This content has been sourced from Discover Boating’s article titled “Financing Your Boat”
Buying a boat isn’t as painful as you might think! Naturally, prices for new boats vary depending on size and make, but many boat manufacturers and dealers can put you in the captain’s chair for considerably less than a monthly new-car payment. In fact, monthly payments for many entry-level boats can be less than $250.
Boat buyers have many choices when it comes to paying for their purchase. Here are a few of the advantages of financing your purchase through your dealer with a National Marine Lenders Association (NMLA) marine lending specialist:
- Lower down payments – the down payment is based on the age, type and price of the boat you are buying, as well as your own credit profile. In today’s market, marine lenders offer financing with down payments typically in the 10%–20% range, but often there are programs available through various manufacturers that could allow you to qualify for less, or zero-down on new boat specials.
- Faster credit decisions – because you are working with professionals in the marine industry, those lenders understand boats and their buyers. You can apply for a loan and often be approved in 24 hours.
- Longer financing terms – marine finance specialists recognize the value of a well-maintained boat, so terms generally will be more attractive than those not actively making boat loans.
- Lower monthly payments – because marine lenders extend longer terms on boat loans than local banks and credit unions, your monthly payments are likely to be much lower than you have expected.
- More electronics and extras – marine lending specialists will allow you to finance optional equipment, electronics, extended service plans and life/disability insurance coverage with your purchase.
- Tax Deductions! – A boat with a head, galley, and berth can be considered a second home therefore, the interest on a boat that meets these criteria can be used as an income tax deduction. Even if you can pay cash – in this instance financing is often a better option because you can invest the cash in something with a decent return and take advantage of the tax deduction.
- Credit Life Insurance – This is a great reason for older buyers who may have to spend a whopping amount to get life insurance. Going with a credit life policy allows the boat owner to pass down a boat with a clear title.