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How Do Used Boat Loans Work

The Best Place To Get Online Boat Loans Is My Financing Usa

How does marine financing work for a boat loan?

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Best Boat Loans In : Finance Your Boat

Boat loans can be unsecured or secured by the boat. Compare financing options from online lenders, banks and credit unions.

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Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.

You can get a boat loan from a banks, credit union or online lender. The application process is typically fast, and approval is largely based on your credit score and ability to repay.

Before you jump in, consider that most financial experts don’t recommend personal loans for discretionary purposes, especially if you already carry credit card or other debt. If you take a personal loan, have a plan to pay it off.

Heres how to finance a boat with a personal loan including unsecured and secured loan options where to find boat loans and factors to consider before applying.

Setting sail on your own boat is a priceless experience. But unless youve saved a lot of cash, youll need a boat loan to make your dreams a reality.

Financing A Boat: How Do Boat Loans Work

For some people, nothing compares to the freedom of sailing the seas or the peace of fishing at your local lake. To enjoy this to the fullest, you must be looking for ways to fulfill your dreams of owning a boat because rarely do they come cheap.

Getting a loan to finance the boat of your dreams may seem straightforward. A boat is just another vehicle, so it should be just like getting an auto loan, right?

Well, there are some details that make boat loans different from regular vehicle loans. Were here to lay out all those fine details to help you understand how financing a boat works.

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Shouldnt I Just Go With The Lowest Rate For My Boat Loan

A low rate on a boat loan is certainly seductive, but it is not the only factor to consider when securing financing. A Boat loan specialist can help you consider the big picture and factors that might affect your cost over the life of the loan, such as how long you intend to keep the Boat, what the terms are, and if there are any prepayment penalties. An experienced Boat loan Representative will make sure you dont miss the small print!

Used Boats Vs New Boats

How Long Can You Finance A Boat Loan

Its not uncommon to see used boats being purchased out of a charter fleet and taken over for private use. But the question remains if its worth it?

A very interesting vlog on the subject is seen here below:

Since over 85 percent of the boats sold in the U.S. are pre-owned, its good that used boats can be financed too. It is however, more complicated and often more expensive to secure a loan for a used vessel. New boat loans may be originated, processed and closed in a week, which is much faster and easier than real estate loans.

Financing for pre-owned vessels takes longer. First, used boats need a survey or appraisal, which means a haul out and other costs. Sometimes a bank will require comparables in addition to the survey to assess a fair market value and comps can be hard to find on unique/older vessels. A title examination will be needed to make sure there are no outstanding liens. Some lenders may finance a yacht that is up to 20 or 30 years old.

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Loans For Boat Financing

Boat loans are available from online lenders, credit unions, and banks. Depending on the lender, your boat might act as collateral for the loan similar to how a car secures an auto loan. This also means that the lender could seize your boat if you cant keep up with your payments.

You might also be able to use an unsecured personal loan to purchase a boat. In this case, you wont have to provide collateral. However, an unsecured loan will likely come with higher interest rates compared to a secured boat loan.

Here are several lenders that offer boat loans. Each of them offers loans for new boats as well as refinancing. Note that LightStream is a Credible partner, while the other lenders are not.

First Tech Federal Credit Union Check with lender Models that are 10 years old or newer
* Credible partner lender

What Are Typical Boat Loan Terms

Most often, you can expect boat loan terms to include a repayment period of 15 to 20 years. Down payments may range from 10% to 30%, depending on the amount borrowed, and typically the boat is considered collateral for the loan. Boat loans often start out as low as $5,000 with some lenders offering financing up to $4 million.

Keep in mind that the terms involved with the average boat loan will vary based on a number of factors. These include whether the boat is new, used, or being refinanced how old the boat is how much you plan to borrow and whether the boat is for full- or part-time use.

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Here Are A Few Lenders That We Recommend Based On Your Situation:

Used boat under $15,000

Used boats from $17,000 to $30,000

Used boats from $30,000 to $55,000

Used boats over $55,000

P.S. When you’re ready, here are some additional resource that will be valuable for boat shoppers:You can continue your research with the over 100 additional videos, articles and podcasts on this site. Plus, you’ll want to check out 3 of our most popular resources below if you haven’t already.

1. Attend The US Boat Expo

What Is The Best Place To Get A Boat Loan

Financing a Boat and What Works Best

You have two options on how to search for a boat loan: in person at a boat dealership, or online.

If you’re looking to buy a loan from another individual also called a private party purchase searching for an online boat loan is likely your best bet. Online lenders will often allow borrowers to purchase boats from either a private individual or through a dealership. It’s a more flexible option that may open the possibilities to include more affordable, used boats.

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Boat Loans: Options Interest Rates And Lenders

If it sounds simple, well, thats because it is. Most new boats are purchased with a loan, so well-established procedures are in place. As for who to take out the loan from, youll have three basic options to choose from:

  • Arranging financing through your boat dealer This is usually the best bet. Boat dealers set up boat loans every day, so youll be working with someone who knows the ropes, has established relationships with lenders, and also wants to make the entire transaction happen as quickly and seamlessly as possible. They can usually help with some recommendations for setting up insurance, too.
  • Get a loan from your bank Some buyers who have a lot of equity in their home find it advantageous to take out a home equity loan or a second mortgage, either because they may get a lower interest rate or for tax purposes. Remember, however, that this will add some time and complexity to the transaction.
  • Take out a loan with a lender specializing in marine financing Since financing a boat is a bit different than financing other things, there are some lenders who specialize in it. In fact, theres even an organization, the National Marine Lenders Association, made up of lenders who are familiar with all the ins and outs of making boat loans.
  • Alternatives To Taking A Boat Loan

    If you cant afford to buy a boat today, or youre not quite ready to make the commitment, here are some alternatives.

    Save up for the purchase. Consider holding off and starting a savings plan toward buying a boat. You may be able to negotiate a cheaper price by paying with cash, and youll avoid paying interest on a loan.

    Join a boat club. For a one-time fee and ongoing monthly or annual dues, boat clubs provide access to a fleet of boats for their members and guests.

    Consider peer-to-peer rentals. Similar to renting a house on Airbnb, you can temporarily rent a boat through a peer-to-peer rental marketplace, such as Boatsetter or GetMyBoat.

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    Applying For A Boat Loan

    There are a few steps youll need to take in order to apply for a boat loan. These include:

    • Whether youre interested in a sailboat, motor boat, or houseboat, what boat you want to purchase will influence what type of loan you need from a lender.
    • Compare rates: When shopping for a loan, you should compare rates from multiple different lenders. This can help to ensure that you get the best deal possible.
    • Review your credit score: Some lenders have minimum credit score requirements, while others reserve the most competitive rates for borrowers with excellent credit. Make sure your score is in a good place before applying.
    • Make sure you have enough for a down payment: Typical down payments range from 10% to 30% of the total loan amount.
    • Complete a loan application: To apply for a loan, youll need to provide information about yourself and the boat you want to buy, including your name, address, social security number.

    Like A Bank Only Better

    Boat Loans

    Better Rates. Fewer Fees.

    Because were a credit union, we return profits to members in the form of reduced fees, higher savings rates and lower loan rates.

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    We pride ourselves in being a trusted source for financial education. Your financial wellness expert will come to your workplace to answer questions and provide you with 1-on-1 assistance as you navigate the changes that come with each of life’s stages.

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    Headquartered in Indianapolis since 1930, we rank among the top 3% of credit unions nationally1. We serve members in all 50 states and 50+ countries. Youll have access to 5,000+ shared branches nationwide and 78,000+ surcharge-free ATMs globally.

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    Our technology makes banking with Elements easy. From quick digital applications to online and mobile banking, well be by your side wherever you go. Were here for you with member service available 24/7 and live chat during the workday.

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    Where To Get A Boat Loan

    Online loans

    Online lenders typically offer unsecured boat loans only. These lenders may be able to approve and fund loans more quickly than other lenders. Online lenders also offer pre-qualification, which shows you what loan amount and rate you could get without affecting your credit.

    Some tailor their loan products to borrowers with good or excellent credit , while others accept lower credit scores and focus more on factors like your monthly cash flow, education and where you work.

    Bank loans

    Youre more likely to find secured loans from banks. Banks may sometimes offer perks to existing customers, like discounts and favorable loan terms. If your bank offers boat loans, it may be a good place to start.

    Navy Federal and First Tech both offer boat loans with 15-year repayment terms with rates starting below 10%.

    loans from marine lending specialists

    Boat loans from marine lenders have similar rates and repayment terms to personal loans. One advantage might be the ability to work with a specialist who understands the boating business, according to the National Marine Lenders Association.

    These loans must be secured by the boat and require down payments from 10% to 20% of the purchase price. A bank may require a down payment or make it optional.

    Name Discrepancies On Titles Or Registrations

    Another common issue that can be found out by getting copies of titles and registrations early in the process is names that dont match.

    Its not uncommon for a boat to be passed from generation to generation. Or, for a boat, motor or trailer to not have been properly registered from one owner to the next.

    Similar to serial number mismatches, these name mismatches can be difficult to fix and in some instance be an indicator of fraud.

    Its best to discover this early so it can be fixed or you can walk away and find a different boat.


    Capt. Matt

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    Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

    Our loans reporters and editors focus on the points consumers care about most the different types of lending options, the best rates, the best lenders, how to pay off debt and more so you can feel confident when investing your money.

    Boat Loans: Understanding How Financing A Boat Works

    How Does Boat Finance Work?
    Posted Date: 09/30/2019

    While boat loans can differ from other forms of debt such as auto loans, the basic premise is similar. When financing a boat , there typically involves a down payment representing a partial amount of the purchase with the rest of the purchase price being borrowed. The purchaser then pays interest over a fixed term as the amount of borrowed money is paid back to the lender. As with any financing process, youll want to make sure that loan payments along with maintenance, storage, insurance and other operating expenses fit within your overall budget.

    Boat loans can come from banks, credit unions, boat dealers and specialized marine finance companies. By working through Tom George Yacht Group, financing a boat becomes much simpler as the entire process is handled under one roof. In this article, well help you better understand boat loans and how financing a boat works.

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    How Long Does It Take To Get Approved For A Boat Loan

    New Boat loans can be processed and closed in a week, which is much faster and easier than real estate loans. Financing for pre-owned vessels takes longer. However, Boat Loan Specialists, working with Lenders who know the marine industry, can process paperwork faster, provide guidelines of all the things that are needed for a Boat purchase, and refer needed resources. They are, more knowledgeable, faster and easier to work with than a personal banker.

    What Are Boat Loans

    Boat loans are typically fixed rate, fixed term, simple interest loans secured by the boat being purchased.

    While most individuals are quite familiar with auto loans, its important to be aware of some key differences between financing a car and financing a boat. For instance, due to the structure of the auto industry and the volume of auto sales, dealers often offer below normal financing rates. Auto manufacturers often offer rebates or subsidies to their dealers which enable special promotional rates. For the most part, this dynamic doesnt exist with boat dealers, and the interest rates on boat loans are strictly tied to market rates.

    Also, its worth noting that banks often look at boat loans with a bit more scrutiny. Because boat purchases are considered a more discretionary item compared to a home or an automobile, banks realize that if a borrower gets in a pinch, the boat will likely be the first thing for which the borrower stops making payments. Because of the discretionary nature of boats, this invites a further degree of scrutiny in the boat financing process.

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    Fill Out An Application With My Financing Usa Today

    Our secure application process requires minimal effort. You could get your financing within 48 to 72 hours and get out on the water. We serve people across the 48 contiguous states, and we want to work with you. Fill out an application right now to get started. Do you have questions? You can contact us to learn more.

    Go Out And Play With A Convenient Loan That Saves You Money

    Best Boat Loans In OKC

    Save time and money with a boat loan while spending more time doing what enriches your life.

    • Fixed, low rates with flexible terms so you get a loan that works for you
    • Finance boats up to 10 years old
    • Get a loan worth 85% of the invoice price, plus tax and titles, for new boats

    Whether youre in the market for a new boat, a used one, or you want refinance an existing loan, we’re here to help. With flexible terms and fast approvals, youll be on the water in no time.

    Provision of the calculator on this page is not an offer of credit. Its use in no way guarantees that credit will be granted. This calculator is solely for informational purposes and provides reasonably accurate estimates the calculations are not intended to be relied upon as actual loan computations.

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