How to Buy a Boat: A Practical Boat Buying Guide

My first advice when buying a boat is to keep your head. In my experience, it is very easy to get excited about a boat that looks “almost just what I’m looking for” and then allow your excitement to get in the way of looking too closely. Remember, even if you purchase a boat straight from the factory as a new boat, there will be issues to deal with immediately. The list of problems, costs, and expenses only gets longer as the boat ages. Deep breaths. There are lots of boats out there, and this is a real boat buyers’ guide—a collection of boat-buying tips and steps to buying a boat that will help you through the process. A fundamental first step is to ensure that your partner is on board and part of the process. I have seen people get very enthusiastic about boats. The partner is emotionally supportive, and the boat is purchased. But after the first few outings, the novelty fades, and the partner becomes less enthusiastic—and less present – and less happy. This becomes especially true once the marina fees, storage costs, and repairs start rolling in. If you are in a serious relationship, involving your partner in the decision to become a boater—and boat shopping for the right craft—from the start is essential for making boating fun. Now that everyone is on board, what type of boat are you looking for? Do you have experience with this particular type of boat? Perhaps you’ve done some research by reading reviews or visiting forums. Do you know someone who owns one, or have you received a referral? While the aesthetics of the boat are important, there are several key factors to consider before making a purchase. Is the boat known for its quality, reliability, and ease of use? For example, some small cabin cruisers come equipped with a single stern drive engine, which can make them notoriously difficult to dock in windy conditions. Following sound boat-buying advice could have alerted you to this potential issue and helped you avoid a costly mistake, such as increasing the odds of damaging your vessel while docking. Speaking of docking, where will you keep the boat? Is there room at the local marina or yacht club? Is that location in a place you would like to be? What are their fees? Keep in mind that in temperate climates, these fees will involve hauling for the winter, pressure washing, possible shrink wrapping, and engine and systems winterizing. There’s also on-site storage, spring launching, and summer cradle storage. All these are important factors when it comes to costs, budget, and financing your boating lifestyle. Should you be looking for a new or used boat? Here is a piece of wisdom that those of us who have been involved in buying and selling boats know: The only deals you will ever get on a used boat involve a divorce or a death. The marriage ends, the assets have to be divided, and the boat ends up for sale, and they want it gone quickly. Or, a partner passed away; it was once part of their life, and now it is just a reminder that needs to be sold. In my experience, if you can’t find any widows or beaten-up, demoralized-looking people at the boatyard, the price of boats is usually set according to the following equation:

High demand = higher price (and vice versa).
More repairs required = a lower price.
Cost of repair work + lower price = price of a more expensive boat.

The question for you is: Do you want to save money now, do the required work over time, and spread out the expenses for better cash flow? Or are you willing to spend more upfront to save yourself the work later? No matter what, it will likely cost close to the same amount over time. If a boat isn’t costing you as much upfront as a car, it certainly will outstrip those expenses in the long term. In my opinion, the differences in performance between boats are much more significant than those with a car. And, even if it is just for ticking off expected boxes, we wouldn’t buy a car for the first time without a test drive. Once you decide on a style of boat—or even a specific boat—the best way to buy a boat is to take it for a trial, preferably with a friend or a surveyor (known as a “Sea Trial”) who knows boats well. Are you and your partner comfortable? Does the boat perform well? Is this boat ticking all the practical considerations boxes (such as storage space, sunshade, and overall comfort)? Get the boat surveyed! Although it isn’t unheard of to get this done on new boats, it is fundamental with a used boat. A pre-purchase survey is when a qualified marine surveyor inspects every aspect of the boat, looking for deficiencies. This includes the boat’s structure, systems, and equipment. The surveyor will then provide you with a detailed report that lists any deficiencies, classifying them by severity and urgency. This report is a valuable tool that can help you understand the condition of the boat and what repairs or maintenance may be needed in the future. Also See: what does a marine surveyor do When people ask me how much a pre-purchase survey costs, my answer is always “free.” Yes, this sounds very salesy, but it really is the truth. A buyer will usually present the seller with a list of deficiencies and negotiate the price accordingly. Almost without exception, the list of expenses far outweighs the cost of the survey. In every sense, this is truly money well spent. Speaking of costs… like anything else of value, a boat should be insured. Notice that I used the word “should.” Interestingly, in Ontario, we don’t legally need to have insurance. However, in my experience, all marinas, yacht clubs, and boat yards require that your boat is insured—typically with at least two million dollars in general liability insurance. But I recently heard that some marinas will be raising this to five million. There are lots of options for insurers in Ontario. My advice is to get three quotes. This can usually be accomplished in an afternoon. Pleasure Craft License or Registration? In Ontario, we need to have our boat licensed as a pleasure craft—but not necessarily registered. When you look out at a bunch of boats on the dock, you’ll see that the vast majority have a combination of letters and numbers on the bow. These are the pleasure craft license numbers. They usually start with ‘ON’ followed by seven numbers. If you’re buying a new boat, you’ll get this from Transport Canada. If you’re buying a used boat, you’ll have to arrange with Transport Canada to have the numbers transferred to you. The exact details of how to do this are outside the scope of this boat buyers guide, but trust me—the process is usually quick and, amazingly, free! I mention this just to put it on your radar. Unlike licensing, registration (for pleasure craft, at least) is optional and relatively unusual. First off, it currently costs $250.00 to have this done. There are a few advantages to getting the boat registered, but only you can decide if it is worth the time and extra money. If you’re going to do some global travelling, many foreign ports require proof of national registration for entry, and some countries may deny access to unregistered boats. Unlike a Pleasure Craft License, which has to be renewed every 10 years, registration is permanent. And the big seller—you are legally allowed to fly the Canadian Flag on a registered vessel. That being said, I’ve never seen the marine police pull over someone flying the flag and ask to see their registration. I have, however, seen them do donuts in the no-boats zone at the end of the Billy Bishop Airport runway—so you never know what’s going to happen. Buying a boat is a significant investment—both financially and emotionally. It’s easy to get swept up in the excitement, but patience, thorough research, and careful planning will ensure that you make a decision you won’t regret. Whether buying a boat for beginners or if you’re experienced with boat shopping, every boat will come with its own set of challenges and costs. The key to a successful process of buying a boat is knowing what you’re getting into. A sea trial, a proper survey, and open discussions with your partner about financing, insurance, registration, and ongoing expenses will set the foundation for a rewarding boating experience. At the end of the day, a well-informed decision—based on boat-buying advice, boat-buying tips, and a clear understanding of what to know before buying a boat—will lead to more time enjoying the water and less time dealing with unexpected headaches. Happy boating! Whether you are buying a boat for the first time or are a seasoned buyer, this boat buying guide is here to help you choose the right boat, understand the steps to buying a boat, and ultimately discover the best way to buy a boat that fits your needs, wants, and lifestyle.

Once you have narrowed your search, a pre-purchase survey and, where appropriate, a sea trial can help you make the decision with clearer information. Kiki Marine serves Toronto-area buyers across the Lake Ontario corridor.

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Kiki Marine provides pre-purchase and insurance boat surveys across Toronto and the GTA, including Oakville, Port Credit, Etobicoke, Toronto Harbour, Scarborough, Pickering, Ajax, and Whitby.

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Buying in the GTA? The Toronto Marine Survey page explains how a local pre-purchase or insurance survey can support the decision before closing.

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