Best For Bad Credit: Southeast Financial
For borrowers with bad credit, Southwest Financial is a good choice for a boat loan. This lender has no minimum credit score requirements, and loans are available even for borrowers with past bankruptcies.
No minimum credit score requirement
Discharged bankruptcies okay
Rates starting at 4.49% APR
Not available in Alaska or Hawaii
$20,000 minimum loan
High debt ratios may be a limiting factor
With a history dating back to 1936, Southeast Financial has been providing loans and other financial products to customers across the country for over 80 years. When it comes to boat loans, though, Southeast Financial excels at connecting borrowers with poor credit to lenders willing to finance their purchase.
Through Southeast Financial, subprime borrowers can access boat loans ranging from $20,000 all the way up to $4 million, with no published credit score minimum. Borrowers with low credit scores or high debt ratios may not qualify for the best possible rates, but loans are available even to those with past bankruptcies.
New and used boat loans are not available in Alaska or Hawaii, and borrowers are only allowed to finance their purchase if the boat is intended for recreational useno full-timers or liveaboards allowed. Repayment terms may vary according to the loan amount but are available all the way up to 15 years.
The Best Boat Loans Of September 2021
|Check rates > >|
*With auto-pay discount
The best boat loan depends on your budget, the type of boat you’re purchasing, and the age of the boat. From financing for small ski boats to full-size yachts, there’s a loan out there for most things that float. But they’re not all the same.
Once you’ve narrowed down the type of boat you’re interested in buying and what model year you’re looking for, you can start shopping for a boat loan. Many lenders will only finance certain types of boats, or require a boat to be newer than a certain model year. To make sure you make the most of your shopping, know this going into it.
There aren’t as many lenders offering boat loans as there are auto loans. But there are still a few to choose from.
Here are Insider’s top picks for boat loans in September 2021.
Types of boats financed: LightStream doesn’t list any specific requirements
4.29% to 10.39% APR, with auto pay discount
Loan amounts available: $5,000 to $100,000
Watch out for: High credit score requirements. LightStream only works with borrowers with good or better credit, so anyone with a low credit score may not qualify.
LightStream boat loans are a strong option for most borrowers looking for an inexpensive boat and fast funding.
LightStream is an online lender backed by Truist . With a completely online experience, same-day funding available, and many loan types offered, LightStream is one of our picks for the best RV loans and best personal loans.
How Much Does A Boat Cost
Boats vary depending on the type. You can expect to pay anything from $25,000 for a new motorboat to well over $1 million for a new yacht. Used models can go for even less.
Other expenses to consider
The boat itself is one of several costs that come with boat ownership. These include:
- Equipment. Consider the costs of decking out your boat. Electronics, water toys, accessories and safety equipment could set you back $1,500 or more.
- Operating costs. This cost will vary by the type of boat you choose and how you use it. However, the price of fuel should be a big part of your budget.
- Boat maintenance. All boats need regular maintenance to remain safe. Costs vary depending on your boats age, model and your mechanic.
- Storage. Mooring fees are calculated by the length of your boat and if you store it in an expensive area.
- Boat insurance. Depending on the type of boat you have and where you store it, boat insurance can cost you $100 or more every year.
Recommended Reading: What Kind Of Boat Is This
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|
How Do I Get Used Boat Financing
Used boats could offer huge savings over new ones. Still, prices can vary considerably, even for similar boat types, model years and history. Use an industry guide like Kelley Blue Book or NADAguides to check a boats value against the sales price to be sure youre getting a good deal. This is our guide on how to get a used boat loan.
Recommended Reading: How To Get Mold Stains Out Of Boat Seats
Best Marine Lending Specialist: Trident Funding
Why We Chose It: 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.
Dont finance boats more than 25 years old
Dont finance live-aboard vessels
You usually need a down payment
Trident Funding was founded 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.
The company understands the boating business so can help educate you if this is your first boat. It has worked with over 40 banks and lenders so 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 rates starting at 4% and both short and long term boat loans up to 25 years. Typically, they approve loans within 48 hours and a down payment of 1020% 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.
Down Payment May Be Required
Boat loan lenders often want to see a down payment, generally between 10% and 20%, depending on factors including the lender and the cost of the boat. Some lenders offer 0%-down loans but keep in mind that making a down payment can hedge against the boats depreciation, or loss of value over time, and help prevent a situation where you owe more on your boat loan than the boat is worth. A down payment may also lower your monthly payment and reduce the total amount of interest you pay on the boat loan.
Also Check: What Is The Best Pontoon Boat For Fishing
What Is A Good Interest Rate On A Used Boat Loan
While used boat loans can occasionally have rates higher than those offered for new boats, this isnt always the case. In fact, many lenders offer the same competitive rates whether youre buying used, new, or even refinancing. Because of this, applicants can expect to find used boat loans with rates in the 4% to 5% APR range.
For instance, Bank of the West our overall top pickoffers interest rates starting at 3.59% APR for watercraft over $50,000, whether the boat is new or used.
Calculate Payments With Our Boat Loans Calculator
Use our boat payment calculator to determine a monthly payment that you can afford when looking to finance a new or used boat.
Simply enter your desired amount, estimated interest rate, and the loan term over which you intend to pay back the loan. Once you’ve input the information, the calculator will generate your estimated monthly payment on your boat loan. Take this number and plug it into your current monthly budget.
Read Also: How To Register My Boat In Ga
Can I Use A Personal Loan Instead Of A Boat Loan
You can get your money faster without collateral and a down payment by applying for an unsecured personal loan. Generally, you need good credit and an income over $24,000 a year to qualify.
These come with similar rates as boat loans, though loan amounts usually max out around $100,000 and terms dont run longer than seven years.
Keep in mind that not every personal loan provider will allow you to use your funds to purchase a boat. Be clear when submitting your application that you intend on financing a boat to avoid a surprise rejection.
Are secured loans an option for a boat?
If you cant qualify for a loan without collateral, consider backing it with another asset like your home by taking out a secured loan. Typically, secured loans have lower APRs than unsecured loans and easier-to-meet requirements.
Boat And Yacht Loans And Financing Ontario Canada
In Ontario, buying a boat or yacht is a major decision and privilege for most individuals. Fortunately, financing and leasing options exist for purchasing boats and yachts in Ontario. Leasing and financing is offered by a variety of different companies that provide boat and yacht loans for various amounts and a wide spectrum of terms. You can finally obtain the luxury vehicles of your dreams with the help of a loan in Ontario. Boat and yacht loans are commonly utilized to enhance the quality of the play and happiness in a persons life. The perfect instrument for enhancing your next vacation awaits you, take action today and you can access the tugboat, fishing boat, sailboat, bass boat, bowrider boat and more that you desire. Not only can you get a hold of a boat or yacht loan in Ontario, but they are easy to obtain thanks to the abundance of online loan providers in Ontario.
No matter what your financial situation is either personally or with your business, there is a lender who can help you. No matter what kind of financing and leasing you may be looking for, Smarter Loans can help you discover the provider who you can obtain it through. Simply click Apply Now next to one of the companies listed below to begin an application directly with them. After applying online, youll be approved for the boat or yacht financing you need within a couple days.
Recommended Reading: How To Pick The Right Boat Propeller
Youre Our First Priorityevery Time
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
A Line Of Credit To Help Conquer Your Goals
Get convenient access to cash and only pay interest on the funds you use. Enjoy this low introductory rate, equal to CIBC Prime currently at RDS%rate.PRIME.Published%, until March 6, 2022.
All fixed and variable rate loans are based on the CIBC Current Prime Rate.1
Rates as of RDS%SYSTEM_DATE%
Your choice of term, payment frequency and fixed or variable interest rate.
|1 to 5 years|
Get terms up to eight years, with the possibility of no down payment.
|1 to 8 years|
Borrow $5,000 to $50,000 to take advantage of unused RRSP contribution room.
|1 to 10 years|
Get a lower interest rate by using the equity in your home
Get flexible access to funds at interest rates lower than most credit cards.
Borrow up to $40,000 to help with your post-secondary education costs.
Borrow up to $350,000 to help cover costs.
Read Also: How To Look Up Boat Hull Numbers
Best Commercial Loan: Coastal Financial
Why We Chose It: Coastal Financial is our top choice for the best commercial boat loan because the company specializes in charter boat financing and will also take care of setting up charter management and boat insurance for you.
Offers boat insurance and charter management
No upfront rates
No published loan fees
You have to contact the company for borrower requirements
Coastal Financial offers a quick application process and fast funding. It finances new and used boats, charter boats, refinances, and RV purchases. It offers boat loans from $5,000 $5 million and approvals take less than 24 hours. You can apply online or over the phone.
In addition to boat loans, Coastal Financial also offers U.S. Coast Guard documentation, boat insurance, and a boat charter management program. Coastal Financial offers commercial loans for yachts, fishing boats, catamarans, and sailboats. Youll need to contact the company for loan fees and specific loan requirements and terms as they are not available on the website.
Once the borrower and vessel are approved for a charter loan, you put the boat in your companys LLC and you can enter it into a charter program. You can choose how often you want the boat chartered, and when you want to use it, and the company will handle the rest.
Coastal Financial has mostly positive customer reviews with customers appreciating the marine industry knowledge, easy application process, and fast funding times.
Can I Get A Loan For A Used Boat
You can get a loan for a used boat but there are some limitations. The boat lender usually requires that the boat be no older than a certain age. Most lenders wont finance a boat that was built before 1999 or 2000. However, some lenders will finance boats of any age and price range, but you may end up paying a higher rate and putting down a larger down payment.
Different lenders have varying requirements when it comes to financing used boats. Some lenders will require an inspection and an appraisal and others will only finance up to 85% LTV and will expect a down payment.
Financing a used boat is usually more affordable than financing a new boat, but its important to know the condition of the boat so you dont end up with unexpected repair costs.
Read Also: How To Look Up Boat Registration
How Did We Choose The Best Boat Loans
Personal Finance Insider’s goal is to help smart people make the best decisions with their money. We combed through the fine print of many boat loans and lenders so that you don’t have to. We considered the factors that are the most important to boaters, including:
- The type of boats financed: We searched for lenders that offered loans for the most shapes and sizes of boats, from houseboats to sport boats.
- Interest rates: We compared the starting points of interest rates from many banks, and compared ranges where available.
- Few or no fees: We looked for lenders that offered boat loans with the fewest amount of fees on each loan.
- Loan amounts: We chose lenders with the widest variety of loan amounts available to help everyone find a loan for their boat-buying budget.
- Widespread availability: Lenders we considered have loans available in almost all 50 states, if not all.
What Is The Best Place To Get A Boat Loan
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.
Read Also: How Much Are Boat Loan Interest Rates
Whether Youll Need A Marine Survey
When you apply for a secured boat loan, the boats value will be a factor in how much you can borrow.
If youre not getting a new boat, you should get a marine survey. During a marine survey, an inspector will examine the vessel, engine and trailer, detail the boats condition, note any repairs needed and determine whether its safe to take on the water.
Are Boat Loans Hard To Get
Youll typically need good to excellent credit and verifiable income to qualify for a boat loan. If you have poor or fair credit and can wait to take out a loan, it could be a good idea to build your credit before applying.
Keep in mind that with secured boat loans, the people applying for the loan typically need to be listed on the vessel title. This means that if you apply with a cosigner, theyll most likely need to be on the boat title.
Some manufacturers and dealers also offer their own in-house financing, which might be easier to qualify for. Be sure to consider all of your options to choose what works best for you.
Learn More: Bad Credit Loans
Read Also: Does California Require Boat Insurance