How to Finance Your Boat Purchase
Buying a boat is a big investment that can take a lot of planning and research. One of the least discussed topics regarding boat ownership is how to finance one! And yet, almost everyone has to finance their boat, as few people can afford to pay for one out of pocket. We here at LMC Marine Center want to guarantee your complete satisfaction, so we’ve jotted down a short guide on how to finance your new boat. Once you’re ready, we hope to see you down at our dealership in Houston, Texas to peruse the largest volume boat inventory in the state!
Credit Score
While there are a number of factors that go into loan consideration, one of the most important is your credit score! While there are loans out there for folks with bad credit, if you have the time to recover your score, it will benefit you in the long run. You can check your credit for free once a year with any of these reporting agencies: Equifax, Experian, and TransUnion. If your score is below 700, we advise you to take a few months to pay back old debts and pay bills on time.
Budget
Budgeting is an important step toward picking a personal vessel as well as taking out a loan. We advise you not to select a boat until you have budgeted your monthly income. This will keep you from spending beyond your means on a watercraft. Once you’ve budgeted your income and made allowances for both your bills and other savings, you’ll know just how much you can afford in monthly payments!
Down Payment
The larger your down payment, the better your loan rates will be! Most dealers need a down payment of at least 20%. If necessary, you might take a few months to save up for this payment. The money budgeted for your future loan payments can be put towards a down savings payment until you reach 20%, or your personal savings goal.
Lenders
There are a lot of different lenders out there, with the most well-known being banks and credit unions. However, we encourage you to research all your available lenders- including dealerships. Dealerships can offer flexible loans meant to compete with those you might receive at a financial institution. Dealership loans are also approved pretty quickly, finishing in up to two hours in some cases while a bank usually takes days. At LMC Marine Center we want you to be aware of every option available, our finance page can be found here, but we encourage you to research all your local lenders!
We hope that this short article has been helpful in outlining the necessary steps to take in financing your boat. We understand that this can be a confusing process with many different options. Our dealership is famous for its superior quality in boats, parts, and customer service! If you still have questions, feel free to reach out via phone (281.443.2600) or, if you live in the cities of Houston and Conroe, stop by the dealership! One of our experienced sales staff will be happy to answer any and all of your questions.