The National Marine Manufacturer Association (NMMA) reported that the retail unit sales for powerboats in 2018 were up by 4%.

It is estimated that more Americans will continue buying boats, leading to a surge in retail sales in the coming years. Despite the increasing boat sales, boats are pricey!

Most boat owners had to look for boat financing options to make their dream a reality. If you have been in a dilemma wondering how to finance this big project, this article is for you. Keep reading to know some of the financing options you might want to consider if you want to buy a boat.

Boat Dealer Financing

Some boat dealerships offer practical financing options that can allow you to buy a boat with minimal hindrances. In this case, the dealer addresses all the behind-the-scene activities and connects you to a dealership lender. Your dealer will be acting as the middle man, meaning that you might not even have to deal with the lender directly.

Boat dealers are more knowledgeable about available boat loans. They know the lenders, and the chances are that they can get a loan easier and faster than you can. If you’re short of boat financing options, reach out to a reliable seller to inquire about dealership financing.

Dealers often include other complementary accessories like fishing rods, extra grills, anchors, or even a marine radio if they are in charge of your boat financing. Note that boat dealers are different, and some don’t have these extras. As such, it would be best to ask your boat dealer some of the additional services you stand to enjoy through their boat financing.

If you want to have a boating adventure in 2020, but the process of getting a loan feels daunting, consider boat dealership financing. You’ll secure a boat and save yourself from the financing legwork. However, your research, when getting a boat loan, is of utmost importance.

Bank Loan

You can get a secured bank loan for used or new boats. Most banks that offer boat loans consider boats such as yachts, motorboats, and sailboats. The loan limit for used and new boats differ slightly, with new boats attracting a higher financing limit.

For a bank loan, your credit score is a crucial determinant. The bank further analyzes the money you intend to use as the down payment to determine the repayment terms and rates. With a high credit score and down payment, you’re likely to get adequate boat financing from the bank.

Financial institutions have varying terms when it comes to interest rates and other loan qualification terms. You might want to research widely to get a bank with friendlier loan terms. If you have a financial institution that you have worked with before, the better!

Some of the banks in the U.S. providing boat loans are USAA and Wells Fargo. While these bank loans can be an ideal way to get your dream boat, the qualifications often turn away many people looking for boat financing options.

Marine Lending Specialists

Do you want to maximize your water adventure, but you’re wondering how to buy a boat without breaking a bank? Well, it’s possible! Marine lending specialists have made it easier for people to get boat financing.

These specialists often act as intermediaries or brokers, who use their skills and network to get you an ideal boat loan. They can secure funding through sources like banks or other institutions. You have a higher chance of securing a loan through the marine lending specialists than when applying for the loan solo.

Notably, the repayment and rate terms with marine lending are somehow similar to personal loans. The primary advantage is the fact that you’ll be working with a specialist. As such, you don’t have to fret if you don’t have an adequate understanding of the boating business, as the specialist will be there to guide you.

It is crucial to note that the boat acts as the loan’s security. If you fail to honour the repayment as agreed, your boat might be repossessed. The down payments often depend on the lender, and it can go as high as 20% of the boat’s purchasing price.

Home Equity Credit

A home equity loan refers to a fixed loan amount where you use your home as security. With this option, you’ll pay the loan through equal monthly payments, just as how you pay for your home. Failure to repay the loan as per the agreement means having your home foreclosed!

Most lenders have an 85% limit on the amount one borrows against their home equity. The amount often depends on credit history, home’s market value, and income. If your boat financing is becoming a challenge, this option can work for you.

The lender values the property and informs you of the available utility you can utilize as a boat loan. It would help pay attention to all details to ensure that you get the best from this second mortgage.

If you want an upfront sum, the Home Equity Line of Credit is another great option. HELOC works like a credit card; you’ll only be repaying the only part of the loan you have utilized.

While you might be desperate for boat financing options, be extra careful with the home equity loan. The stakes are considerably high. Defaulting on the loan puts you at risk of losing your home.

Friends and Family

Some of the popular boat financing options might not work for you, especially if your credit score is low. If you don’t qualify for the typical loans, consider seeking assistance from friends and family. Your close networks can give you a loan with friendlier terms.

Just like any other loan, have the agreement in writing. You need to plan on the repayment plan and other crucial factors needed when taking a loan. Without these formalities, conflicts might ensue, especially if you’re not on the same page with the lender.

Honour the boat loan by repaying as agreed. With friends and family, money matters can be complex. The last thing you’d want is a broken relationship.

Alternative Boat Financing Options

Boat prices have been increasing by 4- 6% year after year. As such, the cost of boats can only continue to surge through the years. Boat enthusiasts who want to own a boat might not get a loan from the typical boat financing options.

Fortunately, there are several alternatives to financing that one can consider. Being a boat club member is one way to have unlimited access to different types of boats. The membership and monthly fee you’ll be paying will be a smaller amount compared to what you’d otherwise spend buying a boat.

Boat rental is another alternative financing option that you’d want to consider if purchasing a boat is not a tenable goal for you. A marina often gives out boat rentals mostly hourly or per day, which will ensure that you enjoy the thrill that comes with owning a boat. The best part is that you don’t have to worry about its long-term maintenance and responsibility.

Personal savings can feel like a long and daunting way of getting the amount you want to buy a boat. If you haven’t started to save for your dream boat, you need to be prepared for the long road ahead.

Actual Cost of Boat Ownership

Boat ownership involves more than the sale price. It comes with a range of costs you need to consider as you learn how to buy a boat. Some of the costs that you’ll be incurring include the cost of insurance, taxes, or registration.

States have different regulations when it comes to boat ownership. You can check with the relevant authority to know the tax percentage and cost of registration. Dock or mooring fees are another cost that you might want to consider when budgeting for a boat.

Other ongoing costs that need to be part of your boat budgeting include safety equipment, life jackets, transport trailer, and storage. You’ll also have to consider the boat maintenance fee. The maintenance cost can be quite high, depending on the state of your boat.

As you budget for a boat, ensure that you have a budget allocation for these additional expenses. Weigh all your options and ensure that you get a high-quality boat.

Boat Financing Options Have Made It Possible for Many People to Own Boats

Owning a boat is a dream for many people. However, the cost of most boats is relatively high. You’ll need to check the standard boat financing options if your budget doesn’t accommodate a boat purchase.

The type of boat loan you take should be an amount you can repay comfortably over the stipulated time frame. You don’t want to have your boat repossessed over loan arrears!

Are you looking for a boat and friendly financing options? West Show Marine and Leisure is your ideal partner for everything related to boats. Contact us today to know how you can get financing assistance to help you in buying a boat.