Best Boat Loan Rates 2022

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Whether you are looking to get a credit card buy a car, truck, SUV or even finance a boat or RV, Seattle Credit Union has options for applying with a Social Security Number or an Individual Tax Identification Number . We offer the same great products with lower rates and fewer fees than you’ll find at most dealerships or banks regardless of how you apply. Let us help you finance your next major purchase. If you are ready to get started, talk to a friendly lending expert today by calling us at .

Frequently Asked Questions About Boat Loans

Still have questions about boat loans? Weve taken the most common questions readers are asking and provided some quick answers.

What Type of Loan is Best for a Boat?

Because boat loans are for recreational purposes and not an investment, debt consolidation or emergency expense a traditional structured loan, where the boat serves as collateral is the best.

Can You Get a 10-year Loan on a Boat?

Yes. While boat loans typically max out at 20 years, you can likely find multiple lenders who will give you a 10-year loan.

Can I Get Same-Day Boat Loan Approval and Funding?

Most lenders require multiple days for loan approval and funding, but some boat loan providers promise same-day credit approval and funding.

Can I Get a Boat Loan with Bad Credit?

While many lenders require strong credit scores, some offer boat loans to borrowers with challenged credit. Just dont expect to qualify for the competitive rates advertised on their site.

Do I Have to Finance my Boat Through the Dealer?

Dealers typically offer boat financing, but theyre not your only option. Review loan options from online lenders and your bank or credit union before making a final decision.

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The Bankrate Guide To Choosing The Best Boat Loan

Why trust Bankrate?

At Bankrate, our mission is to empower you to make smarter financial decisions. With over 40 years of experience comparing and surveying financial institutions, we are able to identify the most important details for our readers. Our award-winning editorial team follows guidelines to ensure content is not influenced by advertisers or partnerships, and our content is edited and reassessed frequently to ensure accuracy.

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Is It Easier To Finance A New Or Used Boat

Financing for new and used boats works pretty similar. Most lenders will use the same vetting process whether you are applying for a new or used boat loan. Of course, with a new boat, you may need to finance more money. With a boat being considered a luxury item, lenders typically want to see that borrowers have plenty of extra money. For used boat loans, there may be more restrictions for the loan. For example, lenders may require the boat is of a certain age and it will need to be within LTV values. Dealerships may be more likely to give out loans for used boats though if they are trying to get rid of them or need to have space for more inventory.

Banks and credit unions can also offer boat loans for new and used boats. However, they will likely go through the same vetting process as a dealership. Depending on your credit score though, you might only be offered high interest loans or small loans that wont be enough to pay for a new boat. This means you might only qualify for a boat loan that allows you to buy a used one.

Whether you are buying a new or used boat, make sure to shop around for lenders before deciding who to work with. Make sure you are getting the lowest interest rate possible and have a payment plan and loan terms that are easy for you to work with.

After I Apply For A Boat Loan Is There Anything That I Should Consider Before The Loan Is Funded

After you submit your boat loan application, it is best to hold off on any big purchases, if possible, until the loan is funded. There are a few things you should avoid during the loan process, including applying for new credit cards , do not max out existing credit cards, do not buy a new car or do a trade in. It is best to keep in touch with your loan officer to ensure you are taking the right steps to close the deal on time.

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How Can I Buy A Boat With No Money

If you can afford a monthly payment and storage and maintenance costs that may be associated with boat ownership, you may want to consider financing a boat. If you do not have cash for a down payment, you might qualify for a personal loan. A personal loan can provide the funds you need to buy a boat. However, if you are living on a tight budget with little extra cash, buying a boat may not be the best idea. Even if you can afford to buy the boat there are usually other costs involved with owning a boat.

What Should I Expect My Boat Loan Apr To Be

Boat loan APRs can vary depending on several factors. The APR is typically determined by your credit score, the size of your down payment, and the age of the boat, and the term of the loan. The higher the credit score, the larger the down payment, the new the boat, and the shorter term, the better the APR will be.

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What Do Lenders Look For In A Borrower

Making yourself a good candidate for lenders will go a long way in getting you low-cost financing for your big purchase.

• Steady source of income. You need to show you have enough regular income to afford monthly repayments after bills and debt obligations.
• Low debt-to-income ratio. Your current debts will also play a role. Lenders want to make sure you wont be overextending yourself and putting yourself at risk of default when you borrow a boat loan.
• Liquid assets. Lenders often want to see that you can still handle payments should your employment or income situation change drastically.
• Good to excellent credit. Lenders look for borrowers with good to excellent credit because it shows a history of paying your bills on time.
• Experienced boat owner. Experience with a boat isnt a must, but it may make a lender more confident. Having had a boat in the past means you likely know the ropes.

Where To Get A Boat Loan

Whether you opt for an unsecured personal loan or a secured boat loan, there are several types of institutions you can turn to for funding.

• Online lenders: Online lenders like Lightstream and Upgrade offer unsecured loans that work well for boat financing, as well as the financing of related equipment and upgrades for your boat. Rates and terms are very competitive, and online lenders let you complete the entire funding process without visiting a loan office.
• Credit unions also offer boat financing, and members can qualify for exceptional rates and terms. Examples of Credit unions that offer boat loans include Chevron Federal Credit Union and PenFed Credit Union.
• Traditional banks: Traditional banks like Chase and Citi also offer boat financing, as well as personal loans consumers can use for boat expenses.
• Boat dealers: If you buy a boat from a dealership, the company may have their own financing options available. Make sure to compare in-house boat financing with online loans and boat financing from traditional lenders.

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Best Boat Loan Rates For January 2023

Arrow Right

Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.

• Annual percentage rate: The interest rate percentage on the loan. Your rate will depend on individual factors like your credit score, income and debt-to-income ratio.
• Loan term: How long the loan lasts and, as a result, how long a borrower has to pay back a loan.
• Loan amount: The amount of money the loan is for.

Bankrate has also identified each boat lender highlighted as “best for” particular situations based on our research. Comparing these and other factors will help you find the right lender for you and determine if a boat loan is the right choice for your finances.

Can I Purchase A Yacht With Bad Credit

You can purchase a yacht with bad credit, but you probably wont qualify for yacht loans if you have bad credit. If your credit score is below 680, you may need to pay cash for the boat, work out an owner financing arrangement with the seller, or put down a large down payment. Other options may include taking out a personal loan, getting a loan from your credit union, or using yacht dealer financing. Some yacht loans may allow a qualified cosigner but the cosigner would have to meet the lenders criteria and agree to be responsible for the loan.

Keep in mind that some lenders wont work with you at all if your credit score is below 680, so it may be advantageous to raise your credit score first and then apply for a boat loan. The best interest rates and terms are reserved for the most credit-worthy borrowers. So, having a higher credit score will save you money over the term of the loan.

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What Is The Life Expectancy Of A Boat Engine

The life expectancy of a boat engine depends on a number of factors, including the type of engine, the quality of maintenance, and the operating conditions. In general, however, most boat engines will last for at least 1,000 hours before requiring major repairs or replacement. Some engines may last for much longer, while others may require more frequent maintenance. Ultimately, the best way to extend the life of a boat engine is to perform regular preventive maintenance and to avoid putting the engine under too much strain.

Why Does Trident Funding Not Offer Boat Loans For Less Than A 10

Trident Funding doesnt offer short-term boat loans. We know that those arent beneficial for our customers, and its goal is to find affordable financing for our customers so you can enjoy your boats and not be weighed down with payments you cant really afford. We have built a solid reputation in the industry over the past 30 years based on integrity, transparency, and really treating each and every customer with respect and fairness.

It doesnt do the lender or the customer any good if the borrower cant afford the monthly loan payment, and then the lender has to hire attorneys, and go through the process of repossessing the boat which is costly and time consuming for everyone involved.

So, to try to avoid all of that, Trident offers boat loan terms for 10, 15 and even 20 years. These longer boat loan terms spread the cost of the boat out over a longer time period meaning the monthly payments are lower and much more manageable.

Lets assume youre buying that same nice cabin cruiser you have had your eye on for awhile. You meet all of the qualifications, put down 20% and want to finance the remaining $96,000. A realistic rate may be around 6.24% which means your monthly boat loan payment is around $1,077 assuming you have a 10-year term. Now, if you want even more time to pay, a 20-year term may be available, and now your payment will be around $701 per month. Either of these numbers are way more affordable than the outrageous payment associated with the 3-year term.

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Pros And Cons Of Used Boats

Pros

• Used boats are cheaper to buy than new.

• Used boats are cheaper to insure than new.

• There is potentially a higher resale value because the depreciation is lower than a new boat.

Cons

• Used boats will require more maintenance and upkeep right out of the gate.

• Youll have to pay for a marine survey if you require a loan.

• You wont always know what youre getting.

Down Payments For Boat Loans

Like with auto loans, you should be prepared to make a down payment .

You may be able to find an online lender offering boat loans with $0 down, but in general, offering a down payment affords you better monthly payments and sometimes even lower interest rates.

With your down payment at the ready, you can browse for the best boat loans and apply for a set loan amount and repayment term when youve found the best lender for you. Interest rates will vary and depend on the strength of your credit history.

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Repayment Terms For Boat Loans

As you can see from our list of the best boat loans, repayment terms can vary widely. Most lenders cap typical boat loan terms at 20 years, though Trident Funding is willing to go up to 25 years with a larger down payment. The key here is that these are secured boat loans. A secured boat loan means you have offered collateral .

If you get an unsecured boat loan , you wont need to put up any collateral, but repayment terms will be much shorter. You can expect repayment terms akin to the typical installment loan.

Check out our step-by-step guide to getting a personal loan for a move, a remodel or to pay off medical bills.

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What Is The Annual Cost Of Owning A Boat

For many people, owning a boat is the ultimate summertime escape. Whether its cruising around the lake, fishing for dinner, or just enjoying the sun and fresh air, theres nothing quite like spending a day on the water. However, before you take the plunge and buy a boat, its important to understand the annual cost of ownership. In addition to the purchase price of the boat itself, there are a number of ongoing expenses to consider, including gas, maintenance, storage, and insurance. The average annual cost of owning a boat is around $4300 or $438 per month. While the exact cost will vary depending on the size and type of boat, as well as your personal circumstances, its safe to say that owning a boat is not a cheap proposition. But for those who love spending time on the water, the cost is well worth it.

How Much Boat Can I Afford

The amount of boat that you can afford depends on a number of factors. It will depend on your income, your credit score, and your liabilities. You may qualify for a million dollar boat solely based on your income, but when you factor in your monthly expenses, that number may change drastically.

The lender will take a look at your overall financial profile including your debt-to-income ratio to ensure that you can afford to purchase the boat and keep up with the monthly payments. You can check out a boat loan calculator to get an idea of how much boat you can afford. The calculator is a great place to start when youre boat shopping, but dont forget about additional expenses such as boat insurance, marina fees, and ongoing maintenance costs.

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Best Marine Lending Specialist: Trident Funding

Trident Funding

Our choice for the best marine lending specialist is Trident Funding because they offer competitive rates, specialize in custom marine financing, and have been in business since 1996.

Trident has worked with over 40 banks and lenders so you can rate shop to offer the most competitive rates and terms which vary based on the type of vessel, down payment amount, loan type, and borrower qualifications.

They offer fixed- and variable-rate loans and both short- and long-term boat loans up to 25 years. Typically, they approve loans within 48 hours and a down payment of 10 to 20% is standard. They finance new and used boats that are no older than 25 years and only used for recreational purposes.

Trident Funding has positive customer service reviews and a solid industry reputation. Customers raved about the excellent service, timely responses, and marine industry knowledge.

Trident Funding was founded in 1996 by boat enthusiasts for boat enthusiasts with the goal of connecting borrowers to lenders so they can finance their passion. It is the U.S.s largest independently owned boat and yacht loan origination company. Trident also finances RVs and provides marine resources and tips on its website.

• Dont finance boats more than 25 years old

• Dont finance live-aboard vessels

• You usually need a down payment