New
boat loans preferred by finance companies
New
boat loans preferred
by finance companies
By Peter Bonavista
New boat loans are much easier to secure than
a used boat loan. The banks are more inclined to invest in a new
boat due to the depreciation factor. Finance companies have done
their homework on this matter and they have added up the beans
too. The bean counters have concluded that banks make more money
in the long run if they provide financing on brand new marine
products. They lower their interest rates for new boat loans and
in the same breath encourage borrowers to buy brand new. I don't
think it takes alot of convincing to move some towards a new boat
instead.
What
I have done in my research of new boat loans is three fold. I've
used the internet to search for information. I've used the phone
to contact different banks and enquire about their practices.
I also take every opportunity to pick the brains of bank staff
regarding their policies and procedures. Sounds a little "out
there" ...I know. It's not fanatical or anything. I just
keep my eyes and ears open. When developing an article regarding
new boat loans I wanted to make sure I was educated somewhat before
I started spilling out my words on the internet.
New
boat loans vary as far as interest rates are concerned but there
is a rule of thumb you can follow. New boat loan interest rate
are approximately 1 point higher than new car financing. That
is about as simple as I can put it. At the time of this writing
boat loan rates were averaged at 4.5%. Now there are many factors
that come in to play here. The amount your down payment is, the
length of your financing term, your credit rating and of course
your collateral. Many advertisements online and off will claim
low interest rates even with bad credit but it all varies depending
on the above factors.
