Boat Financing 101

Boat ownership is extremely rewarding, but boats do not come cheap. Very few people can afford to pay the full cost of a boat up-front, so they make use of various financing options. This guide will help you understand more about financing your boat purchase.

Organize Your Finances

Before you begin, you’ll need to make sure that your finances are in order for your boat purchase. While a loan will cover much of the total cost of your boat, you'll still need to have 10% to 20% of the boat’s total cost saved up as a down payment. Additionally, you’ll need to determine how much you can comfortably afford to pay each month towards your loan, while ensuring that you also have enough money for repairs, insurance, and everyday boat costs.

Understand Loan Types

Boat loans typically fall into two categories: secured and unsecured. Understanding both types will help you determine which one you’re eligible for and what to expect when you get it.

Secured loans tend to have lower interest rates, higher borrowing amounts, and longer pay terms, but they use your boat as collateral. This means that, if you should default on your loan payments, the boat can be repossessed.

Unsecured loans do not require you to put up collateral, but they tend to have high interest rates and lower borrowing amounts. They’re easier to obtain than secured loans, though.

Ready to buy a boat? Stop by our dealership in Bayville, NJ, to check out our amazing stock of new and used boats for sale. Discuss your financing options with the New Jersey Outboards financing department staff so that we can help you fund your boat purchase. New Jersey Outboards serves the greater Philadelphia, PA, metropolitan area, as well as our customers coming from New York and Connecticut.