How much does a boat cost?
The average cost of a new boat is between $60,000 and $75,000, but take that with a grain of sea salt. A tandem fishing kayak, for example, can cost less than $1,000, while yachts can cost millions of dollars. Everything in between includes powerboats, sailboats, pontoons and personal watercraft. Used boats are less expensive than new ones, but they’ll come with wear and tear from use. For more on new or used and what to consider, see how to buy a boat.
Where can I find a boat loan?
Potential lenders for boat loans could include big banks such as Wells Fargo Bank and Truist
(merger between SunTrust and BB&T), national credit unions such as Navy Federal Credit Union and PenFed Credit Union and online lenders such as Essex Credit. Your local bank or credit may offer boat loans as well, so check with them if you enjoy doing business with them. When you’re looking for a boat loan — which can stretch up to 20-year terms — apply to a few lenders so you can compare offers and choose your best offer.
What should I expect my boat loan APR to be?
We saw advertised boat loan APRs ranging from 4.29% to 17.95%. The better your credit score, the lower the rate will likely be. Beyond credit score, factors that may influence your APR are the boat’s price, its value and its capitalization (what you’re borrowing to pay for it), as well as your income and debt.
Can borrowers find bad-credit boat loans?
It’s possible to get a boat loan even if you have a credit score around 550, but you’ll likely owe a higher APR and need a significant down payment of 10% or more. Given that you may face higher lender charges, it’s even more important to shop around for your best loan. You can still use our boat loan calculator, but check out more on bad-credit boat loans.
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What if my estimated boat payment is too high?
If you find that the estimated boat loan payment could make your monthly finances a bit tight, consider adjusting the loan amount and/or boat loan term. It’s important to keep in mind that if you decide on a longer loan term, your monthly payments might be lower, but the total amount of interest you pay over the life of the boat loan will likely increase.
Can I deduct interest on my boat loan?
If you itemize deductions when you file taxes, interest paid on a secured boat loan may be deductible if the boat is your main or secondary home, and has sleeping (berth), cooking (galley) and toilet (head) facilities. You should discuss your options with a tax professional.
Is boat leasing an option?
If boat ownership would cost too much for you, boat leasing and boat renting are possible. You can find short-term boat lease options that extend from Memorial Day to Labor Day, for example.