You’ve found the perfect boat, and now all you need is to put the financing into place. As you consider your loan options, along with interest rates and loan amounts, one of the questions that is bound to come up is, “How long can you finance a boat?” How many years a boat can be financed will vary depending on the unique situation, but if you want to get a general idea and understand what factors affect term length, read on.

Average Length of Boat Loans

Historically boat loans tended to be for shorter periods, but that has shifted and now the average length of a boat loan based on value can be summarized below:

  • $15-25k: 10-12 years
  • $25-50k: 15 years
  • $50-100k: 15-20 years
  • $100k+: 20 years

 If you are financing a boat that is less than 15-years-old, chances are that you may be eligible to get a loan term of up to 10-30 years. On the other hand, if your desired vessel is older the lender may offer lower terms due to the age. 

Factors that Affect Boat Financing Terms

Your boat loan terms will depend on several factors including the size of down payment, the loan amount, boat age, debt to income ratio, and personal preference. A larger down payment can lead to lower monthly payments. Your credit score will help determine your interest rate as will the desired term length. A boat loan for a more expensive or newer boat may be eligible for a longer term than a less expensive older vessel.

Reasons to Choose a Shorter Loan 

While you may be tempted to extend your boat loan term for as long as possible, if you are able to make the slightly higher monthly payments on a shorter-term loan, you may get better rates and you will be more likely to stay ahead of depreciation, so you are not upside down on the vessel. A shorter term will also decrease the total interest paid making your final price closer to the original purchase price. 

Ready to secure boat financing?

The best way to find out what loan terms you qualify for is to go ahead and apply with a trustworthy lender. Azure Funding is an experienced and well-established marine financing business. Whether the boat in question is new or used, we can help walk you through selecting the boat loan that is best for you. Call and talk to one of our specialists today to get started.



*All information in this post including, but not limited to, quotes, rates, term-length, and other loan information is purely informational and may not reflect your actual terms. Actual loan terms will be dependent on a number of actors including your personal credit history, assets, debt to income ratio, and more. Please speak with an Azure Funding representative today by clicking here to discuss your individual financial situation.