Applicant’s legal name, address, phone number, Social Security number.

Boat make, year and (estimated) purchase price.

Prospective lenders for both a preapproval and a regular approval may want to know the: What you’ll needīorrowers shopping for preapproval do not need a boat contract in-hand to go through the process, but it’s a good idea to have a boat in mind. By getting an offer directly from the lender, you can beat the dealer at their own game. Dealers are able to arrange financing for you, but they can - and often do - raise consumers’ APRs and take the difference as profit. While you do not need a preapproval, we highly recommend you get one before you go to a dealership. After that, boat financing comes down to visiting the dealership, finalizing your boat choice and signing the paperwork. Get a boat loan preapprovalĪrmed with your preferred loan amount, term and rate, it’s time to see if a lender will approve it. If your boat is 6 years old, the longest you should finance is 14 years. To give you an idea of what to expect before you click around, here are some monthly payment examples.Ī rule of thumb is that you should not finance a boat for more than 20 years minus your boat’s age. Now that you have an idea for your budget and how long you might want to finance a boat, plug in the amount (minus any down payment), expected interest rate and term to see your monthly payment and loan amortization schedule in the calculator, below. It’s also important to keep in mind that the longer the loan, the more you pay in interest. In boat financing, 20-year terms are normal, nearly as long as a home mortgage. Other potential costs include boat insurance, licensing and fees for docking, storage, winterization and safety equipment. You should get a payment that is comfortable for your budget because boat ownership costs will be more than your payments. Financing more than the boat is worth could raise your APR and make it harder to trade in or sell your boat down the line. There could be deals available that require less or no down payment at all, but putting down less could put you at risk for becoming underwater or upside down on your loan.

Most marine lenders expect at least a 10% to 20% down payment on a boat loan. Here are theree things to keep in mind as you shop.

Choosing a boat within budget is crucial for successfully attaining a boat loan. The average cost of a boat is around $68,000, but prices can range from $1,000 for a tandem fishing kayak to $1 million and up for yachts.

Boat finance calculator