How to Loan for the Boat of your Dream Cruise
by Lauren Cordell 11 Aug 2020 10:24 BST
Back Cove 39O © Back Cove Yachts
There are several options one can do for a boating getaway. You can perhaps buy tickets on a big cruise ship with amenities rivaling that to a five-star hotel, or rent a fishing boat for lighthearted fishing activities with your family.
But if you want to keep the boat for continuous recreational boating experiences, you might as well own one. A feasible option for you would be to buy one, which can cost a lot of money or loan one. People can get hesitant with loans since it is debt, but it can help if you want a quick way for a boating trip with still money to spare. Here's how you can loan a boat and enjoy that dream cruising vacation you've always wished for.
Choose a boat
It's best to research rather than go to the lenders with absolutely no clue what kind of boat you would like to pick. You have to consider a few things when choosing a boat.
Seating Capacity
You need to think of how many people will be there in your getaway, or, in other words, how many people will get in your boat? There are several boats with various seating or weight capacities. Too many people or weight on board can make the boat difficult to drive or pose a harmful risk.
Location
Location refers to the specific place as to where you will use the boat. It can either be the river, the lake, or the sea. Depending on where you will be going out, there may be certain restrictions on which boat gets to travel on which place.
Storage
Like cars, your boat should need a place to be kept in when unused. It would be best if you have a garage or at least space where you can place your boat while not in use.
Maintenance
Boats need to be looked after regularly. You need to clean it, make sure it has the least signs of wear and tear, and you need to check if it still functions properly. Depending on the boat you can get, maintenance can eat up a lot of your time.
New or Used?
You can have a brand new boat for yourself, or you can opt to have a used one. Buying a new one will always mean that it has the latest technology and design and is less prone to damage. It will also cost a high amount of money. On the other hand, buying a used boat will often be cheaper than new ones, but it is more prone to damage.
Look for a Lender
There are many places you could go to look for boats you could loan. You can loan boats at the bank, credit union, online lenders, marine specialists, or even the company that sells boats.
Banks
Banks always offer several different loans. You may look and inquire about their rates on boats. It is best to approach banks where you already have an account for less hassle and guarantee that your finances will quickly be taken care of.
Credit Unions
Credit unions are nonprofit financial institutions that have a members-only policy. Unlike banks, who prioritize their shareholders, credit unions serve their members. They take the money from the members and use it to provide for their financial transactions.
Credit unions also provide a personalized approach to financing the boat, which sees to it that the proper transactions are made. However, you need to be a member to join the credit union and comply with the needed requirements.
Online Lenders
Applying for a loan online is often considered an alternative to applying for a loan in the bank. Online loans are easy to look upon and can be done in just a few clicks. It is a convenient way to make financial transactions in the comfort of your home. However, some online lenders are not legitimate. It is essential to know how to avoid these lenders to avoid scams.
Marine Specialists
Marine Specialists specialise in boat loans, so you can sit back because they know what they're doing. You can consult them and ask them questions about related matters to help you. They will also be the ones who will reach out to the company or bank for your convenience, which can help speed up the loan approval.
Companies
The companies that manufacture the boats may also have offers for loans. You can always come to their store or send them mail to ask for available loans you can get with a specific model that they have. As they are the boat manufacturers, you can always approach them personally without having to go through someone else.
Choose your loan
There are two types of loans, which are secured and unsecured loans. Your capability of choosing which loan type you will pick will vary on your credit score.
A credit score is a numerical score system that ranges from 300 to 850, with 300 being the lowest and 850 the highest. The score is determined by the credit information you have, particularly the amount of credit you have and how soon you have paid the lender back.
Secured Loans
A secured loan is the type of loan you need to set up one of your possessions as collateral you could give back to the lending company just in case you fail to pay. This loan is often the only option for those with poor or bad credit scores, which is 630 and below.
Unsecured Loans
Unsecured loans are loans that do not need any collateral to be taken. If you are unable to pay, you have nothing to be taken away from you immediately. This type of loan is only given to those with a good or excellent score, 690 and above. In the case of loans involving property, such as boats, the boat may serve as the collateral.
Takeaway
There are cases when applying for a loan is better than directly buying an item in one go. However, you must always be aware of the risk you need to take and that you need to keep a stable financial source to provide for your boat monthly until you have finally paid it all off. Be smart with your money, but always make the best out of it.
Author’s bio:
Lauren is a full-time writer who often combines her love for travel and interest in finance. She loves to share her travel stories with her audience and suggests the best travel destinations and various ways to enjoy them, such as camping, RVing, and boating.