Questions to Ask When Financing Your Boat

April 22, 2019

You’ve decided you want to buy a boat. You may have even picked out the perfect vessel. Now it’s time to pay for it.

The process of financing a boat can be intimidating, especially if it’s your first time doing it and you’re not familiar with the process. But there’s no reason to be nervous. With the help of a little know-how, you’ll find that navigating the financing process is a lot easier than you think. Here are a few helpful questions to ask yourself before financing your boat.

Should you finance?
Even if you have the cash to purchase your boat outright, financing might still be the best move. Financing will allow you to get your boat without taking the immediate cash hit.

What is your credit history?
Your credit history, as well as details such as the age of the boat you are buying and the price, will all have an impact on your loan. Make sure you know these details before financing.

How much should you put down?
People often put down between 10 and 20 percent of the total cost when purchasing a boat. However, the right professional can often find many different loan options for you, and sometimes even zero down payment. Think about what you can afford.

What kind of loan is right for you?
You have many different types of boat loans you can choose from. First, think about what you can afford for a monthly payment. Next, think about the type of loan you want. Do you want a flexible boat loan that you can pay off early, or a long-term, fixed-rate loan? It may depend on how long you expect to own the boat.

What don’t you know?
You might know a lot about boat financing. But, if you’re not a professional, there could be details and options you are missing. Your best bet is to talk with a professional. Find a company, like Sterling Associates, that has an experienced, talented team and a long history and respected reputation within the industry.