Of course a boat costs a lot of money. Often more than a luxury car. So there is a good chance that you will not pay these from your savings at once. Borrowing money for a boat is then an option. There are a number of ways to finance this boat:
- Finance boat with a loan
- Boat financing via the selling party
- Boat financing with a ship mortgage
Borrow money for boat
The most interesting way to finance a boat is to take out a loan from a bank. But do not just choose the first best loan. The difference between the most expensive and cheapest loan can easily be hundreds of euros per year. With these tips you avoid unnecessary overpaying your boat financing:
Tip 1. Financing the boat, choose the right loan form
You can choose from two loan types, each with their own advantages and disadvantages. Make sure you find the right loan that suits you and your loan goal:
- A personal loan is usually the best choice for your boat financing. You borrow a fixed amount at a fixed interest rate. You know exactly in how many installments you repay the loan and the monthly repayment amount is always the same. This means you know in advance exactly how much the loan will cost you.
- Are you going to make several large expenses because you want to refurbish the boat? Then a revolving credit might suit you better. You agree a credit limit together with the lender. You can withdraw unlimited money up to this agreed limit and if you have repaid drawn amounts, you can withdraw them again.
Tip 2. Choose the right provider for boat financing
If you have chosen the best loan type, you still have to choose which lender you take out the loan from. Applying for a loan from the bank where you always arrange your money matters seems useful, but is often unnecessarily expensive. There are dozens of loan providers, all of which have different interest rates and conditions. This means that you are hundreds of euros more expensive per year with one provider than with another. On Geld.nl you can easily compare the largest selection of loan providers. This way you can be sure that you will find the personal loan that suits you and has the lowest interest rate.
Tip 3. Borrow money for a boat, choose the right term
If you choose a personal loan, you agree with the lender when you must have repaid the loan. This is called the term and also affects how much your loan costs. The longer the term, the lower the interest. However, that does not mean that a longer term is really cheaper! With a longer term, you repay the loan over several months. Your monthly costs will go down, but you will also pay interest for longer. This will ultimately make your loan more expensive. It is best to choose the shortest possible term with monthly payments that you can bear financially.
Boat financing via the selling party
In addition to financing a boat with a loan, you also have the option of financing a boat through the dealer. Usually you then pay one part of the costs at once and the remainder in installments. This seems very attractive, but the interest for such a boat financing is usually a lot higher than for a boat loan at the bank. So in the end you will lose a lot more money for your boat than if you paid it at once.
Financing a boat with a mortgage
The third way to finance a boat is with a ship’s mortgage. A ship mortgage is a special form of mortgage, in which you must meet a number of conditions. One is that the boat you have in mind has a brand and is registered with the Land Registry. The advantage of a ship mortgage is that the term is generally longer, which results in lower monthly payments.