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How Long Can You Finance a Boat? – Updating

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Boat financing isn’t all that different from financing a car, house, or other major purchase, but people often wonder how long you can finance a boat. There are several variables (such as the amount of your down payment and the interest rate) that affect how much you pay each month, along with the term.

Boat loan conditions

So these other factors also need to be considered when you sit down with pencil and paper to determine how long you should be able to get the loan.

Boat Loan Conditions

Historically, lenders have granted boat loans for shorter periods than other major purchases. This is because boats 50 or more years ago simply weren’t built as well as they are today. After 10 years or more, many boats needed an overhaul, so lenders wanted to make sure their collateral wasn’t canceled faster than it was paid for. But as boats and the engines that power them have gotten better and started to last much longer, they’ve started to retain an ever-increasing resale value. net result? Lenders have become willing to fund them for much longer periods of time.

So yes, you may have heard that boat loans are short-lived. It’s true that getting a 10-year boat loan used to be a long time, and longer loan terms were rare — but those days are long gone.

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Today many lenders finance a boat for 20 years. Obviously, this can lower your monthly payments significantly; You can use our boat loan calculator to find out exactly how the monthly payments would differ between a 10 year term and a 20 year boat loan.

Use our boat loan calculator

Factors affecting boat financing terms

However, you must be aware that the duration of financing a boat can also affect the other variables mentioned previously. For example, if you are doubling the term of a loan, a lender will likely want a slightly higher interest rate, or perhaps a down payment equal to a higher percentage of the boat’s value. There are also some other factors that a lender may consider when determining how long a loan term to consider. These usually include:

  • The amount of the loan
  • The boat type
  • The age of the boat if used

Boat Loan Size

The loan size has an important impact on how long a lender is willing to extend the loan. As a rule of thumb, the higher the loan, the longer it can be financed. Many lenders have minimum loan amounts for different specific terms.

boat financing duration

type of boat

Most modern power boats can be lumped together, but there are some outliers that financiers will treat differently.

  • For example, boats with wooden hulls or high performance boats may be treated differently.
  • Some rental companies make a distinction between sailboats and powerboats in general, and some view multihulls or pontoon boats differently.
  • A big problem that comes up from time to time is liveaboards. Due to the laws regarding residency, home ownership and home ownership escrow, liveaboard loans are treated very differently than traditional boat loans, and some lenders will not issue them at all.
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Discover all types of boats

Age of the used boat

The age of a boat has a major impact on the acceptable term for a lender. The newer a boat, the longer you can get a boat loan in almost all cases. Many lenders put a cap on the age of a boat in order to even be considered when making a loan, and some others deal exclusively with new boats.

When buying used, you must also take into account that other credit requirements may also change; Some lenders have higher minimum loan amounts or different financing rates for boats built before a specific model year.

Ready for secure boat financing?

The bottom line? If you are buying a new boat – which we would definitely recommend as opposed to buying a used boat as new boat buyers report a much higher level of satisfaction – and your credit and debt to income ratios are up to date, you should have no problem financing a boat that meets a lender’s minimum loan amounts for up to 20 years.

Use our boat buyer’s guide to work through all the other factors to consider when making a purchase of this type, and you’ll have years of fun on the water to look forward to.

Read Next: How to Get a Boat Loan


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