A boat or a yacht is a costly affair. Due to high maintenance costs such as maintenance, berths and insurance, leasing boats is a popular alternative to buying. However, if you decide to make a purchase and use financing, it is not easy for banks. Especially if more than just a small motorboat should be purchased, it is fast to high sums. Regional banks that specialize in car finance or real estate offer either no options or at least no cheap ones.
Who enables boat financing?
Who is led in the own house bank as a good customer, has realized various financing with the house bank and thereby always dutifully served the rates, which can have luck also with a boat financing. The internet has also allowed us to develop other good options in recent years.
- Branch banks preferably own bank
- Shipyard directly
- Direct banks from the Internet
- Financial service providers (many specialize in boat financing)
- Credit portals providing loans from private individuals *
* Realistically, the chances of finding a private lender on portals like smava or auxmoney are very low. A private lender searches on the portals inquiries with which purpose he can do something. If a loan is needed for a car, for example, there are enough lenders who are familiar with the subject matter. For boats and especially for yachts, very few people have enough experience to judge this. Also donors from the credit portals do not like to lend money for things whose value they can not judge for themselves.
What data is important for a boat?
- From which shipyard comes the boat / Which manufacturer
- In which year the boat was made
- Which boat types are concerned
- Where is the berth
- Which purchase price is required
- What residual value does the boat have?
- What is the boat used for?
- How many previous owners has the boat
- serial number
- Pictures from the boat
- Tax certificate if the boat is purchased abroad
- Is there an original invoice?
As you can see above, for lenders, financing a boat includes a number of facts that are also known when buying a car. In addition, other roles play an important factor.
If you want to finance a second-hand boat, you have to submit an excerpt from the register. Obligatory are also proofs of the liability insurance and a comprehensive insurance, because it is always about high sums of money. The value of the boat serves as cover amount. A lower limit is usually already at 100,000 USD.
A residual debt insurance can lower the interest rate for boat financing.
What else interests the lender of boat financing?
An essential factor is the mooring. If the boat is to be berthed within the EU, the berth is not an exclusion criterion. However, if the boat is to be outside, many financial service providers fall away. Too big here is the risk for the lender. Also important is the information whether the boat should be chartered, even if this is to happen only temporarily. Because a third person is not always ideal with the boat, even due to lack of experience. The lenders therefore essentially distinguish between a purely private use or a commercial use of the boat.
Also important is what should be financed for a boat. Similar to the cars, there are different boat types. Not every financial service provider or bank allows boat financing for all models.
- Motorized sailboat
- Unmotorized sailboat
However, yachts are actually a separate line of boat financing, because here the investment volume is far above that of other boat types. Financial service providers make a targeted distinction between yachts and boats.
Since the boat also serves as security, the boat financing is assigned with a purpose bond. Important for the lender is an objective judgment on the value and condition of the boat. Statements from the borrower and the seller play a minor role. An appraisal is extremely interesting for the lender. Thus, the real value is determined by condition, age, brand and equipment and the lender knows with what value the boat can serve as collateral.
Tip from the editor
Those who bring equity to finance usually have an advantage in forming interest. So it pays to put aside a little money in advance. Who then introduces himself to the lender, can get better conditions.
Credit comparison also important for boat financing
Due to the large sums involved in boat financing, just a few percentage points in interest rates can have a major impact. An online loan comparison is absolutely recommendable from this point of view. Our calculation example should show what effects a cheaper credit can have.
|Credit A||Credit B|
|loan amount||100,000 USD||100,000 USD|
|running time||120 months||120 months|
|Effective interest rate||6 percent||4.5 percent|
|Monthly Rate||833.33 USD||833.33 USD|
|Interest per year||6,000 USD||4,500 USD|
The savings per year is therefore at least 1,500 USD, even if ultimately only 1.5 percentage points are saved in the annual percentage rate.