Find a Boat Loan and Refinancing Assistance with Vessel Vendor

A boat purchase can be just as expensive, if not more expensive, than purchasing a home. It is important, before purchasing a new or used boat, to have your finances in order for a boat loan.

Use the following tools and resources to determine your boat loan eligibility, shop boat loan rates, and apply for a boat loan through a list of boat loan lenders available on Vessel Vendor.

Boat Lenders and Boat Loans

Boat Loans: The Pros and Cons

Buying a boat is an expense, one that many cannot make without financing. Like any other major investment in your life, it requires a responsible look into your finances, considering your current debt compared to the debt you’ll have when purchasing and financing your vessel. Here are a few pros and cons of obtaining a boat loan.


Pro: Boat loans offer Payment Plans instead of a bulk sum

The primary reason why a person would need to get a boat loan is so that the cost of the vessel can be paid incrementally. Typically, a boat loan is a 15 to 20 year commitment. Keep in mind loans are generally granted if the boat is in the $50k and up price range. When banks approve a loan, they are aiming to make money from the interest payments, which means more expensive boats would generate a larger ROI. Additionally, the lower the cost of the boat the higher the depreciation (in most instances). No bank is going to give you a loan for a 15-foot angler that is 10 years old because there is no book value to the craft. However, if you are attempting to purchase a 2017 Midnight Express boat or a 2016 Chris Craft vessel, they are moe likely to finance the boat because the value of the boat is higher, the depreciation is lower, and the ROI for the bank is substantial.


Con: Interest on a loan is higher

Interest on a loan accumulates the longer it takes you to pay it off. While the payment isn’t as bad as getting a personal loan from a third-party business, boat loan interest is currently around 2.99% for those with excellent credit. While this sounds rather low (especially when compared to mortgage rates, which are around 4% or higher at the time of this article) you would still end up paying a total of $65,966.56 in interest alone on a 200k boat.


Pro: Boats add equity to your portfolio

Those who are concerned with their equity and assets will find that certain boats will add a higher value to their portfolio. Keep in mind that the equity of the boat will be weighed against the outstanding debt on the craft in cost cases. Keep in mind that your credit and your current assets will be the main factor of your equity and worth. However, taking on a Nort-Tech, SeaHunter, or Hydra-Sport is sure to boost your portfolio’s worth.


Con: Boat Loans and Bad Credit

Credit, that dreaded word which drives the financing world. Like many lenders, boat lenders will check your credit and adjust your payment and interest rate according to your credit score. Even if you have perfect credit, if you have shopped around for a boat and attempted to get a loan from various lenders, it will show multiple credit inquiries (which is not a good thing).

The best practice is to get a pre-approval letter for financing from a bank or boat lender and then go shopping, not the other way around. This will minimize the inquiries on your credit score and help keep it in good standing.


50/50: Requirements for a Boat Loan

Depending on the boat lender that you choose, there is a possibility that you will be required to have certain documentation, insurance, and a maintenance plan set in place before the loan will be accepted. While some may consider this is a con, I would venture to say that it is a pro in some respects. By including the cost of insurance into the amount of the loan, a person will more likely choose the most appropriate insurance option so they won’t find themselves holding the short end of the rope in an emergency.


Final consideration: It’s your boat….sort of

As with any loan, if you have a financial lender, the title will remain in the possession of the lender until the boat is paid off. This may limit your ability to use the craft in some waters. Obviously, the lender will want to ensure that you will not just take the boat and go to another state, international waters, etc. Additionally, a lender can (read that fine print) call in the full amount of the loan if they find that (a) you are not meeting the payment requirements which were set forth in the contract (b) you are misusing the vessel and depreciating the value of the craft, thereby reducing the potential for ROI or (c) if you fail to maintain the proper insurance and documentation on the vessel.


Find a boat lender

If you are in need of financial assistance in purchasing your boat, it is strongly advised that you use a boat lender as well as seek the legal advice of a lending attorney. Vessel Vendor has a selection of professional boat lenders offering the best boat loans among their financing services. For general inquiries about our boat lending services or boat services in general, please contact a Vessel Vendor crew member at 561-600-5006 or send a message in a bottle. Specific loan questions and financial disclosures should be discussed between your lender and lending attorney.



*Post updated on November 27, 2019

Apply for a Boat Loan

Learn more about boat loans