Financing a Boat - How Long Does it Take?

Financing a Boat - How Long Does it Take?

Posted by: TJ Johnstone on Mar 22, 2018 11:20:00 AM

When I work with first-time boat owners, they’re usually pretty surprised when they find out what’s considered a normal length of time for a boat loan. If you’re wondering how long it takes to finance a boat, you’ve come to the right place.

Financing a Boat

For boat financing, there’s quite a bit of flexibility, especially if you’re comparing it to auto financing. It’s perfectly normal – and honestly quite common – to have a boat loan term stretched out over 120 months (10 years). 

A short loan term for boat financing is going to be anything under 60 months – that’s five years. An average loan term is going to range from eight to 12 years, and a long loan term is going to be 12 to 15 years.

Here’s why boat buying comes with longer loan terms.

Interest Rates Tend to Level Out

Unless you’re opting for a short loan term – five years or less – you’re going to get pretty much the same interest rate on your loan. When buyers find out an eight-year boat loan term is going to have the same interest rate as a 10- or 12-year loan term, they usually opt for the longer term.

Why? Because it gives buyers a lower monthly payment without adding to the total cost of their loan. This can make boat buying much more realistic for buyers with a tighter budget, and it provides buyers the opportunity to make additional payments toward their principle.   

Boats Hold Value Longer

Financing a Boat - How Long Does it Take? When compared to other assets, boats have a much slower rate of depreciation. In terms of trade-in and resale value, boat prices stay pretty consistent over time. That’s good news for boat owners who are hoping to get a decent payoff when they sell their current watercraft, and it’s good news for buyers who are looking at older models.

It’s worth mentioning that Bennington Pontoons hold onto their value exceptionally well. Not only are they built with high-quality materials and engineered for longevity, but they have a warranty that’s transferable to future owners.


Are you curious what your payments would be if you financed a boat or pontoon? Try our payment calculator.

Topics: Financing
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