Because buying a boat is such a significant investment for most people, you may find that financing is one of the most practical ways to go about it. However, before you decide to finance a boat with a boat loan, it’s important to understand the different options available to you and how long you can finance a boat.


Here is everything you need to know if you are planning on financing a boat:


How Long Can You Finance a Boat?

The length of a boat loan depends on several factors. In general, boat loans can range from 2 to 20 years, but the most common loan term for boats is between 5 to 15 years.


The length of the loan is important to keep in mind because it impacts the total cost of ownership. Longer loans result in lower monthly payments, but it also means you will be paying greater interest overtime. On the other hand, shorter loans mean you pay a higher monthly fee, but you do not have to pay as much interest as a longer financing term.


Factors That Affect The Loan Term You’re Offered

The length of a boat loan typically depends on several factors, such as the cost of the boat, the down payment, and your creditworthiness. Let’s look at these factors in greater detail:


Your Lender

One of the main determinants in how long you can finance a boat is the lender and their requirements. Some lenders have specific guidelines for the loan and how long it takes to pay it off. Those guidelines are going to depend on the boat’s type, size, age and condition.


You do have many options for lenders. Financing through a credit union or marine lender that specializes in boat loans are two better choices, since they offer more flexible loan terms.


Your Creditworthiness

Better credit and credit history means better loan terms. Conversely, if you have a lower credit score and a history of late payments, the lender will not be able to give you as good a deal. Those who are less worthy will find their options limited and requirements strict.


Your Location

In an effort to keep you, the borrower, safe, many states have limits on the terms of installment loans. Because of this, your location will alter the kinds of loans and terms available.


Boat Type

The length of a boat loan can also depend on the type of boat you’re purchasing. Smaller boats, such as personal watercraft or runabouts, are typically financed over a shorter period, usually between two to seven years. Larger boats, such as yachts or cruisers, are usually financed over a longer period, between 10 to 20 years. The reason for this is that larger boats are more expensive, and it can take longer to pay them off.


Boat Age

Do you plan on purchasing a brand new boat that has no hours on it? Then you will be usually be given multiple options for loan terms.


Used boats are much more of a liability, because they may need serious repairs or have far too many hours on the motor. Unlike brand new boats, your lender will be hesitant to extend longer terms if you try to finance a used one. Commonly, used boats come with much shorter loan terms.


Boat Price

Some lenders have a minimum loan amount. If you are purchasing a smaller craft, you may be shocked to find that the cost of the loan does not meet the price requirements.


Depending on the price of the boat, you may be offered a shorter loan term or be asked to give the lender a larger down payment.


Finance Your Boat With Atlantic Horizon Capital Today

To conclude, how long you can finance your boat depends on several factors, including the cost of the vessel, your down payment, and your creditworthiness. Boat loans can range between 2 and 20 years, though the most common boat loan term is 5 to 15 years. If you are considering financing your boat, it is important to think about your current financial situation, as well as where you will be in the future. By doing so, you can make an informed decision and enjoy a new boat without breaking your bank.


Looking for affordable and flexible financing options? Apply online at Atlantic Horizon Capital today and see how easy it can be to get a customized loan. Our team is fully versed in the latest options, so if you have any questions, please contact us for more information.

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