Buying a boat is exciting and there are times that buyers are so wrapped up in finding their dream boat, they don’t consider what actually goes into the process of purchasing it. Financing is probably the best way to get you into the driver’s seat of your dream boat and for considerably less than you might think.
How Much Boat Can I Afford?
The National Marine Manufacturers Association (NMMA), an organization that represents more than 80 percent of today’s boat and marine engine makers, recommends that new boat owners consider more than the asking price of the water craft they are purchasing. Consider costs for insurance, care and storage as well.
A good way to begin assessing the affordability of the boat you are considering is to use the free NMMA Boat Loan Calculator. Enter the loan amount (minus the down payment), the interest rate and the length of the loan. The calculator will crunch the numbers and estimate the monthly payment.
Know Your Credit Score
Credit scores directly impact loan approvals and interest rates the same way that they affect home mortgages and car loans. The better your credit score, the more favorable your financing options. Having an idea of the range you’re prequalified for based on your credit is a big step in the buying process.
Why Financing Your Boat Makes Sense
Financing can make the boat you are interested in more accessible. That is why the majority of boat buyers seek financing from a professional marine finance company using the boat as collateral. Marine lenders offer competitive terms and fast credit decisions as boat loans are at the core of their business. Some will even allow tax and extra marine options and accessories to be included in the loan amount.
The loan approval process will normally take from 24-48 hours after the application process. Loan approvals are usually good for 30-60 days from the date of approval by the lender. Please make sure you get a commitment in writing from your finance specialist spelling out the details of your loan approval, so you are aware of and understand the terms and conditions of your loan and any fees associated with the closing.
Down Payment
The down payment to purchase a boat is based on the age, type and price of the boat you are buying, as well as your own credit score. Most marine lenders offer financing with down payments typically in the 10%–20% range. Make sure you discuss this with your sales professional once you decide on your boat and finance specialist.
Working with a Boat Dealer
If you're not working with a boat dealer, maybe you should! Most boat dealers are experienced in helping their customers obtain financing, and will have a relationship with a good marine financing company that can help you with your financing needs. A key benefit of a dealer helping with your financing, is that they will help make the process as simple and fast as possible. Their job is to get you into the boat you’re interested in and they will do their best to make that happen.
At Cape Yachts, we are dedicated to helping you find the best boat at the best price. We have many years of experience and excellent marine finance providers at our disposal We’ll help you understand the process of boat financing and guide you step-by-step along the way. Contact us today to learn more, we're happy to help in any way we can.
