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Finance your dream boat

Here’s what you need to know.

Working with leading marine lenders, our partners are able to offer competitive rates and terms to help you purchase a new boat or refinance your existing boat loan. We offer loans for powerboats, sailboats, multi-hull boats, pontoons, and even personal watercrafts.

Use our Boat Loan Calculator to determine a monthly payment that’s right for you, then fill out an Online Loan Application for our lending partner to underwrite.

• If you are applying for a loan for $25,000 or greater, click here to apply online .

Once your application is completed, a representative will evaluate the application to determine the next steps, in an effort to make the closing process as seamless as possible.

Calculate Payments with Our Boat Loans Calculator

Use our boat payment calculator to determine a monthly payment that you can afford when looking to finance a new or used boat.

Simply enter your desired amount, estimated interest rate, and the loan term over which you intend to pay back the loan. Once you've input the information, the calculator will generate your estimated monthly payment on your boat loan. Take this number and plug it into your current monthly budget.

Boat Loan Calculator

Monthly Payment

Total Loan Amount

Your Monthly Payment is:

Your Max Loan Amount is:

Helpful Terms and Phrases

Monthly Payment What you're paying out of pocket every month to repay your loan.

Number of Years How many years you're looking to pay back the loan (term of loan).

Interest Rate Interest rate accompanying this type loan.

Total Purchase Price This is the total cost of your boat purchase. Don't include sales tax in this amount.

Down Payment This is the total out-of-pocket amount you are paying toward your purchase. Standard down payment is 15% but depending on your boat age, loan amount, and loan term the required down payment can be between 10% - 30%.

Deposit This is the total amount you have already paid toward your down payment.

Trade Allowance The total amount that you are given for any vessel that you trade-in as part of this purchase.

Amount Owed On Trade Total loan balance outstanding on the trade-in.

To get started, you will need to complete the Online Loan Application. Our lending partner will do an initial review and credit inquiry and likely will request additional financial information such as tax returns or bank statements to help them make a decision. Once approved, the lender will list any additional items needed prior to closing (for example, a marine survey and executed sales contract). Next, our lending partner will collect information from the seller(s) to finalize the loan closing paperwork. Once readied, our lending partner will send closing documents to the buyer(s) and the seller(s) for completion. Lastly, our lending partner would send the loan proceeds to the seller(s) in accordance with the funding instructions.

Boat loans share some similarities with both vehicle and home mortgage financing. You will need to complete a loan application for our lending partner to underwrite. Similar to a home mortgage, the bank can ask for your personal federal tax returns, proof of assets, and may ask for additional financial information depending on each situation.

Similar to a vehicle loan, the lender has a loan‐to‐value guideline that is based on the book value for used boats and the contract price for new boats. All of the lender's underwriting criteria must be met to offer approval, and these guidelines tend to be more rigorous than vehicle financing. If approved, the lender would outline any additional items needed prior to closing and closing paperwork would be prepared once all of the necessary information has been collected.

You will need to provide basic demographic and employment information, complete a personal financial statement that lists all your assets and liabilities, and provide us with information on the boat you are interested in buying or refinancing. As part of the underwriting process, our lender will likely ask for tax returns and bank statements for non-retirement and retirement assets to verify your income and net worth, a copy of the sales contract, and a marine survey report (on most used boats). At the end of the application, you can securely upload these documents to help speed up the review of your application.

Most applicants can expect to have a decision on their application in 2-4 business days. Our lenders will often ask for financial information before making a decision. 

Typically, our lenders will require a boat to be documented with the United States Coast Guard if it meets the Coast Guard's net tonnage standard. If the boat you wish to purchase is eligible to be documented, our finance department or lender will prepare a First Preferred Ship Mortgage as part of the loan closing paperwork and file it with the Coast Guard as the instrument that secures the bank's lien on the vessel. If the boat is not large enough to be documented with the Coast Guard, a formal mortgage would not be prepared; however, the lender would still record its lien against a state title or equivalent document. In either event, the lien would be released once the loan has been repaid.

Our lenders do not issue pre-approvals that are similar to what you get when purchasing a house. You are able to apply without having a sales contract on a boat, and you aren't locked into buying the boat that you apply with, but you do need to list a boat on the application.

The rates and terms are highly dependent on the boat, so we recommend applying with a boat that is similar in age, length, and type to the one you are interested in purchasing, and use a realistic purchase price. 

Credit requirements vary by lender, but our lenders generally require applicants to have a credit score above 680 with no major credit issues such as a bankruptcy, foreclosure, settlement or charge-off within the past 3 – 5 years.

Generally, marine financing is subject to higher credit and other underwriting standards than that for vehicles or even home mortgages. Our lenders look for applicants with better credit, but there are other companies that will consider individuals with past credit issues.

Our lender will first review your credit score and history to determine if you meet their credit guidelines then review your financial information. When evaluating your application, our lender will look to see that you currently have the funds to make the down payment without depleting your assets, and verify your net worth and debt-to-income ratio (monthly debt payments divided by monthly income) meets their guidelines. They will also review the boat to ensure the purchase price is in line with the market value of the boat by using third-party valuation guides like NADA, BUC and ABOS.

The loan term available will largely depend on the boat you select. We work with banks that can offer terms up to 20 years, subject to the age and type of boat, as well as the loan amount available from the lender.

Once the lender collects all the required information from the buyer and seller, both parties will receive paperwork that they need to sign and notarize. Once the lender receives the paperwork back from both parties, they will disburse funds in 1-2 business days. The buyer and seller do not need to visit a bank or be in the same place to close the loan. If the boat is currently financed, our lender will disburse the funds directly to the lienholder to pay off the loan, otherwise, the funds will be paid to the seller by check or wire transfer.

BoatUS partners with leading marine lenders that consider various types of collateral, including larger, more expensive vessels. Some restrictions do apply — for example, we cannot accept applications for steel‐hull boats at this time.

Use our Online Loan Calculator to determine your monthly payment or enter the desired monthly payment to see the loan amount. to determine your monthly payment or enter the desired monthly payment to see the loan amount.

We recommend you access the NADA Guides Boat Value Online Tool , powered by J.D. Power.

• Loan amounts from $10,000 for boats model year 1998 and newer
• Multi Hull Boats
• Pontoon Boats

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Best Boat Loans in 2023: Finance Your Boat

Boat loans can be unsecured or secured by the boat. Compare financing options from online lenders, banks and credit unions.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Setting sail on your own boat is a priceless experience. But unless you’ve saved a lot of cash, you’ll need a boat loan to make your dreams a reality.

Here are lenders that offer boat loans, plus information on how to finance a boat with a personal loan — including unsecured and secured loan options. Learn where to find boat loans and factors to consider before applying.

• 20+ years of combined experience covering personal loans and financial topics.
• Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
• Governed by NerdWallet's strict guidelines for editorial integrity .
• 35+ personal loans reviewed and rated by our team of experts.

Our pick for

Unsecured boat loans

Sofi personal loan.

8.99-29.99%

$5,000-$100,000

LightStream

6.99-25.49%

Achieve Personal Loans

8.99-35.99%

$5,000-$50,000

8.49-35.99%

$1,000-$50,000

7.80-35.99%

Laurel Road Personal Loan

9.49-24.25%

$5,000-$45,000

Rocket Loans

9.12-29.99%

$2,000-$45,000

How do boat loans work?

A boat loan is an installment loan with fixed monthly payments typically over two to 20 years. You can get a boat loan from a bank, credit union or online lender.

Interest rates and loan terms vary based on the lender, the size of the loan, your credit score and income, and whether the loan is secured by the boat or unsecured.

Applying for an unsecured boat loan is typically fast, and some loans can be funded the same or next day after you’re approved. Lenders usually deposit the funds into your bank account, from which you can withdraw the money to purchase a boat.

Secured boat loans vs. unsecured boat loans

Boat loans can be secured by the boat or unsecured and backed by your signature. Here are basic differences.

Secured boat loans

Secured boat loans use the purchased boat as collateral. They may have higher loan amounts, longer repayment terms and lower rates than unsecured loans. The risk is that you can lose your boat if you default.

With a secured boat loan, you may also need to make a down payment, which means you’ll need cash upfront.

Secured loans work best for borrowers who don’t qualify for an unsecured loan, want a higher loan amount and are comfortable with the risk associated with secured loans.

An unsecured boat loan doesn’t use the boat or anything tangible as collateral. Without that backing, rates on unsecured loans may be higher and terms shorter.

Approval for an unsecured boat loan is based on factors like your credit score, income and existing debt.

If you default on an unsecured loan , you may not lose the boat, but you’ll still face consequences, including a damaged credit score and wage garnishment if the lender takes you to court.

Pros and cons of secured and unsecured boat loans

How long are boat loans.

Repayment periods for boat loans vary depending on the type of loan you choose.

Unsecured personal loans typically have shorter repayment periods — two to seven years. If you choose a secured boat loan, your term can be as long as 20 years.

Keep in mind the term you choose affects the interest you pay. Shorter terms have higher monthly payments but carry less interest.

For example, a four-year, $30,000 boat loan with an annual percentage rate of 15% will have monthly payments of $835 and cost $10,076 in interest. The same loan with an eight-year repayment term will have monthly payments of $538 and cost $21,683 in interest.

Use NerdWallet’s boat loan calculator to calculate your boat payments.

What is the average interest rate on a boat loan?

Boat loan interest rates vary by lender. An unsecured boat loan will have an annual percentage rate ranging from 6% to 36%. See the table below for average unsecured interest rates based on your credit bracket.

Secured loans may have lower APRs, with many lenders offering single-digit rates. If you're not sure what credit bracket you fall into, check your credit score for free on NerdWallet .

Where to get a boat loan

In addition to getting a boat loan from an online lender, you can also get a secured boat loan from a bank, credit union or marine lending specialist. Here are some examples.

Secured boat loans from banks

You’re more likely to find secured loans from banks. Banks may offer perks to existing customers, like discounts and favorable loan terms. If your bank offers boat loans, it’s a good place to start.

Secured boat loans from credit unions

Credit unions can offer low-rate secured boat loans to their members. These not-for-profit lenders may look past a low credit score or rocky credit history on a loan application and consider a borrower’s whole financial picture, including the relationship with the credit union.

Your local credit union is a good first stop, though national credit unions also offer boat loans. Navy Federal and First Tech , for example, both offer boat loans with 15-year repayment terms with rates starting below 10%.

Loans from marine lending specialists

Marine lending specialists are financial service companies that act as brokers to find you a boat loan. They secure funding through outside sources such as banks.

Boat loans from marine lenders may have similar rates and repayment terms to personal loans. One advantage might be the ability to work with a specialist who understands the boating business, according to the National Marine Lenders Association.

These loans must be secured by the boat and require down payments from 10% to 20% of the purchase price.

How to get a boat loan

To get boat financing directly from a lender, you’ll need to apply for a loan . Most loan applications are online and require you to submit personal information like your name, address, contact information and Social Security number. You may also need to submit proof of identity, employment and income.

If you’re applying for a secured loan, you’ll want to have information about the boat on hand, including the builder or manufacturer, model, model year and purchase price.

Once you submit your application, you’ll wait for an approval decision. If you’re approved, you may need to visit the bank or credit union to close the loan and receive funds. Unsecured personal loans, especially from an online lender, can typically be closed online and funded the same or next business day.

Can I get a boat loan with bad credit?

Borrowers with bad credit may still qualify for a boat loan. Some online lenders offer unsecured personal loans specifically to borrowers with bad credit.

Secured loans from a bank or credit union may also be a smart option for borrowers with bad credit since approval decisions rely less on their credit.

» COMPARE: Best unsecured loans for bad credit

Alternatives to boat loans

Financial experts don't recommend personal loans for discretionary purposes, particularly if you already carry credit card or other debt. If you can’t afford to buy a boat today, or you’re not quite ready to make the commitment, here are some alternatives.

Save up for the purchase. Consider holding off and starting a savings plan toward buying a boat. You may be able to negotiate a cheaper price by paying with cash, and you’ll avoid paying interest on a loan.

Join a boat club. For a one-time fee and ongoing monthly or annual dues, boat clubs provide access to a fleet of boats for their members and guests.

Consider peer-to-peer rentals. Similar to renting a house on Airbnb, you can temporarily rent a boat through a peer-to-peer rental marketplace, such as Boatsetter or GetMyBoat.

Last updated on April 19, 2022

NerdWallet's Best Boat Loans in 2023: Finance Your Boat

• SoFi Personal Loan : Best for Unsecured boat loans
• LightStream : Best for Unsecured boat loans
• Achieve Personal Loans : Best for Unsecured boat loans
• Upgrade : Best for Unsecured boat loans
• Upstart : Best for Unsecured boat loans
• Laurel Road Personal Loan : Best for Unsecured boat loans
• Rocket Loans : Best for Unsecured boat loans

Frequently asked questions

Boat loan repayment terms are usually between two and 20 years. Unsecured boat loans have shorter repayment terms — about two to seven years — while secured boat loans have longer terms. Calculate your boat loan payments to see how the term affects your monthly payments and overall interest.

You can find secured boat loans for used boats at U.S. Bank and Bank of the West, among others. With a secured loan, a lender may consider the boat's age and how much it has been driven when deciding your rate and loan term. With an unsecured loan , that information doesn't usually factor into your rate and term.

Most lenders want to see a good credit score of 690 FICO or higher on a boat loan. You may qualify for a secured or unsecured boat loan with a lower credit score, but borrowers with fair or bad scores (below 690 FICO) are likely to receive higher annual percentage rates.

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• Personal Finance

Best Boat Loans for May 2024

Our choice for the best boat loan lender is SoFi because it offers various loan amounts and terms, a competitive APR, and you can secure the loan with the boat as collateral or it may be unsecured if you qualify. We reviewed 70 personal loan lenders and evaluated them on 31 factors, including cost, loan terms, borrower requirements, and additional features. 

• Best Home Warranties
• Best Emergency Loans for Bad Credit
• Best Personal Loans for Bad Credit

Compare Personal Loan Rates with Our Partners at Fiona.com

• Our Top Picks
• Southeast Financial
• Trident Funding
• Patelco Credit Union
• See More (3)
• Compare Providers

The Bottom Line

• Guide to Choosing
• Alternatives

Comparing Boat Loans

• How to Apply

Why You Should Trust Us

• How We Pick

Guide to Personal Loans

Best overall : sofi.

• APR Range: 8.99% - 29.49%
• Loan Amount: $5,000 - $100,000
• Loan Terms: 24 months - 84 months

SoFi is our top overall choice for boat loans. It's great if you're looking for:

• Quick funding with disbursements as soon as you're approved
• Loan amounts up to $100,000
• Loan terms of up to seven years  

If you want an offshore fishing boat or cruiser yacht with a higher price tag, you'll need another lender. Borrowers had a weighted average credit score of 747 in 2022, so you may need a co-borrower if your score isn't high.

The company was founded in 2011 by Stanford business students to connect graduates looking for financing with alumni. Since launching, SoFi lent over $73 billion in loans to over 6.9 million borrowers.

No origination or late fees

Same-day funding available

Allows joint applications

Strong credit may be required

Relatively low maximum for boat loans

• You must be the age of majority in your state (18 in most states).
• You must be a U.S. citizen, permanent resident, or non-permanent resident alien (including those with Deferred Action for Childhood Arrivals status).
• You must be employed, have an offer of employment with a start date within the next 90 days, or have other sources of income.

SoFi does allow applicants to apply with a co-borrower, and adding a co-borrower to your application can improve your chances of qualifying for a loan and securing a lower rate. 

Best for Large Loans : Southeast Financial

• APR Range: 6.99% - 19.95%
• Loan Amount: $15,000 - $4,000,000
• Loan Terms: 84 months - 240 months

Southeast Financial is our choice for large boat loans. You can borrow as much as $4 million to finance the yacht of your dreams.  

Some of the benefits of borrowing with Southeast include:

• Financing new or used boats through dealerships or private sellers
• Lower credit score minimums than most lenders, approving borrowers with scores as low as 575
• Loan terms as high as 20 years to spread out the cost and reduce your payments  

Apply early because the Tennesee-based lender's approval and disbursement process can take several business days. It doesn't offer financing in Alaska or Hawaii and doesn't finance, houseboats, speed boats, or commercial boats.

High loan maximum

Longer loan terms

Low credit score minimum

Takes several days to process loans

Has limits on boat use

Not available in all states

• You must be a U.S. citizen. 
• You must be 18 or older. 
• You must have a credit score of 575 or higher. 
• Residents of Alaska or Hawaii are not eligible for a loan. 

Although some lenders like Southeast Financial offer loan terms as long as 20 years, a longer term may not be ideal. You'll pay more in interest and, because boats tend to depreciate significantly over time, you could end up owing more than the boat is worth.

Best for Fast Funding : Regions

• APR Range: 9.24% - 29.99%
• Loan Amount: $2,000 - $50,000
• Loan Terms: 12 months - 60 months

Regions Bank can give you a credit decision within one business day. If approved, you can receive your loan funds as a lump sum immediately at closing.  

There are two loan options with this lender:

• An unsecured personal loan
• A secured installment loan with up to $75,000 in financing and lower rates

The boat must be under 30 feet, including the motor and trailer. Even though you can apply over the phone, you must sign for your loan in person at a branch, which eliminates many borrowers as the bank only has. a presence in 16 states in the South, Midwest, and Texas.  

Quick loan processing

No origination fee

Up to 0.50% in interest rate discounts available

Boat size restrictions

Must visit a branch to close

• You must be the age of majority in your state. 
• You must have a valid Social Security number. 
• You must have a verifiable source of income.
• You must be able to close the loan at a Regions branch. Regions operates branches in the following states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, and Utah. 

Best for Bad Credit : Upgrade

• APR Range: 8.49% - 35.99%
• Loan Amount: $1,000 - $50,000

Upgrade approves borrowers with scores below 660. It also allows joint applications , so you can add a co-borrower to improve your chances of getting a loan and a lower rate. 

The application is quick and easy and you can pre-qualify without affecting your credit score. The funds are available to you as soon as the next business day if you're approved

Although Upgrade can be useful if you have less-than-perfect credit, it's not for all borrowers. Its loan maximum of $50,000 may be too low for many boat shoppers, and it charges origination fees as high as 9.99%.  

Quick loan funding

Lower credit score requirements

Low loan maximum

Limited repayment terms

Potentially high origination fees

• You must be a U.S. citizen, permanent resident, or live in the U.S. on a valid visa. 
• You must be the age of majority in your state (18 in most states). 
• You must have a verifiable source of income. 
• You must have a valid bank account and email address. 

Adding a co-borrower to your applications can help you qualify for a loan, but not all lenders allow joint applicants. To find a lender that does, check out the best joint personal loans of 2023 .

Best for Repayment Options : Trident Funding

• Loan Amount: $25,000 - $2,000,000
• Loan Terms: 120 months - 240 months

Trident Funding is a leading boat loan origination company that works with 40 banks and financial institutions across the United States.

With Trident, you can:

• Finance up to $2 million for larger vessels like offshore fishing boats and cabin cruisers
• Get loan terms as long as 20 years, giving you affordable monthly payments
• Be approved with less-than-stellar credit (a low minimum credit score of 600)  

Some (but not all) of Trident's partner lenders charge prepayment penalties , which means paying off your loan can cost you.

Long repayment terms available

No short-term loan options

May charge prepayment penalties

No financing for houseboats

• You must have a credit score of 600 or higher. 
• You must make a 10% to 20% down payment. 
• You must provide recent tax returns and bank statements. 

Best Credit Union : Patelco Credit Union

• APR Range: 9.30% - 17.90%
• Loan Amount: $300 - $100,000
• Loan Terms: 6 months - 84 months

California-based Patelco Credit Union boasts lower rates than most lenders, and you can finance a boat worth up to $100,000. Along with high loan terms, Patelco loans:

• Don't have origination fees or prepayment penalties
• Have loan terms between one and 15 years
• May come with interest rate discounts through its LevelUp program if you make payments on time

Some of the downsides include higher rates on loans with terms of 61 months or longer. And you must become a member to get a loan. Details on joining are highlighted below.

No origination fees

Interest rate discounts available

Terms as long as 15 years

Relatively low loan maximum

Higher rates on terms over five years

Credit union membership required

• You must be a qualifying member of the credit union. 
• You live in an eligible county within California, such as San Francisco, San Mateo, or Stanislaus.
• You're a current student or graduate of the University of California, Berkeley; San Francisco State University; or California State University, East Bay.
• You work for one of the credit union's sponsor companies. 
• You have a family member or household member who belongs to the credit union. 
• You are the surviving spouse or child of a deceased employee-member.
• You're a member of the Financial Fitness Association. You can join online and a one-year membership starts at $8.  

Compare the Best Boat Loans for May 2024

There are many financing options available regardless of the type of boat you want. Some lenders, such as SoFi and Upgrade fund loans quickly and allow you to take out unsecured personal loans to pay for your new boat. If you qualify, though, you could choose a secured loan with lower rates from lenders like Trident Funding and Patelco Credit Union.

Shop around to find the best rates and terms. Your credit, the amount you borrow, the age and size of your boat, and how quickly you need the cash will determine which lender you choose.

Guide to Choosing the Best Boat Loan

Where to get a boat loan.

Boat loans can come from several sources: 

• Dealerships : Boat dealerships work with banks and credit unions to offer their customers financing on new and used boats. Some boat manufacturers and dealers may have special financing offers with attractive rates, but you're limited to certain makes and models. 
• Banks : Traditional banks often offer unsecured personal loans and secured recreational vehicle loans that you can use to purchase a boat. If you're a current customer with that bank, you may qualify for a higher loan amount or lower rates. 
• Credit unions : Like banks, credit unions may offer both unsecured and secured loan options. Credit unions tend to have lower rates and fees than other options, but you need to qualify for membership to apply for a loan. 
• Online lenders : Some financial technology companies and online lenders offer secured or unsecured loan options. They usually have quick applications and loan processing times, but they rarely provide in-person customer service. Instead, you have to contact customer support via email or phone. 
• Loan marketplaces : A loan marketplace isn't a lender; instead, it connects borrowers to a network of partner lenders. These platforms can make it easy to shop around for a loan, but the terms, rates, and fees vary between lenders, so it's important to carefully read the loan agreement before committing to the loan. 

Should You Apply for a Boat Loan?

Financing a boat can make sense in some circumstances. A boat loan allows you to take advantage of a good deal and get on the water more quickly, but you have to do your homework to ensure it's a financially savvy decision. According to Investopedia’s 2023 Personal Loan Borrower survey , major purchases such as boats are among the top three most common reasons cited for getting a personal loan.

Many people prioritize a low APR when getting a loan, but there are other factors to consider as well.

Before applying for a boat loan, keep these factors in mind: 

• Purchase price : If you're new to boating, you may be surprised by the expense. Even used boats can cost well into six figures. 
• Depreciation : Boats are quickly depreciating assets , so a new boat is worth significantly less just one year after its purchase; if you take out a loan, you risk being " upside down " on the loan or dealing with negative equity . If your boat is totaled in an accident or sold and you owe more than it's worth, you could end up still making loan payments even though you no longer own it. 
• Interest : With rising interest rates, boat loans can have high annual percentage rates (APRs) . Depending on your credit, the amount you're financing, and the lender you choose, boat loans can have double-digit APRs, and the accrued interest charges can cause you to pay much more than the boat's purchase price over time. 
• Fees : Fees vary by lender, but common boat loan fees include origination fees and late fees. Some lenders also charge prepayment penalties, so you'll have to pay an additional fee if you pay off your loan early. 
• Other boat costs : The purchase price of a boat is only the starting point of your total cost. Besides the purchase price, you also need to budget for a boat slip or storage space, maintenance, fuel, and insurance. 
• Other financial demands : A boat is a significant investment. If you take out a loan, you'll increase your debt-to-income ratio, which can make it difficult to qualify for other forms of credit. If you need to apply for a car loan or mortgage in the future, the existing boat loan may hurt your chances of qualifying for a loan. 

Use a loan calculator to find out how much you'll repay over the life of your loan based on the original loan amount, repayment term, and APR.

Alternatives to Boat Loans

Boat loans can have high interest rates and boats can depreciate significantly, so borrowing money to buy one may not be the best idea. Instead, consider these alternatives.

• Pay cash : While paying cash may not seem realistic, it can be a good idea to put off buying a boat—or looking for a more modest model—until you can cover the cost out of your savings. You'll avoid interest charges, lowering the overall cost. 
• Use a boat share app : There are boat share apps, such as BoatSetter and Get My Boat , that function like Airbnb for fishing and water sport enthusiasts. Through these apps, you can use a boat for a day, a week, or longer—with or without a captain on board—when it fits your schedule. You can enjoy the boat without having to take on the cost or responsibility for maintenance. 
• Participate in a fishing charter : If you want to go offshore fishing, joining a fishing charter can be a good idea. You can participate in a charter for a morning, a full day, or even a week-long vacation. Charters usually include groups of fishermen, so the cost is lower than privately renting a boat. 
• Join a boat club : If you plan on regularly using a boat, but aren't ready to purchase one yourself, a boat club can be a useful alternative. Boat club memberships give you access to the club's fleet of boats, and the membership fee may also include educational classes, member events, and insurance. Boat clubs typically involve an upfront fee, and then charge ongoing membership dues. Fees vary by location, club, and the type of boats available, but can range from $1,000 to $10,000 in upfront fees, and monthly membership dues can be hundreds. 

Buying a boat should be like buying a car or truck, which means you should take similar steps before you take it home. Make sure you inspect any boat that you intend to buy and try to do a test run if you can. It also helps if the boat is certified—especially if it's a used boat. Most boats must meet minimum standards and are certified by the National Marine Manufacturers Association.

When comparing lenders, pay attention to the following factors: 

• Collateral : Boat loans can be unsecured—issued solely based on your creditworthiness —or secured, with your boat serving as collateral. Secured loans tend to have lower rates, but the application process can take longer, and the lender may restrict the type and age of boat you can purchase. 
• Credit requirements : In general, you'll need good to excellent credit to qualify for a boat loan. There are some lenders, such as Southeast Financial, that will work with borrowers with lower credit scores, but they tend to have much higher rates. 
• Co-signer or co-borrower options : If your credit is less-than-perfect, some lenders will allow you to add a co-signer or co-borrower to your application. Adding a relative or friend with excellent credit can boost your chances of qualifying for a loan. However, a co-signer is responsible for the payments if you fall behind, and a co-borrower shares ownership of the loan, so it's a big favor to ask someone.  
• Restrictions on loan use : With some lenders, particularly those who issue secured boat loans, there are strict requirements for how the loan funds can be used. For example, the lender may only offer loans for certain types of boats, boats of a certain length, and boats younger than 10 years. 
• Rates : Rates and fees vary significantly between lenders, so it's wise to shop around to find the best options. 

How to Qualify for and Apply for a Boat Loan

Lenders want applicants to meet certain eligibility requirements before they apply for a loan. The following is a list of some of the most common factors that lenders consider. Keep in mind that some weigh certain factors heavier than others.

• Your age:  Lenders cannot discriminate based on age. However, some states require that borrowers meet minimum age requirements before they can enter a legal financial contract with a financial lender.
• Legal residency:  Just like age, lenders can't turn you down because of your national origin. They may ask you about your residency status to determine whether you can pay back the loan. Keep in mind that non-residents and non-citizens may still qualify, but it may be tougher to be approved.
• Income:  Almost all lenders ask you for your income and employment information. This is to ensure that your source of income is enough to repay the loan. Some companies may have an income threshold before you can borrow.
• Debt-to-income (DTI) ratio :  This ratio represents how much of your income goes to pay off your debts every month. As such, it helps lenders see how much of a risk you are if they approve you for a loan.
• Credit history and score:  The majority of lenders use your credit history and credit score to qualify you for a loan. Although these factors don't make or break the decision, they may also influence your loan terms, amount, and interest rate.

To qualify for and apply for a boat loan, follow these steps: 

• Decide on a budget . Sit down and review your expenses, income, and other financial goals. Calculate how much of your monthly cash flow you have left over that you can allocate towards the purchase and maintenance of a boat. Be sure to account for ongoing expenses, such as repairs, fuel, and marina fees—and not just the purchase price.
• Choose a boat type . Think about what you'd like to do with the boat. If you'd love to have leisurely afternoons with family and friends at a nearby lake, a pontoon boat could be an excellent choice. Or if you have your heart set on shark fishing, a larger and more expensive center console offshore fishing boat will be needed. 
• Consider new or used . Boats can depreciate a great deal, so a used boat may be a better choice than a new boat. However, new boats have the latest features and are often backed by warranties, so some people will feel greater peace of mind buying new. What makes the most sense depends on your budget and your comfort level with the different purchase prices. 
• Save for a down payment . If you are planning on taking out a secured boat loan, you'll likely need a down payment. Down payment requirements vary, but they can range from about 10% to 30% of the boat's purchase price. However, if you're buying a less expensive boat, such as one that costs less than $100,000, you may be eligible for an unsecured loan with no down payment requirement. 
• Shop around . Request quotes from several lenders to find the best rates and repayment options for your budget. Many lenders allow you to view your loan options with a soft credit check , which doesn't affect your credit. 
• Complete a loan application . To apply for a loan, you’ll need to provide information about yourself and the boat you want to buy, including your name, address, and Social Security number.

Depending on the type of loan you're applying for and the lender, you could receive a decision within minutes. With unsecured loans, the funds are disbursed directly to your bank account, and you can purchase a boat from a dealership or private seller. With secured loans, the lender typically pays the dealership on your behalf. 

Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a fair loan lending company.

We used this data to review each company for fees, repayment terms, income requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best loans for those with fair credit since 2020.

Frequently Asked Questions

How much does a boat cost.

That depends on the type of boat you want to buy. Factors that affect the price include the type and size of the vessel, the brand name, and the features. On average, a new fishing boat can start around $18,000 while the starting price for a pontoon boat can be in the range of $15,000. Larger boats can start at about $100,000. Keep in mind that these costs are for new boats, so buying a used one can save you some money. And don't forget to factor in other costs, like storage fees and maintenance—all of which come after you make your purchase.

What Credit Score Do You Need for a Boat Loan?

Some lenders will work with borrowers with poor to fair credit . But, you'll have more options and qualify for better rates if your credit score is in the good to excellent range, meaning a FICO score between 670 and 850.

Are Boat Loans Harder to Get Than Car Loans?

That depends. Boat loans aren't as common and they are typically valued higher than car loans. This means that lenders may have stricter lending standards for boats compared to those who approve loans for cars. Your credit score, credit history, the type of boat, and the purchase price are often considered when lenders make their decisions.

What Are the Typical Terms and Interest Rates for a Boat Loan?

Typical boat loan terms vary by loan type. With unsecured personal loans, you typically have between two and seven years to repay the loan. Secured loans usually have much longer term options; you could qualify for a loan with a term as long as 20 years, giving you a more manageable monthly payment.

The best boat loans have rates under 10%. Depending on the type of loan, your credit, and the amount you need to borrow, boat loans with double-digit rates are common.

What Type of Loan Should I Get for a Boat?

Boat loans can be secured or unsecured. When deciding which type of loan to use for your next boat purchase, consider the following: 

• Speed : Unsecured loans are typically faster than secured loans. They're issued solely based on your creditworthiness, and you can get approved and receive the loan funds as soon as the same day you apply. Secured loans take longer because the lender needs to take the boat's condition and value into consideration, which requires additional review. 
• Limitations : If you want to purchase an older boat, you may need to use an unsecured loan. Unsecured loans have few restrictions on how they're used, while secured loan lenders often have age and size restrictions. 
• Loan maximums : For higher-priced boats, you'll likely need a secured loan. Unsecured loans are generally for $100,000 or less, while you can borrow up to $4 million with a secured loan. 
• Rates : Because secured loans are backed by the boat as collateral, they tend to have lower rates than unsecured loans. If you're looking for the lowest rate, taking the time to borrow a secured loan may be a good idea. 

Can You Refinance a Boat Loan?

If you have an existing boat loan, several lenders offer refinancing options . You could refinance your loan to get a lower rate or adjust your loan term to lower your payments, and you could save money over the life of your loan. 

Can I Use a Boat Loan to Buy a Used Boat?

Some lenders do allow you to use a boat loan to buy a used boat. For instance, you can purchase a new or used boat from a dealership or a private seller if you borrow with Southeast Financial.

Companies We Reviewed

We researched and reviewed more than 70 institutions to find the best six lenders you see above on this list. While we write individual reviews for most companies we research, we do not always write reviews for companies we would not recommend. These are the companies we researched, along with links to individual company reviews, to help you learn more before making a decision: 

Achieve , Affinity Federal Credit Union , Alliant Credit Union , American Express , Avant , Axos Bank , Bankers Healthcare Group, Best Egg , Bethpage Federal Credit Union , Blue Federal Credit Union , Boatloan.com, Boeing Employees' Credit Union , CapexMD, Citibank , Connexus Credit Union , Discover , Dividend Finance, ENT Credit Union , Fig Loans, First Tech Federal Credit Union , Future Family, GoodLeap, Greenstate Credit Union , Happy Money , Hiway Credit Union , Lake Michigan Credit Union , Laurel Road , LendingClub , LendingPoint , LendingUSA , Liberty Federal Credit Union , LightStream , Lyon Financial, Mariner, Money Key, Mountain America Credit Union , NASA Federal Credit Union , Navy Federal Credit Union , Netcredit , Old National Bank , OneMain Financial , OppLoans , Patelco Credit Union , PenFed , Personify Financial , PNC Bank , Prosper , Reach Financial , Regions , Reprise , Rocket Loans , Santander , Service Federal Credit Union , SoFi , Southeast Financial, Summit Credit Union , SunPower, TD Bank , Teachers Federal Credit Union , Trident Funding, Truist , U.S. Bank , Universal Credit , Upgrade , Upstart , USAA , Vantage Recreational Finance, Wells Fargo .

How We Pick the Best Boat Loans

To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more.

To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted . We grouped those factors into four broad areas:

• Loan costs (advertised APR, fees, and six other factors): 29.25%
• Loan terms (loan amount, repayment term, and three other factors): 22.25%
• Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
• Additional features (online application, pre-qualification, and eight other factors): 20%

Learn more about how we evaluated personal loans in our complete methodology .

Learn more about personal loans:

• What is a personal loan?
• How do personal loans work?
• When are personal loans a good idea?
• How to get a personal loan
• How to apply for a personal loan
• How to use a personal loan
• Where to get a personal loan
• Personal loans vs credit cards
• Alternatives to personal loans
• Personal loan calculator
• Personal loans methodology  

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SoFi. “ Personal Loans .”

SoFi. “ Form 10-K .”

SoFi. " About Us ."

Southeast Financial. " Boat Loans and Financing ."

Southeast Financial. “ Loan FAQs .”

Regions. “ Key Facts .”

Regions. " Secured Installment Loan for Recreational Vehicles ."

United States Securities and Exchange Commission. " 2022 Annual Report-10-K ."

Upgrade. “ Upgrade Inc. ”

Upgrade. “ Personal Loans .”

Trident Funding. “ Boat Loans .”

Trident Funding. " Boat Loans ."

Patelco Credit Union. “ Personal Loans .”

NMMA. " Benefits of NMMA Certification ."

NBOA. " BOAT COST EXPLAINED: WHY DIFFERENT TYPES OF BOATS HAVE SUBSTANTIAL PRICE RANGES ."

MyFICO. “ What Is a FICO Score? ”

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How to Finance a Boat

This four-step process can ease you from dry land to open waters.

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Since boats range from modest fishing boats to million-dollar yachts, the first step is deciding what type of boat you want and how you plan to use it.

Key Takeaways

• You can choose a secured or unsecured loan to finance a boat purchase, either through the seller or a third party. 
• Before you finance a boat, make sure your credit is in good standing and you have a competitive credit score. 
• Don’t forget to budget for other costs associated with a boat purchase, including insurance, repairs and maintenance.

If open waters call and you’re considering a boat purchase, there are a few steps between your desires and setting sail. Figuring out what kind of boat you want is one decision. Figuring out how to pay for your dream boat is another.

Personal loans – which you can use to buy almost anything – are one option to secure a boat purchase. You also have other options, including marine loans that use the boat as collateral . Whichever you choose, the best financing option is one that offers smooth sailing for your finances.

How to Finance a Boat: 3 Loan Options

Buying a boat is similar to buying a car . You could walk into a showroom, pick out what you like, qualify for a loan and leave with the boat soon after.

When financing a boat, a buyer with excellent credit "could get approved pretty much on the spot and leave the dealership with the boat the same day," depending on the loan size and other factors, says John Haymond, former president of the National Marine Lenders Association who is now director of business development and senior vice president for Medallion Bank.

But before you take that boat home, it helps to know about the three main financing options for boat purchases.

Secured Loan Through a Dealer

Boat dealers typically have financing relationships with marine lenders, including boat manufacturers, according to the NMLA. When you use a dealer, you’ll take out a secured loan that uses the boat as collateral.

"Historically, lenders have almost always wanted collateral when making large-dollar loans," says Todd Nelson, head of consumer and small business bank partnerships at Truist Bank. "That way, if a borrower cannot pay, they can recover the asset and sell it to offset their losses on the loan."

Since lenders can take back the boat if you default on payments, a secured boat loan can have a lower interest rate than an unsecured loan.

A secured boat loan through a dealer may offer perks beyond lower interest rates. For example, you could access special financing deals through the boat manufacturer, including promotional interest rate offers and delayed first payments. You might also be able to include an extended warranty in your loan.

Secured Loan Directly With a Lender

Instead of using a boat dealer’s financing resources, you can come to the table with your own lender. Through this route, you’ll choose a lender and get preapproved for a secured loan based on the price of the boat you want to buy.

You can find secured boat loans through banks, credit unions, online boat loan brokers and online lenders. You may also be able to get secured financing without using your boat as collateral with a home equity loan, home equity line of credit or secured personal loan.

Unsecured Financing

If you have a high credit score and a strong income, an unsecured personal loan could be an ideal way to finance a boat.

"Unsecured lenders are underwriting the borrower, not the collateral," Nelson says. "That makes the application and funding process easier, as an unsecured loan can be used to purchase any boat from any seller."

You can use a personal loan for nearly any purpose, while secured boat loans may have restrictions on the boat type and age. As a result, a personal loan could give you more flexibility in the make and model year of the boat you buy. Some personal lenders offer loans of up to $100,000 .

"If you're planning to spend less than $100,000 on a boat, an unsecured loan will be easier and offer more flexibility, as a borrower can buy any boat from any seller anywhere," Nelson says. "Larger loan amounts may require collateral, so a secured loan may be the only option available for bigger boats."

How to Finance a Boat in 4 Steps

Make sure your credit and finances are strong.

A stronger credit score can help you access a lower interest rate on a boat loan. Your lender will also consider factors such as your income and debt-to-income ratio .

You might need to come up with a down payment if you're getting a secured loan. If you're using a secured loan where the boat is collateral, your lender will take steps to ensure that the boat’s purchase price is in line with market value. This information can help the lender get the loan-to-value ratio , which is the amount you are borrowing compared to the boat’s fair market value. Sometimes, a down payment can help decrease the LTV and move the approval process along.

Make sure you can afford the extra costs that come with owning a boat, such as insurance, a travel trailer, gas and maintenance, including winterizing.

Personal Loans for Debt Consolidation:

Decide What Type of Boat You Want

Boats range in size and type, from modest fishing boats to million-dollar yachts. "Know what you're using it for," Haymond says. "Are you going to be fishing with it, water skiing or cruising around the lake?" Knowing your preferences can help tailor your search and create a realistic budget.

Compare Loan Offers

You’ll likely want to compare offers from multiple lenders to ensure you get the best financing deal.

If you're buying a boat through a dealer, its financing team can help you compare offers from partner lenders and manufacturers. On the other hand, if you’re using an unsecured personal loan, many lenders let you check terms without impacting your credit score. Lenders use a soft credit pull to show you terms you may qualify for based on your basic credit information and a short application.

Since lenders may offer different terms – including fixed and variable rates, balloon payment options, and a variety of repayment terms and monthly payments – you can use the loan comparison stage to find the boat financing option that makes the most sense for your finances and boat ownership goals.

Finalize the Loan

Once you’ve chosen your loan and gotten approved, it’s time to seal the deal. Closing your boat loan could be a simple online process or a more formal one where you sign papers in person at the dealership.

As with any loan, reviewing everything you sign is important to ensure that the loan’s annual percentage rate , term length, monthly payment and other features match your expectations. The closing process is also a smart time to make sure that any additional accessories, warranties or add-ons you requested are included in the loan and that you’ve fulfilled the lender’s insurance requirements for your new boat.

When all the details are squared away, it’s time to hit the water. But before you pull away from the dock or launch your boat, consider setting your monthly boat loan payments on autopilot. Using autopay is one of the easiest ways to make sure your payments are on time, every time.

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Yacht Financing: Guide To Yacht Loans

• Allison Bethell
• March 7, 2023

Owning a yacht is a dream come true for most people. Imagine yourself sailing around the world entertaining your friends and family onboard your very own luxurious yacht. Whether you want to host dinner soirees, cruise through the Caribbean, spend the night in your own stateroom, or enjoy a day of sunshine lounging at a sandbar, a yacht is the way to go.

A yacht can be a boat with a motor or a sailing vessel and is typically 40 feet or longer. The word ‘yacht’ has Dutch origins and was originally used to describe a fast and lightweight sailing vessel. The Dutch navy used these types of boats to catch pirates. But today, the word is often interchanged with boat and is used to describe a larger and more luxurious vessel. There are different categories of yachts including super yachts and mega yachts which label the yacht based on its length. 

Regardless of what size yacht you want to buy, you will probably need to consider using yacht loans to help you pay for it. Yacht loans are often referred to as boat loans and their rates and terms, loan amount, and fees vary by lender. Customers use yacht loans for a number of reasons. They may not have enough cash to pay for the yacht in full or may not want to spend that much out of pocket. Yacht loans have a number of benefits in helping achieve your dream of yacht ownership. 

Some of the pros of using yacht loans include:

• Less cash required upfront
• No need to spend your savings or liquidate your stocks
• Invest the money you would have used to purchase the boat outright 
• Have more money available for repairs, maintenance, and other yacht-related costs
• Plan your budget with fixed monthly payments
• The lender ensures a smooth transaction and takes care of all the details for you 

How to Apply for Yacht Loans

So, you’ve decided that you’re at a point in your life that you’re ready to purchase a yacht. This is such an exciting time, but it can be a bit overwhelming too. You need a trusted partner to help guide you through applying for yacht loans .  

Trident Funding can help you sail through the process. We are a reputable loan origination company and have almost 30 years of experience with yacht loans and working with marine lenders. You can check us out online, reach us over the phone, or visit one of our six offices located throughout the country. We will help you each step of the way starting with your initial application, to underwriting requirements, insurance quotes, inspections, U.S. Coast Guard documentation, state title, closing services, funding, and more. 

When you’re ready to apply for yacht loans, you will typically need to have the following handy:

• Identification: Driver license or state ID
• Social security number or equivalent if a non-U.S. citizen
• Proof of income for the past two years
• List of debts and assets 
• Boat information: Year, manufacturer, length, and purchase price etc. 
• LLC or trust information if not purchasing the yacht in your own name 

You can easily apply for yacht loans online in just a few minutes. Trident Funding will help find you the best lending partner based on your unique financial situation and specific needs. We work quickly and most customers are matched with a marine lender within 24 to 48 hours of applying for a yacht loan. 

Each customer is different and there is no one-size-fits-all approach. For example, if you’re purchasing a yacht that is 50 feet long and $150,000, your loan product will be different from someone who is purchasing a 120-foot $2 million dollar super yacht. Trident Funding has a dedicated team to assist with yacht loans. Each team member has marine financing knowledge, knows about the latest funding programs, and treats you more like a friendly acquaintance rather than just another customer. 

Loan Calculator

During the yacht loan application process, you may want to play around with some numbers and see how much yacht you can afford based on an estimated monthly payment. Check out a yacht loan calculator to give you an estimate of your monthly payment. Keep in mind that the monthly payment only includes the principal and interest and doesn’t factor in additional expenses such as yacht insurance and docking fees. 

To use the loan calculator, simply fill out some quick information about yourself and the boat you want to purchase. Check if the boat is new or used, or if you’re refinancing, the year of the boat, the loan amount, and your credit score range. For example, an excellent credit score is between 800 and 850 and will get you the lowest interest rate. You can use the loan calculator as a tool to see what the difference in monthly payments will be between a $100,000 yacht and a $150,000 yacht and so on. 

Loan Amount, Rates, and Terms

Loan amount, rates and terms vary between lenders. They also depend on if the boat is new or used, its age, size, and the overall credit profile of the borrower, as well as the current market conditions and what the prime rate is. In addition to using a yacht loan for purchasing a new or used boat, you can also refinance your current yacht loan with Trident Funding. 

Trident Funding offers loan amounts ranging from $25,000 to $2 million. A credit score of 680 or higher is needed to qualify and the lender will also look at your debt-to-income ratio, income, employment history, and assets. Loan terms are typically between 10 and 20 years. As of September 2023, interest rates for yacht loans start around 7.24% for well qualified borrowers. Short-term and long-term loans are available with fixed rates and 60-day deferred payment programs are available on some loan products. Yacht loans can be used for private party purchases and dealer purchases. They can be used for project boats, mega yachts, and everything in between, but financing isn’t currently available for liveaboards. 

The Wrap Up

Owning a yacht is a big expense and responsibility but it can truly change your life. It opens you up to a whole new sea of possibilities. It’s a great way to slowly travel the coast, enjoy leisure time with family and friends, or host events. Additionally, chartering your yacht can provide you with some extra income to offset the ownership costs. 

However, in order to enjoy this luxurious lifestyle, you need to purchase a yacht and yacht loans can help you do just that. They can ease the financial burden of ownership and make it more affordable by spreading out payments over years. Apply online with Trident Funding today, leave all of the details to us, and look forward to getting out on the water. 

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Boat Loan Payment Calculator

Ready to buy a boat? Use our boat loan calculator to crunch the numbers and see how affordable boating can be . Enter the cost of a boat to estimate your monthly boat payment. Or start with your monthly boat budget to determine what size boat loan you can afford.

Next, read our step-by-step guide on How to Get a Boat Loan .

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** Estimated monthly payment may be inaccurate without title, taxes, and fees. Please try again later for the most accurate estimations.

Enter your monthly budget information below and we'll calculate your estimated total boat price.

Whether you're a new or experienced boater, our Boat Loan Calculator is just one of the many resources we have to help you discover just how affordable boating can be—and to help you find and buy a boat that fits your budget, your lifestyle and your dreams. From submitting a loan application and calculating your credit score, to exploring your financial options and finding the right marine lender, we're here to help every step of the way.

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• Yacht Financing

Assets America ® offers luxury yacht financing for yachts, super yachts and mega yachts starting at $10 million and beyond! Yachts are watercraft used for sports, commercial use (chartering) or pleasure (including fishing) with a minimum length of 50 feet.  Super-yachts are large, expensive, professionally-crewed yachts, informally sized at 79 feet or greater, although the dividing line is somewhat subjective. Finally, mega-yachts are the biggest and most expensive yachts, starting from 164 feet and beyond.

Video: Benetti Super Yacht Tour

Yacht Valuation

Yachts are configured as sailing or power vessels, although many sailing yachts have motors as a backup. While yachts can be quite large, however, they are dwarfed by commercial maritime vessels like oil tankers, ocean cruise liners, and cargo ships. Yachts can yield income through chartering, which can figure into the process of obtaining yacht loans. Super-yacht and mega-yacht designs also reflect the personal tastes of their owners. These specializations affect the yacht’s value for financing purposes.

Many factors figure into the evaluation of a luxury yacht, for example:

• Purpose of the vessel
• Number of engines
• Sleeping accommodations
• Crew size (if any)
• Chartering income (if applicable)
• Suitability for different sea conditions
• Fuel consumption
• New versus used
• Legal jurisdiction of the lender, the borrower, and the yacht itself

Take note that international considerations can complicate the process. In other words, financing must account for different laws and cross-border tax implications.

Yacht Financing from Assets America ®

If you want to purchase a yacht, or build your own newbuild, or lease a yacht, check out our yacht finance packages. We can arrange yacht loans that will meet your requirements, even if you are somewhat credit challenged. Our yacht loans start at $10 million. Don’t postpone purchasing the yacht you deserve. Rather, call our offices today at (206) 622-3000 , or simply fill out the below form for a prompt response!

Apply For Yacht Financing

Yacht Survey

For yacht financing and insurance purposes, a yacht, superyacht or megayacht must undergo a survey, a procedure similar to a home inspection. The three types of yacht surveys are:

• Insurance survey: This type of survey is for renewal of insurance policies, not for acquisition. It is a light inspection that tries to identify outstanding issues.
• In-shore and coastal survey: This is the most common survey and is a good choice for many yacht purchases. It includes a full equipment listing, a confirmation of the hull number (much like a car’s VIN), complete system testing, and an out-of-water check of running gear, hull, and bottom paint.
• Offshore survey: This is the most time-consuming and comprehensive survey, appropriate for ocean-going yachts. It includes the in-shore and coastal survey, but also ultrasonic tests, hull moisture tests, heat-sensing scans, engine manifold tests, and more.

Yacht-Building Contracts

The individual nature of luxury yachts means that yacht-building contracts are not standardized the way that oil tanker contracts are standardized. The yacht building yard will enumerate all the luxury yacht buyer’s individual requirements in the contract, which will probably go through several drafts before finalization.

The contract structure reflects the obligations of the builder and the buyer. It will also include warranties, tax provisions, and often, confidentiality clauses, as the owner of a mega yacht often wants to keep a low profile. Ideally, the shipyard delivers to the buyer the yacht exactly as specified, and the buyer receives a clean title upon payment of the purchase price.

Yacht Registration

Yachts must be registered in a country, but not necessarily in the country of the seller or the buyer. Registration is fairly easy as long as the yacht meets certain criteria, such as technical standards and age. This holds especially true in “open registry” countries like Liberia, Panama, Cyprus, and the Bahamas. “Offshore registry” countries are usually colonies or dependencies. For example, there are the Netherland Antilles, Cayman Islands and the Isle of Mann. If the owner is a U.S. citizen, yachts weighing 5 tons or more can be registered at the National Vessel Documentation Center of the U.S. Coast Guard. Coast Guard documentation also offers access to a preferred mortgage that gives the lender certain benefits. However, most U.S. yacht lenders require that financed yachts are documented.

Financing a Yacht

When purchasing an existing yacht, borrowers usually take out yacht mortgages on vessels. However, arrangements differ between yacht building contracts and chartered yachts. Other influencing factors include the current and proposed registration jurisdictions, the tax treatment of the yacht, and the owner’s tax status. In conclusion, yacht financing protects the lender from the borrower’s other creditor claims.

Yacht Loans

Private commercial lenders like Assets America ® can arrange yacht financing, as well as banks, credit unions, boat brokers and yacht manufacturers. Typically, the loan agreement takes on a basic asset-financing structure, collateralized by the fully amortizing yacht mortgage and a lien on the yacht, as well as insurances signed over to the lender. In addition, the loan agreement may give the lender a lien on any revenues generated by chartering the yacht. Finally, the lender will most probably require a personal guarantee and/or debenture from the borrower. This gives the lender a lien on the borrower’s other assets as well.

Yacht-Building Loans

For yacht-building contracts, the loan agreement will provide for cash advances to pay for pre-delivery construction milestones. Payments start with a pre-build deposit by the buyer. Installment payments follow as construction progresses through succeeding stages, evidenced by Stage Certificates. Pre-delivery requirements also include assignment of the yacht-building contract. In the case of default, the contract gives the lender the right to have the builder finish construction. Then the lender takes possession of the vessel and sells it. Accordingly, the yacht financing lender releases funds to the yacht builder upon receipt of each Stage Certificate. These must include the counter-signature of an independent surveyor. The yacht-building contract usually contains clauses that specify what happens if default occurs either by the builder or the buyer.

All loan agreements contain language relevant to warranties, insurances, and registration. The lender might also require covenants that preclude certain uses of the yacht, such as chartering. Finally, the borrower’s surveyor will have inspection rights to protect the borrower’s interests.

Yacht Leases

Some people choose to lease their yachts rather than purchase them. In this case, the lessor gains title to the yacht and leases the yacht back to the lessee for an agreed term. These leases are usually “demise charters” that provide the lessee exclusive use of the yacht. In other words, the lessee is the operational “owner,” while the lessor maintains the title.

Glossary of Marine Lending Terms

Yacht financing – faqs, how is the current market for yachts and superyachts.

Across the world, the boating market—whether monohull sailboats, catamarans, yachts, or superyachts—is a buyer’s market and should remain that way for the foreseeable future. Because fiberglass and other light, super-durable hybrid materials last so long, the market has become increasingly flooded. Often multimillion-dollar yachts are selling for a fraction of what they were just 7-10 years ago.

Is there a best time to purchase a yacht?

The simple answer is yes, at the beginning of the off-season, although that varies around the world and especially between the northern and southern hemispheres. In Florida for instance, the best time to buy a yacht is mid to late August.

What are the costs involved with maintaining a yacht?

In addition to purchasing the yacht, owners typically pay for mooring and storage, insurance, operational costs, crew, maintenance, and winterization. These costs can be rather substantial. Before purchasing a yacht, one needs to make sure they are financially secure.

Can my yacht qualify for tax advantages?

Yes, for example, if a yacht has a berth, head, and galley, then it can qualify as a second home.

What is the least and most amount of financing I can receive?

While our loans start at a bare minimum of $10 million, there is no upper limit to the amount of financing available to you via Assets America®.

What kind of down payment should I expect to make?

While the standard down payment is 20% to 30%, really strong borrowers may be able to make a smaller down payment depending on the quality of their credit, their financial statement, and their cash position.

Online Resources for Yacht Financing and More :

• First, for tips on buying and financing your first luxury yacht , check out these articles from Boat International , Cruising World , and Marina Reservation .
• Second, Boat International also provides Yacht Market Reports and Superyacht Market Reports .
• Moreover, if you’re interested in environmentally friendly yachting, consider checking out Blue Flag International .
• In addition, you may also enjoy this Guide To Yacht Financing from the law firm Field Fisher Waterhouse, although if you’re serious about financing a yacht or superyacht, the best way forward is to speak with a seasoned professional.
• Finally, The New York Times has an excellent article The Beginner’s Guide to Chartering a Yacht with Crew .

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Ronny was a pleasure to work with and is extremely knowledgeable. His hard work was never ending until the job was done. They handled a complex lease and guided us through entire process, including the paperwork. Not to mention a below market lease rate and more than all the features we needed in a site. We later used Assets America for a unique equipment financing deal where once again Ronny and team exceeded our expectations and our timeline. Thank you to Assets America for your highly professional service!

Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal. Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funded. Referring all our clients.

Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handled all of the complex lease negotiations and contractual paperwork. Ultimately, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested. In addition to the real estate lease, Assets America utilized their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion dollar equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service!

Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain bank financing for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates. The company is very capable, I would recommend Assets America to any company requiring commercial financing.

Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team meant that we could always receive truthful, timely and accurate answers to our questions. We would most definitely utilize their services again and again for all of our real estate needs.

Assets America is a great company to work with. No hassles. Recommend them to everyone. Professional, fast response time and definitely gets the job done.

Ronny at Assets America has been invaluable to us and definitely is tops in his field. Great experience. Would refer them to all our business associates.

We were very pleased with Assets America’s expertise and prompt response to our inquiry. They were very straight forward with us and helped a great deal. We referred them to all our business associates.

I’ve worked with this company for decades. They are reputable, knowledgeable, and ethical with proven results. I highly recommend them to anyone needing commercial financing.

Ronny was incredibly adept and responsive – top-notch professional who arranged impressive term sheets.

Assets America helped us survive a very difficult time and we most definitely give them 5 stars!

Ronny was very friendly and though we were unable to make something happen at the moment he gave me some direction to go.

My business partner and I were looking to purchase a retail shopping center in southern California.  We sought out the services of Ronny, CFO of Assets America.  Ronny found us several commercial properties which met our desired needs.  We chose the property we liked best, and Ronny went to work. He negotiated very aggressively on our behalf. We came to terms with the Seller, entered into a purchase agreement and opened escrow.  Additionally, we needed 80 percent financing on our multimillion-dollar purchase.  Assets America also handled the commercial loan for us.  They were our One-Stop-Shop. They obtained fantastic, low, fixed rate insurance money for us.  So, Assets America handled both the sale and the loan for us and successfully closed our escrow within the time frame stated in the purchase agreement.  Ronny did and performed exactly as he said he would. Ronny and his company are true professionals.  In this day and age, it’s especially rare and wonderful to work with a person who actually does what he says he will do.  We recommend them to anyone needing any type of commercial real estate transaction and we further highly recommend them for any type of commercial financing.  They were diligent and forthright on both accounts and brought our deal to a successful closing.

Call Our Commercial Financing Specialist

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Questionnaire

How much does a boat cost to purchase and own?

Images by GettyImages; Illustration by Hunter Newton/Bankrate

Key takeaways

• A boat from the last 10 years of models costs an average of $47,000, while basic models can run around $1,000 or less and yachts can go into the millions of dollars.
• Annual maintenance for the boat costs 10 percent of the boat price on average, but you’ll also have to consider other costs like insurance, storage/mooring, fuel, registration and repairs, as some examples.
• Make sure to choose the boat that works for your budget, usage needs and lifestyle.
• You can find financing through boat, personal or dealership loans.

If you love cruising the open waters, fishing or just docking-and-dining, buying a boat may seem like a great idea. While boat costs vary significantly, you can expect to pay anywhere from $15,000 to $75,000 for the average new vessel, and upwards of $100,000 for a more luxurious model.

Taking out a boat loan can make it easier for you to finance your purchase. However, there is more to the cost of owning a boat than the initial price tag. You must also consider the maintenance costs, boat insurance, fuel costs and potential taxes.

How much does a boat cost?

Boat prices can vary widely depending on if it’s new or what used condition it is in. The type of boat can also affect price drastically. Plus, market conditions can affect boat pricing, much like cars.

For instance, according to J.D. Power , the average retail price of the previous 10 model years for outboard boats was about $47,000 at the end of 2023. At the end of 2021, it was about $53,500. Meanwhile, the last ten model years for inboard boats saw an average price of about $350,000 at the end of 2023, down about $20,000 from two years prior.

How does the type of boat I get impact costs?

The cost of owning a boat differs widely depending on type. For instance, a larger boat will naturally have higher fuel costs to run. Storing a larger boat may also be more complex and costly.

The more expensive and feature-heavy your boat, the more it will cost to insure it. For instance, Nationwide states that faster boats often cost more to insure due to the increased risk. The length, age and type of the boat can also affect how much insurance the boat needs. Your insurance can even be dependent on where you use the boat. Lakes, bays, oceans and rivers all present different safety risks.

Further, a larger and more technologically complex boat could mean higher maintenance and repair costs. There are simply more parts that could break.

Bigger and more expensive boats may also require larger loans and longer loan terms to afford. You will pay more in interest to finance the boat in the long run.

Average boat prices in 2024

Jon boats are among the most cost-effective boat models, while yachts and catamarans are among the most expensive ones.

Affording a boat

The best time to buy a boat is typically in the fall. Most manufacturers start advertising discounts in September or October and continue to do so into the winter months. Purchasing your boat during the off-season could help you cut costs significantly and take on less or no debt.

Even if you find a boat at a discounted price or buy the boat used , you may need help financing it. After all, midsized boats often cost around $30,000, which isn’t exactly pocket change. If you need to borrow money to cover the cost of your boat, there are several options.

The most popular ways to finance your boat are through a boat loan, a personal loan or financing through a dealership.

• Boat loan: These personal loans are designed specifically with purchasing a boat in mind. They typically come with fixed rates so you make the same boat loan payment each month and may use the boat itself as collateral if the loan is secured.
• Personal loan : These fixed-rate installment loans can be used for any purpose, including purchasing a boat. Personal loans tend to be unsecured, so you may not have to use the boat as collateral.
• Dealership loan : These are boat loans that are offered right through a dealership and are convenient because you don’t have to choose your own boat loan lender . However, they may have higher rates , longer terms and require a larger down payment.

Other boat costs to consider

When you buy a boat, you have to consider boat costs like maintenance, potential repairs and the cost of fueling and operating a boat.

Additional costs associated with boat ownership include the cost of storing your boat, the cost of a trailer, safety necessities and miscellaneous items such as water sports equipment.

Boat maintenance and repair costs

Typically, annual boat maintenance costs about 10 percent of the cost of the boat itself. For example, a boat that cost $20,000 to purchase would cost roughly $2,000 a year to maintain.

Examples of typical boat maintenance include:

• Painting the hull.
• Cleaning the deck.
• Replacing broken or worn down parts.
• Winterizing the boat to protect it from the elements during the off-season.

Like cars, boats require regular maintenance to reduce wear and tear.

Fuel and operating costs

You must also consider fuel costs, especially if you have a larger boat. Smaller boats typically just take regular or premium gasoline, while larger vessels may require diesel, which is more expensive.

You can avoid fuel costs if you get a sailboat, which is entirely wind-powered, but most other boats require fuel. You should research the fuel needs of the boat you want to buy before making a purchase.

Additional operating costs for a boat include oil changes, batteries, a pump and lights. Just like a vehicle, these elements should be checked and replaced regularly.

Boat insurance, taxes, certifications and registrations

When you buy a boat, you also have to get boat insurance, get your boat registered and potentially get certified to drive it, depending on the state you live in. Some states also charge boat taxes, so research your local requirements before buying a boat.Here is a breakdown of these costs:

• Boat insurance: It typically costs around 1 to 5 percent of the boat’s value. So, using the example above, the average annual cost of insurance for a $20,000 boat would be between $200 and $1,000 a year.
• Boat taxes: They are required in some states. If your state charges a boat tax, you will have to pay it once a year. There may also be a one-time sales tax when you purchase.
• Certifications and registration: Depending on state requirements, you may need to pay for boat registration, including annual renewal. Your state may also require that you take safety certification courses to operate the boat.

Boating classes

In addition to the certification courses your state may require, you can take a wide variety of boating classes. Formal training with your boat may help lower your insurance payments, but you will also have to budget for course fees. It can be a good investment. Knowing as much as possible about using the boat helps keep you or anyone you take on the boat safe.

If you take boating safety courses through your state or the federal government, fees often range from about $10 to $40 per class.

Beyond introductory and basic safety courses, you might also look into specialized training. You can find courses on navigation, GPS use or waterfowl hunting safety. You might also need specialized training based on the type of boat you get, such as a sailing course if you get a sailboat.

Specialized boating courses might range from $45 from a single-day, online course to far more for a curriculum that’s weeks long. There is also the option for private courses that can happen right on your own boat, but these can run around $500 for a few hours.

Storage and mooring

An important but often overlooked element of owning a boat is properly storing it. Most people do not use their boat year-round, and you have to have somewhere to store your boat during the winter months.

There are a variety of boat storage options . Indoor storage is more expensive because it offers tighter security and you do not have to worry about winterizing the boat to protect it from the elements. Outdoor storage is more cost-effective and can be more convenient in certain climates, but since your boat will be exposed, you’ll likely spend more on maintenance to keep it in good shape.

Storing your boat in your garage or driveway is likely the cheapest option. However, you will likely have to buy a trailer and winterize the boat. Note that Homeowners Associations sometimes have rules about parking boats in driveways, so make sure you are allowed to do so before settling on this option.

Here is a pricing breakdown of the most common boat storage options:

Necessities

In order to get your boat to the water, you need to have a boat trailer and a vehicle that can tow it, such as a truck. These costs can vary depending on the size of your boat.

A boat trailer can range from $700 to over $10,000. In addition to a trailer and a towing vehicle, you must invest in your boat’s required safety equipment. These include:

• A fire extinguisher.
• Enough life jackets for every passenger.
• A flotation device.
• A visual signaling device.
• A sound signaling device.

The exact safety equipment you need can vary by state, but these are the basics.

Having a medical kit and flashlight is also a good idea. Depending on the size of your boat, you may want paddles on board in case your engine quits.

Additional cost considerations

Once you buy your boat, there will inevitably be accessories you want to splurge on that aren’t strictly required.

You may want to invest in water sports equipment, dry bags to keep your valuables safe, waterproof electronics, fishing equipment or other items that make boating more pleasurable. Before shopping, set a budget to limit your spending.

Tips for saving money on boat costs

If you really want to spend your weekends out on the water but don’t have the funds for luxury boating, there are some ways you can reduce boat costs:

• If you find yourself strapped for cash, consider a smaller boat like a jon boat, fishing boat or speedboat.
• To reduce the cost of owning a boat, consider buying a used boat in good condition. For instance, a new current-year Tahoe T16 bowrider is about $27,000. The same model a few years older is about $19,000.
• Buy the boat off-season in fall or winter.
• If you’re taking out a loan, shop around for the best rates, even if that means not taking the loan from the dealership.
• You can also avoid paying interest on a loan by saving for the boat. It’s a luxury purchase and not an emergency. Some split the cost with friends or family and share the boat.
• Use your local state programs for courses and certifications. They tend to be much more affordable than private lessons.
• Work with your insurance for any discounts, such as getting better rates if you take a boater safety course. A clean boating record can mean cheaper insurance. Choose the types of coverage, limits and deductibles that make sense for your boat and budget.
• If you can, store the boat somewhere on your own property to save on marina or storage fees.
• Keep up on regular boat maintenance and care to reduce the risk of costly repairs.
• Consider fuel costs. Larger boats may need more expensive diesel fuel. If you want to really save on fuel, opt for a sailboat.
• See if you can get boat accessories and equipment, such as trailers, used and in good condition or on sale.
• Renting a boat can get you out on the water without the added costs of storage and upkeep.

The bottom line

Buying a boat is an exciting adventure, but it is also costly and time-consuming. There are so many extra boat costs beyond the buying price. You must stay on top of maintenance and repairs to keep your investment ship-shape.

Before buying a boat, consider all these costs and write a cost estimate/yearly budget. It is important to ensure you can handle all of the costs associated with having a boat before buying one.

Choosing a financing option like a boat loan, personal loan, or dealership financing could help you plan some of the costs. However, you can avoid taking out a loan by saving up instead, buying a used boat for a lesser cost or splitting the cost and sharing the boat with a trusted friend or family member. You might also look into renting a boat if owning a boat is too expensive.

Whichever option you choose, make sure that you do your research and come up with a plan before making any decisions.

Billionaires like Jeff Bezos and Mark Zuckerberg spend six figures a year maintaining their superyachts. Here's how.

• Superyachts  are one of the most expensive assets money can buy.
• The true cost of ownership is even more, adding up to millions a year.
• Here's how much it costs to own a superyacht — and what that money is going toward.

Financial advisors are quick to warn prospective owners that a boat is nothing more than a hole in the water in which to throw money. When it comes to superyachts , you'd better have bags and bags of cash.

As one luxury agent told Business Insider at the Palm Beach International Boat Show: "Buying a boat, it's a huge purchase — and nobody needs a yacht."

A superyacht, generally over 30 meters long, is one of the most expensive assets money can buy, with the largest costing more than a lot of real estate or a private jet. Billionaires like Jeff Bezos, Mark Zuckerberg, and Steve Jobs each spent nine figures on their megayachts.

That doesn't include operating costs. Owners should expect to pay about 10% of a yacht's new-build price each year, experts told Business Insider. That's tens of millions of dollars annually for the most luxurious boats.

"It's a small-to-medium-sized business in its own right," said Jeffrey Beneville, a senior vice president at insurance company NFP, where he specializes in consulting clients about yachts.

Unlike many smaller boats, superyachts need staff, not just a captain. Some superyachts have space for dozens of crewmembers , including a chef, engineer, and masseuse for the guests onboard. Each gets an annual salary — the highest-ranking members earn six figures — and benefits. Eric Schmidt's yacht fits a crew of 28 for a ratio of about two crewmembers per guest.

Then there's fuel, dockage fees, routine maintenance, and insurance. The latter hinges on everything from the reputation of a yacht's shipyard to where an owner wants to take it (if a vessel is taking frequent trips to the South China Sea, for example, expect to pay a higher premium). If a superyacht has a support yacht — or a support superyacht, in Bezos ' case — expect to pay another 10% of that boat's price annually.

"The cost to maintain a yacht is so high that they just think that money's getting lit on fire," Matthew Fleissig, the CEO of wealth management firm Pathstone, told BI of his clients who choose to charter rather than own.

One of his firm's clients who does own has a 23-meter yacht valued at $5.2 million. The annual cost to staff, maintain, dock, and insure the boat is $346,297, according to documentation provided to BI. The lion's share is spent on marina fees ($95,970) and maintenance work ($88,408.) While not exactly a Sunfish, that boat is too small to count as a superyacht.

At 106 meters, the Amadea, owned by a sanctioned Russian oligarch , definitely does. The $300 million yacht, which was seized in 2022 and is docked in San Diego, cost $922,000 a month to maintain, a court filing showed: $360,000 for crew salaries, $75,000 for fuel, $144,000 for insurance, $178,000 in dry-docking fees, and $165,000 for maintenance, waste removal, food for the crew, and miscellaneous expenses.

"And that's an inactive yacht that's in the water," NFP's Beneville said.

If it were operational and carrying guests, the costs would be about twice that, or between $20 million and $30 million a year, he added.

Of course, it makes more financial sense for the non-obsessives to charter, and many of Fleissig's clients do. And some owners choose to offer their yachts for charter — the most luxurious cost as much as $1 million a week — to offset the costs.

"If you charter the boat for 50 days a year, it's going to help a lot," Anders Kurtén, the CEO of brokerage firm Fraser Yachts, told BI.

Then again, the running costs don't matter as much at a certain point. "If you're worth $30 billion, it's nothing. And if you're worth $117 billion — and these are the guys we're talking about — they're in it as long as it's still enjoyable for them," Beneville said. "It's not a money thing."

Watch: Why South Sea pearls are so expensive

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Philippines to buy five patrol boats from Japan amid South China Sea tensions

The Philippines will purchase five patrol vessels from Japan amid growing tensions in the South China Sea.

"This occasion signifies not only the deepening of bilateral relations between the Philippines and Japan, but also underscores our unwavering commitment to enhance our maritime safety capabilities for the benefit of our nation and the broader maritime community,” Manalo said.

The Philippines is beefing up its naval resources as tensions escalate with China over the South China Sea. Japan, together with Australia and the United States affirmed their position in April that a 2016 South China Sea arbitral tribunal award that favored the Philippines over China in their maritime dispute as final and legally binding.

Under the loan program, Japan previously agreed to provide the Southeast Asian country with 10 44-meter-long patrol ships in 2013 and two 97-meter-long vessels in 2016.

Deliveries of the just announced five ships are expected to take place between 2027 and 2028.

Last December, the Philippine Coast Guard said it would build a facility in Subic Bay of Luzon Island for use by the procured large patrol ships.

In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.

Boat Loan Calculator

This boat loan calculator will help you determine what the monthly payments on your boat loan could look like. Simply enter the loan amount, term and interest rate in the fields below and click calculate. This calculator will show you both the principal and interest payments you would make on a fixed-rate boat loan.

May 13, 2024

How does our boat loan calculator work?

The Bankrate boat loan calculator helps borrowers calculate monthly payments for fixed-rate boat loans . Boat loans are installment loans, meaning that you make fixed monthly payments on the principal balance – plus interest and fees – until the loan is paid off. 

Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan and the payments stay the same each month. Our calculator shows you the estimated monthly payment for your boat loan, based on the loan amount, term length and interest rate of the loan.

How much does a boat cost?

The cost of buying a boat varies widely depending on the type of boat you buy and whether you buy it new or used.

The average cost of a new boat is typically between $40,000 to $75,000, but you could end up paying far less or far more than that depending on what you’re looking for. If you’re in the market for an older model, for example, you could pay as little as $9,500 depending on the make and model of the boat. 

However, the boat’s price is just the first expense. When calculating the entire cost of financing a boat , you'll also need to consider:

• Regular maintenance costs.
• Potential storage fees if you plan to store your boat at a marina.

If you plan to take out a boat loan to finance the purchase, you also need to factor in the boat loan interest rate and fees.

How different factors affect your estimated boat loan payments 

Just like with any other loan, there are a number of factors that go into your total monthly payment. Other than the lender and its fee structure, here are a few considerations to make when calculating your potential payments. 

• Loan amount: Larger loan amounts will result in larger payments. However, if you prefer a longer term, the monthly responsibility will be lessened, but you'll end up paying more in interest charges over time. 
• Loan term: Secured boat loans — ones backed by collateral — can reach up to 15 years, while unsecured options typically range between two to five years. The longer your loan term, the smaller your monthly payments will be. 
• Credit score: Individuals with good-to-excellent credit  are more likely to score the best rates and terms .Those with lower credit will have a harder time getting approved and are more likely to pay more in interest each month. 

Secured vs. unsecured boat loans

Secured boat loans, similar to other secured personal loans , use the boat itself as collateral. This means that if the loan goes unpaid, the lender can repossess the boat to satisfy the delinquent payments. Despite this risk, borrowers with less-than-ideal credit can consider borrowing a secured loan, as they may have an easier time qualifying than with an unsecured loan . Plus, secured loans often come with the potential for lower interest rates and longer repayment terms, since the lender is incurring less risk by securing the boat as collateral. 

Unsecured boat loans do not require the financed boat as collateral. However, these loans tend to be more difficult to qualify for and interest rates tend to be higher. And nonpayment still has consequences. The lender could take the borrower to court if they violate the terms of repayment and default on the loan balance .

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If you plan to apply for a loan to finance your boat purchase, know what you'll need to qualify for a boat loan.

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