Thanks to a variety of financing plans, there is a boat for virtually every individual or family budget. Today, financing your new boat is just as easy as financing a car. In fact, boats are given even more favorable terms. And just as with autos, you can depend on your dealer to handle the financing details for you. It's important to keep in mind when shopping that most boats, even small ones, are candidates for installment loans. Most dealers have established boat loan programs with local banks as well as national finance companies in conjunction with the boat manufacturer. Generally speaking, boat buyers everywhere with good credit histories will qualify for a variety of loan programs. Depending on the amount financed, boat loans are often eligible for longer terms (amount of time to pay back) than most other types of installment loans. This is because boats are made well, with durable materials. As a result, boats depreciate very slowly and, therefore, are considered excellent loan collateral by lenders. The result is that the available longer terms can be translated into lower monthly payments if they buyer so desires. Down payments and terms can vary somewhat between lenders. Generally, however, the average small-boat buyer (those buying boats less than 25 feet) should easily find financing terms up to 10 years. Larger boat buyers (over 25 feet) will find terms up to 15 years. Down		payments will usually be 10-20 percent regardless of size. For used boats, terms are normally slightly less and down payments may be slightly more. But used boats, too, can be easily financed. The 'Amortization Table' on this page will help you estimate what it costs to finance a boat at given rates and terms. For example, if you buy a $10,000 family runabout, put 20 percent or $2,000 down and finance the remaining $8,000 balance at 12 percent interest for a seven year term...your monthly payment would be $141.28 (8 times $17.66 which is the monthly payment required to amortize $1,000 over the seven year term). Or you buy a $25,000 cuddy cabin cruiser, put down 20% or $5,000 and finance the $20,000 balance at 12 percent interest over a ten year term...your monthly payment would be $287 (20 times $14.35). Because of the more generous terms available to boat buyers, you can exercise a great deal of control over what your monthly payment will be. That's why owning a boat is within the reach of nearly all family budgets.

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© 1998 LEMTA Both photo courtesy: Bayliner Marine Corp.