Boat Finance

One of the first things you should do when decided to get a boat is to sit down and make sure that the boat of your dreams is a boat you can afford. Without a loan, not many families,
even those with two good incomes, can afford more than a pontoon boat. Shop seriously for a boat... and for a loan.
To get started, visit three or more boat retailers and talk with friends and family who have boating experience. Make a purchase plan, along with the numbers and information you gathered from boat suppliers and other sources. Try an online directory like www.boatpartsdatabase.com to establish contact with sources of supply.

If you are looking at a good used boat, from a dealer or an individual, research values of half a dozen similar boats, with the same accessories and trailer if possible.

Setting a ceiling price that you can afford should involve at least two options: inboard motors or outboard motors. This will have a huge effect on the amount of money you will spend and on the style of boat you finally get. Be sure to include a quality
trailer, hitch and all the necessary safety equipment in your price.

So, where does the money come from? If you are in the majority at this point, you will have to borrow. But this should not be a major worry. Thousands of banks and other lending sources want your business... there is a whole industry out there offering marine finance. If you are careful in your selection and follow all the steps, you may not even have to actually visit a bank in person.

Shopping for a loan is just as important as shopping for the boat.
Before looking specifically at boat loans, let’s take a minute to understand loans in general, and define a few terms.

WHAT IS A LOAN?

What are some of the key elements of the boat loan? Here are a few:

• Interest rate
• Credit history
• Loan terms
• The down payment
There can be no such thing as too much information.

BOAT FINANCE KEY STEPS

There are a few important steps involved with a successful boat loan process and speed things up a bit.
• Numbers
Get a small notebook and take some time to find serial numbers,
model number etc. for the boat. This will also be important if you are considering an outboard motor. The engine numbers should be listed separately. Gather as much printed information as you can from the dealers you visit.
• Model numbers
Make sure you get this correct. All of the options and special items that are part of the particular model can increase the value.
• Trailer
Every boat purchase should include a quality trailer that is suitable for that particular boat. Get all the serial numbers and model number, and
a brief description of the boat and trailer. A photo may help.
• Research
As part of the information-gathering process, you should get your own valuation figure.
Some lenders advise visiting boat shows in addition to talking with boat dealers in your area. In addition to deciding on the exact style and model of the boat you want, many lenders will be happy to hear that you have taken safety classes. This may seem like a small thing, but lenders like to know that the collateral (the boat and trailer) are going to be in good condition for
the term of the loan.

Lenders may look at boat loans as falling somewhere between the  house mortgage and the common car loan that many people are familiar with (and comfortable with). Banks and other
lenders see boat loans as a loan that can be made quite easily if finances are in good shape. Like a car loan, you can be
approved quickly and easily for a boat loan if you qualify.
One of the great things about a boat loan is that boats generally do not depreciate as quickly as cars, so you may be able to get a 10 or 15 year loan on a newer boat. Typically, the standard down payment on a boat is about 20 percent.
A boat loan may offer advantages over paying cash for your boat but be sure you check with a tax professional. Your boat, and your use of the boat, must meet certain criteria prior to deducting your boat loan interest. You may even want to take the time to find a bank or other lender that specialises in boat loans. The extra time spent doing this may save in fees, down payment or interest rate.

BOAT FINANCE SPECIALISTS

Title/ownership issues can arise with used boats, especially if purchased from an individual. A bank with long-term experience in this field can be a great ally if problems do arise. This is something to consider when deciding to use a local bank or an
online institution.

You should always compare various interest rates, down payment, and terms from three or more banks. Keep in mind any additional items that are not included in the actual purchase price of the boat and trailer. Add these costs, as well as the cost of
service contracts with the dealer. Do not forget insurance.
You may be surprised at how many banks, financial services companies and others advertise that they are in this business.

TYPES OF LOANS VARY

Another regional bank advises that the usual sources for boat loans through its branches are unsecured loans, marine loans (or yacht mortgages), and borrowing against the equity in your house.  Some loans can be no credit check online loans.

If the boat is of wooden construction or of an unusual type, the
maximum amount that the bank will lend may be reduced.

BOAT LOANS ONLINE

You can do much of your research and find a suitable lender online. If the lender has a website, they can often make a decision in minutes, 24 hours a day, seven days a week.
Major online lenders offer a convenient way to apply for your loan. Some of the larger online lending companies also offer services like coordinating the transaction, taking care of the
form filling, assistance in finding boat insurance, free estimates.

Loan rates for business

If the boat loan is for business purposes including ones like the application of Mallorca yacht charter, the interest rates may be much higher.