The following boat-financing tip was provided by Sterling Associates, a BoatingLocal sponsor and a company that specializes in personal boat loans. Here, Sterling president Tom Smith explains why choosing a company that focuses strictly on boat loans and is intimately familiar with the marine industry can save you time and money.
Advantages of financing through a marine lender:
- Lower down-payment:
As Smith explains, the down-payment is based on the age, type and price of the boat you are buying, as well as your credit profile. In today’s market, marine lenders offer financing with down-payments typically in the 10% to 20% range, but there are programs available through boat manufacturers that could allow you to qualify for less, or even zero-down, on a new-boat purchase.
- Faster credit decisions:
Lenders who specialize in boat loans naturally have a better understanding of boats and their buyers, according to Smith. Therefore, they can often speed up the approval process. In some case, the buyer can apply for a loan in the morning and be on the water the same day.
- Longer financing terms:
Smith also points out that marine lenders recognize that the value of a well-maintained boat holds up over time, so the loan terms generally are more attractive than those offered by local banks and credit unions.
- Lower monthly payments:
Because marine lenders usually extend longer terms on boat loans than local banks and credit unions, the monthly payments are likely to be lower than expected.
- More electronics and other extras:
Unlike many non-marine lending institutions, boat-loan specialists will allow you to finance optional equipment, electronics, extended service plans and life/disability insurance coverage with your boat purchase. It’s one-stop shopping.
For more information on financing your boat or to get the latest rates contact Sterling Associates by CLICKING HERE.
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