Log in to continue an existing application
Used Boat Loans
Get matched with a loan that fits your budget and lifestyleApply Online in 5 Minutes
How to Apply for a Used Boat Loan
If you know your used boat loan budget, it’s time to shop for your perfect boat! Once you find it, check current interest rates.
Tell us about the type of pre-owned boat you’re buying and a few details about your financial situation and we’ll match you to the marine lender that’s right for you.
You’re all set to get on the water! We’ll finalize the paperwork and get your loan funded.
Used Boat Financing
Obtaining a used boat loan can be a crucial step in the exhilarating journey of purchasing a pre-owned watercraft. As boats can be expensive investments, second only to primary residences for many, securing a loan is often necessary to finance this significant acquisition. Used boat loans, designed to facilitate the purchase of various types of boats such as yachts, sailboats, and fishing boats, share similarities with other loans like auto loans and home mortgages. These loans provide borrowers with the funds needed to purchase the asset upfront, while allowing for repayment over time, usually with interest.
Used boat loans are generally secured loans, in which the pre-owned boat serves as collateral, potentially resulting in lower interest rates. A range of lenders offer used boat loans, and the specific terms and conditions depend on factors such as the borrower’s credit history, loan amount, and loan term length.
Securing a used boat loan is not a difficult process, though each lender may have specific requirements in place. While perfect credit and high income are not mandatory, borrowers generally need a credit score of at least 600 and should be prepared to make a down payment of 10 to 20 percent of the boat’s cost. Additionally, demonstrating the ability to afford the loan payments is essential for approval.
To assess your eligibility for a used boat loan, consider using a boat loan calculator. This tool can help you determine the price range of pre-owned boats you can afford and provide an estimate of your monthly payments.
Gather This Information to Get Started
- Year, make, and model of the boat you want to finance or refinance
- Sufficient income and employment history (usually at least 2 years)
- Personal information about yourself and any co-borrowers, including Social Security Number (SSN) and contact information
- Lender will also look at your payment history, pay stubs, tax returns, and sometimes your bank statements
- To expedite funding, you’ll also want to have the following documents available as PDFs or images on your phone or computer to upload via a secure document portal:
- A purchase agreement (signed by you and the seller)
- Seller’s contact information (name, email, phone number)
- A copy of your driver’s license
- Proof of down payment (Copy of down payment check or wire receipt)
Types of Used Boat Loans
Secured loans require you to put up collateral, such as your boat, to secure the loan. This is called the collateral. The collateral, or boat in this case, secures the debt, so the boat serves as collateral for the lender. Secured boat loans usually offer lower interest rates, which make them more affordable for borrowers. However, if you default on the loan, you risk losing your boat as collateral. We always recommend understanding your personal financial situation and your ability to repay the loan before choosing between a secured or unsecured boat loan.
Unsecured loans are a financing option that does not necessitate collateral, such as the boat itself, to secure the loan. As lenders take on more risk with unsecured loans, they tend to be costlier compared to secured loans. Essentially, unsecured loans rely solely on the borrower's creditworthiness and are not backed by any specific assets like boats or real estate. In the event of a default, lenders can only resort to legal action to recover the debt, as they are unable to seize any collateral directly. While borrowers remain responsible for repaying unsecured used boat loans as agreed upon, the absence of collateral means the boat is not at risk in case of default. Despite their higher costs, unsecured boat loans offer this added level of security for borrowers.
Used Boat Loans from Trident Funding
Trident Funding offers used boat loans as well as boat refinancing for various lifestyles and boat buying budgets. Our pre-owned boat loans take into account factors such as loan amount, down payment, boat type and age, boat loan interest rates, boat loan terms and credit qualifications. We offer boat loans for older boats up to 20 years old. Our dedicated team of sales representatives guarantees professionalism and competitive rates. Let us take the guesswork out of finding the right lender, and help you sail through the process of financing a pre-owned boat!
- 50+ marine lender partners to get you the best rate
- Approval as fast as 24 hours!
- 60-day deferred payment
- Minimum credit score 600+
- Up to 20-year boat loan terms
- Private party and dealer purchases
- Boat loans from $25,000 to $2,000,000
- Zero down boat loans up to $100,000
- Help with private party funding
Please contact us with your specific questions and for current rate information. Let us take the guesswork out of finding the right lender, and help you sail through the process of financing a boat!
Tools to Help Guide Your Loan Process
Boat Loan Rates
Check current boat loan rates to estimate your monthly payments and interest rates with Trident Funding’s boat loan estimator.
Use our easy boat loan calculator to estimate your monthly payments or calculate your total loan amount to see how much boat you can afford.
Frequently Asked Questions About Used Boat Loans
Can you get a loan on a 20 year old boat?
Yes, it is possible to get a loan on a 20 year old boat. However, the availability of loans and the terms of the loan may vary depending on several factors, including the condition of the boat, its make and model, and your creditworthiness.
If the boat is in good condition and has been well-maintained, and if you have a good credit score and a stable source of income, you may be able to secure a loan with favorable terms. On the other hand, if the boat is in poor condition or has a history of mechanical problems, it may be more difficult to secure a loan, or you may have to pay a higher interest rate to compensate for the increased risk to the lender.
It’s also worth noting that lenders may have age restrictions on the boats they will finance. Some lenders may not be willing to finance boats that are more than 20 years old, while others may be more flexible. You may need to do some research to find lenders who are willing to finance older boats and compare their loan terms to find the best option for your needs.
Is it easier to get a loan on a new boat or used boat?
Generally speaking, it can be easier to get a loan on a new boat than a used boat, but it ultimately depends on a variety of factors.
When you buy a new boat, lenders may consider it less risky than a used boat because it hasn’t had any wear and tear, so it’s less likely to break down or have costly repairs. Additionally, new boats often come with a warranty, which can provide some reassurance to lenders.
On the other hand, used boats can be more difficult to finance because their value is often more difficult to determine. Lenders may be more cautious about lending money for a used boat because there is a higher risk of the boat having mechanical issues or other problems that could impact its value.
However, there are also other factors that can impact the ease of getting a loan, such as your credit score, income, debt-to-income ratio, and the type of loan you’re applying for. It’s always a good idea to shop around and compare loan options from different lenders, both for new and used boats, to find the best option for your specific situation.
What is the oldest boat you can get a loan for?
The oldest boat you can get a loan for can vary depending on the lender and the specific loan program. Some lenders may have specific age restrictions on the boats they will finance, while others may be more flexible.
In general, it may be more difficult to get a loan for an older boat because it may be harder to determine its value and there may be a higher risk of mechanical issues. However, if the boat is well-maintained and in good condition, and if you have good credit and a stable income, you may still be able to secure a loan for an older boat.
Some lenders may be willing to finance boats that are up to 20 years old, while others may have more restrictive age limits. It’s important to shop around and compare loan options from different lenders to find the loan program that best fits your needs.
It’s also worth noting that the interest rates and terms of the loan may vary depending on the age and condition of the boat, as well as your creditworthiness and other factors. Be sure to read the loan agreement carefully and understand all the terms and conditions before signing the loan documents.
How long is the average used boat loan?
The length of a used boat loan can vary depending on the lender, the age and condition of the boat, the loan amount, and other factors. However, the average length of a used boat loan is typically between 5 and 15 years.
Shorter loan terms, such as 5 or 7 years, are more common for smaller loans or for older boats, while longer terms, such as 10 or 15 years, may be available for larger loans or for newer boats. The length of the loan term can also affect the interest rate, with longer terms typically having higher interest rates. Trident Funding offers 10-, 12-, 15-, and 20-year boat loan terms.
When choosing a loan term, it’s important to consider your budget and financial goals. A longer loan term may result in lower monthly payments, but it also means paying more interest over the life of the loan. A shorter loan term can help you save money on interest and pay off the loan faster, but it may also result in higher monthly payments.
It’s a good idea to shop around and compare loan options from different lenders to find the loan term and interest rate that best fits your budget and financial situation.
What FICO score do I need for a used boat loan?
The FICO score required for a used boat loan can vary depending on the lender and the specific loan program. Generally, a higher credit score can increase your chances of getting approved for a loan and can also lead to more favorable loan terms, such as a lower interest rate.
In general, a FICO score of 650 or higher is considered to be a good score for a used boat loan. However, some lenders may require a higher score, such as 700 or above, to qualify for their loan program.
It’s important to note that your credit score is just one factor that lenders consider when evaluating your loan application. They may also consider other factors, such as your income, employment history, debt-to-income ratio, and the age and condition of the boat you’re interested in purchasing.
If your credit score is lower than the lender’s minimum requirement, you may still be able to get approved for a loan, but you may need to provide additional documentation or collateral, or you may need to pay a higher interest rate to compensate for the increased risk to the lender.
Before applying for a used boat loan, it’s a good idea to check your credit score and credit report to make sure there are no errors or inaccuracies that could impact your ability to get approved for a loan.