Boat Financing Guide
Buying a boat is a big investment. Unless you’re in the minority, you probably don’t have the funds on hand to pay for 100% of your purchase. However, you can still own your dream boat! Read on for some tips for financing your boat, and call Hampton Watercraft & Marine when you’re ready to see some models for sale. We are located in Hampton Bays, and Eastport, New York and proudly serve Eastern Long Island too!
Loan Types
The first step in financing a boat is knowing what kind of loan you want. Keep in mind that how much you pay in interest will depend on the lender, the amount of the loan, how much income you have, your credit score, as well as the type of financing.
Secured loans use the vessel you buy as collateral. This means that your craft can be repossessed if you fail to make payments. This financing option features high limits, lower rates, and long repayment terms. Secured loans are ideal for those who need a larger amount of money up front or do not qualify for an unsecured loan.
Unsecured loans, on the other hand, require no collateral. However, the rates are higher and the terms are shorter with this financing option. You won’t lose your vessel if you default on an unsecured loan, but you may end up dealing with wage garnishment, lawsuits, or damage to your credit score.
Places to Look
There are a few places you can go to in order to finance your boat. These include banks, credit unions, and marine lending specialists.
Banks
Even if you don’t have a checking or savings account at a specific bank, you can probably still receive financing options from them. Keep in mind that if you choose a bank that you do have an account with, you’re more likely to receive a lower interest rate. Repayment terms may be from one to several years.
Credit Unions
Credit unions are nonprofit lenders, making them a good financing choice for those with poor credit. These loans are secured, so you have to put your boat up as collateral. You will probably be able to obtain a higher total loan amount for a lower rate.
Marine Lending Specialist
This option will offer similar rates and terms to that of a credit union or bank. However, they are professionals who are familiar with the marine industry and will act as brokers. You will probably receive a secured loan and need to pay up to 20% for a down payment.
Are you ready to buy the boat of your dreams? Call Hampton Watercraft & Marine today and we’ll walk you through our financing options. We are located in Hampton Bays, and Eastport, New York and also serve Eastern Long Island. We can’t wait to help you find the perfect craft for all of your summer adventures!