When you’re thinking about getting a new or used boat, you can get started now by arranging your loan options and loan approval. Boat loans for bad credit are very similar to car loans for bad credit. The loan terms can be similar as well as the pre approval process and payment process.
You can choose to go through a boat dealership to get your loan or you can go to a private seller. You have online loan options or you can reach out to multiple lenders to compare rates and prices.
You can check out bad credit car loans near me, because the same car loan lender could help you with a boat loan. If you don’t want to go into an office that offers bad credit car loans near me, you can take care of your online application without going anywhere.
However you decide to finance your next boat, it is helpful to get loan pre approval before setting out to make the final deal with the seller. Having your money arranged will give you the opportunity to focus on getting the best deal and negotiating the best price and terms with the seller.
Go over the different loan options or go online now to send in your loan application. When you have your money ready, enjoy boat shopping!
Visiting Boat Shows
One of the exciting events in many cities is an annual boat show. This can be a large hall where many different vendors and dealers show up to display their new models. There will be sharp salesman out there trying to lure you into a boat purchase, so be ready!
Know before going to the show how much you can afford to spend, so you won’t get into a situation of being shown models that you cannot buy. However, in some cases, the boat manufacturers might have agents at the show who can offer you special prices on new boats. Having loan pre approval before you go will be your guideline as to how much. you can spend.
The manufacturer might offer you a one day only special price during the show, or have special offers available that will save you a bunch of money. Don’t let yourself be talked into a model or price range that you don’t feel comfortable with. But if it’s the perfect boat for you at a great price, you’ll be glad to know that you already have the funding tied up.
Going in prepared with your own boat loan also means that you won’t need to take the funding package the dealer might be offering you. Compare lenders, compare prices and go with the deal that is best for you.
Buying from Boat Dealerships
Whereas a boat show might only offer brand new boat models, going into a dealer should give you more of a selection. For instance, if someone wanted to trade in their boat for a new one, the dealer could have the older one for sale and a good price.
In that regard, boat loans for bad credit are very similar to motorcycle loans for bad credit. Whether it’s a boat, car or a motorcycle, most dealers need to sell the older models that they took as a trade in. If you are visiting a dealer that is fully complete with a repair shop, you can ask them about the condition of the used boat or whatever repair work might need to be completed.
If you don’t already have pre approval for boat loans for bad credit, you can ask the dealer if he can arrange it for you. Most dealers will fall into two categories when it comes to funding:
- Dealer direct loans – This is when the boat dealer actually finances the boat for you. He’ll take care of all the details and you will make your monthly payments directly to him. This can be extremely convenient, but it can also be more expensive. The dealer can add on extra interest points that you will need to pay. Another method a dealer might use is to raise the sticker price on the boat and then give you a loan that seems cheap when you compare lenders. It’s important to compare both the boat cost as well as the loan terms.
- Indirect loans through a dealership – A dealer might not actually loan you the money, but he could go to a finance company on your behalf to arrange boat loans for bad credit. This would be a convenience for you, because someone else would be handling the loan but for the convenience, you can expect to pay higher interest rates. Your payments would be made to a 3rd party, whether it’s a bank, a credit union or a loan company the dealer works with.
- A third option, when buying through a dealer, is to go to the bank yourself to get the boat loan. You can get your pre approval from the bank and then go to the dealer to negotiate the best selling price and terms.
Purchasing a Boat from a Private Seller
When looking for a boat to buy, you will most likely be checking the local advertisements for private sellers who have a boat for sale. You might drive down a street and see a boat parked in a driveway with a For Sale sign on it, or you might be at the lake and meet someone who is looking to sell.
However you find a private seller, the process is pretty much the same. As with a used car or a used motorcycle, you would want to put it through its paces to make sure it is “sea worthy” and that you would be able to use it however you need it.
To inspect a boat, it would need to be pulled out of the water so you can see it or inspect it from every angle. If you are a boat expert, you might be able to do this by yourself. If not, you’ll need to find a boat specialist or mechanic to help you check it out. Of course, the motor is also important – both the size and its condition.
Other features you might be able to eyeball, such as the upholstery, if there is any, windshields and equipment. Also take time to check the title, to be sure that the seller is the actual owner of the boat.
Many sellers might be willing to finance the boat loan for you. This would cut out the middle man and you only need to agree on terms and sign a contract. Then your monthly payment would go directly to the seller.
Securing Your Boat Loan
If you have a bad credit score, you might be asked to put up security in order to be pre approved. There are a couple of ways to get a secured boat loan. One popular method is by using the boat you are buying as security. If you pay back your loan, the boat is yours. If you don’t make the payments, the lender can sell your boat to cover costs.
A second method is by asking someone to cosign on your boat loan. Again, if you pay the loan back, the boat is yours. If you find you are unable to continue payments, the person who cosigned your loan will need to repay the loan.
Choosing the Boat for Your Needs
When you’re ready to go out boat shopping, be sure you understand exactly what you’re looking for. It won’t help, for instance, if you save money and buy a cheaper boat but it doesn’t meet your needs. Think about it and be clear what your boating goals will be.
On the other hand, a dealer might convince you to buy a boat that is more than what you need. Besides being stuck with a boat that doesn’t fit your needs, you could be paying high monthly payments for the privilege! If you need a small boat for fishing, then a yacht for sailing across open seas might not solve your needs! On the other hand, if you want to pull skiers behind your boat, the motor needs to have enough horsepower.
Study the boat market before setting out to buy so you will have an easier time comparing one product or model to another. This will not only save you time in choosing your next boat, but you’ll have a better chance of walking away with the boat that is exactly what you wanted.
- Size of the boat – Be careful about only getting the size of boat that you need. Don’t be tempted to get a large boat that will end up being more expensive in both monthly payments and maintenance. Remember that storage prices for boats in off season or docking boats costs money according to the size.
- Boat trailer – Does the boat you want to buy include the trailer? If it is a used boat, the owner might be willing to include the trailer in the boat sale. If it does not include the trailer, you might need to add that to the sticker price of the boat.
- Storage fees – Will you be keeping your boat in the water all year round? If it needs to be dry docked, find out the expenses. You might also incur the expense of putting into the water and taking it out again.
- Transportation – If you plan to keep your boat at home, do you have adequate space? If your idea is to keep your boat covered in your driveway at home or on the side of your property, check the neighborhood restrictions to be sure this is allowed. Otherwise, you may have additional expenses of keeping it docked or paying for other storage options.
- Insurance – Before selecting the boat you want to buy, it could be well worth your time to check insurance costs. According to the size of the boat or the horsepower of the motor, insurance fees could vary wildly. If you plan to keep it at home, will you need a separate insurance policy or can you add it to your homeowners?
- If it is a used boat how many owners has it had – Just like with bad credit auto loans, the number of owners a boat has had can be reflected by the cost. If a boat has had several owners, you can negotiate with the seller for better terms.
Getting financing for a boat is similar to finding auto loans bad credit or car loans for people with bad credit. You’ll need to pass the same types of credit criteria, and the basic documents required will be the same.
Getting a Loan for a New Boat or a Used Boat
While buying a new or used boat is not exactly the same as getting auto loans with bad credit, there are similarities. Check out several lenders, compare prices and then make an informed decision on your boat requirements. For your convenience, you can go online and check for car loans for bad credit near me.
New boat loans
- New boats are more expensive, so you will need a larger loan amount and it will be spread out over a longer term.
- New boats lose value through depreciation from the minute you buy them. If you try to sell your boat a month after you bought it, you cannot expect to get the price you paid for it.
- New boats could be more fuel efficient and require less maintenance.
- You might get reduced interest rates or APR through the boat manufacturer.
- An extended warranty could cut down maintenance costs for years.
- A larger down payment could make the monthly payment more within reach.
Used boat loans
- Used boats can be in excellent condition for considerably less money.
- Used boats have already lost the value of a new boat through depreciation.
- A used boat loan is far less money so the terms will be shorter.
- Depending on fuel efficiency, used boats can cost more to run and maintain.
- According to the number of owners a used boat has had, it’s hard to tell how well it was taken care of by each owner.
- If the boat is old, it might need to have parts replaced or a new paint job for additional waterproofing.
Basic Documents Required for Bad Credit Car Loans
When you’re ready to send in an application for boat financing, it will require about the same documents as for auto loans for bad credit. By sending in the basic documents required, it will save you time going forward with your personal loan. You will get a faster response regarding approval of car loans with bad credit.
Have these simple documents ready to send in with car loans for people with bad credit:
- Photo ID – This is a government issued ID, that can be a driver’s license, a passport or a valid state ID.
- Proof of income – Send in the last 3 bank statements that show your monthly income or your most recent 3 pay stubs from any jobs that you have.
- Residence – Attach a utility bill, a piece of mail or a credit card statement that shows your exact address.
- Contact details – Let us know how to reach you the fastest, with your email address and phone number.
It’s possible to get pre approval of your request for auto loans bad credit with these details. If more information is needed, you will be contacted.
Online Lenders for Quick Replies to Boat Loans for Bad Credit
Online lenders, such as Montana Capital Bad Credit Loans, are available to help you out with boat loans for bad credit any time you reach out. Through our website, you can always send in your online loan application and expect an immediate credit decision.
To get started on bad credit boat loans, simply go to the online application form, fill it in with your details and submit it. Very quickly, you can expect to receive a response regarding your boat loan approval.
If your request for a quick boat loan is approved by the customer service team at Montana Capital Bad Credit Loans, you will receive notification and a loan offer to sign. Read about the terms of the loan carefully and then if it’s what you need to get the boat you want to buy, sign it and return it to our office.
With loan approval in your pocket, you will know exactly how much you can borrow. Once the loan has been signed and approved, the money can be prepared quickly when you need it.
Your loan amount will include all the fees, with nothing extra added. You can get the money, but the boat of your dreams and then make monthly payments on the loan. If you win the lottery and you want to pay back the loan in full, you can do so without worrying about prepayment penalties.
Reach out to us at Montana Capital Bad Credit Loans today for your quick answers to your bad credit boat loan!
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