Buying a boat is a significant investment, and there are plenty of factors to consider before you make your purchase. Along with the investment into the boat itself, consider the costs of being a boat owner in terms of ongoing maintenance, equipment, and docking fees. Boat loans can help cover all these expenses for you.
1. Financing your boat
As boats are an expensive purchase, many buyers need to take out financing to cover the boat itself, along with other boat-related expenses. A personal loan or boat loan allows you to take out a sum of money to cover the cost of the boat, along with other expenses like licensing, storage, and additional equipment. You’ll often pay a fixed interest rate, have fixed monthly repayment costs, and won’t be stung with any prepayment fees if you want to pay off your loan early.
A personal loan may be unsecured, meaning you don’t need to put up any collateral as part of the arrangement. With a secured loan, your lender may seize possession of the boat or another asset if you can’t make your payments.
2. Boat owner expenses
There’s a lot more to owning a boat than covering the cost of the purchase. You’ll also need to consider how much to spend on fuel, maintenance, winterizing your boat, and licensing and registration fees. You can plan to take on these expenses with an unsecured loan used to finance your boat: simply add up these costs to determine the annual (yearly) cost of keeping your boat and add them to the overall cost of financing your purchase.
Work out where you’ll store your boat when you’re not out on the water. You’ll usually pay for storage or marina fees unless you have your own dock. Other options include paying for dry storage, with indoor being more expensive than outdoor storage.
If you prefer to store your boat on your own property, boat loans or personal loans can help you cover the cost of a trailer too.
Make sure you have adequate insurance for your boat. You can check with your provider to learn if your boat is insured under your homeowner’s policy. However, in most cases, you’ll need to take out specialist coverage.
5. Kit and equipment
When you take out a personal loan, it can also cover the cost of the safety features you need as a responsible boat owner. Safety is always worth investing in, especially if you have children and pets onboard. Essentials such as life jackets, flare guns, throwable flotation devices, and warm blankets can all be added to the cost of your loan to give you peace of mind as soon as you set sail.
Ready to set sail?
With any financing, always make sure you can afford to pay off the loan. Don’t prioritize a luxury lifestyle over necessities like paying your mortgage or covering healthcare, but do invest in things that bring you happiness in life. When you evaluate the actual costs of owning a boat, you can find ways to fit the financing into your budget and lifestyle.