Owning a boat can be expensive. Fortunately, these five unique solutions can help make your purchase less of a burden and more of a luxury.
There’s nothing quite like the feeling of exploration, especially when you’re sailing the open seas. The adrenaline rush on the water is triggered by a mix of adventure and relaxation, and that begins the very moment you step foot on the right boat. Owning a boat may seem like a myth to some, though, because not everyone has the money to afford a personal watercraft. Luckily, a variety of solutions can help turn that myth into reality.
How to Make Boat Financing Easy
Purchasing a boat can be difficult. It’s a major financial commitment that requires a lot of time, energy, and research. And you might have more financial stress weighing you down, depending on the type of boat you have your eye on. Fortunately, you can do plenty of things to make the purchasing decision a little easier, even if you’re a first-time buyer.
Here are five cost-effective ways for you to finance your next boat.
Make It Your Home
Making payments on a boat can be tough when you have other debts. Even if you have enough money to buy a boat, it may not be a feasible option because you probably have more important living expenses weighing you down. You can make a boat much more affordable by making it your primary living arrangement. If your boat is registered at a length of 32 feet or more, then you can apply for a liveaboard moorage program. This allows you to settle directly on your boat just as long as you’re able to make monthly payments for marina space. Be careful with this option as a lot of the popular boat financing lenders do not allow for this. Maybe try taking a loan against your 401K to complete this option.
Rent It Out
If you don’t want to turn your boat into a personal living space, you can put it to work and generate a side income. You’ll be sure to pay off your boat a lot faster if you’re open to renting it out. Owners can offer their boats as recreational vehicles or as a personal living space, and charter companies such as Boatsetter make it easy to do that. Boatsetter works similarly to Airbnb because you can list boats as temporary living arrangements. The only difference is you’re offering a boat as the property instead of a house or apartment. Be careful with this option if financing as a lot of the popular marine lenders do not allow for this.
Secure a Boat Loan
You might be surprised about the number of sailors who don’t know they can take out a loan for a boat. Marine lenders offer a variety of different loans to people wanting to explore the open seas. If you go to a boat lot and find a model you’re particularly fond of, you can work with a lender to get a suitable loan. Another option is to work with a third-party broker. If you can’t reach ideal loan terms with the boat lender, a broker will be responsible for streamlining the application and approval process.
Test Multiple Markets
Another unique financing option is arbitrage, which is the process of buying, flipping, and selling boats in separate markets. This isn’t a “get rich quick” activity, so if you don’t have a lot of patience, it may not be the best investment option for you. Not only are you responsible for refurbishing old boats, but you also need to have a working knowledge of different boating markets. A good example of arbitrage is one who buys a run-down boat in Mexico. This boat may have the potential for bluewater cruising, so the person who buys the boat will fix it up and sell it in a tropical area where this is a profitable activity, such as Australia or Jamaica.
Purchase Shares Instead of Ownership
Boats are very expensive assets to own outright. They involve a long-term financial responsibility for a more seasonal activity. If you don’t want to be liable for the entire boat, you may want to consider being a shareholder instead. Taking out shares on a boat can significantly cut your overall spending. This is the ideal option if you only sail during a certain season, or for those who just don’t use the boat much.
Finance Solution—Your Source for Boat Financing Across the U.S. Market
Buying a boat isn’t full of headaches and frustration when the experts at Finance Solution are by your side. Your dream boat is out there and we are determined to make it your reality. Our team works tirelessly at financing recreational vehicles and personal watercrafts. Don’t beat yourself up over your financial status any longer. Your occupation or credit scores don’t matter, because we will find ways to lower interest rates, reduce the purchase price, and create suitable rates and terms on your boat ownership contract. Find out how by scheduling your free consultation with one of our experienced boat financing professionals.