Boat Financing
Boat Financing Information 🚤💰
Our preferred Marine Financing Company is Marathon, and you can access the application here: https://gateway.appone.net/onlineapp/wakemarineusa
When you're ready to purchase your dream boat, financing can make the process smoother by spreading the cost over time. Here’s what you need to know about financing your boat:
1. Types of Boat Financing
- Traditional Bank Loan: Secured by the boat itself, offering competitive rates. Banks may require a good credit score and down payment.
- Boat Loan through Dealerships: Many dealerships partner with lenders to provide financing options. This can be convenient, but interest rates may vary.
- Home Equity Loan: If you own a home, you can borrow against your home equity for boat financing, which may offer lower rates.
- Personal Loan: Unsecured loans can be used for boat purchases, but they typically come with higher interest rates.
2. Loan Terms
- Loan Amount: Typically covers the boat's purchase price plus taxes, fees, and other associated costs (like accessories or a trailer).
- Repayment Period: Loan terms generally range from 3 to 20 years, depending on the amount financed and the lender's terms.
- Interest Rates: Rates depend on your credit score, the size of the loan, and the lender. They can range from 4% to 10% or higher.
- Down Payment: Most lenders will require a down payment, usually between 10% to 20% of the boat's purchase price.
3. Boat Loan Requirements
- Credit Score: Lenders often require a minimum credit score (usually around 650-700) for approval.
- Income Verification: Be prepared to provide proof of income, such as pay stubs or tax returns.
- Boat Type: Some lenders may have restrictions on the type, age, or value of the boat.
- Insurance: Most lenders require comprehensive insurance coverage on the boat during the term of the loan.
4. Benefits of Financing a Boat
- Lower Upfront Costs: Financing allows you to buy a boat without paying the full price upfront.
- Fixed Monthly Payments: Payments remain consistent, making it easier to budget.
- Flexibility: You can choose a loan term that fits your needs and financial situation.
5. Boat Financing Process
- Pre-Approval: Before shopping, get pre-approved for a loan to know your budget.
- Choose a Boat: Find a boat that fits within your approved budget.
- Apply for Financing: Submit your loan application with the lender or dealership.
- Review the Terms: Make sure you understand the interest rate, monthly payment, and loan term.
- Sign the Agreement: Once you agree to the terms, you can sign the financing agreement and take delivery of your boat.
