How To Get Boat Loans

As a person who is extremely interested in sailing and related activities, you'd rather have your own boat to indulge your interest rather than hire them for short periods of time or borrow it from friends and colleagues. Once you've made up your mind to buy your own boat, the tough work starts. To get familiar with the process of buying a boat with financing, read through the detailed instructions listed below.

Step 1

Do your homework. You will need to decide whether you want to purchase a brand-new boat or a used one in good shape. It makes sense to buy a used boat in good condition if it is your first boat purchase. New boats are expensive and quickly depreciate in value once they are bought. Next, decide on the size and model of the boat you want - this will depend on what you will be using the boat for, whether as a source for business or strictly for recreation and travel, short or long distance. Thirdly, consider the state of your finances - how much of the funding will come from your own pocket, how much loan you need to apply for and what are the monthly payments you can afford, taking into consideration maintenance and fuel costs as well. A good option when you begin looking for a boat is to consult a boat finance brokerage. A brokerage will provide you with the best selection of boats which you can afford.

Step 2

Shop around for the best deal. There are many banks and financial institutions which offer loans to buy a boat. Each will have their own terms and lending policies, so you need to look around and collect details on loan amounts they are willing to disburse, rate of interest, repayment period, monthly EMI and documentation and procedure to complete processing of the loans. Also check to see if the funding will cover only cost of the boat or if accessories and supplemental equipment and expenses such as a trailer, insurance, etc are also covered. Before you settle down on the budget amount, make sure to include all such incidental expenses as well, because when totaled up they come to a substantial sum.

Step 3

Factors which will affect your decision. Financing options for a boat can come from a variety of sources - a home equity loan (if you own your home free and clear), an unsecured loan and a secured boat loan. To select the best source for financing, think of the duration for which you may want to hold your first boat. If it's going to be a stopgap arrangement, then it makes sense to pick a flexible rate with nil penalties for pre-closure. If the boat is a long term investment, consider a fixed rate of interest and a longer repayment period. This will reduce the monthly outlay from your pocket towards the EMI.

You are now ready to go look for a suitable financing package and well on your way to buying yourself a boat. You can't go wrong if you pay heed to these few simple guidelines.


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