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Interest Rates and Terms

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The terms and interest rates you are able to get on a boat loan, like on any other loan, will vary greatly with each lending institution. There is generally a minimum loan amount of $2,500 (some institutions’ minimum is much higher than this), and not really a maximum, although the neighborhood of $200,000 is about what you’ll find at most traditional lending institutions. (What kind of boat costs $200,000, you ask? It’s usually a yacht!) Again, the more expensive the boat is that you are considering, the better the interest rate you will be offered. The length of your boat loan can be anywhere from 1-15 years for relatively inexpensive boats and up to 20 years for more costly boats.

Interest rates are similar to those you will see for automobile loans, but generally are slightly higher. As of April 1, 2006, rates for new boats began as low as 5.8%, while used boat loans could be had for 6.3%. These rates are generally for fairly expensive boats, though; if you are considering a boat under $30,000, interest rates will be more in the neighborhood of 7.5% to 9.5%.

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