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How Much Boat Can I Afford

Are Boat Loans Hard To Get

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Youll typically need good to excellent credit and verifiable income to qualify for a boat loan. If you have poor or fair credit and can wait to take out a loan, it could be a good idea to build your credit before applying.


Keep in mind that with secured boat loans, the people applying for the loan typically need to be listed on the vessel title. This means that if you apply with a cosigner, theyll most likely need to be on the boat title.

Some manufacturers and dealers also offer their own in-house financing, which might be easier to qualify for. Be sure to consider all of your options to choose what works best for you.

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How Much Do Boats Depreciate

Similar to cars, when you drive a boat off the lot there is a decent amount of depreciation. Also, as the warranty starts to run out, there will be a hit to the value of the boat to a second owner as well. This is because a buyer is willing to pay a higher premium for a used boat if the manufacturer is still on the hook for any defects.

Beyond the more rapid initial depreciation, boats depreciate much slower than RV’s or cars. Many well built boats have 20-30 years of depreciation ahead of them. Of course, the maintainance to keep them up is significant, but a well maintained boat does have the potential to hold its value for a long time.

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How Do I Apply For A Boat Loan

You can apply for a boat loan directly with the lender. Most lenders offer online applications, but you may need to visit a branch to close the loan.

When you apply for the loan, expect to give personal information , details on the craft if the loan is secured, and verification documents such as proof of identity, employment and income.

Approval and funding time vary. Online lenders can usually fund a loan quicker than banks and credit unions. They also let you pre-qualify and see estimated interest rates and potential loan terms without affecting your credit score.

NerdWallet recommends comparing loans to find the lowest rate and best features for you.

Where Can I Get A Boat Loan

How Much Boat Loan Can I Afford

You can get a boat loan from an online lender, bank or credit union. Banks and credit unions will be more likely to offer secured loans.

You can also get a boat loan through a marine lending specialist, who acts as a broker for the loan. These loans must be secured and typically require a down payment.

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Compare Boat Loans With Savvy And Save

When youre applying for financing for your next boat purchase, its important to enter this process with an idea of what its likely to cost you. Thats why Savvy has put together an advanced calculator that crunches the numbers for you to determine what the cost of your proposed loan will be.

Were partnered with a range of lenders to give you more access to the best deals when it comes to rates, fees and repayment options. You can calculate different loan deals based on their loan amounts and terms, interest rates, repayment schedule and whether you make a deposit. Its a great tool to make use of before getting a quote with Savvy.

Compare Multiple Offers Before Setting Sail On A Boat Loan

Be sure to compare as many lenders as possible when shopping around for a boat loan. Also consider any manufacturer or dealer financing available to you. This way, you can decide what best suits your needs.


With Credible, you can compare your prequalified rates from several lenders that offer personal loans for boats in just two minutes.

Ready to find your personal loan?Credible makes it easy to find the right loan for you.

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Boat Loans: Options Interest Rates And Lenders

If it sounds simple, well, thats because it is. Most new boats are purchased with a loan, so well-established procedures are in place. As for who to take out the loan from, youll have three basic options to choose from:

  • Arranging financing through your boat dealer This is usually the best bet. Boat dealers set up boat loans every day, so youll be working with someone who knows the ropes, has established relationships with lenders, and also wants to make the entire transaction happen as quickly and seamlessly as possible. They can usually help with some recommendations for setting up insurance, too.
  • Get a loan from your bank Some buyers who have a lot of equity in their home find it advantageous to take out a home equity loan or a second mortgage, either because they may get a lower interest rate or for tax purposes. Remember, however, that this will add some time and complexity to the transaction.
  • Take out a loan with a lender specializing in marine financing Since financing a boat is a bit different than financing other things, there are some lenders who specialize in it. In fact, theres even an organization, the National Marine Lenders Association, made up of lenders who are familiar with all the ins and outs of making boat loans.
  • What Debt To Income Ratio Do You Need To Qualify For A Boat Loan

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    Theres usually not a single DTI requirement for a boat loan because it generally depends on many factors including your loan amount, how long your loan is, your own financial situation, etc. However, you generally will not be able to qualify for a boat loan if your DTI is over 50% and many lenders like to see a DTI of 43% or lower.

    So if you have a high DTI, you might have to pay off your debts or get rid of them somehow in order for a lender to consider you for a boat loan.

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    What Is A Typical Boat Payment

    Assuming you are referring to a monthly boat payment, there is no such thing as a typical boat payment since the amount will vary depending on the price of the boat, the loan interest rate, and the loan term.

    However, using BoatUSs Boat Loan Calculator, we can get a general idea of what someone might expect to pay for a boat loan. For example, lets say you finance a $20,000 boat with a 4% interest rate over 60 months. Your monthly payments would be approximately $377 per month. Of course, this is just an estimate and your actual payments may be higher or lower depending on your specific situation.

    Other Boat Costs To Keep In Mind

    Beyond the cost of purchasing a boat, here are several other expenses to keep in mind:

    As you consider how much boat you can afford, be sure to think about how much a boat loan will cost you over time, too. This way, you can prepare for any added expenses. You can estimate how much youll pay for a loan using our personal loan calculator below.

    Enter your loan information to calculate how much you could pay

    Check Out: Average Personal Loan Interest Rates

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    The Only Boat Loan Calculator You Will Need

    Live your ultimate life with the help of a boat loan. From fishing tinnies to yachts, boat loans can be used to secure the watercraft of your dreams.

    Taking out a loan to finance your boat makes it more affordable, and may mean you can buy a boat you may not be able to otherwise afford on your own. With a boat loan, you pay off the amount in periodic instalments, as well as interest, over an agreed loan period. A boat loan can be for a new or used boat.

    Whether youre looking to purchase a boat for leisure or business purposes, boat financing is a good option to get out on the water as soon as possible.

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    How Much Boat Can I Afford

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    The amount of boat that you can afford depends on a number of factors. It will depend on your income, your credit score, and your liabilities. You may qualify for a million dollar boat solely based on your income, but when you factor in your monthly expenses, that number may change drastically.

    The lender will take a look at your overall financial profile including your debt-to-income ratio to ensure that you can afford to purchase the boat and keep up with the monthly payments. You can check out a boat loan calculator to get an idea of how much boat you can afford. The calculator is a great place to start when youre boat shopping, but dont forget about additional expenses such as boat insurance, marina fees, and ongoing maintenance costs.

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    How To Use This Boat Loan Calculator

    To use this boat loan calculator, type in the amount youâll need to borrow, the interest rate and the term. Next, click submit to see your estimated monthly payment and total interest paid over the life of the loan.

    Use the boat payment calculator to determine if you can afford the loan youâre considering, or if you might need to find a less expensive option.

    Use Your Boat Frequently

    If you dont use your boat very much, things will fall into disrepair. Taking your boat out regularly will allow you to stay on top of things that need to be taken care of so they dont get worse.

    Not only will you be able to keep your boat in good repair but when you use it often, youre getting your moneys worth out of it.

    When you use the above five tips, youll be able to keep your boat upkeep and other issues to a minimum after youve put out the initial cash for the purchase.

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    The Cheaper Way To Go Yachting

    Maybe buying a superyacht just isnt in the cards for you, but if you dont want a smaller recreational boat, you may want to consider a bareboat charter. Its like a lease, and just like with a car, you wont be the owner but you can rent the yacht for a certain period of time.

    This could be very short-termfor a yachting vacationor long-term. For higher-priced vessels, splitting the costs among multiple people could make the price more reasonable. You as the charterer are responsible for nearly all fees, including fuel, insurance, port fees, and everything else.

    There are also . In these situations, you pay a monthly fee to a boat club and gain the use of any vessel in the fleet. You still have to pay for fuel and some costs, but the pricing is much more reasonable than trying to purchase the yacht on your own.

    Some clubs offer an initiation fee that can go well into the thousands, as well as a monthly fee of a couple of hundred dollars.

    Apply For A Boat Loan Preapproval

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    With a boat and budget in mind, its time to shop around for the best lender for your financial needs. Consider seeking a preapproval from your local credit union, your current bank or a company partnered with the National Marine Lenders Association. Compare the rates they advertise to our list of best boat loan rates.

    As you look for preapprovals, youll find that some lenders offer prequalification, which is different. Prequalification only works from a ballpark estimate of your finances, since it doesnt pull your credit. A preapproval pulls your credit report so it can give you a hard offer.

    Getting preapproved with several lenders, however, wont create a nautical storm for your credit report. While a preapproval will temporarily impact your credit, the three major credit bureaus count all credit pulls done within a 2-week time frame as a single ding against your score.

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    Can I Get A Boat Loan With Bad Credit

    Technically, there are lenders who will offer boat loans to individuals with bad credit ratings. Since a boat is a luxury purchase, you shold think through whether it is a good idea to be getting a loan on a boat with a low credit rating.

    It is possible that you have repaired whatever underlying condition in your finances that caused you to have a bad credit rating, and it just takes time for your rating to improve.

    The interest rate will be higher, and in many cases could be as much as 2-3 times higher than the interest rate offered to a highly qualified borrower. You will likely not be eligible for the 10-20 year boat loans that are offered to borrowers with better credit scores.

    Three: Look At The Numbers

    Again, a lot of people make assumptions before they look into the actuality of things. If you truly want to afford a boat, it is easier than you think. Just sit down and break down the numbers so that you know exactly how much money you need to save and how much it is going to cost you to buy your boat, as well as to maintain and own the boat over time. This way, you will know exactly what you can afford and, perhaps more importantly, that you can indeed afford to own a boat.

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    How To Use Our Boat Loan Calculator

    To use our boat loan calculator, enter how much you want to borrow for how long and the interest rate you expect to pay. With these inputs, the calculator will compute your estimated monthly payment on your boat loan.

    The loan amount should include any taxes, registration fees or add-ons youd like to finance, but it shouldnt include any down payment you plan to make.

    The interest rate is how much youre paying the lender for the loan, expressed as a percentage. You could use the annual percentage rate instead, which includes the interest rate and any fees or additional costs. An APR would provide a more accurate estimate.

    The loan term is how long you want to borrow the money for the boat. Its expressed in years in our boat payment calculator, but you may find lenders that express it in months.

    See if the estimated monthly payment fits into your budget. Its also important to keep in mind that having a boat will cost more than just payments. Boat storage in the off-season, boat insurance, fuel and maintenance can add up, so we recommend having a boat payment that is financially comfortable.

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    Affordable Boating: Myths & Tips For Buying A Boat

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    The idea that owning a boat is an expensive endeavor is a misconception. Just like automobiles, boats are available across a wide price range, and the cost of owning and operating a boat is likely less than you imagine. Regardless of your boating lifestyle, there are a few ways that you can keep costs in check.

    Likewise, you’ll want to be sure you understand some of the common myths about buying a boat and owning a boat.

    Save for your boat and pay in cash, thereby keeping loan interest costs away.

    Finance Your Boat

    Financing for a new or pre-owned may be available through a marine dealer, through your bank, or through a specialized marine lender. As with financing a car or other large purchase your credit rating, income and the value of the boat will all be considering when applying for financing. Learn more by reading Boat Financing: Helpful Information for Boat Buyers.

    Consider Buying Used

    Shopping carefully for a 2 to 10 year old boat can help you save money on the initial purchase price. Boats that are more than a decade old are still great candidates for purchase however, just like when buying a classic car, more investigation and review should be in order to ensure the background and viability of the hull, engine and drivetrain.

    For more tips, check out Buying a New or Used Boat.

    Attend a Boat Show

    Buy Only the Size Boat You Need

    Do Your Own Maintenance

    Store Your Boat at Home

    Remember that Fuel Costs Vary Widely

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    Online Boat Sales Team

    Do you have additional questions? Maybe you are even ready to apply? Let us introduce the White River Online Boat Sales Team. As part of White River Financial Services, the Online Boat Sales Team can help SUN TRACKER customers to easily apply for great finance options, and even shop for a SUN TRACKER pontoon at dealerships nearby. Theyre here to help at any stage of your shopping process!

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