Financing a used boat
Buying a boat very often requires significant financing, and choosing to buy it used allows you to save money when you buy it. But if the sum is too important, you will have to find alternative sources of funding to sail offshore. Just remember to follow the steps to finance your used boat.
How to Choose Your Used Boat?
Many boaters decide each year to part with their boat by selling it. This is the perfect opportunity for you who want to buy one cheaply, and to make a very good deal. Still have to make the right choice for the purchase of your future boat.
A. Which engine for your boat
By definition a boat allows you to navigate the water, whether at sea, on a lake, a river or a canal. Before choosing your boat, think first of all about how you use it and where you want to sail. For example, if you want to choose a sailboat, you will have the greatest difficulty navigating outside an ocean. In addition, this type of boat requires expert control of sailing to navigate safely. If you are new to navigation, prefer an inflatable boat, or a small diesel or electric motor yacht. This will allow you to do many outings on the water and you will avoid many problems. Also be aware that if you choose a motor boat with a power greater than 6 horses, you must hold a boat license.
Also think about the size of your new boat. If you want to sail on different water plans, you will have to take a model that is easily transportable by road with your car. If this is the case, also consider including in your budget the purchase of a trailer adapted to its transport. If the purchase cost is too great, you can make a vehicle credit for the purchase of a suitable trailer.
B. According to your need for navigation
If you prefer to make occasional trips to rather calm rivers or rivers, you can take a light and inexpensive barge. If you are a fan of water sports, you will have to choose a boat with enough power. If you are interested in deep-sea fishing, take a suitable boat that can cover long distances without any problem. You can take courses or take specialized courses to master your new boat. This is also very important to avoid any risk of accident.
C. Where to find used boats available
Several choices are available to you to find the rare pearl that will be your future boat. In the case of a second-hand purchase, the easiest thing is still to peel the classifieds: either in your newspaper or better, on the internet. Indeed, many websites offer online advertising for used boats. Small boats such as jet skis or speedboats are generally sold at good prices. To finance their purchase you can think about applying for a jet ski credit, which is specifically dedicated to the purchase of this type of boat.
Professionals also offer their services by making the link between the buyer and the seller. This is necessarily a bit more expensive, but you have the opportunity to close the deal with a professional expert; what you avoid some bad annoyances. A last tip: you can walk on the docks of marinas near your home, indeed the boats for sale will certainly present a poster indicating the desire of the owner to separate.
D. Have your used boat appraised
If you’ve found the perfect boat you’ve been dreaming of, do not rush, and take the time to contact the owner and try it out in real life. Do not give a deposit until you have at least the opportunity to test it. In addition, you can also request the boat’s logbook, and chat with the previous owner about his sailing experience. Maybe this one will have good advices to transmit you to take full advantage of your boat. Some boats are equipped with many useful tools: GPS, radio, radar … the former owner can also show you the operation of all these devices.
If you do not go through a professional, ask a nautical expert to give you his advice in this area before signing. Indeed it is not uncommon that some sellers hide some problems to the future owner.
E. Find a Homeport
If you have finally made your choice, you still have to think about the home port of your boat, or where you can store it in dry dock. Many companies offer their services in this area, which will allow you to not needlessly move your new vessel. Be aware that mooring your boat in a marina is a cost that must be added to all normal maintenance costs.
Steps To Finance A Used Boat
Now that you have made your choice, you must think about how you can finance your purchase, as well as all the ongoing costs for its maintenance and use during your boating.
A. Establish a purchase and maintenance budget
Once you have in mind the purchase price and the model, you can accurately calculate the cost of financing. Usually the maintenance and upkeep of a boat represents each year about 10% of its purchase price.
B. How to find financing for a used boat
Now you have all the keys in your hands to decide how you will finance your used boat. To make the right choice, you must take into account all the sources of financing that you can mobilize. For example, if you want to use a portion of your savings as a personal contribution during the purchase. But if you do not have the possibility, or if you prefer to keep your savings there are other solutions.
• Personal credit
The personal credit for the purchase of a used boat is undoubtedly the most effective and the most suitable solution. Boat credit is also specifically dedicated to financing the purchase of a new or used boat. Choosing a personal loan to finance your used boat has two major advantages: the simulation is done quickly online and you get at the end of it an immediate policy response. Regarding the repayment term, think especially of the monthly payment that you will repay each month. Indeed this one will have an impact on your monthly budget, and it is important to take it into account.
The lease with option to purchase, or LoA, also allows you to buy a used boat. The principle is basically quite simple: you pay the owner of the boat rent each month for a specified period. At the end of it, if you want to become the owner of the boat, you will have to pay the purchase option. Otherwise the boat will remain the property of the renter. While the LoA represents an interesting option, it is nonetheless very expensive in the long run. Indeed, the total cost of the LOA will necessarily be more expensive than if you had proceeded to the acquisition of the boat in cash or on credit.
C. Apply for credit
When you apply for credit online, you will be asked for more information. These allow you to study quickly your request to bring you an answer in adequacy with your need for financing and your situation. In order to properly complete your credit simulation, you will have to specify the amount and the amortization period of the capital you want to borrow (between 24 and 72 months). In order for your file to be analyzed quickly, we advise you to fill in each of the fields requested with application in order to avoid errors that would slow down its processing.
When your application is pre-accepted, there is still an important step to finalize it: fill out the file and send it back with all the supporting documents. Several documents may be required to complete your profile and your personal and professional situation. For example, if you are applying for Creditstair, you will need to include a photocopy of your ID card, your last pay slip, the most recent statement from your bank account (30 days), your last notice. as well as the original of your RIB.
Remember to check before sending your file with the proof that they are valid and present. For example it is necessary that your identity card is still valid, if need be redone your identity card in town hall, it’s free.
Investing in a used boat is an important purchase that often requires a lot of money. In order to complete your purchase and maintenance budget, the personal credit solution remains a very good simple and effective option. You just have to be careful to follow all the steps when applying for funding.
For more information on your used boat loan, you can consult our personal loan guide. In addition, if you need to make a comparison between several boat loan offers, we invite you to read our page dedicated to the criteria for comparing an online credit.