Boat Loan

This beautiful country brims with beautiful lakes, rivers, and even ocean… so it’s no wonder that it’s hard to resist purchasing a boat to enjoy all this beautiful water in! Over 68 million Americans currently own some form of water sport vehicle. Who can blame you for thinking of joining their ranks? Everyone loves boats. What they might not love quite so much is the money it takes to purchase one.

If you're out to buy a new boat for recreational purposes, you can anticipate paying at least $500 per foot, depending on the boat’s size, features and locale. To most people, this number represents a need for fast financing. Fortunately, there are boat loan options available.

A typicalboat loan is a simple interest loan of up to 15 years, with 10 percent down and no prepayment penalty. This is of course assuming that you have a pretty decent credit history. A bad credit rating means a higher interest rate, and a bigger down payment.

Boat loans are usually funded by marine lenders. Dealers will solicit your loan from a number of marine dealers, who will set your rate and terms. Because marine lenders are typically a centralized department in a major financial institution, your dealer probably has a better relationship with them than your own bank does. Thus, it’s probably wiser to go through your boat dealer.

Beware: buyers with less-than-perfect credit should expect a hard time getting a loan. Boat loans are more difficult to get than car loans.Another option is a home equity loan, in which the equity you own in your house serves as collateral for the loan. Other options include boat loans through your credit union (these might be easier to obtain) or simply using your credit card.

Many water enthusiasts unable to get a boat loan opt for leasing a boat instead. Many boat owners lease out boats in an attempt to cover their own costs. A popular type of boat leasing is called "timesharing" and allows the boat leaser to use the boat for a specified time period each year. While you don’t actually have any equity in the boat, you still get to enjoy it—and don’t have to foot the bills for moorage, maintenance or repairs.