Options For Boat Financing- Sourcing Financing For Your Next Boat?
January 13th, 2008
There was a time when it was very difficult to find a lender who would give you loan for buying a boat. But now with the popularity of boat use for recreational and entertainment purposes, one doses no longer have to find a lender, for it is the lender of boat finance who finds one first among the various Options For Boat Financing.
For obtaining loan for buying a boat there are several options for Boat Financing by way of diverse competitive sources. The first option is to approach Bank of America, Key Bank or many other national, regional or even local banks that are members of National Marine Bankers Association. If you are not sure if they are members or not you call them up and find out, or find the answer on their website. Alternatively, you can browse through boating magazines to see if any bank has inserted an ad offering loans for buying boats. If so you can approach them.
The second among the different Options For Boat Financing is to approach the specialists in the boat loan business, that is those finance companies that offer loans only for boats and yachts and sometimes, for aircrafts. Some such specialized companies are Essex Credit, Beacon Credit Services with their operational wings “Beacon Marine Credit”, “RV Credit Direct” and “Beacon Aero Credit” and Pacific Yacht Finance.
The specialist finance companies do have experts or personal loan professionals who guide you in selecting the boat of your choice and in deciding the scheme of repayment best suited to you.
The third option is to get loan for your boat through Credit Unions that offer loan for purchasing boats. If you are not a member first you have to enroll yourself as one and then apply for loan.
The fourth option is to buy the boat with the help of boat dealers and yacht brokers. They offer tailor made services and help you buy the boat of your specific requirements at terms and conditions that suit you. The advantage of buying boat through them is that they assist you at every stage, from procuring the application form, filling it up, presenting it to the finance company, getting the loan, obtaining Coast Guard documentation, buying the boat, insuring it and getting it licensed.
Loans may be stated income loans or income verified loans. In the latter case income proof and federal income returns for the past 2 years may be required. If a loan was previously taken many of the banks and specialized financial companies offer refinancing facility too.
The amount of loan sanctioned may vary from $15,000 to $50,000 or more, depending upon the type of boat and whether it is new or used one.
What ever is the source of boat finance, before applying for the loan you have to find out the terms and conditions of the financial institution or the lending company!
One need to pay attention to these: the interest, the EMI, the initial down payment, whether zero down-payment option is available, the formalities to be completed, the period between applying and getting cash in hand and the number of years within which the loan has to be repaid.