Buying a boat with friends may sound like an exciting venture. The thought of splitting costs and enjoying the water together sounds appealing. However, sharing a boat can quickly turn complicated without clear agreements and expectations. From splitting the costs to organizing schedules, there are many factors to consider.

Before purchasing a boat, it is important to approach the process with a detailed plan. Here is a guide to help you and your friends navigate the challenges of joint boat ownership.

Define Ownership Rights Clearly

When you and your friends decide to buy a boat together, defining ownership rights is one of the first things to address. Make sure you determine how ownership will be divided. If there are four of you, will each person own 25%, or will it be different based on how much each contributes? Clear ownership rights help avoid confusion when making decisions regarding the boat.

In addition to ownership percentages, you need to discuss the use of the boat. Will everyone have equal access? Or will certain days or times be set aside for specific individuals? Being open about expectations before buying the boat will set the tone for a smooth partnership.

Research and Test Drive Before the Boat Buy

Purchasing a boat should never be rushed. When buying a boat with friends, ensure that all parties are involved in the research process. Everyone should agree on the type of boat, model, and price range. If you have specific needs, such as a boat for fishing, water skiing, or relaxing, these preferences should be addressed in your discussions.

Testing the boat is an important step in the buying process. Before purchasing any boat, schedule a test drive to see how it handles on the water. The experience of driving the boat can highlight potential issues or ensure that the boat fits everyone’s needs. Pier 105 offers an excellent selection of boats for sale, allowing you and your friends to check out various options and test them before committing to a purchase.

Plan for the Costs Ahead

Owning a boat comes with many costs, and sharing them with friends can make things more manageable. However, it is important to address each financial responsibility ahead of time. This includes upfront costs, maintenance fees, insurance, storage, and fuel.

Upfront Costs

The initial cost of buying a boat is one of the largest expenses you will face. Decide how the payment will be divided. Will each person pay an equal share, or will there be a different distribution based on ownership percentages? This decision should be made before purchasing the boat.

Maintenance Costs

Ongoing maintenance is an unavoidable part of boat ownership. Regular servicing is necessary to keep the boat in good condition. Whether it is cleaning the hull, changing the oil, or checking the engine, these tasks should be shared among the owners. Discuss how maintenance costs will be split, and whether you will keep a separate fund for this purpose.

Insurance

Boat insurance is another significant cost that needs to be planned for. Before purchasing a boat, check the insurance requirements in your area. Depending on your location and the type of boat, insurance may be mandatory. Ensure that all owners are covered under the policy, and agree on how to split the cost of premiums.

Storage and Docking Fees

If you plan on storing the boat at a marina, you will also need to account for storage fees. Storage fees can add up, particularly during peak seasons. It is important to have a plan for storing the boat and to share the costs equitably among all owners.

Set a Schedule for Using the Boat

A major challenge of co-owning a boat is figuring out how to schedule time on the water. If you and your friends have different schedules or interests, determining when each person can use the boat may become an issue. It is a good idea to create a calendar or schedule that assigns specific days or weekends to each owner. If you plan to share the boat among four people, setting up a clear schedule will make things easier.

If you are the type of person who likes to take the boat out every weekend, you might need to come to an agreement with the others.

Handle Disputes and Issues

Conflict is inevitable when people share ownership of a valuable asset. Whether it is disagreements over usage, repair costs, or other issues, you need to plan how to handle disputes. Establish a process for resolving conflicts, such as seeking a third-party mediator or voting on major decisions.

While it is not pleasant to think about conflict before purchasing a boat, it is better to be prepared. Having a dispute resolution method in place helps prevent issues from escalating.

Plan for Selling or Exiting the Agreement

Life changes, and sometimes one or more of the boat owners may want to sell their share or exit the agreement. It is important to have a plan for how this will work if the situation arises. Will the remaining owners buy out the person who wants to leave? Or will the boat be sold, and the proceeds divided?

Make sure your boat-sharing agreement addresses this issue upfront. Doing so will prevent any potential conflicts if someone decides they no longer want to be part of the partnership.

Understand the Legal Aspects

Before signing any agreements, it is wise to consult with a lawyer or professional who can help you create a boat-sharing contract. This contract should include all of the terms you have discussed, such as ownership rights, costs, maintenance, storage, and dispute resolution. A legally binding contract will help protect everyone’s interests and clarify the responsibilities of each owner.

Boat Safety and Certification

Before taking your boat out on the water, you must ensure that everyone involved in the boat-sharing agreement is properly certified to operate the boat. Some states require boat safety courses, while others may have specific licensing requirements. Discuss the rules and regulations in your area, and make sure everyone understands their responsibilities as boat operators.

Make It Easy at Pier 105

Buying a boat with friends is an exciting experience when you have a clear plan. At Pier 105, we make the process easier by offering a wide range of boats for sale. Our showroom is a hassle-free place to find the perfect boat for your group.

You can explore different models, test them out, and get all the support you need from our team. We are committed to making your boat-buying journey as smooth as possible. Visit us today.