Boat Financing Basics
Written by First Boat Staff Writers
So you are ready to buy your first boat. You have visited boat shows, talked to some boat dealers, decided on the style of the boat you want; maybe you have taken safety classes or even chosen the specific make and model to buy. It is time to see if you could afford the boat, how much your monthly payments will be, how much you’ll need to put down, and what the ramifications will be on the rest of your life.
Somewhere in the land between the Jupiter of house mortgages and the Mercury of a car loan, is the wide world of boat loans. There are many advantages to getting a boat loan over other types of financing. Like a car loan, you can be approved quickly and easily for a boat loan if you qualify. Unlike a car loan, you can spread your boat loan payments over several years. That’s right; with a nominal down payment, you can stretch a boat loan over seven, ten, or even fifteen years. With low interest rates, a term of that length can make a seventy thousand dollar boat more affordable than you think.
There are some details to look into before choosing a loan provider. Many banks or credit corporations require that you borrow a minimum amount for boat loans. Depending on the institution, this amount can be as much as fifteen or twenty thousand dollars. The good news is that you may have to consider buying a bigger boat in order to take advantage of the terms of a boat loan!