Marine Financing & Strategy
Boat loans are unique financial instruments. Modeling the long-term impact on your liquidity is the difference between smooth sailing and financial shipwreck.
Boat Loan FAQ
? How long can you finance a boat?
In 2026, most marine lenders offer terms up to 15 years for standard cruisers and 20 years for large yachts exceeding $100k-$150k. While this lowers the payment, it significantly increases the time you spend 'underwater' as depreciation occurs.
? Is a boat loan tax deductible?
Potentially. If your boat has a permanent galley (kitchen), head (toilet), and sleeping berth, the IRS may allow you to designate it as a 'Second Home,' making the loan interest deductible. Consult a CPA as rules are tightening in 2026.
? What is the '10% rule' for boat maintenance?
The industry standard suggests you will spend roughly 10% of the boat's purchase price annually on fuel, dockage, insurance, and maintenance. If the boat is old (10+ years), this number often climbs to 15%.
? What is a good interest rate for a boat loan?
Marine rates are usually 1-2% higher than standard auto rates because boats are considered discretionary luxury assets with higher recovery risks for lenders. Tier-1 credit in 2026 typically sees rates between 7% and 9%.