What To Look For In Boat Financing!

By Abhishek Agarwal

Getting finance for your Boat is very much the same like for your home or your car.

However, if your lender is familiar with boat financing, it would be of great help.

A lender with experience in boat financing would be able to give good advice on your choice of boat and whether the boat of your choice is worth the price that you are paying for.

They would also help you in determining the re-sale value of boat through depreciation, so that you get a good deal.

Financiers also ensure that there is clear and legal ownership for the boat.

It is important to establish and ensure proper ownership for your boat as this could lead to trouble later on.

Purchasing a boat with unclear title can lead to disputes and even lawsuits in future.

Look Around

There are few things that you need to look for when chosing your lender. First off, you may have to decide how much money you can put in upfront as the down-payment.

The rest of the money for the boat will be financed. This again comes from your decision on the tenure, or the time of repayment, of the loan. Loans ending soon would require a bigger down payment, and loans with long tenure would cost more interest.

Once you decide on how much money you need, talk to different lenders and compare the interest rates. It would be best to ask for fixed interest rates, that are calculated at the time of lending and remain fixed throughout.

Don't be led by easier installments, as generally these could be long-term lendings and would generally end in you paying more interest.

Once you decide on the best choice of repayments and interest, get to know terms for foreclosure or earlier closure of the loan should you chose to do so at any point in the future. You might as well also consider credit insurance, just in case of any unpleasant eventuality.

Assess your capacity

Your credit history is important in getting you the best terms of financing. The lender would wish to examine your track record in repayments of previous loans, your present worth in terms of assets, your existing obligations against your income etc. Your credit worth plays a big role in the lender offering you good terms for lending for your boat. It is, therefore, necessary that you assess your credit worth.

Of course, a lot depends on how best you can support yourself while repaying the loan. This would largely depend on the present level of income and the monthly obligations that you need to meet.

Your lenders would also like to consider your length of service in your current employment to decide your standing in the job. Should you feel that your comfort level would be reduced by a loan, you had best wait until the situation is favorable.

About the Author
Abhishek has a passion for Boating since the last 30 years!