Boat Financing Guide for First-Time Buyers
Boats are an expensive investment and not many boat buyers have the full sticker price available with them in cash. Are you, too, contemplating buying a boat but do not know where to look for help? Don’t worry. At The Harbor in Branson, Missouri, we have put together this brief guide to help you understand all there is to know about boat financing. As your local boat dealer, we can help you pick the best boat for your adventure and get you the best financing options for a convenient transaction. We also serve all those in Springfield and Kansas City.
Types of Loans
Boat loans can broadly be classified as:
- Secured: In this type, the purchase, which is the boat itself, will be used as collateral. In case the owner is not able to repay on the promised terms, they may lose possession of the boat. These loans are ideal for customers who need more money upfront or aren’t able to get an unsecured loan.
- Unsecured: An unsecured loan does not require owners to furnish any collaterals. However, if the loan amount is not duly paid off, the owner will face lawsuits, wage garnishments, and earn a bad credit score. Shorter repayment terms and a higher rate of interest accompany unsecured loans.
The interest mostly depends on:
- The boat loan amount
- The length of the term
- The current income and credit score of the applicant
- The lender that will give you the money
Finding Help
Our boat financing department can help you simplify your purchase journey by offering you loans that match your preference at your convenience. If you seek help elsewhere, here’s what you need to know:
Banks
If you wish to enjoy a lower interest rate, apply for a loan at a bank that you already have an account with. You can apply in places that you don’t bank with, but the interest rates will be higher. For the best rates and hassle-free approval of the loan, maintain your credit score. It is worth mentioning here that regardless of where you apply, good credit scores are a must-have.
Credit Unions
For people with a poor credit score, secured loans from credit unions are ideal. These non-profit lenders offer more money to the applicants at a lower interest rate and by using the boat as a collateral.
Marine Lending Specialists
A marine lending specialist acts as a broker and finance professional in your journey to acquire a boat loan. They have better access to resources and can help you get the best deal. With a marine lending specialist assisting your pursuit, set aside at least 20% of the boat cost to pay as down payment at the time of purchase.
Points to Consider
To be able to easily pay off the boat loan, do the below calculations ahead of the purchase:
- The monthly payments shouldn’t exceed 20% of your current income.
- Read the documents carefully before signing them and understand all the terms properly.
- Calculate the after-purchase costs (fuel, maintenance, licensing fee, storage options, etc.) before you sign the boat loan papers.
- Calculate the resale value after taking note of depreciation. If you want to avoid losing such a large portion of your boat’s value, you can also go in for a used boat purchase.
If you have more queries, head to The Harbor in Branson, Missouri. Our service experts can help you with your financing needs and get you the boat as per your preference. We also serve our friends in Springfield and Kansas City.