Learn About Boat Financing With This Useful Guide

If you're interested in buying a boat, you can learn more about financing from this guide. Boat financing can be tricky, sort of like buying a house or a car. At The Sports Center in Perry, Georgia, we can help you find the perfect boat that will fit your needs and budget. We also serve customers in Macon and Columbus, Georgia.

Before You Buy… 

There are some things you should know before contacting a seller. If you already have a boat loan, you should pay it off before financing another boat. Even with an excellent credit score, you will not be able to secure more than one boat loan at a time. 

If you're interested in financing your boat, you should determine the down payment you can affordably offer and, ultimately, the total cost of the boat. Lenders usually ask for 10 to 20% of the purchase price as a down payment for financing. 

Pre-Approval

Shop around with different lenders to find the best rates to fit your budget and lifestyle. Boat loan lenders are a part of the National Marine Lenders Association. That way, you'll have extra assurance that the lender is knowledgeable with marine financing. 

A loan calculator helps you to determine your payments with different loan terms. A pre-approval gives you more confidence when shopping for a loan and lets dealers know you're a serious buyer. You'll likely need your previous year's tax return, credit report, and other financial documents for pre-approval. 

Types of Interest Rates

Just because a loan might have a low initial interest rate, you may end up paying more in the long run, depending on the terms and type of interest rate you have. The types of rates are fixed rates, variable rates, and balloon loans. 

Finally, after settling on the boat you want and can afford, you can begin negotiating the purchase price. Then go back to your chosen lender to secure financing. Once you've applied, you'll typically have an answer within a week.

After the Purchase 

There are state laws and regulations regarding boats and trailers. In addition to obtaining insurance and registration, you'll need to look into these requirements before picking up your boat.

Even though boat financing can be tedious, it's all worth it if you find the right boat and loan. Imagine yourself on the water entertaining guests and enjoying the waves on your new boat. So when you're in the market for a boat and need help with financing options, contact us at The Sports Center to help you through it. We are located in Perry, Georgia, and can serve Macon and Columbus, Georgia, too!