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Boat Financing- Buying from Someone Other than a Dealer
When you buy a boat from a private seller, your boat
financing options are going to be much more limited. It’s not often that you
find too many boats for sale by individuals, but if you do, you’ll need to
check things out before you make up your mind. Boat loan lenders, banks, and
other private lenders are much less likely to lend you money for a boat that
you’re buying from a private seller than if you were buying from a dealer. For
some reason, they aren’t able to feel secure in their loan because of the
seller, so they’re more restrictive on their requirements. You might even be
required to get a personal loan to use for a private boat purchase, instead of a
boat loan.
There are perks and pitfalls of getting a personal loan
instead of a boat loan. For one, the rates might be better, if you have good
credit, but might be higher if your credit history isn’t excellent. Another
problem is the term and amounts that are available. Personal loans usually come
in smaller amounts than boat loans, and for shorter terms. That means if
you’ve found a used fishing boat that is being sold for $25,000, you might not
be able to get that kind of a loan, and if you do, it might cost substantially
more on a monthly basis than it would with a boat loan. You just need to take
the time to research your options, educate yourself, and you’ll have no
trouble finding the right financing for your private boat purchase.
When you purchase a boat from a dealer, you have the
security of the dealer to back up your financing options and to provide that
sense of legitimacy that lenders need in order to lend so freely. However, when
you buy a boat from an individual, you’ll need to prove yourself worthy of a
loan or have another way of getting the money than relying on a boat loan. There
isn’t a right or wrong way to buy a boat from someone other than a dealer, but
you will find the financing aspect to be much more complicated.
It doesn’t matter whether the boat is new, used, or a piece of scrap that’s being sold for parts. You need to be 100% certain of your purchase before you buy anything, and even before you commit to anything. You won’t have the security of the dealer warranty or service backing up your purchase, so you need to take the necessary precautions to ensure that you’re making a good investment.
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Added: Wed Nov 26 2008
