The Economy is still weak.
The US economy still has not fully rebounded and this has forced many changes in the recreational lending world. Boats and other recreational vehicles are not viewed by banks as a necessity the same way they view a home loan or auto loan. Boats and RV’s are considered luxury items and face much stricter underwriting guidelines. In the current economy, it can be difficult to secure a home or auto loan and even tougher to secure financing for something that is looked at as a toy. Though there have been changes to the underwriting criteria there are still many reputable lenders offering boat financing to consumers that are creditworthy.
Good Time to Purchase a Boat
With boat loans becoming harder to obtain many dealers and individuals are more motivated to negotiate on the pricing of their boat. In this market, if a dealer has a customer that is pre-qualified for a boat loan or is paying cash they are much more hesitant to let that customer walk away. They realize they could end up being stuck with the boat for quite some time if they let a qualified customer pass.
There Are Still Some Great Boat Loan Rates and Terms Available.
If you are creditworthy and are prepared to put 10% to 15% down on a boat there are still excellent rates and terms available for a boat loan. For the best possible rate and term you will want to look for a boat that is no more than ten years old and at least $10,000. Depending on the price range of the boat you are purchasing you can expect a term of 120 to 180 months. These boat loans will typically come in the form of a simple interest loan that can be paid off at any time with no pre-payment penalty.
If you are in the market for a new or used boat now may be the perfect time to buy! Get pre-approved for your boat loan today so that when you go look at boats this weekend you are in the best position to get a great deal!
Looking to purchase a boat? Southeast Financial can help with everything from insurance to financing, contact us today.