There was a time when getting financing for a boat would have been next to impossible, thankfully times have changed! Yes, not only is it easier to find a lender that will help make your boat ownership dream a reality, but you might be surprised to discover that
there are a few different financing options at your disposal.
Similarly to all large purchases and investments, when you are in the market for a new boat it is likely you will rely on financing for at least part of the purchase.
So how do you finance your boat and who should you turn to for your financing needs?
Before you make that decision, here are some of the boat financing basics you need to know!
Take It to The Bank:
Many banks now offer financing options for boats or personal loans.
Keep in mind, most banks will require you to fork out between 10 and 15 percent as a down payment on a boat purchase.
If you're set on going to the bank for your boat financing, you should always take time to shop around with different banks to find the one that offers the best interest rates. Also, you could ask the lender if there is a possibility of getting a better interest rate by increasing your down payment.
Financing Through a Boat Dealer:
Not only do many dealers provide an in-house financing option, it is usually at a very competitive rate.
Because a dealer is gaining a sale from the boat purchase, they will typically be willing to work with you and possibly throw in a few extras to sweeten the deal!
Can we say manufacturer deals?
The benefit of dealing with a dealer for your financing is that it simplifies the whole process. It is essentially a one-stop-shop in which the dealer will do the hard work from start to end of the boat buying process.
Another bonus of using in-house dealer financing is that it can come with financing incentives, such as no down payment or low introductory interest rate.
Here at Legend Boats our main goal is to get you on the water, and to make this process a little easier we have professional financial staff on hand who are trained to find a financing program that works best for you! To find out more about financing options reach out to your local Legend Boats Dealers! Click here to access our dealer locator.
Home Equity Loans:
Are you a homeowner? Check!
Do you have a considerable amount of equity in your home? Check!
Are you looking to buy a new boat but want help with financing? Check!
If this sounds like you, the home equity loan might work for you! Essentially, this option allows you to take out a home equity loan or a line of credit to use for your boat purchase.
The great thing about this option is that you might be able to save a little money by taking advantage of the typically low home loan interest rates!
Sounds great right?
That said, you need to keep in mind that you may need to dish out a little money to have your home appraised. The other concern with home equity loans is that you are putting your house on the line.
Yes, your house will be treated as the collateral, and should you default the lender can potentially foreclose on your home.
What About Interest Rates?
It can be challenging to give a straight forward answer about interest rates because many factors need to be considered.
Typically any lender will factor in the cost of the boat, the size of your down payment, your credit score, and the current interest rates.
This is why shopping around to determine the interest rates offered by each lender is a great start point when you are looking into boat financing.
So now that you know a little more about the financing basics, it's time to get out there and find your dream boat, because the waters are ready and waiting!
If you like this, you might also like the Boat Buying Guide article.