Summer is the best time of year to get out on the water, but if you’re looking at a second-hand boat there are a few things you need to consider.
To finance a second-hand boat, there are typically two types of loan products you can use:
Specialist marine finance: This type of loan uses the boat itself as collateral, offering the lender security. Secured boat finance is considered less risky, resulting in lower interest rates and favourable terms.
Unsecured personal loans: Unsecured personal loans don’t use the boat as collateral. While this option provides flexibility, it often comes with higher interest rates due to the increased risk for the lender.
There are also some specific considerations that come with getting a loan for a second-hand boat compared to a new vehicle.
For example, the older the boat, the harder it might be to secure financing. Older boats are more challenging to resell, raising concerns for lenders.
The first step is to talk to a finance broker and compare your options before starting the search for a second-hand boat.
