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Why You Should Finance Your Boat Even if You Have the Money

Aug 24, 2021 | Blog

Are you sitting at home dreaming of finally heading out to open waters in your boat to enjoy the sun, sea, and perhaps a few fishes for lunch? Don’t let your dreams stay as dreams, and buy yourself a boat! Of course, this is much easier said than done, as boats aren’t exactly the cheapest purchase you’re going to make. Depending on the boat you opt for, it can even be one of the most expensive buys ever! 

That said, much like how you can get your car financed, the same can be said for your boat! In fact, we highly recommend that you do this regardless of the price, and even if you have the spare cash in your bank to buy a boat. Here’s why:

Loans Are Easy to Get

Not too long ago, you’d have to show up in person to get your loan, and it doesn’t even guarantee that you will get one. Today, the internet has changed things, and mainly for the better. Loans are easily accessible online, and from the convenience of your home, you can quickly get the loan you need to pay off your boat.

Another added advantage with online loans is that you can easily compare different offers at once. With so many options displayed in front of you, sifting through them is made incredibly simple. Just make sure that it is a loan that you can afford, and be sure to only work with reputable providers to ensure you are not getting scammed.

Loan Times Are Much Longer

If you’ve worked with car financing before, you may be aware of the few years you are given to pay off the loan. Typically, car loans can range from five to seven years, which is short compared to how long a boat loan can go. Boat loans can reach up to twenty years or even more.

At first, that added time might sound like a disadvantage. After all, the more time you spend paying off the loan, the more you generally end up paying. However, the benefit of this extended time is that it helps to keep your payments low and affordable. This is perfect if you do not have the means to buy a boat yet. Even if you do, opting for a loan means you still have access to money to live comfortably.

A Boat Is a Depreciating Asset

Just like most of your belongings, such as your laptop, phone, car, and bike, a boat is a depreciating asset. In simplified terms, its value drops as time goes by. If you had paid for the boat in full on the get-go, any drop in value is a loss you have to bear wholly. 

As you may have guessed, getting a loan means that you use someone else’s money to buy the boat. With your own money, you can use it to invest in things that give returns like stocks, index funds, and the like! This helps to offset any drop in the boat’s value, keeping you financially stable and satisfied.

Conclusion

All in all, getting your boat financed allows you to dedicate your money for other purposes! Everything from ensuring you can continue living comfortably to using the money to invest for returns is just some of the many things you can utilize that money for. Really, getting a boat loan is about spreading your costs, allowing you to use that money for other things. Of course, don’t use this as an excuse to spend all the money away on something else. You still have a debt to cover, and you only borrowed it so that you can comfortably live a good life without blowing all your cash on a boat on the get-go!

Canada Powersports Financing is a lender for different Powersports vehicles from jet skis to ATVs and more. If you are looking for boat financing assistance in Canada, apply with us today!

 

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