What To Know About Boat Loans?

Have you ever dreamed of the open sea? That horizon and the great red sun diving in it as it sets, or the great night sky and the salty air that follows the view of the night sky. Or perhaps a great day of extreme fishing with your friends and the boat party that follows? The feeling of self-satisfaction, the king of the castle, the captain? Imagine yourself saying the words “I own a boat”. It is the status symbol that opens the doors everywhere. However, boat purchase, no matter whether it is a smaller boat, a sailboat or a yacht, is often far too expensive and can burden your budget significantly. This is why most people don’t buy them with pure cash but turn to boat loans and leasing. This can help you greatly to be much closer to those dreams of the open sea. But, nevertheless, before engaging in a boat loan, it is not sufficient just to go and apply. You will have to do both fast and deep research of this subject. Here are some things you should keep your wits on. If you want to know more about loans, business management and financial abilities, check out this ILoan24 website.

Pre-qualification

Do a bit of bank research. Not all of them have boat loans in their offer. Ask around in as many banks you can for this option. When you find the banks that are offering boat loans you should ask for pre-qualifications.  There are two things you need to know:

1. How much money are they willing to lend you (or how much money your credit capabilities allow you to lend)

2. How much of the boat’s actual value they are willing to lend (because, in most cases, banks do not lend the full amount of the boats actual price)

Find the boat of your dreams

All of the new boats have high prices, but as soon as they leave the showroom floor, they lose in price. It is actually highly recommended to go in search for the used boat because their value drops faster than the car value over the first few years. It has shown in practice that many people who actually buy new boats never use them or cannot afford them afterwards. Click here Quick Payday Loans for detailed articles regarding loans ,financing and business.

Details, details, details

Once you set your eyes on the perfect boat (or perfect boats) locate it and inspect it for every detail possible. For example, check its identification number and whether it came with a trailer. If it did, do the same for the trailer.

Check the paint on it and in what percentage does the paint cover the boat. This will greatly decrease the amount of the boats actual worth especially if it is used in salt water. Check its accessories, even the trivial ones. For example, if the boat has a fire extinguisher, it will raise its price for up to 1 200 $. It is always the detail that can either raise or lower the actual price of the boat. If you learn to read the model numbers you will find this much easier to assess. For instance if the boat model number is 1648VST it means he is sixteen feet long, 48 inches wide, has the V-shaped hull and tunnel. The tunnel can raise the price of the boat for up to 1 000$. Make sure you have all accessories checked thoroughly, because they will bring you close to the boat’s actual price.

The price deals

Sum up the values that you collected and compare them with the price that the seller has set. Most of the sellers do the value check before they engage in boat sale, but they can raise this price hoping they can earn in the inexperienced buyers. But then again chances are that he will set the same price as the boat’s actual value. Do not give him low ball offers. Chances are that the seller has already bought a boat and has his loan already on it.

This way he has already done all the checks, so that he can repay the loan back without many losses. Once you have closed the deal, both you and the seller go to the bank. They will do the same value check as you did, and if you followed these steps, it will surely be close to the value you had set. Make sure you close the deal as fast as you can, because, as we mentioned, the boat prices may vary within days and months. This way you will have no problem or need for another value check. Being financially smart is something that will help you through your entire journey, and this is the one thing that almost everyone relies on. Take a look at this website 55 Money  for further details.

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