🚤 Boat Financing 101: What You Need to Know
🚤 Boat Financing 101: What You Need to Know Before You Sign
Buying a new or used boat is one of the most exciting investments in family fun you can make—especially here in Minnesota, where family lake days are a way of life. But before you hit the water, it’s essential to understand your boat financing options and what to consider before signing on the dotted line.
Whether you're eyeing a brand-new wake boat or a pre-owned ski boat, this guide breaks down the basics of boat loans, financing terms, and how to prepare for a smooth purchase process.
💰 What Is Boat Financing?
Boat financing is the process of borrowing money to purchase a new or used boat, through a marine lender to help facilitate a purchase. All of the loans we offer come with fixed terms, fixed monthly payments, and competitive interest rates based on your credit profile and down payment. Some lenders use variable rates after an initial period. We do not work with a lender who does.
📊 How Does Boat Financing Work?
At Midwest Water Sports, we make boat financing simple. Here's a quick overview:
Loan Amount – Based on the boat’s price, down payment, and any trade-in value.
Loan Term – Typically 10 to 20 years, depending on loan size and borrower qualifications. You can pay the loan off at any time without any penalties.
Interest Rate – Determined by your credit score, income, and chosen lender. All of the lenders we work with only offer fixed rate loans. If rates drop, you can refinance without penalty.
Monthly Payment – A consistent amount you’ll pay over the life of the loan. The minimum monthly payment is set at the beginning of the loan. All the loans we offer are simple interest loans so if you pay more monthly, your interest cost will go down. You are committing to pay the minimum payment every month buy you can pay more or pay the loan off at any time without penalty. You only pay the interest on the amount you owe and incur no penalty if you pay a loan off early.
💡 Tip: Use our in-house financing team to compare multiple lenders and secure the best possible rate.
📝 What Do You Need to Qualify for Boat Financing?
To apply for boat financing, be prepared to provide:
We utilize an online application
If you have recently changed jobs or are self-employed, you may need to provide proof of income or employment
Valid ID and Social Security number
Credit history and score
Information on the boat you want to purchase (make, model, year)
Our team at Midwest Water Sports will walk you through the full application process and handle the paperwork for you.
🔍 New vs. Used Boat Financing: What’s the Difference?
New Boat Financing:
May offer dealer or manufacturer incentives
Easier to secure higher loan amounts
Used Boat Financing:
May require a larger down payment
✅ Good news: We finance both new and used boats from top brands like MasterCraft, Supra, and Moomba.
⚓️ Down Payments: How Much Should You Expect?
While some lenders offer zero-down financing during promotions, it’s typical to put down 10-20% of the boat’s purchase price. A larger down payment will:
Reduce your monthly payments
Lower your total interest paid
Help you qualify for better rates. Banks use a metric called loan to value. Statistics show much lower loan defaults when buyers put more $ down so banks offer better interest rates for larger down payments.
We’ll work with you to find a payment plan that fits your budget—whether you're upgrading to a wake surf boat or buying your first used boat.
🧾 Should You Finance Through a Dealer or a Bank?
Here’s a quick comparison:
| Option | Pros | Cons |
|---|---|---|
| Dealer | Fast, convenient, access to promotions | May have to start a relationship with a new lender |
| Bank/Credit Union | Existing banking relationship | Slower approval, more paperwork, need to visit lender for paperwork |
At Midwest Water Sports, we offer the best of both worlds with access to a huge number of trusted marine lenders and financing specialists who handle it all for you.
🛠 Don’t Forget: Include Extras in Your Loan
Many buyers choose to finance more than just the boat itself. Consider bundling:
Extended warranties
Trailers
Ceramic Protection Packages
📦 Pro Tip: Ask us about special deals when you bundle gear with your boat purchase.
🏁 Ready to Get Started?
Boat financing doesn’t have to be complicated. At Midwest Water Sports, our expert sales and financing team is here to guide you through the process from application to delivery day.
Stop by our dealership or apply online today to get pre-qualified and shop with confidence. The lake is calling—let’s make your boat dreams a reality.
📞 Contact Us
Have questions? Call us at 763-533-9666 or visit our showrooms in Minnetonka, and Crystal MN. You can also start your boat loan application online anytime at MidwestWaterSports.com/financing.