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Tips And Tricks To Finance Your First Boat

powersports dealershipChoosing to buy a new or used boat for sale is an exciting, but important decision. This is especially true when it comes to financing at your local powersports dealership. But for many, financing a new boat for sale is a more affordable decision than you think! If you're interested in financing a boat for sale, here are some tips and tricks to manage your finances.

Why you should finance a boat

Financing your boat is a more accessible way to use your boat. Financing essentially means that you are taking out a loan from your boating dealership or you're relying on a loan from a marine financing company. When you finance a boat, the boat itself counts as the collateral.

Because many boat dealerships hope to make a sale, marine lenders can often offer competitive conditions for your financing option. This might mean that they're willing to accept a trade-in or even lower your interest rate. When you're financing a boat for the first time, don't hesitate to ask your boat dealer as many questions as you want to ensure you understand the process.

Check your credit history

Most financing rates are determined by the potential owner's credit history. If your credit isn't where you want it to be, it might be a sound option to rely on a co-signer or choose a more affordable option. Another way to mitigate high monthly payments is by putting down a sizable downpayment. Though most down payments are worth 15% to 20% of the loan amount, you can always talk to your powersports dealership about payment options with a higher down payment.

Don't be hasty

Even if a boat dealership offers you a fair financing option, don't be afraid to check other locations or discuss further financing offers. Oftentimes, the fine print can make or break a sale and if your interest rates are too high despite the affordable rate, you might want to consider other options. After all, buying a quality new or used boat for sale is an important financial decision to make.

Choosing the best interest rate option

A low monthly payment might seem attractive, but a high interest rate might drain your bank account dry. Fixed-rate simple interest loans are often considered less risky than variable rate loans. A fixed rate loan means that your interest amount will never change throughout the course of your payments. A variable rate loan will look great at first, but after a certain amount of time, the interest rate could skyrocket. Sometimes, it's worth paying a little more each month if it means you can avoid excessive interest rates.

Don't forget the extra fees

When you buy a boat, the price will often be more than it says on the price tag. You'll also have to pay sales and property taxes along with any processing fees posited by your dealer. Even though you can afford a boat in theory, it doesn't mean you can afford one on paper. Make sure you have a little extra cushion to compensate for unexpected fees.

The benefits of financing

Financing is often a more affordable option when you're looking for pontoon boats for sale. It might result in lower monthly payments, a faster credit decision, and even perks like boating accessories that come with your purchase. Talk to your local powersports dealership about their financing options today.

It's estimated that the boating industry grew between 10% and 11% in 2016 alone. When you want to get on the water, call or visit Lakeside Motor Sports today.