What to Expect During the Boat Buying Process
Published on Feb 21, 2025
You’ve found the perfect boat—now what? Whether your purchase is a small, used fishing boat or a glorified house on the water, understanding the purchasing process is crucial. To ensure a smooth transaction and prevent the deal from going through, we’ve compiled an easy-to-follow guide for buying your first (or next!) boat.
Here’s what to expect when you’re ready to finalize the deal.
Keep Your Finances Afloat with a Budget
Yes, we touched on this in our Ultimate Boat Buying Guide, but it’s worth revisiting just to be safe. Before you finalize your boat purchase, take a moment to ensure your budget is still in line. The initial purchase price is just one part of the cost—closing fees, registration, taxes, and additional expenses can add up quickly. If you haven’t figured these in yet, consider:
Insurance, which can be paid monthly or yearly, but is often required, especially if there is a lien on the boat. Cost varies based on boat type and value, so be sure to run the numbers one last time.
Storage & Slip Fees, especially in areas like Michigan where the boat will not be in the water year-round. Many marinas and storage facilities charge monthly or seasonal rates, so be sure to shop around for the best price and consider year-round needs.
Maintenance, to ensure that your boat stays functioning well, as well as repairs, which are often unexpected and can be costly.
Fuel & Registration, which are ongoing costs that should be accounted for.
Accessories & Safety Gear, like life jackets, GPS, depth finders, and other electronics to keep your passengers safe and comfortable.
Budget Saver Bonus Tip: If your budget feels stretched, consider looking at a model from the previous year, a boat that is a step down from your favorite, or purchasing a pre-owned boat. Used boats often come at a fraction of the price, but be sure to inspect them thoroughly to avoid hidden maintenance costs.
Understanding The Boat Buying Process
With your budget in line and dream boat on the hook, it’s time to land the deal. Whether this is your first boat purchase or fifth, it’s important to understand the process to make sure that your boating dreams don’t get sunk.
Here are the necessary steps to ensure sunny days ahead:
Land Your Catch with Financing
Unless you’re paying in full upfront, you’ll need to arrange financing. Many banks, credit unions, and marine lenders, like Gull Lake Marine, offer boat loans with different interest rates and terms with over 50 different Michigan-based lenders. Depending on the amount and collateral, boat loans can range from 5 years (similar to a car payment) up to 20 years (more like a mortgage!).
Get a Boat Loan Preapproval
If you haven’t already gotten one, a preapproval will not only help you estimate the amount you’re comfortable spending but also help give you stronger negotiating power. After getting pre-approved, you’ll solidify the approval by providing the boat details (also referred to as the collateral of the loan) to ensure the approval still stands.
Commit to a Down Payment
Many lenders require a down payment of 10-20% of the boat’s purchase price, depending on your credit score, the collateral, and other factors. If you cannot afford the amount of the down payment required, you may be advised to look at a different boat or add a co-signer to your loan.
Learn Your Boat Documentation and Registration Requirements
Each state has specific laws regarding boat registration and documentation, so be sure to check the requirements for where you live, or where you’ll travel to. If you’re buying privately without the help of a dealer, before completing your purchase, make sure you:
Ensure the boat has a clean title with no outstanding liens, or you won’t be able to transfer it to your name.
Check with your state’s Department of Motor Vehicles or boating agency for necessary paperwork. Gull Lake Marine helps you by working with the registration of your boat and trailer.
Obtain a Bill of Sale, which includes the purchase price, boat details, and both buyer and seller information.
Mini-Guide to Michigan Watercraft Laws
Here in the Great Lake State, titles are only required for watercraft that are 20 feet or longer, have an inboard motor (regardless of length), or can simply be titled at the owner’s request, such as to add a lienholder to the title for loan purposes.
While titles are not required for most watercraft, registration is a different story. Registration is required for all watercraft in Michigan, except:
Watercraft that are 16 feet or less do not have a motor and are not used for rental or commercial use.
Nonmotorized canoes, kayaks, rafts, surfboards, and swim floats, regardless of length, as long as they are not used for rental or commercial purposes.
Watercraft registered in another state traveling to and operating temporarily in Michigan.
Registration can be completed at a Michigan Secretary of State office with your license or ID and proof of ownership, such as the Bill of Sale, Watercraft title, or previous registration. Most dealers will take care of the registration paperwork for you, saving you time and frustration.
Negotiate Final Price and Bonuses
Even if you’ve agreed on a sales price, there’s still room to negotiate or add in some extra value. Consider requesting upgrades like; electronic systems, extended warranties, winter storage or summer slip locations, maintenance, or safety equipment.
Dealers may also offer programs, like our signature PLUS Program, which was created to take the stress out of boat ownership. Perfect for new boat owners, our PLUS program provides essential services like boat transportation, dockside service, and first scheduled maintenance free of charge as a thank you for choosing Gull Lake Marine, saving you money and frustration in the first months of ownership.
What to Do Before Taking Possession of Your New Boat
In most cases, you won’t take possession of the boat the moment you sign the paperwork, unless it is a private party purchase. Even then, you’ll want to ensure these next steps are covered before taking possession of your boat, even if it’s not in the water yet.
Arrange Insurance Coverage
You might wonder, “Do I need insurance coverage on my boat if it’s not in the water yet?” The answer is yes. Once in your possession, you become liable for any damages to the boat even if it isn’t in the water. Imagine buying your brand new boat, getting it hooked up to your hitch, and pulling out of the drive… only to get caught up in a low-hanging tree. Even out of the water, accidents can happen and you’ll want to ensure your new purchase is protected.
That being said, before you can legally take your new boat out on the water, you’ll definitely need an insurance policy in place. Shop around for the best rates and coverage options, and if you’re in Michigan, consider:
Physical Damage Coverage, which protects against accidental loss or damage to the boat, motor(s), and attached equipment.
Liability Insurance, which covers legal obligations in case of bodily injury or property damage caused by your boat.
Types of Policies, with the choice of an agreed value, actual cash value, or replacement cost policy, which determines how losses are covered.
Seasonal Coverage Considerations, as some policies charge higher premiums during peak boating months or require specific storage conditions in the off-season.
Before finalizing your purchase, consult with a licensed insurance agent to find the right coverage for your boat, ensuring you’re protected year-round.
Finalize Paperwork
Once financing, registration, and insurance are set, it’s time to finalize the sale and take delivery of your boat.
Here’s how:
Review all documents, and be sure to double-check amounts, collateral, and any other identifying information.
After you ensure all terms and conditions are clear, sign the Purchase Agreement.
Make and keep copies of the title, registration, and insurance policy in a safe place.
Inspect the boat to confirm it matches your agreement.
Celebrate– you’re a boat owner!
Taking Possession of Your Boat
Depending on the type of boat, you may need to arrange for delivery of the vessel to your desired location. Many dealers are more than happy to accommodate your needs, but private party sales may be trickier. Be sure to double check laws in your area regarding towing and trailers to avoid a costly ticket or mistake. If delivery is an option, make sure all expectations are clear, such as outlining the day, time, location, and delivery process.
Prepare for the Open Water
Once the paperwork is complete, you’re ready to hit the water! If you haven’t already, you may want to take a boating safety course, familiarize yourself with local regulations, and equip your boat with necessary safety gear. Check the laws in your area to be sure you are complying with all rules and regulations.
Ready to Make On-the-Water Memories?
Now that you know what to expect during the boat buying process, you’re better prepared to make an informed decision. No matter what type of boat you’re buying, Gull Lake Marine is here to help you navigate the journey from start to finish.
With locations in Grand Rapids, Richland, and South Haven, a Gull Lake Marine location is always nearby! Backed by over a century of marine expertise, each location offers a curated selection of best-in-class boats, experts ready to guide your journey, flexible purchasing, rental, and service options and an unwavering commitment to putting you on the water.
Ready to make your dream of boat ownership a reality? Contact Gull Marine today!
