Guidelines to Get a Boat Loan
Discouraged by the huge price tag with which your boat comes? Cheer up for statistics show that a vast number of the boat deals are done with the help of bank loans or other finance plans.
Almost all of these water beauties indeed come at a staggering blow to the average man’s pocket, and hence there are more ways than one that can help you legally fund a boat.
After fixing the type and size of your boat, customizing your needs and wants, you will have a vague idea about the expenses. Using a boat loan calculator is one foolproof way to calculate your monthly costs regarding a boat loan. You can follow these guidelines even for financing more powerful or a pair of new outboards for sale in BC as a customized re-powering job.
The most common boat loan sources include:
1. Financing via your boat lender
After the reports on sudden growth in using loans for boat deals after the recession, several mainstream dealers started providing incredible loan plans to benefit both the seller and buyer.
For seamless transactions and less waiting period, experts recommend this plan highly.
It is in the best interest of the dealerships to close the deal as fast as they can, and hence your headache regarding the finance process is limited.
2. Bank loans
Much like car loans, boat loans are another way of fulfilling your boat fantasies.
Some crucial points to keep in mind while applying for one are:
- A credit score of 700 or above is preferred
- Assets like a primary residence can help your case
- Get ready to go through a thorough background check
- 20/20/5(20-year plan- 20 percent down payment - 5% interest rate) is a standard criterion for hassle-free transactions.
- High net worth is favoured, as most banks look for financial security.
3. Lending loans from specialized marine financers
Approaching lenders specialized in financing boats for sale helps you in dealing with second-hand trade as well. Considering their continued presence in the market, they are familiar with the in and out, making it easier and somewhat faster to loan from.
While approaching, be wary of red flags or frauds and always ensure that your interests are protected. Members of the national marine lenders association give out some of the best deals for your boats and often beats bank loans with a lower interest rate or lesser down payment.
The boat loans, just like any borrower- lender scape, comes with a set of guidelines.
It is advised to learn the basics before you sign the deal.
- The interest rate goes down as the term of repayment goes up.
- The interest rate goes down as the loan amount goes up.
- A credit score in the upper range of 600 can also get a loan if other financial conditions are secure.
- Banks are always looking for a cross-sell, making you a future client for different financial plans.
- You can throw in some accessories and paint job along with as long as you know how to cinch a good deal.
- Stability and consistency regarding your income is a significant factor.
- Your previous financial records show your competence in handling the loan.
- If the boat has a bed, a head, and a galley, it can be termed a secondary residence and hence qualifies for tax deductions as per the federal tax returns.
Not having enough cash all at once is no longer a hindrance to your new purchase. Do detailed research on what type of transaction suits you better, take care of the vessel’s insurance, and you are good to go. For experienced staff and boats for sale in Port Alberni, visit us at Alberni Power and Marine.