 29'. It's about the minimum I'd consider taking out to the Atlantic and sailing to the Caribbean.
His took 2nd in Chicago-Mackinac in the mid 1970s.
Cost him about as much as you're talking when he bought it in the 1990s, and now it's worth:

http://www.kijiji.ca/b-sailboat/ontario/northern-29/k0c328l9004 

mmagdabot said:   I am looking trying to figure out which one is better to own or buy a boat. ...
 

  I think owning is better than buying.

daviduthegreat said:   
mwa423 said:   The old saying, if it flies, floats or fornicates, it's cheaper to rent...
  I have always said, If it has wheels or a skirt, you cant afford it.



But to op's question.

The FatWallet Answer can and should be, neither, you should make friends with a sailor and just use his boat.



Personally I have owned a few sailboats and currently live aboard one on the east coast.  Rent VS buy is a huge decision with so many variables. I would really need a ton of additional information to give you an opinion. feel free to pm me.

  I've always fantasized about this. Renting a slip on the Hudson across from the city and living in a 30-40 footer... Would be awesome. However, I'd be wifeless (maybe not a bad thing). Then you can go South for the winter, and enjoy the trip.

svap said:   
mmagdabot said:   I am looking trying to figure out which one is better to own or buy a boat. ...
  I think owning is better than buying.

  Do you have a reason -- or just a general opinion?

a) You make friends with people who already have a boat.

b) After that, if you still want your own, start small. Something that you can pull on a trailer, store in your garage, and not pay for a slip.

c) After that, if you still think you want a bigger boat, then you will know if you want to buy or rent.

d) There is a great chance that after the first month of ownership, you will not be boating as much as you thought you were going to. At least, that is what I hear from people who own boats that we are friends with.

P.S. I am not sure if 25 foot sail boat is capable of sailing from NY to the Bahamas or Bermudas. Maybe in the hands of a skilled sailor, not someone who just got the boat.

svap said:   
mmagdabot said:   I am looking trying to figure out which one is better to own or buy a boat. ...
  I think owning is better than buying.

  this is true, I'd rather own a boat, if I can avoid buying it

blueiedgod said:   
P.S. I am not sure if 25 foot sail boat is capable of sailing from NY to the Bahamas or Bermudas. Maybe in the hands of a skilled sailor, not someone who just got the boat.

  
Most of what I've seen in the 27' and under range is more trailerable than seaworthy. Outboard motors, stepable masts, retractable keels.

The $6000 29' I linked have sturdy fixed masts and rigging, and lots of lead in the wing keel.
For a day sailor, the 25' would save some haul-out and storage costs, assuming the OP has a truck to tow it and a place to park it.

ryoung81 said:   
svap said:   
mmagdabot said:   I am looking trying to figure out which one is better to own or buy a boat. ...
  I think owning is better than buying.

  Do you have a reason -- or just a general opinion?

  Can't tell if serious....

taxmantoo said:   Who pays $50k for a used 25 footer?

 

  
I'm surprised anybody would pay $50k for NEW 25 footer...

25 foot is down in "trailer sailor" territory.
They are functional boats, but nowhere near as pricey, starting out, as even an additional 3 - 5 ft of length.

blueiedgod said:   

P.S. I am not sure if 25 foot sail boat is capable of sailing from NY to the Bahamas or Bermudas. Maybe in the hands of a skilled sailor, not someone who just got the boat.

  
The trailer-sailors in that size range have sufficient motor power to do it all under power.  (Bahamas from FL, that is, almost certainly NOT Bermuda)

Do you have any idea how much it costs to store a boat? I can't even imagine that cost in NYC.

Chargum85 said:   Do you have any idea how much it costs to store a boat? I can't even imagine that cost in NYC.
  Why do you have to store it? Can't you just drop anchor at sea and swim out to it?

It's always nicer to own your own boat vs. renting.  you become more familiar with its particular quirks and how to handle it best.

that being said, its a terrible financial decision if you only use it on weekends. not necessarily true for little boats, but i think the costs of storing/maintenance way outweigh rental costs.

Reminds me of the thread where that guy needed to get his financial situation in line but 'needed' his Jetski.

forbin4040 said:   Reminds me of the thread where that guy needed to get his financial situation in line but 'needed' his Jetski.
  How else is he going to get to his boat anchored at sea?

rufflesinc said:   
forbin4040 said:   Reminds me of the thread where that guy needed to get his financial situation in line but 'needed' his Jetski.
  How else is he going to get to his boat anchored at sea?

  The guy in question didn't have a boat...just a jetski (Used for fun)
https://www.fatwallet.com/forums/finance/1448888/

My first thought is that if you need to use a calculator to figure out maintenance costs, etc... you're not ready to own a boat. If you need to finance, you don't have the money to buy a boat. And if you're spending $50k for a 6 year old 25-footer, you're probably buying a fancy boat you won't know how to maintain and won't be able to afford maintaining. That being said, there are really fun 22-25 foot sailboats that probably do cost $50k for a 6 year old one, but they're racing boats and unless you know what you're doing, that will end in a disaster. I never quite felt comfortable in that class of boats even after several years of frequent sailing. You can definitely get a nice, trailerable 22-25 foot boat for under $10k (probably under $5k) if you don't mind an older, more basic model that's 90% of the fun and 10% of the cost.

If you haven't sailed much before, my suggestion is that you join a sailing club that lets you rent boats for day sails and overnight cruises. They're not terribly expensive - the commercial ones I've seen are around $3-4k/year with unlimited day sailing for boats up to 40 feet, though it may be more expensive in NY. Over 10 years, that will cost you $40k, much cheaper than any other option. Since you stay in the same club, you probably will use the same boats over and over - almost like owning your own boat, but knowing that there's only a fixed cost/year you need to pay.

Two happiest days in the life of a boat owner - the day you buy it, and the day you sell it.

I owned a boat when I was younger.  I used it a lot the first year, less the next year, and so on and so on.  By the time I sold it, the trailer tires had dry rotted and it hadn't been moved (or been in the water) in a couple of years.  I don't think I would buy one again unless I lived on the water and had it parked at the dock out back.

svap said:   
mmagdabot said:   I am looking trying to figure out which one is better to own or buy a boat. ...
  I think owning is better than buying.

 A friend of mine in NJ owns The Stugots, he agrees.
 

rufflesinc said:   Chargum85 said:   Do you have any idea how much it costs to store a boat? I can't even imagine that cost in NYC.
  Why do you have to store it? Can't you just drop anchor at sea and swim out to it?


Yeah just moor it off of West Side Highway. That'll go over well.

If it flies, floats, or f%#ks, you're better off renting.

B.O.A.T. Bust Out Another Thousand

rufflesinc said:   
svap said:   
mmagdabot said:   I am looking trying to figure out which one is better to own or buy a boat. ...
  I think owning is better than buying.

  this is true, I'd rather own a boat, if I can avoid buying it

  Ha,ha,ha this is so funny! I just noticed that. Good thing everyone around here actually understood what I meant, probably due to the subject line.

arch8ngel said:   
blueiedgod said:   

P.S. I am not sure if 25 foot sail boat is capable of sailing from NY to the Bahamas or Bermudas. Maybe in the hands of a skilled sailor, not someone who just got the boat.

  
The trailer-sailors in that size range have sufficient motor power to do it all under power.  (Bahamas from FL, that is, almost certainly NOT Bermuda)

  

I think OP is in NY. Bermuda is closer to NY than Bahamas. 

I am sure someone who knows what they are doing will be able to get to either from either, but for someone who just bought a boat it may be a stretch. 

I remember burning through quarter tank of fuel on a 25 footer going from the boat slip in Canarsie to the base of the Brooklyn Bridge. Unlike cars, there are no gas stations along the way. So, if the tank is not big enough to get you to the Bermuda from NY, then you are going to be drifting at sea until someone spots you, or if you have the radio or satellite phone, you call for help. 

blueiedgod said:   
 
I remember burning through quarter tank of fuel on a 25 footer going from the boat slip in Canarsie to the base of the Brooklyn Bridge. Unlike cars, there are no gas stations along the way. So, if the tank is not big enough to get you to the Bermuda from NY, then you are going to be drifting at sea until someone spots you, or if you have the radio or satellite phone, you call for help. 

  bring a few gas containers?

blueiedgod said:   
arch8ngel said:   
blueiedgod said:   

P.S. I am not sure if 25 foot sail boat is capable of sailing from NY to the Bahamas or Bermudas. Maybe in the hands of a skilled sailor, not someone who just got the boat.

  
The trailer-sailors in that size range have sufficient motor power to do it all under power.  (Bahamas from FL, that is, almost certainly NOT Bermuda)

  

I think OP is in NY. Bermuda is closer to NY than Bahamas. 

 

  
The guys getting to the Bahamas in those launch from somewhere in FL, and drive the boat down.
(and even if he wanted to start from NY, he could motor down the coast on the intercoastal pretty much the entire voyage)


The reason I said Bahamas are do-able and Bermuda would be a much bigger challenge is more about the direct off-shore distance from the US.

You can sail to the Bahamas within a day, or that type of sailboat with an outboard can do it in half a day.
To get to Bermuda you are talking about a multi-day/night voyage, even under power.

Boat; a hole in the water that one pours money into.

blueiedgod said:    
So, if the tank is not big enough to get you to the Bermuda from NY, then you are going to be drifting at sea until someone spots you, or if you have the radio or satellite phone, you call for help. 

  I would hope a sailboat with empty gas tanks could do a little better than drifting at sea.

IMBoring25 said:   
blueiedgod said:    
So, if the tank is not big enough to get you to the Bermuda from NY, then you are going to be drifting at sea until someone spots you, or if you have the radio or satellite phone, you call for help. 

  I would hope a sailboat with empty gas tanks could do a little better than drifting at sea.

  
For most boaters the sails are just there to look pretty while the motor takes them where they are going.

My friend bought a boat a couple years ago, he kept saying how he'd bring everyone out. I think he took it out two or three times. He put a lot of money into maintenance/repairs. It has sat in his yard for a long time. Now he's trying to sell it.

I bought a inflatable raft and some life vests a few years back. Returned the raft. but the vests were past return period so I got some vests I never use, better than a boat I guess

IMBoring25 said:   
blueiedgod said:    
So, if the tank is not big enough to get you to the Bermuda from NY, then you are going to be drifting at sea until someone spots you, or if you have the radio or satellite phone, you call for help. 

  I would hope a sailboat with empty gas tanks could do a little better than drifting at sea.

  

Sails are only good if someone knows and has the manpower to operate them. 

There are also boat clubs which you can join, such as Care Free or Freedom. They are obviously geographically restricted, you are not going to be getting some high end yacht, and you have to deal with scheduling. However, they give you the benefits of being able to make half day reservations anytime you are on vacation wherever they have an office, you have access to different types of boats (YMMV on location), you do not have to deal with or pay for maintenance, slip/storage fees, insurance, or cleaning, and they also replace boats every few years. I'm not sure how you calculate cost of ownership (if you include gas costs) but for Care Free at least, it is around $52k for 15 years with unlimited use, $33k for weekend only use or half membership, or $28k if you split a full membership with someone else.  

Mistrial beat me to it.
OP you might be much better off with a boat share service like Sailtime. Sailtime link

Skipping 6 Messages...
The two happiest days in a boat owners life are when he buys the boat, and when he sells the boat.



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