Boat Financing – Calculator, loan rates, Bad credit
How long can you finance a boat? This is a common question asked by people who want to go into boat financing. Financing a boat can take as long as ten to fifteen years. The interest rate charged on financing a boat actually depends on the size, length, type, and model of the boat.
READ: Finance definition
Financing a boat can be for a set of reasons which may include fishing, sports, and recreational activities or just for sailing. There are a lot of institutions that provide money for the financing of a boat but most lenders are a part of the NATIONAL MARINE LENDERS ASSOCIATION.
According to them, the average length for the financing of a boat is for about ten to fifteen years.
Calculator, loan rates, Bad credit
- Check your financial status. You should know how much your net income is. Get your financial details together, the money owed, money at hand and the ones that have been saved. You should know how much you are earning daily and how well you have access to your budget because when involving in boat financing, it requires making down payments, . You should also know that you will care for the boat which is the maintenance cost, insurance on the boats and tax would be paid on the boat. Are you financially stable to cover the cost of boat financing?
- Reason for financing the boat. As much as boat is more accessible, what are other reasons do you have to want to finance a boat? Is the boat for sporting, recreation or for just sailing or you wanted to lease it out to any borrower and make use of the money used in financing the boat itself? Most buyers use the boat itself as collateral from the marine financing company so that the boat will be able to be used for funds generation for itself to be used in financing it. Financing a boat can be quite easy as the dealer makes it a point of duty by forming a partnership with the specialist in finances that can guide and provide loan for the buyer in buying the boat. They can make financing the boat much easier for the buyer as you then do not need to pay tax on the boat or any necessary marine assessments because they have added all of these types of charges to the loan amount.
- Compare the available offers. The down payments and interest rate is different from one lender to the other. For example, there are some lenders who would charge as much as 17% for terms that are up to 13 years while others would charge a down payment of as much as 17% for 15 years. It is preferable to make a down payment about 17% for the terms up to 15 years. You should be able to get lenders that have down payments structured in favour of your financial status and also the amounts corresponding to the best boat the money could buy. You do not need to worry about the best boat your money can buy, the dealer can do that for you as he is the one selling them.
- Consider the length of the loan. Determine how long you intend to have the boat for to know every penalty and charge on it if they are in support of your financial status. You should identify if you will be able to settle the debt before the end of the terms of timeframe to be financing the boat.
- You should get all documents required to purchase the boat. Prepare all the documents that were needed for the loan process, get your financial status statement and the credit report with the tax reports as these documents would be required to show seriousness concerning buying the boat from the dealer. Be very precise and make sure you have a pre-approval letter from the lender.
- Get the lowest possible finance that you will be able to pay monthly
- Personally, I would prefer fixed interest rate over variable interest rate. The risk involve in fixed interest rate is very low as the interest rate do not change till the end of agreement date unlike variable interest rate that changes with time and the lender ends up increasing the interest rate.
- Get the manufacturer statement of origin to get the boat registered and insured
- Pay every necessary bills and fees like tax and try to get familiar with the state lending laws.