When the weather is warm, everyone wants to spend time outdoors, and with those near water bodies, the desire to own a boat and go sailing increases. Fortunately, you can actualize that desire, own a boat and go sailing through boat financing. Here are a few options you can look into to ensure the next warm season finds you ready.
Financing Through Credit Unions and Banks
Just like with car loans, some financial institutions offer loans for one to buy a boat. You can find a credit union offering an actual boat loan where you pay fixed monthly installments for a certain period. Sometimes even 15 years. For a secured loan, most likely, the boat will serve as collateral. However, when the loan is unsecured there is no collateral. Interest rates are likely to be high, making the overall amount you are paying back big.
Another option you can look into is the home equity loans and credit lines. Rather than taking a secured loan where the boat is collateral, these options let you use your house as financial leverage.
Just like most auto dealerships offer their clients car financing, so do boat dealers. As Ontario Boat Dealerships advises, you can get a reasonable interest rate by using dealer financing. However, remember to watch out for additional fees or charges you are not sure of. It is better to ask the dealer for clarification to avoid any future inconveniences.
Organizations such as the National Marine Lenders Association specializes in things like boat financing. From such an organization, you can get many lenders with different financing terms that you can look into and find one that suits your needs.
Before approaching any of the above financing institutions, research the type of boat you want and find out how much it will cost. Once you know how much you need, get a practical repayment plan that will not strain you financially.