Who does not dream of trips on a comfortable boat, especially your own? It used to be a pipe dream, but today, if desired, everyone will be able to choose the right option and buy it at a good price.
But what if there is absolutely no money, but you want to go boating now? In this case, a boat loan will come to your aid.
How do boat loans work?
Targeted loan is a loan granted by a bank to purchase a specific product. The purpose of obtaining a loan is always stipulated in the agreement between the bank and the client; a person cannot use the loan for other needs.
As a rule, in fact, money is not issued to the borrower in their hands, but transferred by the bank directly to the seller’s account, otherwise the bank will require confirmation of the intended use of the funds. Usually, targeted loans are offered directly at retail outlets where the buyer can apply for a loan from a bank representative.
A non-targeted loan involves receiving cash from a bank. In this case, the borrower may dispose of the allocated money at his/her discretion. A financial institution that granted a non-targeted loan will not control the borrower’s spending of allocated funds. At the same time, the contract drawn up during the execution of the loan will indicate the date of making the monthly payment and its amount. This schedule must be strictly observed, otherwise the bank will charge penalties. However, it is worth considering that such personal loans have a very high interest rate. This is due to the fact that the bank must insure its risks. The average interest rate on this personal loan is 25-30 percent per annum.
How can I apply for a boat loan?
Banks always offer non-targeted loans to their customers. But some suggestions may vary. So, in some banks, you can take it with just two documents. Other financial organizations offer to issue a non-targeted loan on the security.
In the first case, the interest rate on the loan will be higher. You can apply for a loan at a better rate by providing a full package of documents. The age of the borrower must be above 21 years. In addition, a bank client must have a working experience of six months or more.
You can fill out the application at the bank office and get money on hand at the bank operating cash desk or directly to a bank card.
The procedure for obtaining a loan is the same for a targeted loan.
How much does a boat cost?
Each boat has its own price, but this is not the end of your future expanses. You will need to prepare a certain amount of money for the running costs of owning a boat before you go to sea.
- Buying a boat – $ 25,000 – $ 1 million;
- boat equipment (Electronics, protective equipment, etc.) – $ 1,500 or more;
- operating expenses (the price of fuel);
- boat maintenance – about $2,000 annually;
- winter storage – about $2,000;
- boat insurance – $100 or more dollars a year.
What should I pay attention to when looking for boat financing?
- monthly payment. How significant part of your family budget it takes.
- the full cost of the loan (how much money you will overpay by taking a specific amount for a specific term)
- the time of the decision on granting a loan. As a rule, “instant” loans, decisions on which are made in 1 hour, are more expensive than those for which the bank makes a decision in 3 days. At the same time, if a bank “thinks” for more than 3-4 days, it often means that the lending process is not debugged, and it will also be difficult to work with such a bank in the future.
- the possibility of partial early and full early repayment. It depends on whether you can save money if you repay the loan ahead of schedule.
- how you will pay for the loan. Will you have to pay, for example, for a postal order? Your total loan expenses depend on this.
How to choose a boat?
1. Before buying a boat, decide on what purpose you need it for: go fishing, water skiing or just take exciting walks on water. Design and specifications vary depending on the purpose of the vessel.
2. If you plan to buy a new boat, get it from an authorized representative of the brand. They can get a discount, installments, guarantees. Keep in mind, the final price of the boat will consist of three components: the vessel itself, the trailer for transportation, accessories / options.
3. Pay attention to how qualified the seller is. Check if service support is provided, what are the terms and conditions of the warranty. The more reasonably and in detail the seller will answer your questions, the easier it will be to get the help that may be required later after the purchase. The seller’s personal experience in operating the boat being sold will indicate his/her professionalism.
4. After the purchase there will be regular maintenance costs. Parking fees in the summer (and in the winter, if you don’t have your own garage), insurance, transportation costs to recreational facilities, fuel and maintenance costs, possibly the purchase of additional equipment. If you think about all of the above in advance, you will be able to avoid discomfort from unplanned spending.
5. Decided on the brand and model of the boat, but having considered everything, decided that it was too expensive? Take a look at the used options. Consider the risk of the need for repairs. It’s better not to save on the motor – this is the basis of your vessel.
6. Take the best you can afford. The day will come and you will want to sell your first boat. A product with a well-known name is easier to sell (faster and with greater benefit).
7. Aluminum VS Plastic. Neither material is universal. You need to decide for yourself what material you need a boat from.
The metal guarantees the strength and stability of the vessel, has the advantage during the winter “parking” – does not absorb moisture. Hunters and fishermen give their preference to this option.
Plastic is good in attractive appearance and excellent thermal insulation. Plastic trim is comfortable and safe. People choose it for recreation and entertainment.
Combined models. In them, the bottom is metal, and the top is plastic. Among the disadvantages is the high price.
8. Cabin VS Open. Are you planning to go on a boat on multi-day trips? A cabin will be very useful for you. For “spend the night / shelter from the weather,” the enclosed space is ideal. If the boat is intended for short trips, day fishing, there is no need to carry an “apartment with a toilet” with you. This will require additional fuel consumption, engine power. And the price of a cabin boat is much higher compared to an open boat.
9. Do not strive to become the owner of a large vessel if this is your first purchase. It will be interesting to invite numerous group of friends there only at first. Later, you will want to relax in a narrower circle, new hobbies will appear, which will be interesting to share alone or together with like-minded people.
10. Whatever boat you choose, new or used, aluminum or plastic, cabin or open, its main characteristic should be the ability to bring you joy. Also, our website provides detailed information about vacation loans and jet ski loans. Webmoneyloans is always ready to help you.
Also, check:Get Started Now!
Please vote for the article: