A Beginner’s Guide to Boat Financing

Most people cannot afford to shell out ready money for something as expensive as a new boat. However, that doesn’t mean that most people shouldn’t be able to get a boat if they want one! That’s why there are so many financing options available for boat buyers. You can get the boat that you want at a price you can afford to pay off over time with the right kind of financing.

Types of Loans

A boat loan is a type of installment loan, which involves paying a fixed amount each month over the course of a year or several years. The amount of interest that accrues on the loan will depend on how large a loan it is, how much income the borrower has, the borrower’s credit score, and the type of loan obtained. Loans come in secured and unsecured formats.

Unsecured loans are simply loans that don’t have a security of some kind on them. These loans don’t require any collateral from you, but they often have higher rates and shorter repayment terms. While you aren’t at risk of losing your boat

Secured loans use your boat as collateral, which means that the boat is repossessed should the buyer fail to make their payments and default on the loan. Higher loan limits, lower rates, and long repayment terms are some bonuses that secured loans offer. These loans are your best bet when you need a lot of money in advance, or you aren’t qualified to receive an unsecured loan.

Your Options

A good option is to consider a marine lending service that can broker the loan via several resources. You can obtain similar rates and terms from these loans as you would from a credit union or bank, but these loans are offered by professionals in the industry. You may need up to 20% of the total cost as a down payment to get one of these secured loans.

Looking for a boat? Stop by Rockingham Boat in Hampstead, NH, to check out our wide stock of new and used boats for sale. We welcome all of our customers in Manchester and Nashua to visit us for all your boating needs.