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Boat Finance
Boat financing can be very similar to financing a car. Like most car loans marine finance are normally secured against the boat financed. Subject to the finance companies approval, options for boat loans can be:
- financed with or without a deposit,
- structured with or without a final balloon payment.
- for new and used boats purchased,
- for a term up to 7 years
Alternatively a unsecured personal loan can be obtained and used to purchase a boat.
What are the differences?
Boat Finance - Secured
This means that the lender uses the boat as colateral.Normally secured boat financing attracts lower interest rates than what you would expect for a unsecured personal loan. This is because the marine finance company has collateral over the vessel, which limits any loss if the boat loan was to default.
When selling the boat, trading it in or if written off by a boat insurance company (in the event of an accident or theft) then the boat finance provider must be notified and the loan must be paid out in full.
Boat finance - Unsecured Personal Loans
A loan for personal use that is not backed by collateral. The boat loans interest rates can be higher than a secured personal loan but the lender does not need encumberance or calateral against the boat. Personal loans can be fixed interest rates or variable interest rates.
This is general advice and does not take into account your particular financial objectives, financial situation and specific needs. Before making a decision on the basis of this information, you should consider whether this information is appropriate for your financial situation and specific financial needs.
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