Boat Loans Are on the Rise
Years ago, it was difficult to find a lender that offered boat loans. Recent revolutions in the lending industry have given buyers without the liquid capital to buy a boat the ability to finance one.
Lenders now lump boat loans in with other large-item loans, like cars and homes. There are many boat loan lenders that are also members of the National Marine Lenders Association. These are specialized lenders who understand the intricacies involved in financing boats and can offer the right loan for your situation.
Before settling on a boat loan, make sure you compare all the variables, including interest and payment terms.
Types of Boat Financing
You can use various types of loans to purchase a boast, including:
Lenders give unsecured personal loans without any collateral. This means the lender does not need any security against the loan before giving you the money. While you can access these types of loans with less-than-perfect credit, they are generally picker than the alternative. These loans’ repayment terms can vary greatly, so make sure to check these before signing up.
Installment loans are the more common type of boat loan and come with prearranged monthly installments. These generally have a longer repayment period than a standard personal loan. Mind the interest rate, though, as this may be fixed or variable. If it’s the latter, make sure you know when the adjustment periods are and how much the rate can adjust.
All these types of loans can be used for boat financing. Financer.com compares these types of loans and the various other boat loans. Use the calculator above to compare 59 lenders offering online boat loans.
How Much Does a Boat Cost?
A boat can be more affordable than you may think — a brand-new one can cost as little as $250 per month. Boat loan rates can vary based on the price of the boat and the terms you choose. If the boat has a berth, galley and head, the rate may be deductible.
Before shopping for an online boat loan, make sure you check out your budget and see what payment you can comfortably fit into it.
What Is the Application Process?
Applying for a boat loan has various requirements that differ by lender. Some lenders will accept a written application, while others require a phone application.
Most lenders will also require income verification and:
- Tax returns for the past two years.
- Personal and financial statements to show your assets and liabilities.
- The loan amount to be borrowed.
The total cost of the online boat loan includes the purchase price, any additional accessories, sales tax, and preparation and document fees.
The Boat Loan Underwriting Process
The lender will review your credit history which will include an audit of your past loan repayments. The lender will also verify that the boat’s price tag is not inflated beyond market value, check your income and compare your income to your existing debts.