The price of a boat is a difficult thing to pin down. A luxury yacht can set you back millions of dollars. On the other hand, a small second-hand yacht could be as little as $100,000. A powerboat could set you back as much as $100,000 or as little as $15,000.
Unless you have a lot of money stashed away, what is certain is that you’re going to need some kind of boat financing to help you make that boat purchase a reality.
If you’re looking to secure a boat loan, there are some steps you can take to improve your chances.
Read on as we take a look at some expert tips to help you secure a boat loan.
1. Be Prepared
If you’re looking to buy a boat, then you’re already doing the right thing by doing some research into how to get a boat loan.
The more you know in advance, the more likely you are to be successful. It helps to have some answers to common questions prepared in advance. These might include:
- Details of properties owned
- Your financial history
- Your current employment and salary
- Your address information
- Any other credit currently outstanding
2. Get Pre-Approved
There’s nothing worse than finding your dream boat, only to discover that you can’t a boat loan to cover the purchase price.
That’s why it makes sense to get pre-approved. This is a promise by the lender to loan you a specific amount so that you can go out and put down a deposit on your dream boat safe in the knowledge that you’ll be able to secure the loan to pay it off.
3. Offer More Security
Loan companies don’t like risk. The more security you can offer them, the more likely they are to approve your loan.
If you have anything else that you can put up as collateral for your loan, then let the lender know. This could include things such as home equity, vehicles that you own, or even a guarantor. You could also consider putting down a larger deposit which can help to sway some lenders.
4. Compare Loans
If you’re not accepted for a loan, there are other options out there.
If you want to find the best boat financing then it pays to compare the market and find the best fit for your needs. There are plenty of places that offer this type of loan, so do your research and find the lender most likely to approve your loan at reasonable terms.
5. Consider a Broker
It can often pay to hire the services of an insurance broker.
Not only can a broker do the work of finding the best deals, but they may also have access to deals that aren’t open to the general public, and so may be able to find you a better deal than you’d find yourself.
You’ll need to factor their fees into your overall costs.
Are You Ready to Find Boat Financing?
We hope that this guide to boat financing has been of some use. Using this information, you will hopefully be able to find the perfect boat loan and buy the boat of your dreams.
We have a wide selection of boats for sale on our website. Whether you’re looking to buy or sell a boat The Mariner can help you find great deals on boats near you. We also have plenty more great boating articles just like this one.
Be sure to take a good look around!