Be smart when buying a boat

It’s no secret that nationally, the fastest selling boats are freshwater fishing boats, personal watercraft and pontoon boats. And why not, boating is one of the great pleasures in life.

We’ve all heard that the best two things about boats are the day it’s purchased and the day it’s sold. Sorry, but that’s a down and out lie.

Fishing boats get us to more and better fishing.

Personal watercraft, often referred to as jet skis, are all about sports car-like fun and speed, and pontoons boats provide nothing short of instant relaxation.

All are good at what they are designed to do. The right owner with the right boat is in for years of great times.

But after all the window shopping, tire kicking, online research and in-person inspections, there’s more to buying a boat than simply signing on the dotted line.

After all, none of the above is free. In fact, the purchase of that dream boat is probably going to come with a relatively thick book of monthly payment coupons. So be smart when buying.

I’m a practical sort: born to a dad who worked hard, earned every penny and minded his wallet smartly. Thus, life lessons learned as a kid still control my spending.

I don’t ask what the monthly payments are as a deciding factor when considering a purchase.

I want to know the total cost, and I’ll then decide how best to pay.

Most of us simply can’t pay for boat in cash. So we need to get a loan, and that’s okay.

Understand this: boats fall in the “want” category, not the “need” category. That means that one can expect lenders to charge higher percentages than they do for “need” items such as vehicles.

That’s just the way it is, so expect it. Nevertheless, boat buyers should search for the best loan they can find.

Meaning, of course, the lowest interest rate and most comfortable terms.

From BoatUS, the nation’s most popular boat owner’s advocacy association, come the following tips concerning financing a boat purchase.

Each has been edited for space.

A fixed-rate, fixed-term, simple-interest loan is the most common, with the same monthly payment for the life of the loan, which will vary in length.

Down payments from 10% to 20% are the norm. Be sure to ask if there are penalties for paying off the loan early.

And too, ask to see that kind of information in writing on the loan papers. Beware of super low advertised rates. There may be some small print that could make that loan less attractive.

For instance, the rate might only be fixed for a few years or the loan period might be shorter.

Generally, interest rates are lower and loan terms longer for newer boats and larger loan amounts.

Boat loans are often spread over 12, 15 or even more years.

Wondering how much of a loan you can afford? Ask your lender or dealer how much each $1,000 borrowed will cost per month.

Your lender will also review your debt ratio and other criteria.

As with any loan, there are some additional costs involved. Sales tax, processing fee and title and registration fees are common.

And ask your lender to give you an itemized list of closing costs so there are no surprises.

Keep in mind that good credit scores equal lower boat loan interest rates and more favorable terms.