What’s the Oldest Year Boat You Can Finance?

If you’re considering buying an older boat, you might wonder how old is too old to qualify for financing. The age of the boat you can finance typically depends on the lender and the boat’s condition, but here’s a simple guide to help you understand your options.

General Boat Age Limits for Financing

Most lenders prefer boats that are less than 20 years old, with some limiting financing to boats that are 10 to 15 years old. However, certain lenders specialize in older boats, especially if they are in good condition or considered classic or antique models. It’s always best to check with lenders directly, as these policies can vary.

Key Factors Lenders Consider

Lenders don’t just look at the boat’s age. They also evaluate:

• Condition of the boat: A well-maintained older boat is more likely to qualify.
• Appraisal or survey: Some lenders require an inspection to assess the boat’s market value.
• Loan type: Secured loans (using the boat as collateral) are common, but interest rates may be higher for older models.

Interest Rates and Loan Terms

Older boats often come with higher interest rates, since they tend to depreciate faster and may require more maintenance. Additionally, loan terms may be shorter for older boats—lenders may want to minimize the risk by shortening the repayment period.

Low Interest Rates

Range: 3% to 6%

Who Gets Them?:

• Borrowers with excellent credit (typically a credit score of 720 or higher).
• Newer boats, as lenders often offer lower rates for boats that are new or only a few years old.
• Shorter loan terms (5 to 10 years) may also come with lower interest rates.

Conditions: These rates are competitive and often available through banks or marine lenders that offer secured loans, where the boat serves as collateral.

Average Interest Rates

Range: 6% to 10%

Who Gets Them?:

• Borrowers with good to fair credit (credit scores typically between 640 and 719).
• Loans for boats that are up to 10-15 years old.
• Average loan terms (10 to 15 years) usually fall in this range.

Conditions: This range is fairly standard for borrowers with decent credit and for boats that may not be brand new but are still in good condition.

High Interest Rates

Range: 10% to 20% or more

Who Gets Them?:

• Borrowers with lower credit scores (below 640).
• Financing for older boats (over 20 years old) or boats that need significant repairs.
• Longer loan terms (15-20 years) might also come with higher interest rates.
• Unsecured loans (where the boat is not used as collateral) often carry higher interest rates.

Conditions: These rates are usually reserved for riskier loans, either because of poor credit or older boats that depreciate quickly. Some online lenders and personal loan providers fall into this category.

Factors That Influence Boat Loan Interest Rates

• Credit Score: The higher your credit score, the lower the interest rate you are likely to receive.
• Boat Age: Older boats tend to come with higher interest rates due to depreciation and maintenance concerns.
• Loan Term: Shorter loan terms (fewer years) generally come with lower rates, while longer terms increase the risk for lenders, leading to higher rates.
• Down Payment: A larger down payment can sometimes help reduce the interest rate, as it reduces the loan amount and risk for the lender.

Down Payment and Insurance

For older boats, expect a larger down payment. Lenders may ask for 20-30% of the boat’s value upfront. Additionally, insurance requirements can be stricter, and finding coverage for older boats may take more time and effort.

Restoration and Repair Financing

If you’re purchasing an older boat that needs repairs or restoration, be aware that not all lenders will finance boats in need of major work. Some may offer separate financing options specifically for repairs or restoration.

Finding the Right Lender

There are lenders that specialize in financing older or classic boats, so if you’re set on an older model, it’s worth seeking them out. Be sure to shop around for the best terms, as loan options can vary widely depending on the boat’s age and condition.

LightStream

• Type of Loans: Unsecured personal loans for boats (no collateral required).
• Boat Age Limit: Typically up to 20 years.
• Key Features: Competitive rates, no fees, and quick approval. Flexible loan terms.

Bank of the West (Essex Credit)

• Type of Loans: Secured boat loans.
• Boat Age Limit: Offers financing for boats up to 30 years old, especially classic and antique boats.
• Key Features: Competitive rates, longer repayment terms, and specialized in marine lending.

U.S. Bank

• Type of Loans: Secured boat loans.
• Boat Age Limit: Usually boats less than 15 years old.
• Key Features: Offers fixed interest rates and flexible terms.

Truist (formerly BB&T)

• Type of Loans: Secured boat loans.
• Boat Age Limit: Generally finances boats up to 20 years old.
• Key Features: Offers low-interest rates, flexible terms, and up to 240-month repayment plans.

SunTrust Bank (Now Truist)

• Type of Loans: Secured loans for boats.
• Boat Age Limit: Accepts older boats, but terms depend on condition and valuation.
• Key Features: Competitive interest rates and long loan terms.

Wells Fargo

• Type of Loans: Personal loans for boats (unsecured).
• Boat Age Limit: No strict age limits, but higher rates may apply for older boats.
• Key Features: Fast approval process, no collateral required, flexible terms.

Southeast Financial

• Type of Loans: Secured boat loans.
• Boat Age Limit: Can finance boats up to 30 years old.
• Key Features: Specializes in financing older boats and RVs with reasonable down payments and flexible loan terms.

Marine Lender Services (MLS)

• Type of Loans: Specializes in marine financing.
• Boat Age Limit: Flexible, can finance classic and antique boats.
• Key Features: Works with multiple lenders to offer competitive rates and longer loan terms.

Blue Water Finance

• Type of Loans: Marine financing specialists.
• Boat Age Limit: Up to 30 years old.
• Key Features: Specializes in boat financing with access to a wide network of lenders, allowing for better rates.

eBoatLoans

• Type of Loans: Marine financing.
• Boat Age Limit: Finances boats up to 25 years old.
• Key Features: Quick approval process, wide variety of loan options tailored to boat buyers.

Conclusion

In general, you can finance boats up to 20 years old, depending on the lender and the boat’s condition. Keep in mind that interest rates, loan terms, down payments, and insurance requirements may differ for older boats, so it’s important to research your options thoroughly before making a decision.