Many Danes dream of owning a boat. Being able to drive quietly beyond the Danish summer sea, spend time in the harbor with friends and family, and at the same time get a lot of renewed quality of life and good experiences. But in order to buy the boat, a boat loan is often required.
If you also have a budding sail stored in your stomach, but the money is missing for a boat financing, just read on here.
In this guide, we will discuss you with some of the most important issues when it comes to boat loans. You will find Find out what options you have to find the money for your new boat, what you should pay special attention to, and not least how to find the cheapest and best loan.
Let’s start by looking into your options as a future boat owner:
Even though you should traditionally meet up in your own bank to borrow a boat loan, both the market and the technology have developed so much that today you have a wealth of other possibilities for boat financing.
First and foremost, you can borrow a boat loan directly at the bank. However, it should be said that you do not necessarily find the cheapest and best loan in your own bank, but more about it later in the guide.
If you choose a traditional boat loan at the bank, the price will often be relatively cheap as you provide security for the loan in the form of the boat as a value, and partly because you typically have to put a part of the loan as a payment itself.
If you do not have the option to make a payment yourself, or just wish that the bank can not claim your boat, you have other options to choose from.
A consumer loan blows hollow to many, and most people also associate a consumer loan with small corporate loans, which go to city tours and new DVD movies. However, this is far from the truth, as consumer loans simply mean that the loan is not intended to finance anything particular (as opposed to, for example, a car loan , a mortgage or a boat loan ).
This means that you can easily find consumer loans in both banks and online, which have the required amount for a boat financing. There are even online consumer loans of up to 400,000 kroner, and the possibilities are therefore many.
NOTE: However, you should be aware that you do not have to provide security for a consumer loan, and the loan will typically be slightly more expensive than a regular boat loan. Have this in mind before choosing your final loan.
For certain types of funding, you must place a percentage payment yourself. For example, if you want to borrow money to buy a boat that costs $ 500,000, the lender may require you to pay one as a percentage of the amount – for example, be 20% or 100,000 kroner in this case.
However, not all loan providers claim personal payment as they simply lend you the entire amount. However, everything has a price, and this also applies here. If the lender pays the full amount for you, your borrowing costs will usually also be more expensive.
As a rule, you should always choose a loan and a loan provider that requires you to place a portion of the payment on the table yourself – as much as you can afford. This will de facto result in a cheaper loan and thus a more advantageous boat financing for you.
Often you will be able to get a relatively cheap loan at the bank for the first 60-80%. If you do not have the remaining 20-40%, you can borrow these via a consumer loan with a shorter maturity. The maturity must be the shortest of the consumer loan, as in this case it is most expensive and therefore it is best to pay off first. See our guide to finding the cheapest consumer loan .
It is not a general requirement that you provide financial collateral for your loan. However, if you take a bank loan at the bank, you will usually find that the bank wishes to have a mortgage in the boat so that they have a security if you can not repay your loan.
This is not a bad thing, as it simply means that you usually get a loan with a cheaper rate. It goes without saying that the greater a risk lender runs, the higher the price for you as the borrower will be.
On the other hand, if you borrow the money for your new boat through a consumer loan – either at the bank or online – you will find that you do not have to provide security for the loan. Conversely, you will, in turn, get a more expensive loan, as lender in this case has no security if you suddenly can not pay off your debt.
This has to be said to be one of the most important points to consider, as you can save thousands of dollars on choosing the right boat loan.
There are many opportunities available on the market, and in short, it is about finding the best and cheapest loan for you.
First of all, you must understand that there are large price differences between individual boat loans. Therefore, you should always take the necessary time to obtain loan offers from several providers. You should also get offers from banks in the form of boat loans and consumer loans, online consumer loans from online lenders and offers directly from boat dealers.
How to compare prices:
First, get different offers. You can do this by writing mails or calling the banks and boat dealers. Then you will receive offers on online consumer loans. You can find them here . Finally, it’s time to choose the best options.
To compare prices, always look at OPOP. OPP stands for Annual Costs in Percent, and it is your annual cost of recording and repaying the loan.
OOP is statutory for retailers or loan providers to disclose and you will therefore always be able to easily find out the OOP on the various offers you have received.
Also note, as mentioned earlier in this article, that sometimes it’s best to pay the loan up to 2. This is because you find the cheapest OPP on a loan where the boat is put as collateral. But this loan is not at 100% of the boat’s price. Probably you can get 60-80% with such a loan. The remaining amount, you must pay in cash if you have the money, or borrow with a slightly more expensive loan where no security is given.
It’s still ÅOP you have to go for when you split the loan up. But you should expect that OPP is much higher on the loan where there is no collateral over the loan with certainty. Therefore, make sure to make the loan as long as possible. Thus, your monthly earnings will be lower and you will therefore have more money left to pay the loan without collateral. The unsecured loan must have as short a term as you can afford, so you can settle this loan as quickly as possible.