There are many people who can never live without going to pristine beaches and sailing to the sea. However, owning a boat is a luxury not everybody can afford. Fortunately, nowadays boat finance is easy to come by because of the many marine lending institutions both online and offline. These lending institutions offer different boat finance plans with different boat finance interest rates. Here are the most common boat finance loans:
- Secured Boat Loan – Secured loans require the borrower to have a collateral to secure his boat loan. In the case of secured boat loans, it is the boat that is put up as the collateral. If the borrower is not able to pay, the boat will be seized. This type of boat loan requires lower boat finance rates since the loan is secured.
- Chattel Mortgage – Businesses and companies are able to get boat finance through chattel mortgage. Through this loan the business is able to own the boat and is given the responsibility of paying it monthly. Chattel mortgages require the purchased boat to be used in business purposes. Since chattel mortgages are some sort of a secured loan, they also have relatively low boat finance interest rate.
- Commercial Hire Purchase – With commercial hire purchases, boat finance companies buy boats in behalf of their customers who will use the boats on a contractual basis. The customers will then pay according to the provisions of their contract. The borrowers will gain exclusive ownership of the boats only when their contract ends when the total price of the vehicle, including the boat interest rates has been fully paid.
- Boat Leasing – With boat leasing, a boat financier will purchase a boat on you or your company’s behalf and then let you use it under a lease contract. This contract will only let you exclusively own the boat once the leasing contract ends. You will first need to pay the remaining residual cost before they turn the boat over to you. The longer the lease duration the larger the boat finance interest rates.
The above boat finance options will give you the opportunity to own the boat of your dreams. You don’t need to empty your savings account. Once you visit a marine lender, make sure to ask them to explain to you the different boat finance options available and their corresponding boat finance interest rates.
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See also: Interstate Removals