Imagine yourself packing up the family or close friends for an adventure packed day on your boat. No matter if you love the open sea, enjoy the whine of a reel or just like the whip of the wind through your hair, the water is there, waiting for you and what better way is there to be close to the water than being on a boat. The average person may feel like boat ownership is for the wealthy. This is simply not true. The fact of the matter is that most new boats cost less than your average car.
Listed below are tools to help you set a budget and information on how and where to finance.
For some, the idea of financing is as about as much fun as mowing the grass when it is 100 degrees outside. But if you’re prepared and know the conditions, it can be smooth sailing. Lenders, such as banks, credit unions and even dealers, have learned that boat buyers are excellent loan clients. Why wouldn’t they be? Have you ever heard say “I don’t trust that boater!”? Boaters are a unique class. Deciding what kind of boat to buy is only one part of your buying process. Determining your budget, finding the type of loan you need, comparing rates and negotiating terms are equally important steps. Here are a few tidbits to consider as you begin the financing aspect of your boat purchase. See what type of financing is most suitable to your needs and financial situation.
Keep your down payment low. The down payment is based on the age, type and price of the boat you are buying, as well as your own credit profile. In today’s market, marine lenders offer financing with down payments typically in the 10%–20% range, but often there are programs available through various manufacturers that could allow you to qualify for less, or zero-down on new boat specials.
Faster credit decisions usually occur when working with professionals in the marine industry. These lenders understand boats and their buyers. You can apply for a loan this morning and be boating this afternoon. Longer financing terms – marine finance specialists recognize the value of a well-maintained boat, so terms generally will be more attractive than those offered by local banks and credit unions. Marine lenders extend longer terms on boat loans than local banks and credit unions, your monthly payments are likely to be much lower than you have expected.
Marine lending specialists will allow you to finance optional equipment, electronics, extended service plans and life/disability insurance coverage with your purchase.
By financing your boat purchase you can usually afford a newer, larger or more powerful boat and a better trailer.
If you’re in the market for a boat, boat dealers are a great resource. They have plenty of useful advice, can show you the latest technology and help you find financing tailored to your budget. Many dealers employ financial specialists, whose job is to help you with everything from completing a loan application to closing and licensing your new boat. Others rely on outside agencies to perform these tasks just as seamlessly, or they may refer you to a qualified marine broker.
Purchasing a boat from a dealer offers a number of advantages, including
Access to multiple finance sources and/or special manufacturer and dealer finance programs
Year-round service departments
Extended warranty programs
Manufacturer and dealer incentive programs
Most dealers offer special programs designed to make it easier for you to buy and pay for your boat. Be sure to ask your dealer about the availability of special finance options such as 90 days same as cash, low or no interest introductory rates, or incentive rates on specific boat models.
Why Finance with Dealer.” Boating Education: Buying Boats Through Dealer Financing. N.p., n.d. Web. 10 June 2012.
“WELCOMETO THE WATER.” Discover Boating. N.p., n.d. Web. 10 June 2012. http://www.discoverboating.com/getoffyourdock/>.