It’s never too early to too late to pick up an interest or pursue your dreams. One of the many we dream of as children is the chance to sail away in a boat and live life on the sea.
Even if your fantasies weren’t exactly like that, if you’ve ever experienced the rush of being on a boat in the open seas, you’ve probably considered the idea of getting a bot. Aside from motorcycles, it’s one of the most common post-retirement purchases.
But how do you get one? We all know it doesn’t come cheap. Luckily, you always have the option of financing one.
If you’re interested in how to finance a boat, here is a short guide to help you get started:
Do Your Research
When you set out to buy a boat, you generally have a few options to choose from, including bank loans, credit cards, and personal loans.
To make sure you get the best deal, you want to compare the pros and cons of each option. For instance, if you’re planning to finance your boat with a credit card, you’ll want to make sure you have a high credit score. If using a bank loan, you’ll want to ensure you have enough collateral to secure the loan.
Generally, if you’re planning to get a loan, you’ll want to have a steady source of income, decent credit, and a history of paying off your loans on time.
Estimate Your Budget
If you’re in the market for an expensive boat, you should expect to pay between $50,000 to $1 million. Generally, the larger the boat, the higher the price. If you aim to get a sailboat or smaller fishing boat, you can expect to pay between $10,000 to $50,000. If you’re looking to get a big boat, such as a yacht, you can expect to pay well over $1 million.
Make a List of Your Boat’s Requirements
When you’re looking for a new boat or the perfect factory-refurbished boat, you should have a clear idea of what you want. Whether you’re looking for a boat that’s wide enough for entertaining, that can be used for fishing, or that can hold a party of 6, you should consider these factors in your choice.
Remember to Factor in Boat Insurance
Although boat insurance isn’t always required, it’s something you’ll want to consider when financing a boat. When deciding how much liability insurance to get, you’ll want to consider the following factors: boat value estimated cost of repairs, existing deductibles, and the amount of insurance you can afford to take out.
Pick Your Mode of Financing
As mentioned above, you have a few options to finance your boat. You can finance your boat with a bank loan, credit card, or personal loan.
When choosing your financing options, keep in mind that you’re more likely to get a good deal if you have a high credit score. If you have no credit, you’ll have to factor in the risk factor when securing your loan.
You can also choose whether or not you want to pay on your loan monthly or one time. If you choose to pay monthly, you’ll have the chance to make monthly payments on the loan. If you choose to pay at one time, you’ll have to pay off the entire loan on the day you buy your boat.
The Bottom Line
Whether you want to get a boat for leisure or work, all beginners and enthusiasts alike should consider financing their boat. While you might not afford to buy a boat outright, you can get one if you have the right financing option. No matter how you choose to pay for your boat, it’s a huge investment. Make sure you select a financing option that will leave you with enough money to get you to your dreams.
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