With everything that a person has to take care of, buying a boat can seem like a lot of unnecessary stress. With virtually everything having a price tag on it, signing the paperwork for a boat can feel like an added burden, but nothing could be further from the truth. Here's the skinny on what it really means to finance a new or used vessel.
Fussing About Financing
When a new buyer goes into a dealership, the first thing they like to see up front is the price tag. Unfortunately for many people, the numbers on that tag can be staggering, but there's hope. Taking some time to do a little bit of homework on what kind of boat you want, what kind of optional features you're looking for and what amenities you want included is a great way to match a price figure to the boat of your dreams.
After the perfect boat has been built in your mind, the next thing to do is look for the proper avenue that offers the best financing options. Most banks offer financing on a boat, but take an extra moment to really feel out your options.
The first thing that any first-time buyer should look into is what documentation will be needed and desired with a new boat. Proper licensing and documentation of the boat can be a little confusing, but many marine lenders, such as those with the National Marine Bankers Association, or NMBA, are equipped to handle any documentation questions or concerns along the buying process.
Banks that specialize in boat financing have created options for buyers looking to get the most out of their future purchase. Generally, a down payment between 10 and 20 percent can typically be expected to afford buyers with low monthly payments, although certain manufacturers offer financing options that could qualify buyers for less, if not zero-down on a new boat. Marine savvy lenders also have more knowledge on the financing process, so the time spent with the lender could be significantly short and simple, which could mean less time signing papers and more time enjoying your new purchase on the water.
Credit unions and local banks wouldn't hesitate to give qualified buyers the money they need for a boat, but those who specialize in the marine industry are well acquainted with the value of boating. Marine bankers will often offer longer financing terms to qualified buyers to sweeten the deal and ultimately encourage more affordable monthly installments. While you may be thinking that these payments will become a long-term hassle, the lengthened financing terms can make the monthly payment lower than what you pay on your car.
The cherry on top of this cake may be the sweetest part yet. Marine bankers know what it takes for customers to have the perfect dream boat; that's why certain bankers will even allow buyers an opportunity to finance optional features, extended service plans and even certain insurance policies with the purchase. The conclusion here is that, while you should take your time and see what your local credit union or bank is offering, keep in mind that there are banks that specialize in the marine industry and won't hesitate to help if they can.
Do Your Homework
While you're "jumping through the hoops" and figuring out where to finance your new boat, set time aside to do a little investigative work. Many banks have websites that will allow you to use the loan calculator provided to do a little bit of simple math. A lot of people get intimidated when numbers start flying around, but being able to roughly calculate their future cost and equip themselves with a little extra knowledge to walk into the bank with. Another thing to think about is whether the bank offers financing with simple or compound interest. Knowing what kind of interest is offered could save a lot of money in the future. Remember, banks, whether they are specifically involved in marine sales or not, are also running a business and trying to make some profit. They are there, however, to work for you. So don't hesitate to ask them as many questions as you deem necessary.
It's important to understand that there is some thorough preparation needed before going into a finance plan. It's also important to remember that financing a new boat is a responsibility shared between the owner and the lender. There are a lot of places that will be willing to finance you on your sea bound quest, but taking a little time to research the best place for you is key in making the most affordable choice. If you have loyalties to your bank, be sure that what they offer is going to ultimately benefit you. If you're still uncertain about where to go and what to do, spend time weighing your options and talk to various lending agencies to get the proper feel. Slow and steady wins the race and can get you into that boat with peace of mind and a whole lot of extra cash in your pocket.
