How To Get A Cheap Boat Loan

Mar 11
15:08

2016

Darren Burton

Darren Burton

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When it comes to boat loans one of the major considerations is the interest rate on the loan and what the repayment amounts will be. After all, none of us want to pay more than we have to. Right? So in this article I’ll offer some tips on how to get a cheap boat loan.

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Where To Look For A Cheap Boat Loan

Basically you have 2 choices:

  1. Offline
  2. Online

Offline searching is a slow and laborious process that takes forever and isn’t very effective when it comes to making comparisons between lending institutions. Plus,How To Get A Cheap Boat Loan Articles in these days of the internet many lenders – and particularly companies that compare lenders - operate solely in the online world.

Online is the way to go, saving you precious time and frustration. All the information is at your fingertips and you can conduct your search at whatever time is convenient to you. The internet never closes and financial websites operate 24/7. Sites that compare financial institutions and their lending rates really save a lot of time. These sites compare interest rates and other fees attached to the loan so you can easily see what’s the better deal.

 

Stay Within Your Budget And Know Your Borrowing Power

Obviously the cheaper the boat, the less you will have to borrow and the lower your repayments will be. While you may salivate at buying that $2 million launch, if it’s not within your budget, stick to your budget. It is really just common sense, but many people actually over-spend on an item when they borrow funds to make a purchase as it can seem like “free money”.

Also, go to a few websites of banks and other financial institutions. Most have borrowing calculators. Input some date on a few sites and work out the average amount you may be able to borrow. At least then you will have a rough idea of actually how much you can spend on a boat.

 

Use Some Of Your Own Money

Ideally you will have some savings to put towards the purchase of your boat. Naturally this will bring the price of the loan down, reducing overall interest paid, reducing the repayment amount and possibly reducing the duration of the load as well. Credit and finance have their place, but so do does having your own money to spend.

 

Don’t Use A Credit Card

Unless you’ve got a credit card with an extremely low interest rate and a massive credit limit, don’t consider this as an option. Looking into things like using some of your home equity would be a better way to go.

 

Deal With lenders That Specialise In Marine Loans

You local boat broker will be able to point you in the right direction here, but keep in mind that he/she may have deals with certain lenders and get kick backs, so the lenders her refers you to may not necessarily be going to give you the best deal.

 

Do You Own Research

Talk to your bank, talk to the marine broker, conduct searches on the internet for viable lending options. In other words, do your own research. Once you have compiled enough information, make your own decision on which way to go. Don’t let anyone pressure you into making a choice.

And most of all, enjoy your new boat.