Some boat loans can be easier to find than others — it depends on the type of loan you’re looking for.
Manufacturer financing
If you’re buying a brand-new boat, you might want to look into manufacturer financing. Here, you will buy your boat and finance it, all under the same roof. Manufacturer financing typically comes with ultra-competitive APRs and buyer incentives.
For instance, at the end of the year, Yamaha runs an End of Season Sales Event. Among its promotions, it offers zero down, zero interest and zero payments for 90 days. You could also find introductory APRs as low as 4.99%. Although the deals you find may differ, manufacturer financing could save you a boatload of money, if you qualify.
Banks and credit unions
Some banks and credit unions offer boat loans, and even more offer personal loans. Since you already have a standing relationship, your bank or credit union can be a good place to turn to for a loan.
In-house financing
In-house financing, sometimes called dealer financing, can be a convenient way to get a boat loan. With this option, the boat dealer will set up your financing with a third-party lender. Or it could provide financing itself if it’s a buy here, pay here boat dealer. You may be familiar with in-house financing if you’ve ever gotten an auto loan from your dealership.
In-house financing can have higher interest rates than other types of boat loans. Your dealer has no obligation to shop around or offer you the cheapest loan you qualify for. For this reason, it may be wise to compare lenders before committing to dealer financing.
Online lenders
Online lenders are a common place to get a personal loan. You don’t need to leave the comfort of your home, and funding timelines are generally quick. Compared to bank and manufacturer loans, however, they tend to include higher origination fees.
If you’re interested in online lending, LightStream might be worth exploring. Its boat loans (technically personal loans) have a competitive APR range of 6.99% to 15.89% (with autopay). You’ll need good to excellent credit to qualify, though.