For a variety of people owning a boat is an absolute dream. However, to make it come true, a lot of capital is needed. But this is exactly where credit can help.
Not every bank finances all existing boat types. Depending on which type of boat you choose, the purchase prices vary significantly. However, five to six figures are not uncommon here.
When it comes to financing a boat, however, it depends on what kind of nature it is, because not every bank allows lending to all boats. The common variants include, for example:
- Sailboats, motorized and unmotorised
Yachts often even have their own line of boat financing. The background to this is quite simple: here, the amount to invest is usually well above the amount needed for other boat types.
Accordingly, the costs for the purchase of a boat vary. Here, however, not only the equipment of the boat, but also, for example, its age and equipment is important.
For example, buying a boat can cost you five or six digits. Upwards, however, there are hardly any limits, so that the purchase of a yacht can be significantly more costly.
In a dedicated boat loan, the banks usually use the boat itself as collateral . Here, however, it is important to fulfill certain requirements, such as a secure, regular income.
A boat loan is usually a dedicated loan . This means that the loan may only be used to buy the boat in question. Usually, the boat also serves as security for the banks.
In order to determine the real value of the boat, an independent appraisal is often needed here. In this not only the brand and the equipment, but also about the age and condition is considered. In this way, the bank learns with what value the “floating vehicle” serves as security.
The appropriateness and the fact that the boat serves as collateral, however, also ensures that the interest rate of the loan is lower, so that it benefits from a rather cheap loan.
In order to obtain a loan for the boat purchase, however, aspiring borrowers have to fulfill a wide range of conditions. Otherwise, no lending is possible. This includes not only a regular, secure and therefore high income, but also a good credit rating and a positive information. Furthermore, usually a German checking account and a German residence is required.
In addition, a variety of documents must be provided when applying for the Bank’s loan. These include, among other things, the last three salary statements, pictures of the boat, as well as tax proof, if the boat was purchased abroad. It is indispensable that the bank be provided with all the required evidence, otherwise it will not be possible to process the loan application.
However, it is also important for the credit institutions where the berth is located. If this is within the EU, then the berth is usually not an exclusionary criterion. However, should this outside the EU, then many banks do not give credit, because the risk is too large here. Furthermore, it is for the credit institutions of interest whether you also charter the boat or “just” for own use would arise.
In the case of successful loan processing, the bank simply transfers the relevant loan amount to its own account. So it is then feasible to buy the desired boat or pay in one amount.
The repayment of the loan takes place, as agreed in the contract, in regular, constant monthly installments. Accordingly, a loan agreement for boat purchase is very clear and does not bring any unpleasant surprises. Due to the high level of planning, the loan payment can also be integrated very well into its own monthly obligations.
Compare and save
It is advisable to compare the various loan offers well together, since there are mostly clear differences here. So it is not only possible to save a lot, but also to benefit from various special services.
Although not every bank finances each boat, it is still advisable to compare the existing offers well together. Because especially with such high sums as they are incurred when buying a boat, already make a few percentage points in the interest rate under some circumstances, a difference of several hundred euros. So, if you compare well here, you can save a lot here.
For example, quick and easy bid comparison is possible with an online loan comparison. Initially, aspiring borrowers simply enter some important data and the comparison already determines the various loan offers that are eligible for own boat purchase.
Since the list of comparisons usually lists not only the interest rates but also other important details, it is easy to get a good overview here.
However, it is important not only to pay attention to the nominal interest , but above all to the annual percentage rate of charge. Because only in the APR are all the costs incurred for the loan taken into account. Accordingly, this is a very good comparison factor.
Furthermore, a credit comparison also reveals which special services the various banks offer in relation to their respective loan offers. This includes, for example, not only the suspension of a monthly emergency rate , but also a variable interest rate and the ability to make free special payments. So it is also possible with the help of the various special services to make the credit repayment more pleasant and additionally to save.