What Does it Actually Cost to Own a Ranger Tug?

[Submariner]

I've had a lot of people ask me over the years what it actually costs to own one of these boats. Not estimates, not manufacturer numbers — what we actually spent.

I finally put it together. Six years of real ownership data on our R27 — fuel, moorage, insurance, maintenance, and upgrades broken down year by year. Includes our 2023 Alaska trip where we spent $12,000 on fuel alone. This covers 1,000 hours on the engine.

I put it in a free one-page guide and have made it available here in PDF format.

What Does It Really Cost to Own a Ranger Tug?

csurf.co

 

[Chimo]

An interesting read. One thought: When we lived in the USA many years ago we were able to deduct the interest on the boat loan from our income tax based on this being our ‘second home’. Is this still possible? If it is then it will be an offsetting reduction in cost.

 

[Submariner]

An interesting read. One thought: When we lived in the USA many years ago we were able to deduct the interest on the boat loan from our income tax based on this being our ‘second home’. Is this still possible? If it is then it will be an offsetting reduction in cost.

Depends on one's individual specific tax situation.

 

[Submariner]

I would also note, 6 years is a long overview of costs. Some years more expensive than others. Maintenance costs were drastically less for me in that I do my own work, I buy the OEM Yamaha parts online at a discount, and my marina doesn't charge for a haul out. I regret using Port of Everett covered moorage for as long as I did.

 

[Bob&Jilly]

I would also note, 6 years is a long overview of costs. Some years more expensive than others. Maintenance costs were drastically less for me in that I do my own work, I buy the OEM Yamaha parts online at a discount, and my marina doesn't charge for a haul out. I regret using Port of Everett covered moorage for as long as I did.

Why do you regret covered moorage?

 

[Submariner]

Why do you regret covered moorage?

Because it was $8k a year and that'd buy a lot of gas and pay for many of my upgrades. Dagmars was 1/2 the cost and haul outs were included at no extra cost. Though, the covered moorage was nice when I did my AGM conversion to LFP, as it was winter stilll, and rained a lot while I was working in the cockpit. Having the roof over my head was nice then.

 

[tlkenyon]

2015 R25sc w/ Volvo D3-150. Not counting the purchase price, after 1400 hours on the motor our cost is right at $17 per hour. That includes fuel, insurance, maintenance. Except for one year on the loop (marina costs not included) boat lives on a trailer in my yard, so no long-term moorage costs. Maintenance includes recent timing belt change along with all belts and hoses. No other big ticket maintenance costs. DIY oil changes.

 

[scross]

An interesting read. One thought: When we lived in the USA many years ago we were able to deduct the interest on the boat loan from our income tax based on this being our ‘second home’. Is this still possible? If it is then it will be an offsetting reduction in cost.

Chimo, yes. The federal tax codes still make it possible to deduct loan interest paid as a qualified second home if the boat, travel trailer or motorhome has a kitchen, bathroom and sleeping areas. In some states property tax and/or sales taxes on the boat can also be claimed. You need to be itemizing on Schedule A of course.
Our CPA in Oregon has been preparing our tax filings with the boat as qualified second home deduction for over a decade without issues. In our situation the federal and state income tax savings from the deduction cover our annual insurance premiums.

Key IRS Requirements for Boat Tax Deductions:

• "Second Home" Definition: The boat must have basic living accommodations: a sleeping space, toilet, and cooking facilities.
• Secured Loan: The boat must be security for the debt (e.g., a boat mortgage), and you must be legally responsible for the loan.
• One Second Home Limit: You can only claim one second home in addition to your primary residence for the interest deduction.
• Itemize Deductions: You must itemize your deductions on Form 1040, Schedule A.
• Rental Usage: If you rent out the boat, you must use it for personal purposes more than 14 days or 10% of the rental days to maintain the "second home" status.

Potential Deductions:

• Mortgage Interest: Deduct interest on up to $750,000 of combined, qualified, secured debt (primary home + boat).
• Property Taxes: While general personal property taxes are capped, certain state sales taxes on large purchases like boats may be deductible.

 

[Chimo]

Chimo, yes. The federal tax codes still make it possible to deduct loan interest paid as a qualified second home if the boat, travel trailer or motorhome has a kitchen, bathroom and sleeping areas. In some states property tax and/or sales taxes on the boat can also be claimed. You need to be itemizing on Schedule A of course.
Our CPA in Oregon has been preparing our tax filings with the boat as qualified second home deduction for over a decade without issues. In our situation the federal and state income tax savings from the deduction cover our annual insurance premiums.

Key IRS Requirements for Boat Tax Deductions:

• "Second Home" Definition: The boat must have basic living accommodations: a sleeping space, toilet, and cooking facilities.
• Secured Loan: The boat must be security for the debt (e.g., a boat mortgage), and you must be legally responsible for the loan.
• One Second Home Limit: You can only claim one second home in addition to your primary residence for the interest deduction.
• Itemize Deductions: You must itemize your deductions on Form 1040, Schedule A.
• Rental Usage: If you rent out the boat, you must use it for personal purposes more than 14 days or 10% of the rental days to maintain the "second home" status.

Potential Deductions:

• Mortgage Interest: Deduct interest on up to $750,000 of combined, qualified, secured debt (primary home + boat).
• Property Taxes: While general personal property taxes are capped, certain state sales taxes on large purchases like boats may be deductible.

That’s how I remember it . Thanks for laying it all out so clearly. I think it may be something about which some boat owners may not be aware.

I wish it were the same in Canada .

 

[gregc]

I keep a very detailed spreadsheet tracking yearly costs from fuel, insurance, moorage, upgrades, maintenance, etc.

Some of you have met my wife, please don't tell her the existence of this... it won't go well for me

 

[NorthernFocus]

There are a lot of variable that make it very difficult to advise someone on this topic. Registration and insurance rate vary widely by location, moorage/storage vs trailer stored boats, DIY vs professionally maintained, local fuel prices, etc. A good starting point is to assume 10% of the price of the boat annually. If someone balks at that it's probably not a good idea to own one.

 

[NorthernFocus]

One time I sat down and calculated the per pound cost of fish that we catch. Halibut sells locally for $20-24/lb. I figure what we catch costs about 10x that price 😕

 

[scross]

Another way to look at costs is cost per night on the boat. Sort of like comparing to a hotel room cost. For us, spending 40-45 nights a year on the boat, mostly in places with no hotels nearby, over the years it has worked out to roughly $200 a night. That’s counting ALL out-of-pocket costs except food cost and depreciation on the boat. Adding in depreciation pretty much doubles that cost per night number. I spend a fair amount of labor time on the boat (avg. about 80-100 hrs/year) to keep those costs down.
Also, we store 320 days a year on trailer ($600/year) and under 15 nights a year at marinas. Otherwise, I don’t even want to think of the total costs!

PS: For us, using the NorthernFocus method we are at 9-10% of the purchase price in total annual costs including depreciation.

 

[JeffreyAC77]

On our 2015 R31-cb, costs are roughly $6500 (slip), $1300 (fuel), $950 for insurance, $800 (parts for annual maintenance), $3000 (fix things), $750 (prorated bottom paint expense), $50 (prorated anodes expense), + ??? = $13,500 + ???. ???=food+guest moorage+registration+surprises. We keep our boat on Lake Union...saves $$$ on bottom paint and anodes. I'm sure I have forgotten something!

 

[Bob&Jilly]

I've had a lot of people ask me over the years what it actually costs to own one of these boats. Not estimates, not manufacturer numbers — what we actually spent.

I finally put it together. Six years of real ownership data on our R27 — fuel, moorage, insurance, maintenance, and upgrades broken down year by year. Includes our 2023 Alaska trip where we spent $12,000 on fuel alone. This covers 1,000 hours on the engine.

I put it in a free one-page guide and have made it available here in PDF format.

What Does It Really Cost to Own a Ranger Tug?

csurf.co

Hmmm, how do you consider the value of memories and absence of regrets?

 

[scross]

On our 2015 R31-cb, costs are roughly $6500 (slip), $1300 (fuel), $950 for insurance, $800 (parts for annual maintenance), $3000 (fix things), $750 (prorated bottom paint expense), $50 (prorated anodes expense), + ??? = $13,500 + ???. ???=food+guest moorage+registration+surprises. We keep our boat on Lake Union...saves $$$ on bottom paint and anodes. I'm sure I have forgotten something!

Don’t forget to add in either opportunity costs or finance costs to that total. Given opportunity cost of capital at 4% for MM/CD rates or 6% for financing (less 2% finance charge income tax savings) on a $200K boat that’s still adding $8K to the true cost of ownership.

 

[Mike and Sarah]

We look at the cost a bit different. Our cost is lower than 5 percent of boats value not counting depreciation. Our largest expense is fuel. We own our slip which appreciates in value plus I do my own maintenance. I figure the cost of depreciation is the cost of the priceless memories, year around, seafood meals, new places, wildlife viewing, Great times with friends new and old and the dreams of travel to new places to visit. As far as opportunity cost I would be spending the money on something else if we didn’t have a boat so for us that’s a moot point for me.

But for people considering buying a boat I believe 8-10 percent is a great number to use as annual cost. I am saddened when I see boats purchased and sold early due to ownership cost higher than owner could afford.

 

[JeffreyAC77]

Don’t forget to add in either opportunity costs or finance costs to that total. Given opportunity cost of capital at 4% for MM/CD rates or 6% for financing (less 2% finance charge income tax savings) on a $200K boat that’s still adding $8K to the true cost of ownership.

I view opportunity cost as something we all deal with living our lives (enjoying what we have as an expense we all should be happy dealing with). No finance expense in our case. Thanks for your input.

 

[CaspersCruiser]

I'll sum up this whole discussion simply: There is no rational reason to own a boat. Any monies expended on a boat should be disposable income. Don't spend money on a boat that is needed for a new roof for your primary residence. One must have a place to live; it is a basic necessity. A boat isn't a basic necessity.

However, if you enjoy the activities associated with a boat and you will use it, then commit disposable income to it. You can't take it with you.

 

[William Sanborn]

I'll sum up this whole discussion simply: There is no rational reason to own a boat. Any monies expended on a boat should be disposable income. Don't spend money on a boat that is needed for a new roof for your primary residence. One must have a place to live; it is a basic necessity. A boat isn't a basic necessity.

However, if you enjoy the activities associated with a boat and you will use it, then commit disposable income to it. You can't take it with you.

Well said. I have owned boats since the late 60's, and each has been more complicated so the cost have increased. I reported to the State that last year I used the boat 92 days, bought 290 gallons of Diesel fuel, on top of that Insurance is $680 per year, Yacht Club is around $600 per month including moorage, and a few dinners, and I just spent $2700. for bottom paint and prop work.
For us Boating is a life style, and our friendships are built around boating,
Bill