Boat loan rates and terms (2025 market): **Interest Rates**: New boats 6-9% (excellent credit 720+ FICO), used boats 7-12% (add 1-3% for older boats).

Loan amount matters: $100k+ = better rates (6-8%), $25k-$100k = mid-range (7-10%), under $25k = higher (9-12%).

Personal watercraft/jet skis = highest rates (10-15%) due to higher default risk.

**Loan Terms by Boat Value**: $100k+ luxury boats/yachts = 15-20 years available. $50k-$100k = 10-15 years typical. $25k-$50k = 7-12 years.

Under $25k = 5-7 years max. **Rule**: Lenders limit term to prevent being underwater.

Boats depreciate 8-10%/year first 3 years, 5-7%/year after.

Example: $80,000 boat, 7% rate. 15-year term → $719/month, total interest $49,420. 10-year → $929/month, total interest $31,480 (save $18k). 7-year → $1,195/month, total interest $20,380 (save $29k vs 15-year).

**Down Payment Requirements (2025)**: New boats 10-20% down typical, 20%+ = better rate (0.5-1% discount).

Used boats 15-25% down.

Example: $100,000 boat. 10% down ($10k) = finance $90k at 8%. 20% down ($20k) = finance $80k at 7.5% AND lower payment. $90k at 8%, 15 years = $860/month. $80k at 7.5%, 15 years = $741/month. **Bigger down payment saves $119/month + $21,420 total interest**.

**Factors affecting rate (2025)**: (1) **Credit score**: 760+ = best rates (6-7%), 700-759 = good (7-9%), 660-699 = fair (9-11%), under 660 = subprime (11-15%+). (2) **Boat age**: New/1-2 years old = lowest rates. 3-10 years = add 1-2%. 10-20 years = add 2-4%. 20+ years = specialty lenders, 10-15% rates. (3) **Loan-to-value (LTV)**: Under 80% LTV = best rates. 80-90% LTV = add 0.5-1%.

Over 90% = add 1-2%. (4) **Debt-to-income (DTI)**: Under 40% DTI = approved easily. 40-50% = higher rate.

Over 50% = denied or co-signer needed.

**Total Cost Example (2025)**: $75,000 boat, 20% down ($15k), finance $60k at 8% for 12 years.

Monthly payment = $652.

Total payments = $652 × 144 months = $93,888.

Total interest = $33,888.

Add: Insurance $800/year × 12 = $9,600, dock/storage $2,000/year × 12 = $24,000, maintenance $2,500/year × 12 = $30,000. **True 12-year cost = $75k purchase + $34k interest + $10k insurance + $24k storage + $30k maintenance = $173,000 total**.

Resale value after 12 years ≈ $20-25k (70% depreciation).

Net cost = $148k-$153k to own $75k boat for 12 years.