There’s nothing quite like sailing on an open body of water. The feeling is invigorating, fun, and adventurous, and it all starts at that moment you step foot on that perfect boat. For first-time boat buyers, the experience doesn’t come easy. Buying a boat is a critical financial decision that takes a lot of time, energy, and research. And the bigger the boat, the more financial headaches you have to deal with.
Fortunately, there are plenty of financing options and loan programs that can make things a breeze. Before purchasing a boat from a dealer, make sure to weigh out all of the possible scenarios.
What Are the Best Options for Financing a Boat?
In order to make the boat financing process easier, here are some things that you’ll have to decide on.
Secure a personal loan:
If you have a good credit score, then getting a personal loan from your bank is one of the best financing opportunities to capitalize on. Whether it’s a boat or trailer loan, it’s best to get a few different quotes from different banks to discover the best value. Typically your bank will require you to make a down payment worth 10-15% of the full purchase price. You can usually shrink the overall interest rate by paying more upfront.
Work with your boat dealer:
Make sure you do your homework before you sign off on a title agreement. The best boat dealers to work with are those with proven reputations. Most dealers should be experienced in setting up financing options. Provide competitive rates from other boat dealers and be prepared to make negotiations. If you are having trouble securing the proper loan from your bank, then the dealer should be able to step in and streamline the process for you. Just be prepared to expect a higher interest rate.
Offer up home equity:
If you are offered a bad credit boat loan, then it may help to use other assets. You may be able to adopt a home loan and borrow a certain amount of equity to afford your new boat. Be careful when doing this though. You need to make sure you’re able to balance a mortgage payment and a home equity loan. If you aren’t able to keep up with your monthly payments, then this can really damage your credit rating.
Make it a credit card purchase:
Credit cards should only be a final resort option if you know that you’ll be able to pay off the boat fast. A new boat is a major purchase, so it comes will likely come with a heavier interest rate. Using a credit card is also dangerous because it poses a lot of risk for identity theft. Credit card information can be easily swiped and used for fraudulent spending. Some credit card purchases may be your best option, just as long as you are making the smart decisions.
Call Finance Solution to Accelerate the Process
The easiest way to secure the perfect boat loan is to work with the experts at Finance Solution. We’ll help you leverage financing options, and we’ll even take care of the online application for you. With us in your corner, you’ll be sailing the open seas on your dream boat in no time.
Give us a call today to schedule a free consultation with one of our loan experts. We’ll make sure that you are able to claim a feasible loan, while eliminating all of the headaches in the process.