Tips for Buying & Financing Boats, Campers, Snowmobiles and ATVs

Tips for Buying & Financing Boats, Campers, Snowmobiles and ATVs

Financing the Purchase

The well-planned finance and purchase of recreational items can both facilitate hours of  fun and adventure in the great outdoors, and help create treasured memories sure to last a lifetime. When it comes to financing these recreational items, consumers have a myriad of options to meet their borrowing needs. Like new and used car dealers, most recreational dealerships offer in-house financing through their manufacturers. Banks, credit unions and non-bank lenders also make direct and indirect loans for recreational items.  Consumers should comparison-shop a variety of sources to locate the lowest available APR. While boats, campers, snowmobiles, and ATVs can provide their owners with years of enjoyment, consumers should always pre-calculate the potential financial impact that a newly-added monthly loan payment will have on their budget.



Over the years, a number of consumers have contacted the Maine Bureau of Consumer Credit Protection expressing “buyer’s remorse” over purchases of major recreational items. Consumers should look beyond the advertised low monthly payments (sometimes stretching 10 years or more!) and consider how this new purchase will impact their overall economic well-being.  Do your “financial homework” and make certain that you can make room in your budget for that additional expense before agreeing to a loan. After all, nobody wants to face the unpleasant challenge of trying to sell a boat in the dead of winter, or liquidating a six-month-old snowmobile in the middle of July!

Finding Your “Best Price”

The Internet and written publications offer a variety of resources where a consumer can review the retail and trade-in values for a variety of new and used recreational items. Armed with this information, the consumer can visit dealerships with a better idea of what constitutes a fair selling price. Many consumers elect to wait until season’s end to obtain the best price for: leftover stock, “demos,” or soon to be “retired” rental units. Other buyers prefer to visit pre-season events (such as boat or camper shows), where they may find exceptional deals (discounted prices and/or cut-rate financing).
Buying Pre-Owned (Used)
Given the depreciation rate of most recreational items, many pennywise Mainers purchase these items on a pre-owned or “used” basis. Local newspaper classified ads, weekly used-goods booklets, and items parked on the seller’s front lawn with a “for sale” sign are three of the most popular sources for locating used recreational items.
Down Payments
Given the rapid depreciation rates of many new recreational items, consumers are wise to plan ahead for their purchase.  After negotiating the lowest purchase price, borrowers should consider making down payments of at least 15-20%.  Down payments are also recommended when financing pre-owned units.

Loan Term

Many potential owners of boats, campers, snowmobiles, and ATVs, are drawn to dealerships through electronic and print ads pitching low monthly payments. This was the case for “Captain Jack,” who saw a brand new bowrider boat advertised in a Sunday newspaper for a “small” payment of $299 a month with an APR of 13%. Intrigued by the idea of motoring into the sunset with his brand new boat, the Captain did a few calculations. Since he had no funds saved for a down payment, his loan would have been 100% (no money down!) financing. The sale price of the boat may have been $20,000, but even if the Captain makes all his payments on time, with the 120 month (10 year) loan term, the total finance charge (dollars of interest alone!) would be just under $16,000. That’s almost the cost of the boat itself! While the Captain relished the idea of owning a sparkling new bowrider, after learning some helpful buying/financing tips from this booklet, he decided to buy the boat next spring at a pre-season boat show--after first accumulating enough money over the winter for a sizable down payment!  The Captain financed a smaller amount, and ended up with much lower monthly payments. Aaarrrr!



A Helpful Tip from the Bureau of Consumer Credit Protection:  Don’t finance any item (boat, ATV, camper, snowmobile, auto) for longer than its useful life!