Americans’ desire to be on the water continues to be strong. An estimated 85 million Americans go boating each year, driving an economic impact of $230 billion.1 While overall boat sales have eased off since the pandemic, a National Marine Manufacturers report indicates people are continuing to look for ways to spend more time on the water. Plus, the personal watercraft segment is still seeing significant increases (projected to be up between 20 and 25% based on 2023 sales data).2
Here are five key things dealers can help customers understand when they’re looking to finance a boat.
1. Down payment
The required down payment on a boat can vary depending on the type, size, and purchase price. While it may range from zero to 30%, the average consumer downpayment when financing a boat is 10%.3
2. Additional expenses
It’s important to remind customers to factor other items into the cost of financing a boat, such as boat cushions, marine electronics, safety gear, and possibly a trailer. This will impact the amount they need to borrow and their related monthly payments.
3. Interest rate
Most boat financing offers are a fixed interest rate for a specific period (term). The exact interest rate may vary depending on a customer’s credit rating, down payment, and the length of the term. An interest rate calculator can help your customers determine their monthly payments based on current interest rates.
4. Term
Some good news for today’s boat buyers is that the size of their monthly payments can be reduced by spreading them out over a longer term than was possible in the past. A few decades ago, financing terms for boats rarely went beyond 10 years.4 That’s because many boats – particularly wooden boats – only lasted that long. With today’s steel or fiberglass boats lasting 50 years or longer,5 it’s become common to finance a boat for a 20-year term.
5. Payment options
Explaining the various financing options and related monthly payments a customer can qualify for will help them determine the type of boat they can buy. It can also be reassuring to let them know if it’s possible to pay off the financing before the end of the term, which reduces the overall expense.
Buying a boat is an important lifestyle choice and choosing a supportive dealer is essential to creating a positive experience. Dealers who take the time to explain the key financing concepts will likely build strong relationships with their customers for many years to come.
Discover how Aqua’s competitive financing solutions can help make your customers’ boating dreams a reality. Contact us today at:
877-366-8406, option 5, ext. 6015
[email protected]
