You may have your eye on the boat of your dreams, but that might not matter if you don’t have a good way to finance it. While finding a way to financing your boat might seem like a tedious task, it’s extremely important in order to get the best deal possible, and so you don’t make any mistakes that will cost you in the long run. At Manitou Pontoon Boats, we understand the ins and outs of financing a boat, so we’ll walk through the proper process a buyer should take so you can be out on the water and enjoying your boat in no time.

Deposits

Most brokers and dealers will require at least a 10% cash payment, regardless of if the boat is new or used. New boats are usually more expensive and therefore harder to get a deposit together for. Used boats for sale Wisconsin might be the way to go if you want to get more bang for your buck and don’t mind a slightly older model. If you’re able to make a deposit greater than 10%, or can’t quite put that amount of money down, the dealer or broker may be able to structure a contract with a lower or higher interest rate than what they normally would. Understand that the broker or dealer may have the right to keep a portion or all of your deposit if you back out of the contract for an unspecified reason. Your goal when working through the contract is to be sure that it contains as many contingencies as possible, in the event something goes wrong and you aren’t able to continue paying the financer. Additionally, be sure that the contract has a written delivery date if the boat is going to be new.

Loans

In order to get a loan worth having for your boat, you should be able to put in a 15-25% down payment, and you should have a relatively good credit history, so you don’t have to settle with a high-interest loan. If your credit history isn’t so great, you’ll be paying much more than you should to the lender over time, and it may be worth reconsidering making such a large investment in the first place. It’s a great idea to try and pre-qualify for a loan before you meet with lenders, as it gives you a bit of leverage when negotiating over prices. Things are often less complicated with new boats like the pathfinder boats for sale in Florida (and nearby areas), as they usually come with a certificate showing that no one has owned the boat in the past, and there are no outstanding loans attached with the boat. With used boats, lenders will take the steps by checking to make sure the boat has a clean slate by getting in touch with the current owners.

Trade In

If you’re looking to trade in a boat for a new one, dealers will often be happy to apply the value of your old boat in the purchase of your new boat. Be aware, however, that you might not get the best value out of the transaction, as dealers are providing convenience for you by increasing the liquidity of your boat, and have a direct goal to buy low and sell high. You may, however, get a decent amount if you decide to remodel it and replace those old screws and bolts (check out this Bronze Fastener Torque Specs values here, if interested). Additionally, they may scrutinize your boat more than a private buyer would, as they have to factor in inventory costs and estimate how quickly they will be able to sell your boat.

Before taking it into a dealership, make sure it is in top condition by giving it a deep clean, and making repairs where needed. You can take the receipts of these repairs to the dealership if you hired someone to help you with the repairs. In some states you can even receive a tax benefit for trading your boat in, but you should check with your state agency to find out how much it would be and if it’s worth factoring into the benefits of trading your boat in.