There are many ways of financing a boat. Those of us not lucky enough to purchase a boat for cash usually choose to finance their boat by means of credit.
There are two basic types of loan - secured and unsecured. Secured means should you default on the loan the financier will reposess the boat. Unsecured means that if you default they are after the money rather than any one fixed item like your boat.
Here are some of the options:
1 Credit card - Rates vary but a credit card such as Mastercard or Visa is an easy way to purchase your boat, you walk in the boat showroom pay with your credit card and you are ready to sail! This way the loan is 'unsecured'.
2 'Unsecured' Bank Loan - Perhaps slightly cheaper than the interest rates on a credit card, a regular bank personal loan can offer fixed or variable monthly payments over a number of years.
3 Marine Mortgage - Marine Mortgages are 'secured' on the boat but this type of finance will be cheaper than the other options monthly. Marine Mortgages have certain terms and conditions to do with the age and cost of the vessel, but the loan can be spread over a much longer period than a normal personal loan. Just like a house mortgage, but a marine mortgage will typically last up to 15 years.
In this section we will list some of the more common boat finance companies, most big lenders have a marine department if you search hard enough! Many offer Online payment calculators so you could work out the monthly payments of your dream boat right now!
