Boat Loan Calculator
Boat Loan Tips
- ✓Boat loans typically require 10-20% down payment
- ✓Interest rates are usually higher than auto loans
- ✓Longer terms (15-20 years) available for larger boats
- ✓Consider total cost of ownership (storage, maintenance, fuel)
Related Calculators
Understanding Boat Financing
Boat Loan Basics
Boat loans work similarly to auto loans but often have longer terms and higher interest rates due to the specialized nature of marine financing and the depreciating asset.
Typical Loan Terms by Boat Value
| Boat Value | Typical Term | Down Payment |
|---|---|---|
| Under $25,000 | 5-7 years | 10-15% |
| $25,000 - $75,000 | 10-12 years | 10-20% |
| $75,000 - $150,000 | 12-15 years | 15-20% |
| Over $150,000 | 15-20 years | 20%+ |
Total Cost of Boat Ownership
The purchase price is just the beginning. Consider these ongoing costs when budgeting:
Annual Costs
- Storage/Marina fees: $1,200-$12,000+
- Insurance: $200-$2,000+
- Maintenance: 10% of boat value
- Registration/taxes: Varies by state
Per-Use Costs
- Fuel: Varies widely by boat type
- Launch fees: $5-$50 per use
- Cleaning/detailing
- Minor repairs and parts
The 10% Rule
A common guideline is to budget approximately 10% of your boat's purchase price annually for maintenance and upkeep. For a $50,000 boat, that's $5,000 per year in addition to your loan payment.
New vs. Used Boats
New Boat
- Warranty coverage
- Latest features and technology
- Higher interest rates typically
- Significant depreciation first few years
Used Boat
- Lower purchase price
- Depreciation already occurred
- May need immediate repairs
- Shorter loan terms available
Important Considerations
- Get a marine survey before buying a used boat
- Check state registration and sales tax requirements
- Verify insurance requirements with your lender
- Consider seasonal usage and winter storage costs
Frequently Asked Questions
How long can I finance a boat?
Boat loan terms typically range from 5-20 years depending on the boat's value and age. Smaller boats under $25,000 usually have 5-7 year terms, mid-range boats ($25,000-$75,000) can go 10-12 years, and larger boats over $150,000 may qualify for 15-20 year terms. Longer terms mean lower payments but significantly more interest paid over time.
What credit score do I need for a boat loan?
Most marine lenders prefer credit scores of 700 or higher for the best rates. You may qualify with scores as low as 600, but expect higher interest rates. Excellent credit (750+) can get rates around 5-7%, while fair credit might see rates of 12-18%. Some lenders specialize in subprime marine loans but charge premium rates.
How much should I put down on a boat?
Most lenders require 10-20% down payment for boat loans, though some may accept as little as 10% for buyers with excellent credit. A larger down payment (20%+) helps you secure better interest rates, reduces your monthly payment, and prevents being 'underwater' on the loan as boats depreciate quickly in the first few years.
What is the true cost of owning a boat?
Beyond the loan payment, expect to budget about 10% of the boat's value annually for maintenance and upkeep. Additional costs include marina/storage fees ($1,200-$12,000+ yearly), insurance ($200-$2,000+), fuel, winterization, registration, and repairs. The saying 'the two happiest days of a boat owner's life are the day they buy it and the day they sell it' exists for good reason.