If you are looking to enjoy the wonders of the sea, then a boat becomes a go-to choice. However, it might just appear difficult thanks to the high cost of purchase associated with your selection. Typically, the value of your boat may run into hundreds of thousands which makes it difficult as you navigate your boat choices. While that is discouraging, you can surmount these challenges with a boat loan. A boat loan is a finance option that allows you to finance the purchase of your boat through a third party. In this instance, you do not bear the responsibility for the cost of the direct purchase price. Your lender pays the direct cost. In return, you agree to repay your lender over a period. The repayment term includes the cost of the actual purchase and the interest associated with your purchase. With this, you get convenience and flexibility while you escape the financial difficulties making a direct purchase would have cost you.

What Can You Finance?

A boat loan allows you to finance a wide range of boats. You can finance the purchase of various watercraft such as:

Available Finance Options

If you’re looking to obtain boat financing, there are various options that you can take advantage of. Typically, they include

Consumer Loan

A viable finance option to finance your boat purchase is a consumer loan. It allows you to finance your purchase conveniently and with full flexibility. It is widely considered a secured loan, and this is because it requires you to use your boat as security during the loan agreement.

In most cases, thanks to its nature, you obtain a lower interest rate and a more flexible repayment option compared to other options.

When you opt for a consumer loan, you receive the actual purchase price for the loan from your lender. Then, after receiving the funds, your lender gets a concurrent mortgage interest in the boat you purchase. Then, after full payment, you automatically remove the claim.

Going with a consumer loan comes with additional benefits for your boat purchase. They include:

  • Lower interest rates due to the security attached to the loan agreement and reduced risk
  • Fixed interest rates
  • Long term payment reaching as much as seven years
  • Available for the purchase of used and old
  • Available for various types of loans

Personal Loan

Another great way to finance your boat purchase is through the use of a personal loan. In this instance, you do not need to provide a form of security for the loan. You merely request and where you qualify, you get the required financing.

This method is relatively easy compared to the consumer loan option. It allows you to reach out and transform your holiday dreams to reality conveniently.

When you opt for a personal loan, you receive the actual purchase price for the boat from your lender. Typically, once you reach an agreement with the lender, your lender provides the purchase price. Afterwards, you can proceed to make the necessary caravan purchase.

In this instance, you also get full ownership from the beginning of the whole process. There is also no lien attached to the boat purchase.

Going with a personal loan comes with additional benefits for your boat purchase. They include:

  • Long term payment reaching as much as seven years
  • Flexible loan term and repayment structure
  • Fixed interest rates

Boat Finance Calculator

A boat finance calculator is a tool that allows you to get an estimate of your loan repayment obligation based on a set of information. Typically, this information includes the amount you intend to loan, how long you want the loan agreement to last for, and the interest rates available.

However not that it is merely an estimate rather than an exact quote. As such, it only helps you determine the affordability of the loan. To receive the actual cost of a loan, you will need to contact your preferred lender.

Frequently Asked Questions About Caravan Finance

Here are the answers to some questions that you might have as you navigate through boat financing.

Can I Get A Boat Loan with A Bad Credit?

Typically, you should be able to obtain a boat loan regardless of your credit rating. All you will need to do is find a broker or lender that offer such to you

Can A Self-Employed Person Get A Boat Loan?

Yes, the fact that you are self-employed does not stop you from getting a boat loan. Various lenders offer boat loans to self-employed individuals and even retirees. All you will need to do is contact a willing lender.