Planning Your Purchase
The financing side of your purchase gives you several options to consider:
How much per month? For many people, the amount of the monthly payment is a pivotal factor in the purchase. Knowing how much you want to allocate from your monthly budget is a key point to bring up in your discussions with your dealer.
What size of down payment? Typically, loan providers look for a down payment of 10% to 20% of the purchase price as a down payment. Having an understanding of your credit situation will help you determine the amount of down payment likely to be required. For example, people with superior credit may be able to obtain a loan with minimal or no down payment. Of course, any amount you put down will reduce your monthly payments for a given purchase price.
How long for repayment? The number of years, or the term, of your loan is another thing to consider. Boats are often financed for longer terms than, say, automobiles. Loan terms of 60, 84, 120, or even 144 months are not unusual. Typically, lenders will reserve the longer terms for more expensive boats, over $25,000, for example. Longer terms mean lower monthly payments for any given purchase price. Something to keep in mind, though, is that the longer the term of the loan, the longer it will take for you to gain equity in your purchase.
What other products and services can I finance? When you complete your purchase, you will have the opportunity to consider the inclusion of optional products and/or services in your loan which can enhance your boating experience. These would include selected Accessories, Extended Service and Payment Protection Plans. Since the benefit of these plans extends for several years, it makes sense to include them in the loan for a very small increase in the monthly payment.
Would you like to see how the options mentioned above might work in your loan? Check out the loan calculator on this site to estimate your monthly payments.
Learn the basics of using credit convenience for financing by viewing our Credit ABCs or for information on getting and keeping good credit read Understanding Credit. See financing Glossary to understand financing terms.