Boat Loans Can Make Dreams Come True
Imagine this: Wind slapping your face and tousling your hair with the taste of salt everywhere as you steer your newly-acquired boat. Your family is having a grand time enjoying wake-boarding riding the inflatable banana boat, and other marine adventures. You are heading toward a secluded island where you normally can’t easily access without your spanking brand new recreational vehicle.
Boat Loans Can Also Sink Your Financial Ship
This is just one side of the story. Now, for the other half of the story, envision this: Monthly boat loan payments, insurance, repair and other maintenance expenses slapping your face, tousling your finances with the taste of repossesion in the atmosphere. Your family recreation on the verge of going under water.
It goes without saying that you are planning to buy a boat to live out your fantasies of marine escapades without having to struggle in making the monthly payments and spending for the expenses that go with boat ownership. That is why, it is important to understand everything about boat loans and ownership first before signing up for anything. This post will discuss some of the important things to consider.
Questions To Ask Before Taking on a Boat Loan To Keep Finances Buoyed Up
1. How much can you qualify for?
You can find the answer to this question in the Internet using online tools that give you a picture of this purchase vis-a-vis your income, such as the debt-to-income calculator.
2. How much would be your monthly payments?
Once you have a rough calculation of how much you can qualify for, the next thing to find out is how much would you be paying each month? Potential boat dealers or lenders, online boat loan calculators, and some research can help you answer this. It is important that you take the answer to heart as this will give you an idea of whether or not you can really afford it. Knowing your monthly payments also helps you get a picture of its impact on your overall monthly expenses and budget.
3. What type of insurance should you get?
Insurance is a prerequisite to boat loans. Agreed Value Policies are the most common boat insurance policies available nowadays. Such policy secures the amount of the purchase price of the watercraft. Property damage claims and personal injury are covered by hull coverage, protection and indemnity. Your monthly insurance payments will hinge on your age, sailing experience, driving record, type of boat acquired, previous insurance claims, and the places where you will be taking the boat.
4. How much does it cost to own and run a boat?
Besides monthly insurance and boat loan payments, make sure that you can also afford to shoulder other expenses that goes with boat ownership including gas, registration fees, instruction and safety course fees, and so on. Otherwise, your boat may stay permanently moored at the dock.
Before beginning your voyage as a boat owner, first find everything out about boat loans and how taking a loan can affect your finances. This way you ensure that both your boat and finances stay afloat.
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