Boat Shopping for First Timers
How to Finance a Boat without Going Underwater
by: ItsJer

The HOT weather is here, but fear not, we’ve been preparing for this all year. Living so close to the coast means it’s time to ditch the wheels and ride the waves until fall. Being a first time boat owner can be scary, but we’re here to throw you a life ring so you don’t rock the boat and sink in debt.

Step 1: Knowing the Cost of a Boat

The air is hotter, the water is warmer, and the only pedal you’re going to put to the metal is the one on your new boat. But before you dive into this new financial adventure, know the REAL cost of a boat.

Before you buy, consider:

• Cost of gas or diesel
• Taxes
• Boat storage, summer/winter
• Boat upkeep and maintenance
• Additional equipment
• Boat insurance, if necessary
• Registration fees

Step 2: New or Used?

Benefits of buying new:

• Secure feeling

o   New boats should run smoothly and without any issues

• Warranty

o   If maintenance is necessary, you have backup

Benefits of buying used:

• Find a quality boat for less

o   Recommendation, hire a marine surveyor to look at the boat you’re interested in. This will save you a headache later on.

Step 3: Financing

The water is calling your name, but before you make your purchase we have some advice for you.

Don’t be deceived:
Boats usually have a longer life than cars, which is why most financial institutions and lenders offer longer terms for boats. This seems like a very attractive offer because it can significantly lower your monthly payment. Well-maintained boats can last for years but if the upkeep is slacking you are literally paying the ultimate price. Remember, it is always best to get the lowest term within your budget.

Don’t get tricked:
Boat loans at financial institutions are not very common. When you find a boat loan at a financial institution, the rates are usually very competitive. If the financial institution doesn’t offer a boat loan, their next best option is a personal loan. However, don’t get tricked into using a personal loan from a financial institution UNLESS the interest rate is competitive. There are also a number of boat lenders to choose from.

Our last and final piece of advice, do your research! You are ready for the water, but is the water ready for you? Time to kick back, put your feet on the railing and coast through summer on your new boat!