Boat Loans

A boat loan is a loan where the boat is used as security. Often with the purchase of a boat, you would sometimes be purchasing a trailer and perhaps an outboard motor with it, these assets may also be used as security over the same loan.

boat with couple

Lender criteria may be slightly different to that of a car loan as a boat may be classed as a ‘recreational product’ or a ‘lifestyle good’ and the lender may view them as a higher risk lend than a car. If the lender is required to repossess the boat and sell to recover their debt, it is not as easy to sell a boat and to sell it at auction or wholesale may incur a larger loss than that of a car.

If the boat is being used for commercial purposes, the loan may be assessed similar to that of a business loan, where the business purpose of the boat would need to be determined and perhaps the lender may want to see a projection of the income the boat will generate to take into consideration the feasibility of the proposal.

The valuing of boats are a little harder than that of a motor vehicle, where most lenders will allow a computerised general valuation of a car in order to assess a finance application, quite often a boat has to be done manually and this will often take more time in regards to an approval.


There is the ability to finance a boat being purchased through licenced boat dealers and also through the sale of a private vendor. There also may be some age restrictions, so it is wise to discuss this with a professional to assist in your decision. Boat loans give you flexibility of term from 12 months to 60 months.