When you decide that you can finally afford that boat that you have always wanted, it can be a very exciting time. However, even though you can afford the boat, that does not necessarily mean you have the entire amount upfront to buy the boat in cash. This means that you will need to finance. By taking the right steps and knowing what to look for in a financing offer, you can get the best deal on financing your new boat.
Pre-apply for financing before you actually purchase a boat.
Apply through a few different financial institutions so you can compare and choose the best financing option.
Get a sample loan contract from each lender you applied through. Again, this will help you compare.
Scan the contracts looking for added fees. These fees can greatly increase the overall cost of the boat loan.
Look at the interest rate each financial institution offers you. The lowest interest rate is the best way to finance.
Avoid lenders that offer balloon payments. These involve an increased payment after a period of time or a large payment at the end of the financing term.