Best Way to Finance a Boat
How to get a boat financed, the right way
Financing a boat can be a frustrating process if you are not familiar with loans and with large asset insurance and such. Once you find a lender, the process of getting approved and securing an interest rate and payment which is affordable starts. In order to get the best loan you need to know the best way to finance a boat. Here is what you should consider.
How big is the loan?
The first thing which needs to be considered when seeking the best way to finance a boat, is the size of the loan. The smaller the loan, the more options you will have and the easier it will be to pay back. For example if you find a boat for 15k such as a bass boat, then your options may range from a credit card payment to a personal bank loan. However, if you have a boat for sale for $750,000 then your options are typically limited to a bank mortgage or to a boat lender.
What is your down payment?
Regardless of the size of the loan, the lender will typically expect you to have some capital to put on the loan. Most banks should be estimated at 25% of the entire loan amount. This will vary according to the credit limit and the credit score of the individual seeking the boat for sale. And while you may find some situations where there is no money down, purchasers should be advised of a likelihood of increased APR and other interest fees for such loan options.
Where should you get your loan?
Lenders should always be professional, no matter where you get your loans from. You do not want to finance a boat through someone who is not insured. Since the lender is loaning the money to you for the asset it is imperative that you use due diligence in checking the reputation and the creditability of any lender. Also, check to see who holds the title for the loan that you are seeking. Again, this goes into performing due diligence on the professionalism of the company. You do not want to turn over your title to a fly by night lender only to pay them money for a title that they will not relinquish to you.
Typically, loans are available from three sources. The first is from a personal bank. This requires that you have an established reputation with the bank (most require an account with the institution of at least 60 days without any delinquency on any existing loans). The second is from a credit union or external financial institution. This is the more popular option with boat loans as they are more apt to work with you and your financial situation, adjusting the payment as needed. The third is from a credit card company or other smaller loans division. This is generally NOT a good option and should only be used for smaller boats with smaller price tags, and only if that person can make the payments.
Why is it better to finance through the boat seller’s site than independently?
When you seek a loan, the first thing that a lender wonders is why you wish to have the loan. But when you are looking to finance through a boat seller’s site, the lender is more concerned with “how can I help this person get a loan”. Remember, financial institutions lend to make money. Using the seller’s financing options has the benefit of working with someone who (a) knows the site and therefore knows the costs of the boats for sale and (b) is interested in negotiating prices which will secure a loan faster.
Where can you find a lender for your boat for sale?
Should you wish to find a boat for sale with financing options available on the site, Vessel Vendor may be the solution for you. With a large selection of pre-owned vessels from boat enthusiasts, the selection from skiffs to luxury yachts is extensive. Find the perfect model boat by searching through our site or by reviewing the boat model review pages, manufacturer summary, or location pages. Once you find your dream boat, we have several options available.
Looking to sell you boat on vessel vendor? Outstanding. Our platform is designed to pair you with qualified buyers. Because we offer access to financial options as well as to information to empower the buyers to make informed decisions, your boat is apt to sell quicker and with less hassle then it would if you were to list it on a generic third party site.
If you have any questions about financing your boat, boats for sale on Vessel Vendor, or if you wish to list your boat, please fill out the appropriate form on the site and we will answer you promptly.