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Financing a boat isn?t just about finding the lowest monthly payment. The type of boat, its age, the seller?s identity, the down payment available, and how long the boat owner plans to keep the boat also influence the financing structure. APRIL Marine offers two options?leasing with an option to buy and a boat loan?with terms tailored to different plans.
April Marine acts as a broker for recreational boat financing
April Marine acts as a broker for banking transactions and payment services. Its role is to compare solutions from various financial partners and assist boaters in securing financing.
The boat owner begins by running a simulation and selecting a proposal. He then completes a personal questionnaire and a power of attorney, and submits the supporting documents needed to review his application. Approval is subject to acceptance by the relevant financial institution.
This organization covers both the purchase of a sailboat and that of a motorboat. But before comparing offers, you need to determine which type of financing is best suited to the boat you want and how you plan to purchase it. To help you take the next step, find all the information you need to finance your project at https://www.aprilmarine.fr/financement-bateau
The LOA allows you to use the boat before you become its owner
With a lease-to-own agreement, the boat belongs to the financial institution during the lease term. The boat owner pays lease payments and uses the boat. A purchase option, established at the time of signing, then allows the owner to purchase the boat. April Marine notes that this option may also be exercised before the end of the term, subject to the terms of the contract.
This arrangement has implications when the boat is resold. Apeil Marine offers, among other things, the option to transfer the contract. The new boat owner then assumes the financing, subject to the applicable terms and conditions.
The proposed law applies to new boats, as well as certain used boats. Used boats must be less than 3 years old, sold by a professional, and must never have been invoiced.
The minimum amount to be financed is ?7,500. The down payment ranges from 20% to 50%, and the loan term can range from 3 to 15 years. However, these figures are not universal terms and vary depending on the banking partner and the boat being financed.
Boat loans cover a wider range of purchase scenarios
A boat loan follows a more traditional structure. The financial institution lends a sum of money to the boater, who becomes the owner of the boat and repays the principal according to the repayment schedule specified in the contract.
Under the offer presented by April Marine, the loan can be used to finance a new or used boat. The seller can be a business, a private individual, or a broker. This is an important distinction for the used boat market, where many transactions take place directly between owners.
The stated financing threshold starts at ?1,500, with or without a down payment. The term ranges from 3 to 15 years, depending on the financial partner and the property in question. Partial or full early repayment without penalty is possible under the specified conditions.
A recreational boat loan can also be used to finance renovations or upgrades to a boat. This is particularly relevant for boaters who purchase a boat that subsequently requires repairs or new equipment.
For an older boat purchased from a private seller, the loan therefore has a broader scope than a lease-to-own agreement.
Monthly payments and rent don't tell the whole story
April Marine provides several simulations to help understand the differences between the two financing options. Let?s take the example provided for a Quicksilver Activ 755 Sun Deck priced at ?65,000, with a 30% down payment, or ?19,500.
In the 7-year lease-to-own simulation (84 months), 83 monthly payments of ?577.02 are listed, excluding life insurance. The final purchase option is ?6,500. The total amount due, including the first payment, is listed as ?73,892.66, plus a ?400 brokerage fee.
In the boat loan simulation over the same term, the monthly payments total ?688.15, excluding life insurance. The total amount due is stated as ?56,894.60, with a total cost of credit of ?11,394. The APR is 6.89%, with a fixed interest rate of 6.46% and a ?400 brokerage fee.
Simply comparing a monthly rent of ?577.02 to a monthly payment of ?688.15 would therefore provide an incomplete picture. The lease-purchase agreement includes, among other things, an initial rent payment tied to the down payment and a final purchase option to become the owner. The loan, for its part, must be evaluated based on its APR, total cost, and any associated fees or insurance.
How can I compare APRIL Marine's financing options?
Boaters would do well to think the same way they do when preparing a navigation plan. The destination matters, but so does the route to get there.
When considering a lease-to-own agreement, you should look at the amount of the first payment, the subsequent payments, the number of payments, the value of the purchase option, the total amount due, and the terms for terminating or transferring the contract.
For a boat loan, the key factors are the loan amount, the term, the monthly payment, the APR, the total cost of the loan, and the rules for early repayment.
Optional insurance should also be factored into the calculation. In another example provided by APRIL Marine for a Crédit Mutuel Leasing lease agreement of ?65,000 over 84 months, the optional death benefit insurance is listed at ?9.92 per month in addition to the monthly lease payment.
April Marine provides a simulation tool that allows users to compare proposals related to the project being presented. The broker then assists with compiling the application and submitting it to the financial partner.
Whether it's a lease-to-own agreement or a loan, the boat's financing plan remains a key factor in the decision
The differences between a lease-to-own agreement and a boat loan, on the other hand, make it necessary to consider the project as a whole. The purchase of a recent boat from a dealer may qualify for a lease-to-own agreement. An older used boat, a transaction between private individuals, or a project involving repairs is more likely to qualify for a boat loan, according to the published criteria.
The boat?s useful life is also a factor to consider. A boater who plans to trade in the boat before the loan is paid off will want to review the terms for transferring a lease-to-own agreement. Someone who wants to take immediate ownership of the boat and have more flexibility with financing will want to review the loan terms.
