Boat Financing Guide

The Steps to Financing a Boat

The boat financing process can be overwhelming. Breaking it down into steps can help simplify the process. Here’s what to do:

Step 1: Determine Your Budget

First, figure out how much you’re willing (and able) to spend on a boat. Think about things that are “undercover,” that go beyond the sticker price of the boat. Fees like insurance, registration, and inspection can add to the sticker price.

Also, keep in mind the recurring prices that come with boat ownership. You’ll need to pay for fuel, routine maintenance, upkeep of safety gear, and potentially marina storage.

If you’re feeling restricted by your budget, consider the option of purchasing a used boat. It’s often a more affordable choice compared to buying brand new, and you can still find a very high-quality boat that fits your needs.

Remember the Down Payment

Be prepared to put approximately 10 to 20% down upfront. While some dealers may offer zero-down options, most will require a down payment.

You can use our loan calculator to figure out how much you’ll owe.

Step 2: Find Your Perfect Boat

Finding the right boat starts with two key questions: How many people will be on board? And what will you use it for?

Once you have your ideal boating lifestyle in mind, check out some of the different boat types available near you and figure out which one best aligns with what you’re looking for.

Not sure what your boating style is? Here are some of the most popular activities boaters take part in:

• Watersports - Watersports enthusiasts need a boat made for thrill seekers. The best options often feature inboard engines that are safer for riders and designed to create a wake perfect for tubing, water skiing, wakeboarding, and more.


• Fishing - Anglers need a boat designed to make catching fish easier and more efficient. Fishing boats come in many types for both freshwater and saltwater, including bass boats, center consoles, and pontoons. 


• Entertaining - If you’re looking to host your friends and family out on your boat, you’ll need something built for entertaining – with a focus on space, comfort, and social features. Pontoon boats, for example, are great for hosting friends, enjoying sunset cruises, or spending a relaxing day on the water with family.

Overnight Trips - If you’re looking for a boat that you can stay on overnight, or even for a weekend, you’ll need something spacious and comfortable with sleeping quarters.

Step 3: Explore Your Financing Options

There are three different categories of lenders to choose from when it comes to financing your boat: Banks, marine-specific lenders, and dealers. Here’s what you need to know about each: 

• Bank - Banks and credit unions offer traditional boat loan opportunities. They aren’t specialized in boat loans, but their wide lending experience and the possibility of longer-term loans could give you more flexibility.


• Marine-Specific Lenders - Lenders like Newcoast specifically focus on boat loans. They have specialists who will work with you one-on-one to secure financing.

Dealer - Most dealers, like MarineMax, will work directly with finance partners. Utilize their expertise to get the best deal on a new or used boat.

Step 4: Apply for Your Boat Loan

After you decide which entity you’re going to use for your loan, you’ll need to gather information for your application. This includes proof of income, employment status, proof of residence, savings, and other documents. 

Additionally, you’ll need to have your down payment for the boat ready to go.

When financing through a bank, you may be required to provide a purchase agreement or the seller’s contact information. A marine-specific lender may not require these documents, which can make them a more appealing option for many buyers.

Typical Boat Interest Rates and Terms

Your loan terms and interest rate are two of the biggest factors in boat financing. Here’s how they work and how they will impact the overall cost.

Loan Terms

Most contracts will feature a 10 to 20-year loan. But factors like credit score, purchase total, and down payment can play a role in deciding loan terms. 

Most banks don’t charge early payoff penalties. Some marine lenders may charge a small fee for paying off a loan early. Also, be aware that some dealers or marine lenders offer “0% for X months” promotions that can include early payoff penalties. Always check your contract for phrases like “No prepayment penalty” or “No interest after payoff date” to be certain.

Your Interest Rate

Determining your interest rate ultimately depends on your credit score. Most lenders prefer 700 or higher to be accepted, but many will accept high 600s.

Loan term can also affect your interest rate:

• A shorter loan term will often result in a lower interest rate, as the risk for the lender is lower. 
• A longer loan term will often result in a higher interest rate, as the risk for the lender is higher. 

At the end of the day, interest rates vary from person to person.

How Old of a Boat Can I Finance?

Thinking of financing an older or used boat? Yes, it’s possible! 

While most lenders avoid financing boats over 10 years old, exceptions can be made if the boat is in pristine condition.

When Should I Start the Financing Process?

Approval decisions can vary based on the loan amount, but once all documents are submitted, you can usually expect an answer within 24 hours.

To avoid delays, start the boat financing process before boating season begins. This way, you’ll be ready to hit the water as soon as possible, and your dealer will have time to get your boat in top condition.

Financing a Boat Through an LLC/Trust

At a marina-specific dealer like MarineMax, you can finance a boat through an LLC/Trust.

It’s important to remember that not all banks will accept this, so it’s vital that you understand your bank’s stance on trust agreements and LLCs.

Why Finance a Boat with MarineMax

Financing a boat is easier than financing a car. At MarineMax, our experts do the legwork to get you out on the water quicker. At each of our locations, our experts are ready to get you in the boat of your dreams. 

Get started with our financing experts!