If you are keen on buying a boat for private or for commercial purposes, then you are probably looking for a boat loan. These loans are usually available with low rates of interest but getting them is a prolonged and complicated procedure which calls for a lot of patience.
Here are the steps which you need to follow:
- First things first, you need to visit a bank and tell them that you want a loan for buying a boat. Get answers to two basic questions – What is the amount of loan that they can afford to give you? This will depend on your earnings and ability to repay. What percentage of the boat’s value will they be lending? Most banks do not provide the complete value and hence you need to be prepared accordingly. What you must also know is that asking for the price and for the value are two different things – get these facts cleared.
- Once you have chosen a boat, note all the details associated with the boat which includes all identifying numbers. Outboard boats should also be confirmed with their engine details. A boat which comes from a trailer also requires taking information from the trailer. This includes noting the length of the trailer, condition of the trailer in terms of whether it is painted or galvanized, whether or not is has spare parts such as tires, steps, fenders, winches, etc. A professional boat surveyor would be best for appraising the boat. Though you will need to pay for his or her fee, it will ensure that you do not make a bad buying decision.
What are the factors you must keep in mind while taking loan to purchase a used boat?
The value of a boat is determined by its accessories. Thus, you need to check the accessories well which will include both factory accessories and add-ons such as live wells, downriggers and tow bars among others. Note all accessories on the boat – all major and trivial ones. The importance of this lies in the fact that these will determine the value of the boat which in turn will determine the amount of boat loan the bank sanctions for you.
- It is always advisable to take assistance and suitable inputs about loan rates, repayment duration, service tax and defaulter clauses from an experienced and professional boat loan lender or from a marine professional. There are several online and offline dealers as well as brokers who can help you regarding the planning of budget, choosing the right second-hand boat and negotiating about the price range.
- When you prepare your requisitions for buying a boat, and you start going through the papers, it is always mandatory to recheck and finalize your exact scores regarding credit limit eligibility. Any false report about your cash transaction, tax rates, and income-proof and savings certificates can really land you into trouble so you must verify with a specialist the exact position about your credit score.
- When you look for the value of the boat online, carefully heck the options since some of them can be duplicate companies. There are usually two categories, namely just boats which usually come with an outboard and powerboats which have a built-in engine.
- A boat with a fire extinguisher gets a huge value and thus finds it easier to get a higher bank loan.
- Add up the value of the motor, the boat and the trailer and see if the asking price is close.
It is always better to visit the bank when you have struck a deal with your seller and convince them to give the boat loan amount which you need.