Current Boat Loan Rates - Trident Funding

Current Boat Loan Rates

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Boat Loan Rates as of February 14, 2024*

Summary

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How Trident Funding Boat Loans Work

It’s as easy as 1-2-3!

1. Calculate Your Payment

Whether you’re an avid boater or new to the boating world, this loved pastime is available to everyone. If you’re buying a new or used boat, you can use Trident’s boat loan calculator to understand your financing options. Simply enter your desired monthly payment to get the loan amount you can afford or provide your total boat loan amount and loan terms to return your estimated monthly payments. 

 

2. Apply for a Loan

Now that you have an idea of your estimated boat loan monthly payment or total loan amount, you can submit your loan application. It only takes a few minutes! We’ll ask you to tell us about the type of boat you’re looking for and a few details about your financial situation so we can match you to the marine lender that’s right for you.

3. Get on the Water!

Once you submit your boat loan application, our dedicated team of loan officers gets to work! We usually have a response from a marine lender in 24-48 hours. If we need additional documentation, we’ll reach out. All you have to do is dream about getting on the water. We’ll help you find the interest rate and boat loan lender that fit your budget and lifestyle.

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Boat Loan Interest Rates

If you’re considering purchasing a boat, you may be wondering about boat loan interest rates and boat financing rates. As with any type of loan, the interest rate you’ll pay on your boat loan will depend on a variety of factors, including your credit score, the size of the loan, and the length of the loan term.

Loan rates for boats can vary widely depending on these factors, as well as on the lender you choose. Some lenders specialize in boat loans and may offer more competitive rates than others, so it’s important to shop around and compare offers from multiple lenders before making a decision.

One of the most important things to keep in mind when comparing boat loan rates is the length of the loan term. In general, longer loan terms will result in lower monthly payments, but you’ll end up paying more in interest over the life of the loan. Conversely, shorter loan terms may have higher monthly payments but will result in lower overall interest costs.

If you’re looking for a long-term loan to finance your boat purchase, you may be interested in 20-year boat loan rates. A 20-year boat loan rate can provide a lower monthly payment compared to a 10-year boat loan. However, it’s important to keep in mind that you’ll be paying interest on the loan for a much longer period of time, so the total cost of the loan will be higher.

Boat Loan Basics - Trident Funding

Comparing Boat Loan Rates

Current boat loan interest rates can be affected by market conditions. For example, interest rates on all types of loans tend to be lower during times of economic uncertainty, such as during a recession. Conversely, interest rates may rise during periods of economic growth and stability.

One thing to keep in mind when comparing boat loan rates is that the advertised rate may not be the rate you actually end up paying. Lenders may offer lower rates to borrowers with excellent credit scores or other favorable characteristics, while borrowers with lower credit scores or higher debt-to-income ratios may be offered higher rates.

For example, you’re buying a used 2015 center console for $100,000 and you have an excellent credit score in the 800-850 range. As of September 2023, the interest rate would be around 7.87% with a 20-year boat loan term. If your credit score is 760-790, the rate would be slightly higher at 8.12%.

Another factor that impacts boat loan rates is the loan-to-value (LTV) ratio. This is the loan amount you’re requesting divided by the boat’s total value. In most cases, lenders require an LTV ratio of 85% or lower, which means you can finance up to 85% of the boat’s value. For example, you could request a loan amount of up to $85,000 for a $100,000 boat purchase. It’s recommended to have a downpayment of 10% to 30% of the boat purchase price to maintain a healthy loan-to-value ratio. So if you’re purchasing a boat for $100,000 and putting $15,000 down as a down payment, then your loan amount would be $85,000.

Overall, if you’re considering a boat loan, it’s important to do your research and shop around for the best rates and terms. Compare offers from multiple lenders and take the time to understand the total cost of the loan, including any fees or charges. With careful planning and research, you can find a boat loan that meets your needs and fits your budget.

Frequently Asked Questions About Boat Loan Interest Rates

Owning a boat is a goal for so many people. It’s considered different things to different people: a source of pride, happiness, a status symbol, an investment, and even a business that keeps your family afloat. It’s also a sure fire way to enjoy leisure time, have fun, get outside, and create memories. 

However, boats have a reputation of being notoriously expensive, but they don’t have to be unattainable for you. Check out Trident Funding’s free online boat loan calculator to see how much boat you can afford and what your approximate monthly payment will be. It may be more affordable than you expected. Just remember to add in the cost of boat storage and boat insurance when calculating your monthly payments. 

Once you decide on a boat that fits your budget, and you’re happy with the approximate monthly payment, check out another cool tool: the boat loan rates estimator. This tool is updated daily and provides actual current boat rates based on if the boat is new or used, the year of the boat, the amount of the loan, and your credit score range. 

Now, let’s take a dive into the deep blue waters of boat interest rates:

As of September 2023, the best interest rates for boat loans typically start around 7.12%. Of course, these rates fluctuate with market conditions, inflation, and supply and demand. The best boat loan rates are also reserved for the borrowers with the highest credit scores and strongest overall financial profiles.

If you want to see what your boat loan rate might be, check out the boat loan rate estimator. You simply input if you’re purchasing a new or used boat or refinancing a boat. Then, type in the year of the boat, the loan amount, and the range of your FICO score. For example, if you have a 720 FICO score, you would select the 700-739 box. Then the calculator will show what your estimated monthly payment will be and what your expected interest rate will be.

There are many different lenders and their rates will vary on loans for boats. Check your estimated boat interest rate with our boat loan estimator. Most lenders base their boat loan interest rates on factors such as:

  • Credit score
  • Loan amount
  • Down payment
  • Loan term
  • Age of the vessel

You can’t control the market and increasing interest rates, so instead focus on the things you can control that will help you get the best boat loan rate. For example, the higher your credit score, the lower your interest rate will be.

Making on-time payments, paying off credit cards in full each month, and keeping your credit utilization levels low can all help to increase your credit score. Which in turn, will give you access to the best boat loan rate. Additionally, putting a large down payment on the boat will lower your loan to value ratio, which can also lower your boat loan rate. Low rates are reserved for ‘low risk’ borrowers which are borrowers with higher credit scores, substantial incomes, strong employment histories, and lower debt-to-income ratios. Competitive boat loan rates currently range from about 7.87% to over 10%.

The internet is full of click-bait tactics, false advertising, promotions that don’t really exist, and rates that aren’t updated and don’t fit the product they’re being advertised for. Unfortunately, this is often the reality for the super low interest rates that some boat lenders claim to offer. Once you further inquire about these low interest rates, they have either expired, don’t apply to loans for boats, or are ‘conveniently’ no longer available. 

In some cases, the companies are fly-by-the night companies looking to make some quick money before changing names or going out of business. In other cases, the rate may be low but the lender fees, points, application fees, origination fees, and a whole lot of other fees make the boat no longer affordable. 

But, let’s assume that you found a low interest rate, possibly 3%, 3.5% or even a rate under 3%, and it’s a real rate offered by an actual company that has been in business for a while. So, what’s the catch? The loan term is for three years! You think, okay, no big deal, my car loan is a three year term, but a boat loan is usually for a much larger amount than a car loan, so your monthly payment is going to be huge! It may be even more expensive than your mortgage. And that is not the goal of loans for boats.

Let’s take a look at an example. You want to purchase a new cabin cruiser so you and your family can spend days and even a couple nights onboard without spending the extra money for a yacht. You want a nice model that’s luxurious but maybe not the very top of the line model. Expect to spend upwards of $100,000. Let’s say the final cost of the boat is $120,000. 

You put down a down payment of 20% which is $24,000, so your boat loan amount will be $96,000. This is the cost of the boat minus the down payment. Now, let’s assume, you have excellent, top-tier credit, a score of 800 or above, substantial income, and an acceptable debt-to-income ratio, etc., and meet all the other lender criteria. You qualify for a 3% boat interest rate. This means your monthly payment will be approximately $2,792. That does not include the costs of insuring your boat, storing it, maintaining it, docking it, or cleaning it. For most people, that monthly payment is unmanageable, not affordable, and it’s hard to even contemplate spending that much on a boat. I mean, it’s not a yacht with a helipad and a jacuzzi!  

That’s exactly why reputable boat lenders and marine financing companies offer longer boat loan terms, typically between 10 and 20 years. These longer loan terms shrink your monthly payment, making it more affordable. 

So, next time you see those low boat interest rates creeping up on your computer screen, make sure you find out all of the details, including how long the loan term is for.

Trident Funding works with a network of more than 14 lenders to get customers the best rate for their lifestyle and their budget. We have a white glove approach for our customers and offer personalized, boutique style service. We have six branch offices located throughout the country and each one is staffed with a knowledgeable team of marine loan specialists. 

Trident Funding does the hard work for you, so you don’t have to spend the time and energy to go through the hassle of contacting and comparing multiple lenders or banks. You also won’t have your credit pulled multiple times. Trident Funding will find the exact boat loan that is best for you, and we will make sure you’re happy with its rate and terms. 

We will walk you through the entire process from the time you apply until the time the boat is yours. We also assist with other details, like helping you get the best boat insurance rates, scheduling a marine survey, setting up any necessary inspections, and ensuring you meet Coast Guard requirements if necessary.

Boat interest rates are impacted by a number of factors including:

  • The borrower’s qualifications, especially their credit score. The higher the credit score, generally, the lower the interest rate. The less risky a deal, the better rate will be offered. And well qualified borrowers are considered to be less risky than borrowers with lower credit scores. 
  • Boat loan terms affect the rate. The length of the term may impact what rate is offered. 
  • The boat’s condition will affect the interest rate. For example, a new boat may get you a slightly lower rate than a used boat. 
  • The cost of the boat is also a determining factor in boat interest rates. A $50,000 boat may have a different rate than a $1.5 million yacht. Typically, more expensive boats have lower rates, but that’s not always the case. 
  • The economic market affects boat rates. Things like inflation, supply and demand, the stock market, government borrowing, and the Central Bank’s recent policy updates all affect interest rates for all industries including the marine industry.
  • The convertibility of the note affects the interest rate
  • Lender fees may affect boat loan rates because some lenders inflate the rate by adding in their fees. This isn’t the case with all lenders; others just charge a percentage or a flat fee upfront. 
  • World events, wars, and pandemics can also influence boat loan rates.

A good interest rate for a boat loan is changing all the time, but as of September 2023, boat interest rates for well qualified borrowers start around 7.87% and go up from there. So, any rate under 8% would be considered a good rate. Check out the free rate estimator to see what your approximate boat loan rates would be based on the year of the boat, if it’s new or used, the loan amount, and your credit score range. 

Keep in mind that the best boat interest rates are reserved for the most well qualified borrowers. A well qualified borrower will have an excellent credit score, a history of on-time payments, provable income, consistent employment history, and no recent bankruptcies or foreclosures.

There are many benefits of longer boat terms including:

  • Less risk of default 
  • Less risk of negatively affecting your credit score because you’re not going to pay late or miss payments
  • Lower monthly boat loan payments
  • Lower monthly debt-to-income ratio
  • Makes the boat loan more affordable and attainable to more borrowers
  • Borrower can afford to finance a more expensive boat such as their dream yacht with a longer term 

Trident Funding doesn’t offer short-term boat loans. We know that those aren’t beneficial for our customers, and its goal is to find affordable financing for our customers so you can enjoy your boats and not be weighed down with payments you can’t really afford. We have built a solid reputation in the industry over the past 30 years based on integrity, transparency, and really treating each and every customer with respect and fairness. 

It doesn’t do the lender or the customer any good if the borrower can’t afford the monthly loan payment, and then the lender has to hire attorneys, and go through the process of repossessing the boat which is costly and time consuming for everyone involved. 

So, to try to avoid all of that, Trident offers boat loan terms for 10, 15 and even 20 years. These longer boat loan terms spread the cost of the boat out over a longer time period; meaning the monthly payments are lower and much more manageable. 

Let’s assume you’re buying that same nice cabin cruiser you have had your eye on for awhile. You meet all of the qualifications, put down 20% and want to finance the remaining $96,000. A realistic rate may be around 6.24% which means your monthly boat loan payment is around $1,077 assuming you have a 10-year term. Now, if you want even more time to pay, a 20-year term may be available, and now your payment will be around $701 per month. Either of these numbers are way more affordable than the outrageous payment associated with the 3-year term. 

As of September 2023, a competitive rate for a borrower with excellent credit on a $250,000 boat with a 20-year term could be 7.87%. A borrower with a lower credit score, but still a very good one, from 760-799 can expect a rate around 8.12% for the same loan amount and term. 

Rates have been on the rise over the past few months as the Fed has been trying to slow down inflation. It doesn’t seem like boat interest rates will go down in 2023, but they’re forecasted to moderate, and not go up much more. However, these are just predictions, and there are so many factors at play, that it’s hard to predict exactly what rates will do and when they will do it. 

If you’re thinking of holding off on financing a boat until rates drop, don’t count on it! And even if they do drop, the cost of the boat may have increased, there may be a waiting list for the model you want, or rates may surprise everyone and keep climbing. 

So, if you have your heart set on a boat, do your research today, use a boat loan calculator and a rate estimator, and then apply for a boat loan. Once you’re approved for the boat loan, you can lock in the rate, not lose out on your boat, and not have to risk rates rising or that loan program no longer being available. 

So, now that you know all about boat loan rates, terms, and what to expect when getting a boat loan, check out the industry leader: Trident Funding. They have nearly 30 years of marine financing experience. You can easily apply for boat loans with low interest rates on our website. Then expect smooth sailing as we help you through the entire financing process, all the way to the closing table.  

Boat loan APRs can vary depending on several factors. The APR is typically determined by your credit score, the size of your down payment, and the age of the boat, and the term of the loan. The higher the credit score, the larger the down payment, the new the boat, and the shorter term, the better the APR will be.

An interest rate determines what you pay each month. It is the cost of the loan to the buyer and is expressed as a percentage. The APR is also expressed as a percentage but it gives you a broader view of the loan’s annual costs. The APR includes the total cost of the loan including loan origination fees, and points etc. APR stands for annual percentage rate. When comparing loan products, compare APRs with APRs and interest rates with interest rates so you’re getting a fair comparison. This can get confusing, so if you have questions on boat loan rates or boat loans in general, Trident’s trained loan specialists can help.

1Estimated APR, or Annual Percentage Rate, is the annual cost of the loan, which includes other pre-paid finance charges and fees. The following is an example, and the rates and terms can vary. An $88,000 loan for the purchase of a recreational use boat for 20 years with a fixed rate of 7.74% would have an estimated APR of 7.74% and 240 payments of $721.89. Closing cost, official fees such as state tax, title and registration, FL doc stamp fee and/or UCC filing fees may apply. Some loan programs may not be available in all states or Puerto Rico.

2Above rates are for recreational use 2014 Boat model year or newer. Boat model years 2004 – 2013 are subject to a rate increase. Actual rate, loan amount and term can vary depending on the lender, FICO score, credit history, lender assets/liquidity requirements, debt and payment to income ratios, collateral type, age of collateral, loan to value, vehicle registration (LLC), loan type (Purchase versus Refinance), state of residency and other criteria. Rates and terms may vary and are subject to change without notice. † Max loan term may vary.

3Actual rate, loan amount and term can vary depending on the lender, FICO score, credit history, lender assets/liquidity requirements, down payment, debit and payment to income ratios, collateral type, age of collateral, loan to value, vehicle registration (LLC), loan type (Purchase versus Refinance), state of residency and other criteria. Loan is for recreational pleasure use only. Rates and terms are subject to change without notice based on market conditions and borrower eligibility. Other rates and loan terms are available. † Max loan term may vary. Rates may not apply to customers residing in states or Puerto Rico.