The Borrowers Guide to Boat Loans

The Borrowers Guide to Boat Loans

It’s summer in South Florida and that means one thing: boats! It time to stop hoping your friends will invite you out on theirs, and purchase one for yourself so you enjoy it whenever you’d like. Before you go running off to a dealer, here are some things you need to know.

When you decide to finance through a credit union, you will need to know exactly what you can afford before going to the dealer. This will give you more negotiating power because you will be paying the total price upfront. You’ll find that most dealers are much more willing to haggle with someone who is paying cash than someone who will be having to make payments.

If you do some research into boat financing, you will see that you will receive better rates when financing through the credit union than with the lender at the dealership.

What You Need To Have Ready To Make Sure Qualify.

There are a lot of factors that you need to keep in mind when applying for a boat loan. Here are a few tips to make sure you are headed in the right direction.

  1. Know what you can afford.

    When you purchase a boat there are a lot of costs other than the cost of the boat itself that you need to consider. You need to factor in things like maintenance costs, docking fees, and fuel into your monthly costs so you don’t end up with a loan payment that is more than you can afford.
  2. Check your credit score

    Before applying for any loan, whether it’s a home, plane, or boat loan, you need to check your credit report. By checking your credit score prior to applying, you can find any possible mistakes that can stall the loan process or damage your score further.
  3. Type of boat you’re planning to buy

    If you’re unfamiliar with the boat market, take time to shop around a bit. Get a feel for prices in your area so that you know how much money you need to ask for. Also, by researching the boat market you can get a feel for what type of boat will best fit your needs. For example, a pontoon boat and a cabin cruiser serve different purposes and you want to make sure you’re getting just the right boat for you.

Boat Loan vs Car Loan

You’re probably asking yourself, “How is this different from a car loan?” The main difference between car loan and boat loan is, in fact, the financing. The majority of car loans have a 36-month term, which means that your loan must be paid off within three years. On the other hand, some boat loan terms are longer. In some cases, you could stretch your terms to seven, eight, or even ten years, depending on how much you are looking to borrow. Also, unlike a car loan, the interest paid on a boat loan may be tax deductible. If your boat has a kitchen and sleeping area, you could be able to declare it as a second home and claim your boat loan interest payments on your tax returns.

Why Get A Loan Through a Credit Union?

There are a plethora of boat loan lenders out there so you will want to make sure you are getting the best rate available from an institution you trust.

When you’re ready to take the next step, let us help you start the boat loan process. If you have a few more questions you need answer, you can also contact us via email 24-7 or call us during business hours.