If you are interested in purchasing a boat but lack the financial resources, boat financing is available. The process begins with a pre-approval from a bank. This pre-approval will tell you how much you can borrow and how long you can pay it off in. You can plug the information into a boat loan calculator to figure out what your monthly payments will be. You can then begin the process of comparing different lenders.
Most boat buyers will choose to work with a boat dealer, who is experienced in setting up boat loans. Their goal is to make the process as easy as possible for their customers. Other boat buyers opt to take out a personal loan from their bank, home equity line, or second mortgage. These options may have lower interest rates but may also involve more paperwork. However, a second mortgage or home equity line of credit may have tax benefits for the buyer.
The loan amount and repayment period vary widely between lenders. To find the best lender, you will need to work out the overall cost of your boat and how much you’d like to borrow. Generally, larger loans have longer repayment terms, but the exact terms will depend on which lender you choose.