If you’re planning to purchase a yacht, we’ve got some exciting news that can help you navigate the financial aspect of your journey. Despite the tumultuous ride that rates took in 2022, things have now stabilized, and current yacht financing rates generally begin at 6.99% for a fixed rate*. While there are other financing options available, such as variable rates and interest-only loans, fixed-rate options have become the go-to choice for most buyers.
Amortization goes out as far as 20 years, and the down payment for most yacht sales is a 20% minimum. Higher loan amounts over $2.5M require 25-30% down, while smaller loan amounts under $500,000 may allow 15% down.
As always, it is consequential to note that not all buyers qualify for these terms. Terms are highly dependent upon many factors such as credit score, overall credit history, amount financed, year of the collateral, amount down payment, etc.
Our financing team has well-established partnerships with some of the largest marine lenders in the industry that provide aggressive rates and terms that best fit your needs. We are also always looking for additional sources that might suit unique niches — solutions are available for pleasure/recreational use and yacht charter.
Every purchase is unique, and we specialize in determining which lenders are suitable for each scenario. For instance, one lender may offer the best options for loans over $1M, while another may work better for smaller deals. Not all lenders provide options for chartering customers or boats kept outside the US or even for older vessels over 20 years old; therefore, it is IMPORTANT to work with a finance team that can navigate through these different nuances and guide you to the best lender.
It has never been as important as right now to begin your insurance quotes as early in the process as possible, and even more important is to use an agent that is well-versed in marine insurance. The insurance market has been challenging over the last year, with some very prevalent companies exiting the marine insurance market and others tightening their qualifications. The sooner you start the insurance process, the better off you will be for a timely closing.
Since 2006 Galati Yacht Sales has been in partnership with Baldwin Krystyn Sherman Partners. Working together, we aggressively negotiate the best terms, conditions, and premiums for clients. If you are a first-time boat buyer, check out our First-Time Yacht Buyer Insurance Guide.
At Galati Yacht Sales, one of our goals is to get you out on the water faster. That is why we ensure our finance process is unique to each customer and hassle-free. Our qualified finance team and certified yacht brokers work diligently with you to guarantee the process goes smoothly — we understand the marketplace and the subtle differences in marine lending.
We also help secure yacht loans with no loan origination fees, closing fees, application fees, or points. Our finance team is available throughout the entire sales and closing process to answer questions and provide the “red carpet” customer service experience we have been known for since 1970.
You can think of us as your one-stop shopping center for buying a yacht or selling a boat. Our business office can also assist with financing insurance, extended warranty, USCG documentation, state titling, and registration. Learn more about our financing process, or contact us today for additional questions.
Yacht financing update courtesy of Dana Galvao
Finance Manager for Galati Yacht Sales