The mortgage no longer takes most of your paycheck. The stock market has been good. The kids are out of college.
And now you want a boat. A real boat: one you can sail on, sightsee from and sleep on.
Buying a sailboat should be fun; it’s a chance to let your fantasies run wild. But it’s also a time for careful attention to details to ensure the boat you buy is a boat you’ll like.
Shopping for a boat can be daunting, especially for a novice. Many boats may be appealing, but a boat that works well on one body of water may be unsuitable on another.
“You have to decide where and how you want to use the boat,” said Jerry Larsen, owner of Larsen Marine in Waukegan and past chairman of the National Boating Retailers Association. “Are you going to be boating on the river, the Chain O’Lakes or Lake Michigan? Is it for fishing or cruising or both? Do you want to sleep on it or just fish off it?”
A boat show is a good place to start, especially for the novice who may need to learn the difference between a bilge and a boathook. But the shows are mostly held in the winter.
“If you miss those, then talk to friends who are in boating to get guidance from them, and then visit some dealers,” Larsen said.
“Go to two or three dealerships until you find the person that you are most comfortable with. You can find a salesperson that has an interest in filling your needs rather than just selling you a boat,” Larsen said. “The salesperson should sit down with you and ask you questions like `How are you going to use the boat.’ “
“On a first purchase, I generally recommend that a person buy a used boat,” said Larsen. “Chances are that they are not going to have it for a long time before they decide that they want something different.”
Newspapers and boating magazines carry ads for used boats from private sellers and brokers. And many brokers now have Web sites. Larsen’s is www.larsenmarine.com and the site for Bruce Rosenzweig’s company, Sailboat Sales Co. on the South Side, is www.sailboatsalesco.com.
Like buying a home, you should look at a lot of boats, not just one or two. Used boats are listed at one price, but like real estate, you can make an offer for less.
Most brokers have the BUC Used Boat Price Guide, a national listing of prices paid for various models of used boats. This can give you a good idea of the value of the boat. If the broker you are dealing with will not let you see the BUC guide, this should raise a red flag.
“We act as a broker, like a real estate agent,” Larsen said. “You make a bid, and negotiate your best deal subject to a satisfactory marine survey.”
James Singer has been a marine surveyor for 11 years and specializes in recreational boats.
A surveyor examines the boat’s structural and operating systems. A deficiency in any component can make the vessel unsafe or at least diminish your enjoyment. A surveyor’s report also may reveal grounds for lowering your offer.
The checklist is long but a good survey will cover scores of items: Hull fittings, propeller shafts, rudders, the deck and superstructure, life lines, drains, hatches and latches, plumbing systems, water tank, marine toilet, sink and shower drains.
“You cut your best deal and make a down payment subject to a favorable marine survey and or sea trial,” Singer said. “The buyer can get out of the deal if it is an unfavorable survey or shortcomings can be corrected by the seller or a price adjustment is made,” Singer said.
The surveyor works for the buyer and is paid by him. Singer charges $9 per foot to survey a boat, plus 35 cents a mile to drive from his Highland Park office. For example a 35-foot boat surveyed in Waukegan will cost $322.80.
“I inspect (the boat) by systems–the hull, I sound it by tapping with a plastic hammer listening for a dull thud that might indicate delamination (of the fiberglass). I have two moisture meters to use on areas that might have moisture trapped (within the hull). This could indicate a potential structural problem,” Singer said.
“I dictate into a handheld tape recorder,” Singer said. “Plumbing, electrical, shore power, battery charger, the 12-volt systems, marine radio, radar. I check all of them to be sure they work. The steering system, engine, fuel system, mast and rigging if it is a sailboat, and the safety equipment.”
Singer’s report is typically 17 or 18 typewritten pages, with deficiencies or recommendations in three categories:
– Essential–things that have to be done for the structural integrity and seaworthiness of the vessel.
– Required–things the Coast Guard requires such as horns and safety equipment.
– Desirable–cosmetic things, such as polish, wax or paint.
The survey also includes an appraisal of the fair market value of the boat and is required by many lending institutions and insurance companies.
Not every financial institution makes loans for boats, but many do.
Like an automobile loan, the interest rate depends on the length and size of the loan and the amount of down payment.
Rosenzweig, of Sailboat Sales, , can refer customers to a lending broker who deals with several banks and knows the best rates.
“Some banks like to lend a lot of money, some a little money, some only do new-boat loans. The broker knows them all and can save a lot of time,” Rosenzweig said.
“We had a couple of fellows purchase a used sailboat, and I offered to suggest some financial institutions and they said, `No we’ll go to the First Chicago branch in our Dominick’s (grocery) store.’ They did, and in a few days they had a check,” Rosenzweig recalled.
There is one difference however between a boat and a car loan.
If the boat has cooking, sleeping and toilet facilities, you may be able to consider it a second home for tax purposes and deduct the interest.
The IRS won’t let you do that on a car loan, even if you practically live behind the wheel.
Once you have a good idea that the boat you want will soon be yours, get your insurance lined up, through your agent or agents who specialize in boat coverage. Your broker can recommend them.
So you own a boat. Now, you have to figure out where to dock it.
With the construction of new marinas on Lake Michigan from Michigan City to Racine, slips are abundant but can be pricey. Shop around.
A mooring can in Monroe Harbor in Chicago (312-747-0737) runs $840 for a 35-foot boat for Chicago residents. (If you don’t live in Chicago, add 25 percent.
Also add $120 for the tender service, the boat that shuttles you between the dock and your boat. That totals $1,170).
A walk-on slip at the North Point Marina in Winthrop Harbor (847-746-2845) with electric, water and private showers costs $1,750; the Hammond Marina (219-659-7678) offers a similar set up for $1,910.
A final thought, that perhaps should be your first if you are not an experienced boater: Enroll in a boating class.
Many are available for a minimal cost.
To find out the where and when, call 800-336-2628, 888-367-8777 or 847-296-8777.
