Extended Term Boat Financing

The concept of borrowing money for ten, fifteen or even twenty years when and individual is considering a large ticket purchase makes the monthly payments suprisingly affordable.

Years ago, extended term financing first became popular in the home mortgage industry as lending institutions offered thirty year terms to make home ownership more affordable. In recent years, as large ticket items such as airplanes, boats and recreational vehicles became more popular and expensive, lenders made the decision to extend loan terms from seven years out to as far as 20 years, depending on the amount financed.

When it came time to extend loan terms on large ticket items, lenders learned that consumers tend to only keep the product for an average of four years. At this point, the typical consumer trades up and purchases a newer product with more features or to a larger product. Lenders realize that, when it comes to consumers purchasing boats, recreational vehicle and/or airplanes, they are purchasing into a lifestyle that comes with product loyalty and predictable borrowing habits.

Consumers purchasing large ticket items such as boats, RVs and airplanes tend to have more discretionary income and leisure time on their hands. These consumers are viewed by lending institutions to be the most creditworthy borrowers. To that end, lenders are willing to offer the best rates and terms to attract and retain as many of these customers as possible.