Your loan amount will be the cost of your boat minus any down payment.
Typical boat cost: $42,000 new, $10,000 used Typical boat down payment: 10%-20% of boat’s purchase price
Your interest rate or annual percentage rate measures how much you’ll pay to borrow money. Boat financing comes with fixed rates, meaning your payment will be the same every month.
Current boat loan rates start at 6.36%
Your boat loan term is how long you’ll make monthly payments on your boat. The shorter your loan term, the less money you’ll pay in interest on your boat loan.
Typical boat loan terms: 10-20 years
You can save thousands on a boat’s purchase price when you buy a used boat rather than a new one. Keep in mind that the process of getting a used boat loan is a little different than getting a boat loan for a new vessel. You’ll need to make sure your boat meets your lender’s age and mileage restrictions, and you may need to get a marine survey.
Leasing a boat allows you to avoid paying ongoing boat costs like major repairs and registration, while boat rentals enable you to avoid storage costs. Eliminating these fees could make your monthly payment more affordable and help you get out on the water faster.
Lenders offer boat loans for bad credit, but high interest rates make these loans (and their monthly payments) expensive. If you want a lower monthly payment, take the time to improve your credit before you apply — borrowers saved an average of $22,000 across different types of debt by raising their scores from fair to very good.
Shopping around for a boat loan can make the difference between getting an affordable monthly boat payment and one that breaks the bank. LendingTree does your boat loan shopping for you. We’ll match you with up to five boat lenders from our nationwide network, and you can compare offers to make sure you’re getting the best rate for your boat loan.
How much does it cost to own a boat? More than you might think. Read our expert take on boat costs before you hit the water.
Ready to set sail? Take the time to get preapproved for a boat loan before you head to the dealership. You’ll be in a better position to negotiate with the boat dealer.
Chief credit analyst Matt Schultz weighs in on what to know before buying a boat, including the best types of financing and how to compare boat loans.
