Financing Your Boat Purchase

No one will argue that buying a boat can be quite a hefty expenditure, but there are ways to mitigate the costs. In fact, most people can’t afford to buy a boat at the full sticker price up-front, which is why financing is so commonly utilized. Here are some things you’ll need to know when looking into financing your boat.

Loan Types

Boat loans are all installment loans, which means that you make a down payment up-front, followed by fixed monthly payments for a length of years. Interest rates vary a great deal, as do the repayment periods, which may be anywhere from two to 15 years. You have a few different options when it comes to financing your boat: secured loans and unsecured loans.

Secured loans require you to put up some form of collateral in case you default (quit paying) on the loan; typically, the collateral is the boat itself, which means it may be repossessed if you fail to pay. Unsecured loans do not require collateral, but they often have higher interest rates and you can’t borrow as much.

Credit Score

Your credit score directly impacts the type of loan you’ll be eligible for, along with the interest rate. It’s a good idea to do what you can to raise your credit score as much as possible before you buy a boat so that your finances are more appealing to lenders.

Sources

There are a few different sources for boat loans. Credit unions and banks are the two main places where you can secure a loan. Marine lending specialists can assist you with the process and act as brokers between you and a bank or other resource.

Ready to see boats for sale near you? Come to our dealership in Middle River, MD, to take a look at our wide stock of new and used boats for sale. Beacon Light Marina is proud to serve our Maryland customers throughout greater Baltimore.