Boat Loan Term length

[chris55552]

Just started researching aluminum ranger boats for purchase, how long do boat loans finance for in terms of months years?

[S Hovanec]

depends on the lending institution.  some will finance for longer than you will ever keep the boat!  Problem with that is, while your payment is low, after a couple years, you're still upside-down on the loan.

 

I financed mine for 8 years and had it paid off in 6.

[slonezp]

Up to 20 years....probably not the best decision, but it's out there

[flyfisher]

24 minutes ago, slonezp said:

Up to 20 years....probably not the best decision, but it's out there

Last time i went to Bass Pro and saw the high end Nitros on display and monthly payments that were ridiculously low i decided to look at the fine print.  It was being financed for 12 years, thanks but no thanks.

[FishHard247]

Im the opposite. MAX that sucker out and pay it off early. If you have a rainy month and are running low in the wallet, then your payment is still low and you wont have to worry about the bank coming to get it. 

[Tracker22]

My wife bought a pontoon boat that will be upside down until the day we take it to the junkyard.

At a minimum you should pay twice the monthly note. Or better yet, pay cash!

[S Hovanec]

I paid extra principal every week (credit union did weekly payments).  There was a couple months I was laid-off that I didn't even make a payment and I still paid it off 2 years early.

[flyfisher]

4 hours ago, FishHard247 said:

Im the opposite. MAX that sucker out and pay it off early. If you have a rainy month and are running low in the wallet, then your payment is still low and you wont have to worry about the bank coming to get it. 

only true if it is a simple interest loan and the interest rate is low.  My current vehicle i didn't put any money down because the interest rate was less than 2% and the money i had in investments that i would have used to make the payment is making more money than i would have saved with a down payment...pay extra each month and i should have it paid off a year early and not touch my reserve money...win win in my eyes.

[Redlinerobert]

For the 20 year loan guys, they say that the two happiest days in a boat owner’s life is the day they buy and the day they sell.  

[FishHard247]

That's true with all boats lol

[Justbass11]

I just bought a boat and go one for 8 yrs, Plan to pay it off way sooner then that tho

[Junk Fisherman]

I bought an inexpensive '92 boat in 2001 and used it for 15 years while saving.  Paid cash for my new boat.  

My personal outlook to finance the smallest amount possible and pay it off as quickly as possible.  

[slonezp]

1 hour ago, Junk Fisherman said:

I bought an inexpensive '92 boat in 2001 and used it for 15 years while saving.  Paid cash for my new boat.  

My personal outlook to finance the smallest amount possible and pay it off as quickly as possible.  

So you're the one bbc'er that paid cash for his boat....LOL...bunch of talkers they are. You get the new one yet?

[S Hovanec]

1 hour ago, slonezp said:

So you're the one bbc'er that paid cash for his boat....LOL...bunch of talkers they are.

 

One?  They all pay cash!

[Redlinerobert]

All this new boat talk is making me itch.  

[A-Jay]

3 minutes ago, Redlinerobert said:

All this new boat talk is making me itch.  

It's making me Even More Impatient  . . . . like that's possible.

A-Jay

[J Francho]

5 hours ago, slonezp said:

So you're the one bbc'er that paid cash for his boat....LOL...bunch of talkers they are. You get the new one yet?

I paid cash for all my boats, but none were new.

[S. Sass]

I just bought a used boat through a local credit union. They were willing to do pretty much anything reasonable but it was a used and only $5000. I took a 3 yr note on the same idea if I get in a bind my must do payment is cheap. The rest of the time I'm doubling up on payments.

I don't have a clue on a new one but I am sure different lenders have different rules.

[A-Jay]

37 minutes ago, J Francho said:

I paid cash for all my boats, but none were new.

Me Too - Just not all at once.

A-Jay

[J Francho]

All at once for me - no loan.  It's great when you go to sell.....

[DodgeRamWax]

I financed mine for 5 years which is what most banks will do if it's not a "newer" boat and I paid mine off in 3 years. It was actually just a couple months ago so here comes more fishing gear! 

[PAGreg]

I just bought a new Rt188 and the rate was the same for 10-15 years.  So, I took the fiften years. Calculated my payments to payoff in 6 and set that as my monthly payment.

[WRB]

Any time you have a loan you pay interest that is factored in to the total cost.

Add the interest over the loan period plus the amount of the loan for total amount you are paying for whatever. If you pay cash that is the total cost, loans are not free. Always ask the lender what the total cost of the loan is, it's your money, and ask if there is pre payment penality for paying off the loan early.

Boats depreciate rarely increase in value. 

I can't see interest on loans going down any time soon, going up is more then likely this year.

The old saying a boat is a hole in the water you pour money through is true, how much is up to you.

Tom

 

[NHBull]

Make an informed decision and run with it!

[Elkins45]

The only new boat I ever bought is my 1648 Jon and I paid cash for it. Both of the others were used and it was a cash transaction. My depression-era parents drilled it into me that financing was something to be avoided if at all possible. Even then, only finance things you absolutely must have (house, reliable car) and nothing you just want (boat).

 

I don’t know your situation but my advice would be to buy a used Jon to fish out of while you save for the boat you really want. Not having a loan payment for anything is a really nice feeling.