Learning About Boat Loans

While automobile loans are the most common in regard to transportation, many people are interested in boating. This inevitably leads to boat loans. Before purchasing a boat, you may want to consider all that is involved and understand the process of obtaining a loan for a boat. Boating is not for everyone, but if you have sea legs and a love of the ocean, you may wish to learn about your options when it comes time to finance that dream boat of yours. Whether your passion lays in a canoe, speed boat or yacht, find out what will work for you.

Boat Loans

The most common type of loan that is obtained in regard to transportation is an automobile loan. Making payments for a car is often a necessity. Unless living in a highly populated area with a wide range of public transportation, most people need a car to drive to work. They need a car to run errands such as food shopping. Parents need a car to drive their children to school, sports and other activities. Families need at least one car and quite often two for an endless list of reasons. Therefore, it can rarely be argued that having a reliable car is a top priority.

There is also a second sector of people who will have a car and a connected loan for recreational purposes. Each circumstance will differ, of course, however most often a person or family will have a car or cars for daily needs and then a car for recreation. For some it will be a “collector” car, for others it will be a sports car that is only used when the weather is as beautiful as the automobile itself.

The second most common type of loan in regard to a recreational vehicle is a boat loan. In the United States, one certainly does not need to live on the coast to take advantage of the fun and enjoyment of boating. People will have all types of boats, from canoes that are slowly guided down gentle rivers to speed boats that jet across large lakes. No matter which type of boat one wishes for, the average person will need to purchase it with some amount of the purchase being done through a boat loan.

A boat loan works very similar to a car loan. You want to be wary of any loan institution that will give you a loan no matter what your financial situation. Remember, if you are on a tight budget and you are barely able to pay your normal bills, any place that would happy lend you thousands of dollars without a process to determine your credit history will most likely be owning your boat a year down the line and your credit will be lower than ever.

Used Boat Loans

To qualify for a boat loan, most institutions will run a credit check. So, before you apply for a loan it is a good idea to make your credit score the best it can be at that time. Do you have an outstanding medical bill that you simply threw into the back of a pile and forgot about? Pay it first!

Keep your paycheck stubs and have more than one form of identification. Your license is one. Have your social security card and your birth record as well, if you can. Have as much of a down payment as possible. Most loan companies will not loan you the full amount of the purchase price. They want to see that you have some money. They will want you to pay between three and twenty percent of the price and then you can have a loan for the remaining money.

Read all of the papers carefully and be sure you understand what you are signing. Don’t hope you will come into money to pay the loan off. Be sure that you can afford it. Having a boat loan should allow you the freedom and happiness of enjoying your boat. Never have a loan over your head that stresses you out.


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2 Comments

  1. Sam
    Posted July 31, 2008 at 5:03 pm |

    i got a job offer as a financing boat agent and i have 2 years experence as a loan agent/loan processor…… with that knowledge do you feel i can do well as a boat finacing agent?……. what else is there to know about boat financing?

  2. Posted February 26, 2009 at 7:26 am |

    Although a loan does not start out as income to the borrower, it becomes income to the borrower if the borrower is discharged of indebtedness.