So you can afford your new boat Buy instead of lease: If you want to take out a loan for a boat, there are many options on the credit market. The variety of conditions is remarkable for certain financing amounts.
Boat financing with installment credit
Would you like to fulfill your wish for your own boat, but do not have enough equity to pay for it entirely out of your own pocket? Then you have two options: you can lease the boat or you can take out a loan.
However, not all financial institutions offer a special boat loan. Since a boat loan is very large, banks also require specific information and security before supporting consumers with an installment loan.
A solid credit rating is a prerequisite for the boat loan
If you want to take out a loan for a boat, you have to meet several requirements. The minimum age is 18 years. Banks based in the country also require that you have your permanent residence in the country. You must also have a solid credit rating. As proof, borrowers request their latest payslips or comparable proof of income. They also get a current extract from the credit file to check your payment behavior and solvency.
What collateral and information do lenders require?
In addition to a solid credit rating, lenders usually require security for the boat loan. The financed boat serves as security. If you are no longer able to service your credit installments, the bank has the option of selling the boat.
In order for the bank to determine the value of the boat, you have to provide a whole range of information. This includes a detailed object description of the boat including the type of boat, year of construction, origin of the seller, type of use and, for used boats, the number of previous owners. The bank also wants to see photos of the boat. The hull number must be recognizable on the photos. You must also submit the original invoice including VAT proof. If you buy the boat abroad, the bank requires the so-called “Bill of Sale” including tax proof. The name, address and country of origin of the boat manufacturer must appear on the invoice.If the financing amount for the boat is more than 10,000 dollars, you must also have it registered in the shipping register.
Equity improves conditions for boat loan Banks rarely finance the full purchase price for a boat. For most lenders, funding is limited to a certain percentage of the purchase price. Boat buyers must finance the remaining amount from equity. The more equity you bring, the better credit terms you can hope for. A higher equity component reduces the term of the boat loan and thus gives you advantages in forming interest.
Credit for a second hand boat
It is entirely up to you whether you use your credit to finance a new boat or a second hand boat. If you want to buy a used boat, the lenders want to see some more documents. Among other things, you must provide an extract from the boat register, alternatively a copy of the previous boat license or a certificate of deregistration or deletion of the boat. Complete proof of the previous ownership structure is still required. You must also submit the original invoice to the bank.
Compare boat loans: what factors to look out for?
Boat financing is usually about very high loan amounts. In order to find a loan for your boat with the lowest possible interest rate, an independent loan comparison is recommended. The decisive factor for the cost of the loan is the annual percentage rate, which in addition to the nominal interest rate also includes processing fees and any other costs.
No boat credit with regular chartering
Some lenders only grant boat financing for the private use of the boat. If you would like to charter your boat temporarily, exclude lending from the outset. The reasoning: Third parties often do not treat a boat as carefully as the owner, it tends to cause damage, and the boat – and thus the security for the loan – loses value.