What you need to know about financing a boat in 2021
Much like purchasing a car, many boat shoppers seek financing when it comes time to purchase their boat. A low-interest loan from a reputable lender is a great way to spread out your payments over time so that you aren’t breaking the bank before hitting the open water. While there are many options out there, we’ll cover some of the most common so you know where to get started. When you go from casual shopper to serious buyer, be sure to check with a few lenders so you understand your options directly from financial institutions and professionals.
The two most common types of boat loans are fixed rate and adjustable rate.
As you might expect, a fixed rate loan is the most common because it’s predictable and steady, allowing boaters to know exactly how much they’ll be paying at what increments.
On the other side of the coin is an adjustable rate loan. The big benefit here is a lower introductory rate, but with the caveat that the rate will adjust to a new rate after a certain time period. Some adjustable loans also feature balloon payments on the tail end of the loan, which means you’ll pay a lump sum to close out the loan after the lending period is complete, buying you time to save for that payment.
Also Read: Renting vs. Buying a Boat
There are other loan types that your lender may offer, but be sure to explore offers from a few different sources to make sure you’re getting the best plan and rate for your situation.
Speaking of lenders, there are many sources of financing available for boat buyers in 2021. Many new boat buyers will turn to the dealer for financing specials, who have relationships with banks to provide financing.
Many other boat buyers will go directly to their bank, credit union, or other online lender to shop rates and get a boat loan. It’s always a good idea to check with your existing financial institution as they may offer better rates to existing clients.
For pre-owned boat buyers, you can look to Marine Brokers who often work with sellers to help find buyers and provide payment options. There are buyer and seller brokers that represent each party, so you’ll want to find a buyers’ broker during the purchase process.
Financing a new or used boat in 2021 is a great way to buy a boat without paying a massive lump sum. Although you may have to have a down payment and you’ll pay interest over time, a boat loan with payments you can afford is a tried and true way to become a boat owner.