Thursday, April 25, 2024

What To Know About Boat Loans

What You Need To Know About Restart Loans As They Gain Popularity

Marine Financing 101 – What to know before financing your next new or used saltwater boat

The term restart loan is one that seems to ebb and flow in popularity. Whether youve heard people talking about it before, or whether youre hearing them talk about it now, seems to hinge on a few factors that none of us can control.

But what are these factors? More importantly, what do you need to know about restart loans, and why? Thats what we will investigate now.

Why restart loans are on the rise

is a useful tool that digital marketers use to find out what their target audience is searching for on the web. It is also a useful tool for discovering national and global trends, whether it be about a clothing brand, new terms that arise, or restart loans.

If we put in the words restart loan to see how many search queries there were for this term, we can see a marked increase in the UK from February to June, 2021. One of the likely causes of this increase is that, as Covid proved that it would not go away anytime soon, it dawned on debt-stricken UK citizens that they would have to perform certain measures to gain control of their finances. Winging it and hoping for the virus to go away anytime soon would be risky perhaps consolidating their loans would be a better idea .

Alternatives To Boat Loans

If you would rather not go the traditional route or your credit is challenged, there are other methods of financing your boat purchase. These include:

Home equity loans or lines of credit. Since these loans are secured by an asset your home you may be able to find competitive rates. At the time of publication, APRs for home equity loans and HELOCs of $25,000 could be found for 6%, slightly higher than the 5.59% APR for the same amount from Essex Credit. However, an advantage of a home equity loan is that rates are typically fixed. Be aware that if youre tapping the equity in your home for a pleasure purchase, be certain that youll be able to repay the debt, or you risk losing your house. Furthermore, you may find yourself paying pricey closing costs and other fees, though some lenders will waive these fees.

A typical home equity loan has terms from five to 15 years, which may be longer than you need for a relatively inexpensive boat. HELOC terms vary but may last up to 20 years. An advantage of a HELOC is that you only pay interest on what you borrow but interest rates may be variable. You can read more about home equity loans versus HELOCs. Remember that good credit is vital here you typically need a FICO score of at least 680 to qualify for either a home equity loan or a HELOC.

Boat Loan Terms: How Long Can You Finance A Boat

Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Buying a boat? Before you gather your gear and take to the high seas, youll likely need to figure out how to afford your purchase. One of your key questions may be: How long can you finance a boat? Boat loan terms, unlike car loan terms, can stretch up to 20 years, nearly as long as a home mortgage. Whether you should borrow for that amount of time depends on several factors, including the cost of the boat, which can range from a new jon boat under $5,000 to million-dollar yachts. In general, the lowest interest rates are for the shortest loans, but your monthly payments would be higher.

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Boat Loans & Boat Financing Ultimate Financing Guide

Do you wish to escape the monotony of everyday life and go on a fun-filled adventure in the boat of your dreams? If so, you will be happy to know that boat loans and boat financing is a lot easier than it was even just a few years ago.

The Canadian recreational boating industry generates more than $3 billion per year. The industry is thriving right now due to high consumer demand.

But why is boating such a popular recreational activity?

Boating serves as a great way to get closer to nature and bond with your family and friends. It exposes you to fresh air and helps ease your stress. Additionally, the CHMS found that 32% of Canadians have insufficient Vitamin D levels, so boating can provide a fun way to soak up some sun.

To feed their hunger for boating, more and more people are turning to boat financingand there are many good reasons for it.

That said, how do you know if boat financing is right for you? How do you prepare yourself? Most importantly, what is your best options for financing?

The truth is that the financing can seem confusing, but you do not have to do this alone. We laid out the process to make it easier for you because the best option often differs from person to person.

If you want to learn more about boat financing, keep reading. Here is our guide to boat financing, designed to answer your biggest questions.

Best Boat Brands To Buy


If youre determined to get a boat loan, check out thebest boat brands based on what seasoned boaters have to say:

  • Bertram: Bertram boats are classic choices for any boat owner. The brand does not make as many new boats as it used to, but the demand for these boats is still high.
  • Boston Whaler: Besides its reputation as the Unsinkable Legend, Boston Whaler makes boats that have great resale values. The brand makes a total of 38 different models of both luxury boats and fishing boats.
  • Chaparral: This brand manufactures bowriders, wake surfs, cruisers, and watersports boats. Chaparral consistently scores high in the Boat Traders Boating Madness tournament.
  • Grady-White: These boats have the highest value among both used and new boats on the market. Grady-White is an established brand for fishing boats.
  • Lund: This brand has been offering aluminum cross-over watersports boats, pontoon boats, and fishing boats since 1948.
  • MasterCraft: This brand is an established producer of single-mission watersports boats and is quite popular among consumers for its warranty.
  • Sea Ray: These boats consistently top the Ranker list. Sea Ray boat dealers also appear in the Boating Industrys top 100 dealers more than any other boat brand dealer.
  • Tracker: Tracker Boats include pontoons, fishing, and utility boats, all made of aluminum.
  • Yamaha: This brand produces runabout boats and fishing boats. Consumers consistently rank Yamaha runabouts as their top choice for 19 to 24-foot class boats.
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    Your Current Financial Status And Long

    Before you take out a used boat loan, get prequalified. By doing so, youll know exactly how much youll get approved for and have a good idea of the types of used boats you can buy. When you apply, the lender will evaluate your credit score, debt-to-income ratio and net worth. How stable you are in your job and homeownership will play a role in whether you are approved for a used boat loan.

    In addition to evaluating your current financial status, youll want to think about your long-term goals before investing in a boat. For example, buying a used boat today may mean you have to work an extra year or two before retiring.

    Finance Options For Your Boat

    The process of how to finance a boat and the tips to finance a boat are the same, regardless of which type of loan or financing option you choose. However, that doesnt mean the information on these financing options is irrelevant. Choosing a loan type is part of the process, and its important to know whats available. Here are a few of the most common loans for boats, along with some background information.

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    What To Know About Boat Loans

    Compared to a regular loan which might have unfavorable terms for such clientele, a boat loan is designed specifically for a potential boat purchaser and caters for their needs. This article discusses some basics of boat loans:

    • Choosing your desired boat This is an important aspect as it enables you know how much various dealers charge when searching for the correct boat to buy that will suit your needs. It enables you figure out the amount you will be approaching lenders for. Good brokers will enable you get the right loans with best offers.
    • Interest charge on the boat loan An important aspect of the loan is to evaluate the amount of interest charged to obtain it. The less the interest the better for the prospective boat buyer.
    • Sites that help you get information on boat loans By doing your due diligence and researching potential boat loan providers boat loan providers with the best rates, you can get a good feel for what the market is like, making your eventual decision easier.

    What You Need To Know About Financing A Boat In 2021

    What they don’t tell you about boat loans. Our experience financing our boat.

    Much like purchasing a car, many boat shoppers seek financing when it comes time to purchase their boat. A low-interest loan from a reputable lender is a great way to spread out your payments over time so that you arent breaking the bank before hitting the open water. While there are many options out there, well cover some of the most common so you know where to get started. When you go from casual shopper to serious buyer, be sure to check with a few lenders so you understand your options directly from financial institutions and professionals.

    The two most common types of boat loans are fixed rate and adjustable rate.

    As you might expect, a fixed rate loan is the most common because its predictable and steady, allowing boaters to know exactly how much theyll be paying at what increments.

    On the other side of the coin is an adjustable rate loan. The big benefit here is a lower introductory rate, but with the caveat that the rate will adjust to a new rate after a certain time period. Some adjustable loans also feature balloon payments on the tail end of the loan, which means youll pay a lump sum to close out the loan after the lending period is complete, buying you time to save for that payment.

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    Other Boat Costs To Keep In Mind

    Beyond the cost of purchasing a boat, here are several other expenses to keep in mind:

    As you consider how much boat you can afford, be sure to think about how much a boat loan will cost you over time, too. This way, you can prepare for any added expenses. You can estimate how much youll pay for a loan using our personal loan calculator below.

    Enter your loan information to calculate how much you could pay

    Check Out: Average Personal Loan Interest Rates

    Your Best Options For Boat Financing

    Maybe you already decided that boat financing is your next step. But how are you going to approach the situation?

    There are several options for you to consider, including the following:

    • Set up boat financing through your dealer
    • Opt for a personal loan from your bank
    • Get a home equity loan
    • Use your credit card

    Keep in mind that the best option depends on the individual. What is best for you may not be best for another personand it often is not. Sometimes it is also a matter of personal preference.

    So, when you make your decision, choose wisely. Consider every aspect of your financial situation, and make sure to read the fine print.

    The rest of this article will go through each option in detail so you can make an informed decision.

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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.

    What Is Your Trade Worth

    Boat Loans for Bad Credit

    Before you can figure out your budget and financing options, you need to find out what and if you are going to trade in something to get your price down. Do you have a trade? What is your trade worth?

    First, you need to decide what you are going to trade in and how much its worth, large boat dealers sometimes have great options and avenues for you to go down in terms of trades and to reduce the purchase price of the boat you want. Some take used outboard motors, pontoon boats, snowmobiles, ATVs, side by sides, Argos, pickup trucks, and small cars.

    You should call your local boat dealer and find out what kind of products they accept on trade. Keep in mind you dont trade a boat in at a dealership that doesnt sell marine products as they dont sell them or know the value and wont give you top dollar for them. Try to look for large dealer groups that have connections to other dealerships they usually give you the best trade values because they can find a home for it quicker.

    Once you decide what you are trading, you need to do some research.

    • Use Online Classifieds
    • Bring it to the Dealership

    To truly appreciate how in-depth and detailed this section is, we posted additional information here How to Calculate What My Trade-in Value Is Worth.

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    Modern Boat Financing Options

    Even if you have the cash to buy a boat on the spot, its important to consider your loan options. Financing can help you maintain liquidity, but more importantly, it might also help you get into a more expensive dream boat that might otherwise seem out of reach. And boat financing today is much different than it was in the past. Boat loans used to be more limited in duration, but today terms of 10 to 20 years are quite common. Interest rates are amazingly low. And the down-payments required these days can range anywhere from no-money-down to 20-percent.

    Remember, however, that if you can swing shorter terms and a higher down payment, youre likely to get even more favorable interest rates. Larger loans often get a more favorable rate, tooso in some ways, buying the more expensive boat can actually save you money. At least, thats one way of looking at it. But in our humble opinion, all of these aspects of boat financing and boat loans are a lot less important than the bottom line: you, friend, get a brand-new boatand life is about to become a whole lot better. Now thats what we call favorable terms.

    Can You Get A Boat Loan On An Old Boat

    Getting approved for a boat loan on an older watercraft can be tricky, but it is certainly possible. Some lenders will offer used and refi loans on boats as old as 19 years. If the boat is of high value, you may even find lenders willing to finance a watercraft as old as 25 or 30 years.

    Expect that interest rates for old boat loans may be higher than those for newer boats, and you may even encounter higher down payment requirements.

    If youre unable to find a lender willing to finance your old boat purchase, consider taking out a personal loan instead.

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    How Do I Apply For A Boat Loan

    While every lender will have its own unique application process, in most cases, youll need to provide the same information when applying for a boat loan.

  • Start by comparing your options you can begin with the table above.
  • Fill out the application with details about yourself and your income.
  • Apply for the loan and see if youve been preapproved.
  • If you have, work with the lender to discuss your needs and finalize your loan.
  • Once you have financing, you can start to shop for a boat that suits your needs just dont let a salesperson talk you into buying more than you can afford.

    Will I need to know what boat I want before I apply?

    It depends on the lender. Some might ask for a model and make, while others might allow you to apply for a ballpark amount, based on your budget. If youre unsure, ask your lender whats required ahead of time.

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    Some Companies That Provide This Kind Of Loans

    Boat Loan Basics, Insider Secrets to Marine Lending for Boat Buyers

    The following are just some of the companies that provide loans in United States, but there are plenty of them worldwide, so with a research you can find a reliable company in your country.

    • Intercoastal Financial Group, Inc. It is a marine lender or marine finance company in The United States that fund all of their own boat loans. This company is providing loans and refinancing since 1989.
    • BoatUS Boat Finance. Since last 30 years, they have made that boat loans happen easily and quickly. They offer loans as low as $25 000 and also refinancing for your boat. In addition, they offer the low cost boat insurance.
    • Eboatloans. They offer boat loans, yacht financing and also refinancing in an easy way. The minimum amount for a loan they offer is $25 000. You can check the list of current boats rates that are APR , those are subject to change.

    Would you like to read more about boat financing?, then we invite you to read the following sections:

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