When you buy a boat financing can make or break you (literally!). Paying $300 to $600 per month for a new boat might appear very attractive when the fish are biting but it might not be so appealing when there is snow on the ground and ice on the water.
Remember to figure out the Total Cost of Ownership (TCO) before you sign the dotted line on that contract:- A boat is a luxury -- remember food on the table and a place to live are more important then a nice paint job!
- A lower down payment will ultimately result in higher finance charges!
- Remember you need to insure the boat and put gas in it to! Always overestimate the cost of running your boat - it's always nicer to find out it's cheaper (not more expensive) to keep then you thought!
- When applying for loans always get at least 3 quotes. Remember to read the find print -- a balloon loan (one in which you pay the interest first and the principal later is not a deal!)
- Using home equity can offer tax advantages as well as low rates!
- Think twice before you finance a boat for 15 or twenty years!
