How Big of a Loan Can I Get? Dealership Financing Has All the Solutions for You

How big of a loan can I get? That’s a common question recreational enthusiasts ask RV and boat dealerships. By outsourcing financing solutions, dealerships can have the burden of dealing with the loan process lifted from their shoulders.

In this article, we’ll talk about the different types of loans outsourced financing companies like Finance Solution can help provide to RV and boat dealerships. We’ll also discuss what interest rates and sizes of loans should be offered to your customers. Continue reading for everything you need to know.

Image of a person excited over their loan approval.

Boat Loans

By utilizing third-party partners such as Finance Solution, dealerships can offer their customers competitive interest rates without bearing excessive risks. This can be due to default payments or having resources tied up in long-term projects such as marine vehicle installments over extended periods. Without these distractions, boat dealerships can focus more attention on sales instead.

Types of Boat Loans

The first step in the loan process is understanding the different boat loan types. These include:

1. Personal loan: A personal loan can be taken out and used for anything, such as a boat loan. This type of loan typically has fixed interest rates and monthly payments over a set period of time.
2. Secured loan: This loan requires collateral to be put up as security against the borrowed amount. The collateral can be any asset, including a car or boat to which you have full ownership rights. Interest rates are lower with this type of loan, as there is less risk for the lender.
3. Dealer financing: This type of financing offers customers a variety of options from which they can choose from based on their individual needs and budgets. Dealer financing partners like Finance Solution provide competitive rates and flexible payment options for customers who finance their boats through us.

Interest Rates for Boat Loans

The next step in understanding how outsourced financing solutions help dealerships with the loan process is determining what interest rate should be applied to boat loans. Generally speaking, an interest rate between 5% and 10% should be considered reasonable, depending on your customer’s credit score and payment history.

Size of a Loan Customers Should Take

When helping customers decide how much they should borrow, it’s important to make sure they’re comfortable with their decision and that they aren’t overextending themselves financially by taking on too much debt. It’s also important to note that with dealer financing partnerships like Finance Solution, customers do not need to take out an entire loan sum upfront. Instead, they can pay off what they need at the time until their balance is paid off in full.

Should You Put a Down Payment on a Boat?

In most cases, placing a down payment on your boat may lower your overall cost, as it reduces the amount you will have to borrow and decreases your monthly payments. If possible, try not to put too much money down when purchasing items. Doing so could lead to some complications in terms of tax benefits or warranties and insurance coverage being voided.

Boat Loan Terms

When looking into boat loans, always make sure that you read through the details before signing any contracts so you know exactly what kind of repayment schedule has been agreed upon between yourself and the lender. Check for any additional fees associated, such as late payment penalties, so that all parties are aware and prepared for any associated costs before signing anything official.

Tired of handling boat and RV loan demand at your dealership? Consider financing solutions with an expert today.

Boat and RV Financing Solutions

RV Loans

Outsourcing financing solutions provide customers access to several types of RV loans, which can have varying interest rates depending on market conditions and personal credit history.

Loan Options

Outsourced financing companies can provide customers with a variety of loan offerings to their customers. Installment loans are fixed-term agreements in which borrowers receive a lump sum upfront. Over time, the borrower repays the loan principal, plus interest in regular payments until it is paid off. Revolving credit is similar to a line of credit that allows you to borrow money up to a pre-approved limit and repay the balance over time. Secured loans are backed by collateral (such as an RV), while unsecured ones are not.

Interest Rates

It’s important to consider current market conditions. Interest rates tend to be lower for customers with good credit scores and higher for those with bad credit scores, or who have filed for bankruptcy in the past year.

Loan Sizes

Many dealerships suggest using the debt-to-income ratio (DTI). This ratio compares your monthly income with your monthly debt payments, and helps lenders determine how much money they can reasonably expect you to pay back each month on any loan they offer. A DTI below 36% is ideal when lending money for large purchases like RVs.

RV Down Payments

It’s absolutely possible that a down payment can help you get better terms on your loan. When financing an RV purchase through third parties like Finance Solution, we recommend putting down 20% or more of the total cost upfront to secure better terms.

Loan Terms

When taking out an RV loan, you should be aware of their repayment terms and any additional fees associated with them. Standard repayment terms include flexible repayment periods ranging from 12 to 60 months and balloon payments at the end of the term where you must pay off any remaining balance due all at once instead of over time.

The Best Boat and RV Solutions Available in Florida

At Finance Solution, we’re committed to making RV and boat financing stress-free. With years of experience in Florida, we provide our dealerships and customers with personalized service and treat them as if they were family. We understand that budgeting is essential, so we offer various loan packages to ensure you find the perfect rate for your needs.