The Basics of Financing a Boat

If you're interested in purchasing a new boat but aren't sure whether or not you can actually afford it, financing could be the perfect solution. Basically, the concept of financing is that instead of purchasing the boat all at once with the full lump sum, you can receive a loan that allows you to make a smaller down payment and make regular payments to pay it off over time. For more information, visit us at Chatlee Boat & Marine in Sanford, North Carolina. We also serve Raleigh and Greensboro, North Carolina.

Determining Your Budget

The first step to financing a boat is figuring out what you're actually able to afford right now. With financing, before you get your loan you'll have to pay a lump sum down payment, which can be anywhere from 10 to 20 percent of the complete loan amount. Before you choose a boat and consider financing options, you need to know how much you're looking to spend and what the highest amount you can afford to pay is. You also need to have an idea of what kind of monthly payments you'll be able to afford going forward. Take the time to calculate your monthly budget and figure out what kind of payment you could safely add to it for boat finance payments.

Compare Lenders and Get Pre-Approval

Once you know your budget you'll want to check your credit score to determine what kind of financing options you'll have, and then you'll want to compare multiple loan offers. When comparing lenders and loan offers, always read the fine print and be sure to check at least two or three different lenders. Once you've selected a lender you will then want to get pre-approved for a loan. This will give you confidence in your commitment and show the boat dealer that you're a serious buyer.

Make Your Offer and Secure Your Loan

Once you've selected a lender and been pre-approved, the next steps will be to make your final decision on which boat you desire and make your offer on it. Make sure that the boat you're choosing is within your budget and the amount you've been pre-approved to borrow and also fits your boating needs. Lastly, once you've made your offer and had it accepted, you simply need to return to your lender and secure your loan.

Once you've finished the process, the important thing will be that you keep up with making your monthly payments on time. This will keep your loan in good standing and keep your credit score as high as possible. To learn more, visit us at Chatlee Boat & Marine in Sanford, North Carolina and also serving Raleigh and Greensboro.