How to Finance Your Dream Boat

Services | 09/29/23
A father and son driving a boat.

Buying a boat is a lot like buying a car. You’ll need to shop around, not only for the perfect boat but also for the loan rate and terms that fit your life. A financial commitment as large as a boat requires thoughtful research and planning. Here at Ascend, we’ve provided you with a few key considerations as you prepare to finance your boat.

Finance or Pay Cash?

Perhaps you have the cash on hand to buy a boat outright. Even then, there are still reasons to finance, including the ability to build your credit while enjoying time on the water. In addition, financing all or a portion of the purchase can leave you with more liquid assets for upgrades or unforeseen repairs during ownership. It also enables you to bundle items like warranties and service contracts into the purchase and pay on them during the life of the loan rather than all at one time.

Determine Your Affordability

Utilizing the Ascend loan calculator tool provides a reliable estimate of the funds required to make your boat dreams a reality. Knowing how much you can afford will help you determine the right boat and the most suitable boat loan for you.

Comparison Shop for the Ideal Loan

Are you seeking the best interest rate, the most flexible loan term, a hassle-free application process or the ability to pay off your loan early without incurring unexpected fees? All of these factors are important and deciding your priorities among them will greatly influence which lender you decide to go with.

Determine Your Down Payment

The amount of money you put down will determine your monthly payment; many lenders want between 10% and 20% down payment, depending on the lender and the cost of the boat. Some will offer 0% down payments but be careful — a down payment can hedge against the loss of depreciation over time. You don’t want to owe more on your boat than what it’s worth!

Get Preapproved

You’ve done the research. You’ve found your lender. You know how much you can afford on a down payment, and how much you can afford per month. Now it’s time to get preapproved. You’ll be ahead of the game when you walk into the dealership armed with terms that often beat those a dealer could offer.

Got all of that? Great! Go get the boat of your dreams and we’ll see you on the water!

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