Whether you’re gearing up for your first marine purchase or are an old sea dog, financing a boat can be as tricky as navigating choppy waters. Our Marine Loan Calculator is designed to streamline your purchase, making it easy to estimate your loan payments and understand the costs involved. This article will guide you through the key terms you need to know and also inform you about potential scams to look out for.
Understanding the Loan Calculator Terms
Cash Price: This is the sticker price of the watercraft you're aiming to purchase.
Interest Rate: The rate that you've received or are expecting for your boat financing.
Term Length: This is the period of the marine loan you're applying for.
Payment Frequency: The intervals at which you will repay your loan. This could be biweekly (26 total payments per year), semi-monthly (24 total payments per year), or monthly (12 total payments per year).
Cash Down: The amount of money you're intending to put down toward the loan. In certain cases, this might be a requirement.
Dealer Documentation or Admin Fee: A fee charged by boat dealers, defaulting to our partners' cost at Revival Powersports.
Lenders Fee Estimate: An initial setup, documentation, or admin fee charged by lenders to register your loan. This defaults to an average cost based on Revival Powersports' knowledge, but it may vary based on approval.
Other Fees: Fees rolled into the loan by some dealers and lenders, such as private sale charges or government lien registration fees, or for adding aftermarket products such as upgrades or warranties.
GST 5%: A federal tax auto-calculated based on the sticker cost. Some dealers and lenders may also tax add-on products and service fees.
Total Amount to Finance: This is the estimated total principal amount of the loan.
Keep in mind that while some lenders and dealerships may be able to roll Provincial Sales Tax (PST) into the loan, this isn't always the case—especially if the applicant is from another province. There may be instances where the customer is liable to pay it directly to the registry. The ability to roll the PST into the loan typically varies on a case-by-case basis.
All the information provided by our boat loan calculator are estimated values and are not to be used as a verbatim reference. All details, including rates and fees, are subject to approval On Approved Credit (OAC).
Scams to Watch Out For
Now that you're familiar with how our calculator works, it's crucial to be aware of potential pitfalls in the form of scams:
- Bait-and-Switch Tactics: Some dealerships advertise lower boat loan interest rates to lure in applications but don't actually offer these rates.
- Lead Generators: Entities posing as legitimate businesses may actually be collecting applications to sell to marine dealerships.
- Hidden Fees: Some dealerships keep their documentation fees hidden from their customers.
- False Guarantees: There's no such thing as guaranteed boat financing, but some dealerships falsely promise it to trick customers into applying.