BOAT FINANCING OPTIONS

2007-03-08 10:33:40

( Financial )



Boat financing is similar to a mortgage where you put the boat itself as collateral for the loan. Boat financing for used or brand new boats or vessels are available in the market. Its terms and interest rates vary according to the actual purchase value of the boat and your financial situation.

Used Boat Financing

Financing of used boat will be less costly than financing a brand new boat. However, a used boat needs repair and assessment of its functionality after it has been used by its previous owner. You will incur cost on refurbishing and repair which not be included in the amount of the loan you applied for. Thus, you will still generate an out of pocket expenses. It is better to check with your bank or any financing institutions if you can include in the loan the expected costs of repair and refurbishing that you will incur for the purchase of a used boat.

Practicality of New Boat Financing

You need to assess carefully the cost that you will incur in buying a used boat compared to buying a new boat. It might be beneficial and practical if you ask the financing company to extend a boat financing to a new vessel. Buying a new boat will eradicate the hassle of repair and refurbishing. You can immediately use the boat for your leisure activities. Thus, assess and compare the cost first before you finally decide on which type of boat financing you will avail.

Full or Partial Boat Financing

You have the option to acquire a full or partial boat loan depending on your financial capacity. Some people set aside their own money for boat purchases and borrow only a partial of the total cost of boat purchase. Others will prefer to borrow the full amount of the purchase value of the boat.

Borrowing the full amount entails higher amount of monthly repayments. Borrowing partial amount, on the other hand, will cost you minimal monthly repayments.

Whatever boat financing options you choose make sure that you make your repayments on time. Boat financing, after all, will surely reflect on your credit reports.


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