Most people buy boats from late winter into early spring. Boat show specials are ending and dealers get more for their offerings due to there being more eager buyers.

If you’re among those prospective buyers, now is the time to think about cost and financing.

Perhaps the best way to purchase a boat is to pay cash. There are no worries about monthly payments, and the lack of interest payments make it cost less overall. But that is not always realistic for most of us.

Many boat buyers finance their purchases. By knowing a little in advance about financing a boat, it might be possible to save some bucks. It also can result in getting more boat for the money.

While shopping for a boat to meets your desire, also shop for the interest and payment schedule that meets your budget.

There are three basic financing situations: through the dealer, your local banker or a marine finance banker. Each has options that could be helpful.

Lenders tend to view new boats as better risks than used ones.

After a season on the water, new boats depreciate about 10 percent. Yet used boats can hold steady or even increase in value with a minimum of aftermarket improvements.

For many buyers, the dealer is the only place they inquire about financing. There is nothing wrong with that, as favorable rates are often part of their incentive to get you in a boat through their dealership.

Dealers sometimes get good deals for the buyer through boat builders. The maker of a boat can offer financing as an incentive to sell overstocks or year-end models before a new line comes on the market.

Dealers can often get financing at favorable rates through local banks or credit unions. They do business with such financial institutions as part of their own financing packages for the dealership and/or marina.

A buyer who has a good working relationship with their local financial institution can often negotiate a favorable loan rate on his own.

Boat shows are great places to shop, although show specials might not be a bargain if the dealer is located a great distance from where you use the boat. Warranty work and general upkeep can be a problem if the dealer is not readily accessible.

Down payments on a boat tend to be in the 10 to 20 percent range. The life of the loan can be longer than that of an automobile, as boats tend to hold their value longer. Loans with longer payback periods have lower monthly payments.

The basic considerations for financing a new boat concern: the interest rate, the length of the loan, the amount of monthly payment, whether the loan carries prepayment penalties and if there are limits on refinancing.

A more recent development in the boat financing situation is the marine financing broker. These are companies that specialize in loaning money for boat purchases.

Such companies are often available at boat and sport shows and can explain the options available before you sign on the dotted line. Most companies of this type are members of the National Marine Lenders Association. They have a website at: http://www.marinelenders.org. The organization’s stated goal is “to educate the public and the marine industry on the benefits of marine financing.”

Financing a boat purchase is not a simple thing. Investigate your options and choose one that meets your needs and desires. Then, go boating.

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