So you’re thinking of purchasing a used boat, but you’re unsure how the financing process works. Well, it’s very similar to financing a car and there are some basic steps you can take to help you get a good deal. It’s possible to take precautions that will help to lower your interest rate and the amount of your monthly payments while still getting a great boat.
Build Your Credit
One of the best things you can do to make financing anything easier is to build your credit up over time. A great way to do this is with a credit card that you use for every day expenses and then pay back at the end of the month. Having a high credit score will significantly lower your interest rate and monthly payments, because boat dealers will know that they can trust you to make your payments.
Save Up a Down Payment
While you’re on the hunt for used boats for sale, you should also be saving up extra cash for a down payment. Down payments go towards the overall cost of the car and can get you smaller monthly payments, because you won’t have as much to pay back. A general rule of the thumb is to go in with 20 percent of the boat cost, but if you can save a little more it can’t hurt to have it in case you need a bargaining chip.
Find a Boat With a Warranty
Another helpful tip that can save you money while you’re financing a boat is to find one that comes with a warranty. This will save you from some potentially costly repairs in the future. Not all damages will be covered by your warranty, but a large chunk of them will especially if there was something faulty with the boat when you purchased it.
Choose a Boat You Can Afford
There are plenty of used boats for sale, whether you’re looking for pontoon boats, fishing boats, or speed boats. However, it’s best to stay within your budget. You might be temped to buy something a little more expensive, but that can get you into trouble financially. You don’t want to end up with payments and interest that you can’t keep up with, so make sure you know your limit and stick to it.