We’ve all dreamed of getting a luxury purchase that will change your life – investing in a boat that will provide years of fun for you and your family. It will be the perfect weekend getaway, holiday location and a great hobby for everyone.
However, a boat is not cheap and therefore you will have to investigate your options before making the purchase. You will likely need to secure some recreational financing however you must find some that is accessible and worthy.
Be sure to conduct some market research and find a low interest rate that are suitable for your situation.
Find That Low-Interest Rate
Whether this is your first recreational purchase or you are on your second boat – the interest rate is the most important thing. You need a competitive rate with low minimum finance rates that will fit into your desired budget if not below.
Don’t budge from your price range as if you can’t afford to use your boat it will be a huge shame!
Hunt For A Simple Loan
If you are buying a boat through a dealership, they will most likely offer to finance however it might not be the best option for you. Ensuring it is a simple interest loan, you know you will just be making monthly payments until you repay your loan.
When you make a payment it will pay off both some interest and some of the amount you borrow each time and can be great for those who are looking to pay off their loan early with less interest. Other loans will calculate your monthly payment and you agree the repayments.
They can then penalize you if you make early payment so be sure to stick with simple interest loans for more flexibility.
Don’t Take Out Several Loans
Be aware that every time you run a credit check, it affects your credit rating. This is why it is important to go through a knowledgeable company that will only run one efficient check and let you know the best banks and lenders.
Different lenders will treat boats differently so make such you do the research and truly reap the reward.
Make A Down Payment
It is advisable to put down at least 10% of the total purchase price as some loans require it as a minimum. Try and save that amount at least before applying for a loan as it will make you a better candidate.