Boat Financing Tip No. 1: Cash Vs. Loan

The following boat financing tip was provided by Sterling Associates, a leading national marine lender:

Why should you consider financing a boat when you could pay cash or borrow against your portfolio?

It simply makes economic sense when you consider current stock market values versus loan interest rates.

Take the following example: If you secured a fixed rate of 3.65% for 20 years on a boat loan of $100,000, the monthly payment would be $587.70.* The interest paid on the loan over an anticipated life of 60 months would be $16,877.25.

This allows you to invest the same $100,000 in the stock market, where you could receive a conservative rate of 4%. Compounded yearly, your investment would grow to $119,631.77. This would provide an interest income of $19,631,77, which well exceeds the cost of the boat loan interest. Sort of a no-brainer, eh?

For more information on marine financing and to receive a quote, contact Sterling Associates, (800) 286-8073.


  • Not based on current rates.