How Long Can You Finance A Boat (And Why)?

How Long Can You Finance A Boat (And Why)?

Exact Answer: Up to 20 years

Boat financing is very similar to financing a home or car. There are many things that have to be considered before financing a boat. The interest rate and the down payment would play a vital role in predicting how long someone can finance a boat. The boat financing is done for very little time by the lenders as compared to the other purchases.

The reason may be that before 50 years the boats were not built in the manner they are today. Many lenders made the boat financing for 10 years as after 10 years the boat may ask for maintenance and service. The devaluing of collateral can be an issue for the lenders. Therefore the boat financing would not be for a long period.

Nowadays, the engines of the boats are lasting really long without asking for repair or maintenance. Therefore, some lenders have increased the boat financing time.

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How Long Can You Finance A Boat?

Boat Financing How Long Can You Finance A Boat
Minimum time10 years
Maximum time20 years

The monthly payment of the boat financing would be different for both 10 and 20 years terms. The 20-year boat financing period would bring down the monthly payments of the person. There are some factors that affect the boat financing time period or terms. These are:
The size of the boat loan- If the boat loan is large then the lender would stretch the boat financing term. It means the period for financing the boat would be more if the boat loan size is more. The time period for all the types of loans will be decided by the lenders. The person should always keep checking the criteria for the boat financing set by the lender.

The boat type- There are many types of boats that the lender would treat differently. Boats that give high performance would have different boat financing conditions led by the lender. For example, boats that come with wood hulls would be treated differently as compared to boats that give a normal performance.

The sailboats are treated in a different manner than many powerboats. The liveaboards loans would depend on the laws regarding the residences. The homeownership would also affect the loan for liveaboards.

The age of the boat- The age of the boat is very important to know the financing of boats. The boats that are new will have a long-term loan period. Many lenders don’t pay attention to the age of the boat and some decide the loan term on the basis of the age. If the boat is old, then the boat loan would be short.

If someone is willing to buy a used boat, then the boat loan criteria would change. The finance rate for the old boat may be decided by considering the model of the boat.

Why Can You Finance A Boat For This Long?

The boat financing would go longer depending on the type, age, and size of the boat. The main reason to have a 10 or 20 years loan term for the boat is due to the overhauling of the boat. The boat may ask for overhauling, repair, or maintenance at some point in life, and the lenders have to set the loan term accordingly.

Once the boat would start asking for maintenance, then it would not be a good call for the lender. The lender would always decide the loan term that would be favourable for them. The loan terms of new boats are long as their chance of getting a repair or overhaul is extremely low. If someone wants to buy an old boat in long term loan period, then it would be very difficult.

The loan term is always set by the lender or any organizing body taking part in it. The boat loans are mainly given by credit unions, marine finance companies, and boat dealers.


The minimum loan amounts would be set by the lender. A person who has a fixed income can find the boat loans extremely beneficial. As the person can plan the payment installments to own the dreamboat. There may be some additional costs that a person has to pay for owning a boat. The credit score of the person has to be above 700 for boat financing.

The lender may also see the credit history for a better clarification about the payment performance of the person.


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Hi! I'm Nidhi.

Here at the EHL, it's all about delicious, easy recipes for casual entertaining. So come and join me at the beach, relax and enjoy the food.

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