A boat is a watercraft smaller than a ship. It can be small or large as per the passenger-carrying capabilities. It is quite expensive for many reasons. These reasons include; the manufacturing cost, demand, labor costs, etc. are high these days for the boats.
Boat & Its Types
A Boat is the type of water transportation used for commercial purposes, traveling, or any other purpose.
The boats may be small or large, expensive or inexpensive, motorboats or sailboats. The main types of boats are as follows-
Human-Powered Boats– These are operated by human energy such as; rafts, gondolas, kayaks, etc. Sailboats– These are operated by sails. Motorboats– These are operated by a motor.
Elements Affecting the Total Costs for Boats
There might several elements that can make an impact on the total expenses of a boat. It can be huge demand & less supply, expensive labor, expensive raw materials, & production process. Some of the main reasons are as follows-
Huge demand for the boatsLess supply High manufacturing costs & Raw materialPower & Fuel costResearch & development cost for making BoatsFittings & Extra costsMaintenance costStorage costInsurance costRegistration cost, etc.
The above-mentioned may add up to the overall costs & makes the boat’s selling & maintenance price high & expensive.
Supply and Demand-
A boat is still a luxury for many. That’s why the boat manufacturers & sellers don’t produce it in large quantities like; Sunseeker, Fairline, Bayliner Princess, Beneteau, Azimut, and others. This increase in the overall demand for the boats & makes the prices high.
Manufacturing costs-
Another reason may be the high manufacturing cost for the boat. The assembling, the production, and the raw materials are quite more expensive than all like other vehicles. Transportation of boats to other countries is also expensive which adds up to the overall cost.
Power & Fuel-
Fuel & Power charges can also add up to the overall cost of the boat. The amount of Horse Power, diesel charges, electricity charges, etc. is high nowadays. To make the boat work more effectively & efficiently to operate & break-through water immediately. But maybe new designs may reduce these charges, as per EPA guidelines.
Size & Engines-
It also depends upon the sizes & engine type or the number of engines installed in a boatThe overall cost increased according to the size of the boat i. e. , small boats are less expensive & large boats are more expensiveSame as; if a boat has a greater number of engines, then the boat is expensive.
Boats Require Special Materials
Boats required some special & expensive material as well. This special material may be expensive & can’t be easily available which makes them rare as well.
These materials also increase the overall price of boats. These are as follows-
Aluminum– Aluminum is quite cheap but the type of aluminum used in boat making is expensive. Wood– The type of wood used in boat making is expensive & rare. Like; balsa, oak, teak, marine plywood, etc. are expensive & rarely available. Fiberglass– It is used to coat Aluminum & wood. It is expensive & makes the boats more expensive. Other– Marine carpet, specialty paint, a non-slip vinyl coating, etc. are also added on to the overall costs.
Conclusion-
Regardless of whether or not your boat is business funding or family luxury, it’s far going to cost you money. One should be carefully remembering all the prices of buying and proudly owning a boat so that you can choose one that completely suits your budget.
Question 1- What adds up to the Boat Building costs?
Answer- The material used, the cost of labor, the time invested, the engine type, the size, etc. things & costs add up to the overall cost of the boat & make it expensive.
Question 2- Is a boat a great investment?
Answer- Yes. Boat buying can be a great investment as the demand for the boat & considering it luxury is increasing which will increase its value in the future.
Question 3- Till How many years does a Boat retain its value?
Answer- If any person purchases a new boat, its value may be decreased or depreciated with passing years. It overall takes 07-10 years for depreciation.
Question 04- Is Boat considered an Asset?
Answer- Yes. If any person buys a boat for its business & using it to make a profit as well. It will be termed as an asset.
