So, you wanna go sailing or tearing through the water on a speedboat? Great! Who doesn’t? But, you aren’t sure if you can afford to purchase your own boat. Maybe you’ve already stumbled across the idea of financing a boat with a loan but aren’t exactly sure how it works or whether it’s a good idea.
Or, maybe this is the first time you’ve heard of such a thing. Either way, we’re here to give you all the important information regarding boat loans, how they work, and whether it’s a smart choice to get one. After speaking to boat finance professionals, below is the handy guide we have detailed for you.
Why get a boat loan?
Simply put: you want a boat but don’t have enough capital to buy one outright. We do this with many things like buying cars on finance, purchasing home goods on a credit card, or even buying a house with a mortgage. As Kerry, a maritime loan broker from www.seadreaminc.com said to us, “Finance and loans are everywhere, so why not get one for a boat?! They are regulated in the same way as any other loan and offer customers the chance to get out on the water sooner.” Here are a few of our top benefits of getting a boat loan.
1. Finally getting the dream boat
It’s fair to say that the most obvious and appealing benefit of purchasing a boat with a loan is the fact that you are actually getting a boat! A boat that you can take out whenever you want, to wherever you want. This is a dream of so many people, to finally achieve it will feel incredible. If financing is available and you’ve found the vessel of your dreams, it’s time to reach out to boat loan specialists today.
2. Purchase with confidence
When you purchase a boat with a loan, you will be dealing with both boating and financing professionals from start to finish. They will understand the vehicle as well as the financial dealings inside and out. Your purchase will be regulated by financial rules and laws so you can purchase with confidence knowing that you’re getting a great deal and safe service.
3. Long-term payment plans
Many marine loan companies offer great low-rate, long-term payment plans. This means your new - or old - boat could cost you just a small fee each month. When you see that small fee leave your bank every month you will feel like you’re getting an absolute bargain.
4. Bonuses and discounts
Buying a boat through a marine loan company - rather than bank or credit unions - could also come with a whole host of other benefits. For example, many of these loan companies are tied in with insurance companies, meaning cheaper insurance premiums. Other perks like free boat services may be thrown into your deal. These things can really bring down the long-term costs of owning a boat, so look out for good deals.
How does a loan work?
If you aren’t fully aware, let’s quickly explain how a finance loan like this works. It is very similar to car financing in the way it is set up. You will make an initial down-payment on the boat which will likely be somewhere between 5-20%. Then, the remaining balance will be paid over a set period of time at a set interest rate. For example, if you were purchasing a $10,000 boat with a $2,500 deposit and a 4% interest rate over 5 years, you’d only pay $150 per month for your boat, for a total cost of $11,500 including the initial deposit. Sounds like a smart deal to us.
What if I have bad credit?
Many of us have struggled with credit in the past or simply not purchased many items on credit over the years. This gives us a poor credit rating or credit score. Fear not, as many boat loan companies offer credit deals for those with bad credit. The interest rates may be slightly higher or you may be required to pay a bigger downpayment to start with, but you can definitely still purchase a boat. After all, everyone should be free to go out on the water!
So, in answer to the opening question, we think it’s a great idea to take out a loan for a boat. Not only will you get out to sea quicker, but you’ll also get great deals and pay only a small amount per month. Always remember to check that you are getting credit from a reliable source.