How Else Can I Pay For A Boat
If you cant find a boat loan near you or would rather not use it as collateral, you might want to consider these alternatives:
- Leisure vehicle loans. Some lenders offer leisure vehicle loans that cover a wide range of vehicles from jet skis to RVs and include boats.
- Save up. Not in a rush? Saving up is the cheapest way to buy a boat, since you wont have to pay any interest or fees.
- Rent a boat. Marketplaces like GetMyBoat act like Airbnb for watercrafts, letting you reserve one when you need it.
- Find a boat club. Boat clubs give you access to fleets of boats in exchange for a monthly or annual payment and you wont have to foot the bill for insurance and maintenance.
How Many Years Can I Finance A Used Boat
Like a new boat, you can finance a used boat for as long as 20 years. The financing options for used boats may differ from options for new boats. If a model is old, a lender may not be willing to offer financing whatsoever, as a lender typically needs collateral for a secure loan. While you may see a boat that’s cost-effective and ready for a makeover, your lender could see an unreliable asset.
Fortunately, if you find a used boat that suits your needs and preferences, My Financing USA can help you find the financing option that’s right for you.
Can You Get A Loan For A Used Boat
Just because loans are available for financing a used boat doesn’t mean everyone will be able to obtain one. For almost any type of boat loan, creditworthiness will be a factor. This means a high FICA score.
Scores in the 700s or higher are ideal in some cases, loans may be approved for those with scores in high 600s, but all other aspects of the borrower’s profile must be very strong. Lenders providing secured boat loans would hope to see a stable employment history and a strong history of successfully handling loans of similar size, as well as liquid assets sufficient to cover 12 to 16 months of payments, according to Boats.com.
Banks, in particular, will give the best consideration to those who have almost twice as many assets as debts because they see these individuals as potential customers for other services, says Boats.com. These loans also typically require a down payment of 10 percent to 25 percent of the boat’s value depending upon the lender and your credit profile.
Personal loans typically require higher credit scores than secured loans because they represent more risk to the lender. Loans using your home as security require good credit and a stable history as well as a sufficient amount of equity in the home to more than offset the amount of the loan.
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See What Our Members Have To Say
We have been with GTFCU for over thirty years and obviously have not had a reason to change. I am a financial services professional so I am aware of other options and have easy access to them. But GTFCU is fine for mobile banking and small enough that people take personal ownership of resolving any issues that arise. – Tom C.
Enjoy the credit union difference today and discover how low-interest boat loans provide everything you need to stem the tide and sail into your next adventure.
*Annual Percentage Rate
The APR you receive for the subaccounts will be within the range disclosed above and is based on your credit worthiness. Ask the credit union for the rate you qualify to receive.
**Used RVs and boats can be financed for up to 100% of NADA retail value or BUC price guide. Loans cannot exceed the purchase price. Rate based on credit qualifications and other restrictions may apply. Additional rates and terms available. Subject to credit approval.
***New member applicants may not be eligible for unsecured loan applications for a period of 90 days. All unsecured loan applications may require additional review and verification during the application process. No loan applications will be considered until membership applications have been completed and all information including identification verified.
What Do I Need To Apply For A Boat Loan
To begin your application for a boat loan, you need the following details to hand:
- Name and address
- Employment status
- Details of your income
You can start your application online, then well get in touch with you to find out a little more. Its a good idea to have a note of the boat youre looking to buy, including its make, model and running costs.
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Choose Either A New Or A Somewhat Used Boat
When you apply for a boat loan, getting a new or almost new but used boat will improve your chances of getting that sweet approval. A lender would be more likely to sign the approval of a loan if they know you will be buying a new boat. They may even throw in a lower interest rate than usual.
If you decide to go with a second-hand vessel, be sure that its not older than five years so you have a better chance of getting approved.
How Long To Finance A Boat
- How Long to Finance a Boat
For many people, recreational boating is a popular form of entertainment. Whether you’re looking to fish, tube with friends or relax on the water, owning a boat can give you the flexibility to get out on the water anytime you wish. However, it’s no secret owning a boat is an investment, which is why most boat owners choose to finance.
Before purchasing your boat, it’s beneficial to know how many years boat financing is and how much you can expect to spend over the term of your loan. How many years you finance a boat can impact your monthly payment and interest rate, so you’ll want to learn everything you can before you pick a loan. Here’s our guide on boat financing to help.
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Fallen In Love With A Boat Compared With Auto Loans Financing A Boat Can Be A Much Heftier Investment
Boats can be more expensive than a car, which means loan amounts can be higher and terms can be much longer.
Just how much you pay to finance a boat depends on a number of factors, including the type of boat loan you choose, the loan terms, your down payment and your credit.
Lets take a look at the different types of boat loans, your financing options and how to apply for a boat loan.
Cast Off With Boat Financing
We specialize in boat loans for all types of new and used marine vessels: power or sail including personal watercraft, bass boat, trawlers, multi-hulled and more. From the beginning of the journey to the end, we give you a hassle free experience. We offer competitive rates with flexible terms for secured and unsecured loans. Are you ready to dive into boat financing?
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Best Unsecured Loan: Lightstream
Why We Chose It: We chose LightStream as our best unsecured boat loan because their loans require no collateral, they offer a Rate Beat program, and quick funding.
No collateral needed for a boat loan
Simple loan application
No terms over 7 years
Loans only go up to $100,000
Some negative customer service reviews
LightStream is an online consumer lending division of SunTrust Bank, a part of Truist Bank. The company offers boat loans, banking products and services, home improvement loans, swimming pool loans, RV loans, and motorcycle loans. The company was founded in 2014 as a small startup company and has grown into an innovative online lending platform.
LightStream believes in rewarding borrowers with good credit with a simple loan application, seamless loan process, and rapid funding. It offers same-day approvals and can even fund some loans the same day, although others will be funded in a few days. It offers new and used boat loans nationwide as well as boat refinancing. Loan amounts range from $5,000$100,00 and terms are between two and seven years.
Rates start at 4.29% with an applied discount for autopay. There are no processing or prepayment fees and no appraisal fees. Their Rate Beat program offers a rate that is 0.10% lower than the rate offered for the same type of loan from a competitor.
Some customers love the quick application and funding process and the loan knowledge of the agents but others experienced confusion on published rates versus actual rates.
Getting An Accurate Boat Value For Loan Purposes
Forewarned is forearmed, right? You bet it is, so if youre looking at used boats, its also a good idea to understand what theyre worth. Boat lenders pay attention to boat values when lending, and you can access the same information they have.
Like credit reporting agencies, there are a few sources for researching boat values and prices. These resources can also help you determine the value of your own boat, which is great for getting a fair trade-in or resale price.
The key bit of guidance for securing a boat loan is to do your research and to be as prepared as possible.
The lenders that BoatUS works with take into consideration the age of the boat and the value of the boat, Mann said. There is not a significant difference in available rates or terms between a brand-new boat or a 3-year-old boat, for instance. Since these lenders are looking at the value of the boat, they will typically require a down payment of around 10 to 15 percent.
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Boat Down Payments And Ownership Costs
Obviously, if youre applying for a boat loan, you have to be able to show that you have the money to make the down payment, but also be able to pay for the expenses of owning a boat whether thats insurance, slip fees, fuel, all those things that go into boat ownership, said David Mann, membership program manager for Boat U.S., a boat owners association that connects lenders with buyers, among other services.
Boat down payments are usually between 10-20 percent, but can depend on the cost and value of the boat as well as your location and finances.
The boat loan rate for which you qualify is going to hinge on factors mentioned above, but it also could swing on the term of the loan how many years youll be paying on it or even the age of the boat youre buying. For example, you might be able to get a better interest rate on a boat thats as little as one year newer. In general, smaller loans for shorter terms usually have higher interest rates than larger loans for longer terms. Again, rates can vary with your credit history.
Why You Can Trust Bankrate
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
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.
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How Long Can You Finance A Boat
Boat financing is not terribly different from financing a car, a home, or other major purchases, but people often wonder just how long you can finance a boat for. There are different variables , that will affect just how much your monthly payment boils down to, in addition to the length of the term.
So, these other factors also need to be considered when you sit down with a pencil and paper to determine how long you should get the loan for.
S In The Process Of Boat Financing
Shopping for a boat loan overlaps with the process of buying a new boat. Here are the basic steps:
Know and understand your financial abilities and your credit rating. Check your credit with the major credit reporting bureaus and correct any inaccuracies.
When you apply, be ready with tax returns and bank statements that show your financial ability to repay. Be prepared to submit those materials to speed up the review process.
Be aware of special use limitations. If you want to live aboard your boat, use it for commercial purposes such as charters or as a fishing guide or to cruise internationally, tell the lender. Not all lenders will loan money on a boat used for those purposes.
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Financing Your Boat Makes Sense
One of the main reasons people are getting boat finance is because it is more accessible and easier to do. There are marine lenders that offer competitive rates, fast decisions and trade-in offers. Many of them will even let you get marine accessories to be added in the loan amount. Its essential that you ask about all these things before moving forward.
Aside from that, a boat can be used as a sort of second home if it has the space for it. You can store a lot of things and enjoy the vessel for various purposes.
Getting a boat loan can let you keep some cash and even in some cases, deduct the interest expense on the boat loan. You should however check the latter with your CPA prior to purchasing your boat.
Learn About Boat Financing At My Financing Usa
With our high customer satisfaction ratings and our A+ rating from the Better Business Bureau, My Financing USA stands apart from other boat financing companies. We pride ourselves on the sterling reputation we’ve developed. The advantages our customers enjoy when they work with us include:
- The ability to get pre-approved for boat loans
- Offers of great rates and terms from trusted lenders
- Closing documents you can sign right on your phone
- A website secured by Norton VeriSign, which keeps private information safe
- A friendly team that will respond immediately to your questions
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How Many Years Can You Get A Boat Loan For
You can get a Boat Loan that is as long as 20 years if the loan is secured, while unsecured boat loans usually get no longer than 5 to 7 years.
Like any loan, the longer your term the more you are going to pay. Considering how much a boat will set you back in 2020 you may want to reconsider having a shorter term and paying off faster!
Factors That Effect Boat Financing Terms
You need to be aware, however, that how long you finance a boat can also impact those other variables we mentioned earlier. If you double the term of a loan, for example, a lender is likely to want a slightly higher interest rate, or perhaps a down payment thats a higher percentage of the boats value. There are also some other factors a lender may take into consideration when determining just how long a loan term theyll be willing to consider. These commonly include:
- The size of the loan
- The type of boat
- The age of the boat, if its used
Boat Loan Size
Loan size has an important impact on how long a lender will be willing to stretch the loan. As a general rule of thumb, the larger the loan is the longer it can be financed. Many lenders will have minimum loan amounts for different specific term periods.
Type of Boat
Most modern powerboats can be lumped together, but there are some outliers that financers will treat differently.
- Boats with wood hulls, for example, or high performance boats, may be treated differently.
- Some lenders differentiate between sailboats and powerboats in general, and some consider multi-hull boats or pontoon boats differently.
- One big issue that arises from time to time is with liveaboards. Because of the laws regarding residences, home ownership, and home ownership escrow accounts, loans for liveaboards are treated very differently than common boat loans and some lenders wont make them at all.
Used Boat Age
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Boat Loan Sources Find A Specialist
Not too long ago, finding a lender that made boat loans was a difficult task. Today the more difficult task may be to decide which lender to use from the many choices. When lenders discovered that most boat buyers were excellent clients for loans, many added boat loans to their more traditional auto and real estate offerings. Some of these lenders decided to specialize in the boat loan business, devoting funding and staff for the purpose. In any active boating market, there will be several sources for boat loans. It’s a good idea to compare rates and terms offered by several loan sources to determine the financing best suited for the intended purchase.
Whats Considered A Good Credit Score For A Boat Loan
As noted, there are many different types of boat loans and different types of lenders that offer them. As a general rule of thumb, the higher your credit score, the lower your interest rate. This means that you will end up paying less over the term of the loan than someone with a lower credit score.
Typically, 700 is considered a good credit score for a boat loan. However, some lenders dont require a minimum credit score or will consider your debt to income ratio, work history, and the cost of the boat alongside your credit score.
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