Renting versus Buying – Why Renting Is More Cost Effective
We seek to offer the most value to the casual boater in the Northeast who wants to enjoy being out on the water in the summer months, while avoiding all the downsides of owning a boat. Those who have owned a boat in the Northeast know that boat ownership comes with many fixed costs: Winter storage and summer dockage, insurance, regular maintenance and the unexpected, but always present repair costs.
If you are unfortunate, and need repair during the 6-8 boating months, the average cost of ownership goes up dramatically. Finally, there is the “hassle factor” of coordinating all these items along with chasing down the mechanic when the boat has a problem. Finally, there is the preparation and clean-up from a day on the water – it takes time and energy right when you want to go home.
Rental versus Purchase: Make Sure You Consider All the Costs
We used our own personal experience in calculating an estimated “fully loaded” cost of annual ownership for a 24’ center console similar to one of the boats in our fleet. The costs were as follows:
Summer Dockage: $1300
Winter Storage: $1300
Motor Prep and Tune up: $1000
Hauling and Launching: $600
The cost most people seem to forget when assessing the cost of boat ownership is the depreciation (as it is a sunk cost once the boat is purchased). The calculation for the 7 year-old boat in our example comes to an estimated $4300* a year, raising the overall fully loaded estimated annual cost to $9000.
For the same cost, an individual can rent the same premium Sea Ray almost 11 times during the premium weekend days. If you rent during the weekdays, you gain an extra 15% more rental time due to our discounts on Monday through Thursday, making the rental even more attractive.
Considering that there are only about 15 reliable boating weather weekends during the season, when you take into account everyone’s busy schedule and bad weather, the costs of renting and owning are much more aligned than most people realize. With renting, you have none of these direct costs, responsibilities or headaches!
* The average annual decline in the market value of the boat over 7 years of ownership.