Boat and marine financing
Boats, outboard and inboard engines, trailers and repowers — new and used, for personal use, charter businesses and public agencies.
The short version
Marine financing splits by use rather than by boat. A personal runabout or pontoon between $15,000 and $60,000 usually goes on a consumer installment loan; a charter or commercial vessel belongs on a commercial program; and a repower — replacing an engine on a hull you already own — is often the smartest money in the category and is financed separately from the boat.
Realistic expectations
What marine purchases typically cost
Working ranges. Condition, hours and engine age move these considerably on the used market.
| Purchase | Typical cost | Usually financed as |
|---|---|---|
| Used pontoon or runabout | $10,000–$35,000 | Installment loan |
| New pontoon or bowrider | $30,000–$80,000 | Installment loan |
| Outboard repower | $8,000–$35,000 | Installment loan or lease |
| Trailer | $1,500–$6,000 | Lease, or with the boat |
| Fishing boat with electronics | $25,000–$90,000 | Installment loan |
| Charter or commercial vessel | Varies | Commercial equipment finance |
| Municipal patrol or rescue craft | $1,500 and up | Municipal lease-purchase |
Ranges reflect published program terms. Approval, approval amount and terms are determined by the provider after underwriting and are not guaranteed.
Buying well
Four things specific to boats
Get a survey on anything used and large
A marine survey on a used boat above about $20,000 is money well spent. It is also what a lender will want on larger transactions.
Consider a repower before a replacement
A sound hull with a tired engine is frequently worth repowering rather than replacing. The engine is the expensive part, and financing it alone is a far smaller commitment.
Budget the ownership costs
Insurance, slip or storage, winterisation, registration and maintenance typically run 8 to 12 percent of the boat’s value a year. Add that to the payment before deciding.
Check titling in your state
Boats and trailers are titled and registered differently across states, and the paperwork affects how the transaction is structured. Flag it early.
By use
Personal, commercial and municipal
Personal use
Consumer programs: installment loans up to $50,000, or a lease on smaller purchases such as a trailer or a modest used boat.
Charter and commercial
Commercial equipment finance, where the vessel secures the transaction. Credit profiles from roughly 500 FICO are considered, including newer operators.
Municipal and public agency
Lease-purchase from $1,500 for patrol, rescue and public works craft, handled by a named account representative.
Dealers and the marine division
Terrace Finance runs a dedicated marine program for dealers, covering new and used boats, engines and repowers. If your dealer does not currently offer financing, they can usually be added — call before you commit to a boat.
Questions
Common questions
Can I finance a boat with bad credit?
Yes. Programs span the credit spectrum, and for a commercial or charter vessel equipment finance considers profiles from roughly 500 FICO.
Can I finance a used boat?
Yes. Used boats, engines and trailers are financed routinely. Age, hours and survey condition affect the term and advance rate.
Can I finance just an engine?
Yes. Repowers are financed separately from the hull and are often the better financial decision on an otherwise sound boat.
Does it cover the trailer?
Yes, either with the boat on one agreement or on its own.
What about a charter business?
Commercial equipment finance is the right route. It generally prices better than a consumer loan and the vessel secures the transaction.
Keep reading
Related pages
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