A Guide For Financing a Boat

Many people dream of having their own boat, but it’s not always feasible to purchase one outright. Luckily there are ways to finance the purchase of a boat through loan borrowing. Our team at Hampton Watercraft & Marine can help you determine the best way to finance your boat.

1. Start by Gathering Information

Before you contact your banker or start scrolling through our online inventory, you’ll want to take the time to gather some important information. You’ll need to have an accurate understanding of your current financial situation, your credit score, your borrowing power, and your loan options. 

As you gather this information, you can also take time to research the current boat market to determine a general price range for the type of boat you’re interested in. Knowing how much you’ll need to borrow will help as you put together your plan. 

2. Determine How You’ll Borrow

After you’ve gathered the essential information and decided to move forward with your boat purchase, you’ll need to decide how you want to finance your purchase. As we said, most people will take out a loan, but there are a few different options available.

First, you’ll want to choose someone to work with. You can work directly with your financial institution, the dealer or a specialized loan agent who works with boat financing companies. Whichever you choose will help you establish the total amount you’ll need to borrow, including taxes and fees associated with the purchase. 

It’s also important to understand what type of loan you have. Pay close attention to the terms; sometimes the item you’re borrowing for will be used as collateral in the event of a loan default. 

3. Understand Your Requirements

If you’ve done your research and qualify for the loan amount, it’s time to officially submit your application! Make sure to provide a down payment during this step in order to receive the best interest rate and a lower total amount. You’ll also need to agree to a set monthly repayment plan. Make sure the monthly total is doable for your current situation and you note the total borrowing timeframe. 

It might seem complicated to finance a boat, but with the right information and a helpful team, you’ll be a boat owner in no time at all! Visit us in Hampton Bays or Eastport, NY, to have a look at our inventory and learn more about your borrowing power.