Different lenders have varying requirements when it comes to financing used boats. Some lenders will require an inspection and an appraisal and others will only finance up to 85% LTV and will expect a down title loans DE payment.
Financing a used boat is usually more affordable than financing a new boat, but it’s important to know the condition of the boat so you don’t end up with unexpected repair costs.
As noted, there are many different types of boat loans and different types of lenders that offer them. This means that you will end up paying less over the term of the loan than someone with a lower credit score.
Typically, 700 is considered a good credit score for a boat loan. However, some lenders don’t require a minimum credit score or will consider your debt to income ratio, work history, and the cost of the boat alongside your credit score.
The costs of boat loans vary based on several factors including the type of loan, the type and year of the boat, the loan term, the lender, and the borrower qualifications. Typically, the most expensive cost will be the interest you pay over the life of the loan. Boat loan interest rates usually start around 3.74% and go up to 9.99%. Some lenders charge processing fees while others don’t charge any additional fees. Down payments are sometimes required, especially on more expensive vessels, and these may range from 10%–30% of the cost of the boat.
- Inspection fee
- Appraisal fee
- Any necessary Coast Guard licenses and fees
- Title, tax, and registration fees (varies by state)
- Docking and storage fees
- Gas (way more expensive than a car)
- Captain fees if required
- Maintenance costs
- Interior and exterior cleaning fees (typically every two weeks depending on usage and may require a diver if the boat is kept in the water)
Keep in mind that these fees vary but are typically charged on a per-foot basis, meaning the longer your boat, the higher the fees.
How We Chose the Best Boat Loans
We researched more than a dozen boat loans before choosing the top six. We reviewed the boat loans based on the types of loans they offer, loan terms, borrower qualifications, total costs, and types of boats they finance. We also considered the company’s reputation and customer reviews.
All of our choices had affordable rates, reasonable terms, and are available to a variety of buyers. They also offer financing for multiple types of boats and have good customer reviews.
As a general rule of thumb, the higher your credit score, the lower your interest rate
Rates typically start at 3.74% (as of ) and terms go up to 15 years. Loan applications are processed within 24 hours and funding generally takes three to five business days. The company doesn’t require a minimum boat loan amount and typically will finance boats up to $4 million. It offers loans for new and used boats for recreational purposes only; it does not offer live-aboard boat loans.
Trident Funding has positive customer service reviews and a solid industry reputation. Customers raved about the excellent service, timely responses, and marine industry knowledge.
You can get a loan for a used boat but there are some limitations. The boat lender usually requires that the boat be no older than a certain age. Most lenders won’t finance a boat that was built before 2000 or 2001. However, some lenders will finance boats of any age and price range, but you may end up paying a higher rate and putting down a larger down payment.