A boat loan can be very helpful, regardless if the purchase is for personal or commercial use. You can find out everything that you need to know about boat financing by reading this guide.
Getting the facts straight
Here are some facts about boat loans that you may want to consider:
- Approximately 7 percent of the Australian individuals who are owners of a motorcycle are also very likely to own a boat.
- The operating profit of marine equipment was 8.2 percent, with a total income of over $1,700 for retailers (and growing).
- If you opt for a commercial charter boat, you will pay 80 percent fewer taxes than you would with a private purchase.
The average charter boat will cost you somewhere between $250,000 and $300,000. Getting a financing for a boat is now as easy as getting one for a car; if you can get a loan for a road vehicle, why shouldn’t you be able to get a loan for a water one?
How Does Boat Financing Work?
You can get boat financing through a personal, secured loan or an unsecured one. The secure financing allows you to use the boat itself as a guarantee, which may also bring you some competitive rates for your payment.
Since boats are rather expensive, you will discover that these kinds of financing companies will offer pretty significant amounts of money on a longer term. It all depends on the type of funding that you choose.
How to get a suitable boat loan in 2017
It’s very important that you find the right boat financing option. Therefore, when you look through your alternatives, here are a few questions that you should keep in mind:
- Is it secured or unsecured? As mentioned, you need to consider whether you want to opt for a secured or an unsecured loan. Examine the advantages of both options, and then choose the one that suits your needs the most.
- Does it have fixed repayments? It’s important to think whether or not you can go through the same repayments every month. If your income is fluctuating, you may want to opt for a more variable loan.
- What’s the limit of the loan? Each provider has different financial limits for their loans, which is why you need to make sure that you will be able to keep up with the repayments.
- What about the interest rate? The interest rate will depend on the provider most of the time. Still, if you go for a secured loan, the interest rate is lower and will most likely save you money in the long run.
- How long will the term be? This will also be discussed with the provider, but most boat loans are generally at least seven years long.