Financing a used boat: loan rates, terms and the insurance you need

Before you sign an offer on a used boat, three money questions need answers: how you'll pay for her, how you'll insure her and where she'll live. Get all three lined up first, because each one can change whether a particular boat makes sense.

Boat loan rates in 2026

LendingTree's index for the second quarter of 2026 put the average boat loan APR at about 8.3 percent, ranging from about 7.3 percent for borrowers with excellent credit to about 10.2 percent for fair credit. The same index listed loan terms from 12 months up to about 20 years, and put the average financed amount in 2025 at roughly $54,000.¹

Look at the total, not the payment

Long terms make monthly payments look small. They also make the boat cost much more, and can leave you owing more than she's worth for years. Here's $50,000 borrowed at 8.3 percent:

Going from 10 to 20 years saves $187 a month and costs almost $29,000 more. And on a 20-year loan for a boat that's already 15 years old, you'll still be paying when she's 35. If you need a 20-year term to afford the payment, the boat is probably too expensive: the loan doesn't pay for the slip, insurance, haul-outs and repairs, which still come every year. See the true cost of owning a boat.

What lenders look for in a used boat

• Age limits. Many lenders limit the age of the boat, want a larger down payment, or require a survey on older boats. Ask before you shop.
• The survey value. Lenders usually lend against the surveyor's market value, not the price you agreed. If the survey comes in low, you may need more cash.
• Documentation. Lenders often require federal Coast Guard documentation so they can record a preferred mortgage. See title, bill of sale and liens.
• Shop around. Credit unions, banks and specialist marine lenders can quote very differently.

Other ways to pay: cash is simplest for older, cheaper boats and makes you a stronger buyer. Home equity loans often have lower rates but put your house on the line for a boat. Personal loans are fast but usually more expensive.

Boat insurance: agreed value or actual cash value?

Get insurance quotes before you make your offer, and bind coverage to start the moment you close. Older boats, very fast boats, boats in hurricane zones and unusual construction can be hard or expensive to insure.

The most important choice in a boat policy:

• Agreed value: you and the insurer agree on the boat's value up front, usually from the survey. If she's a total loss, that's what you're paid. For partial losses, some items such as paint, canvas and aging machinery may still be depreciated.²
• Actual cash value (ACV): for a total loss you're paid the boat's market value at the time of the loss, and for partial losses the repair cost minus depreciation and the deductible. ACV policies cost less up front, but you pay more out of pocket after a loss.²

For most owners, agreed value is worth the extra premium. Read exactly what's depreciated in a partial loss.

What else to check in the policy

• Liability coverage high enough to protect you; marinas usually require proof of it
• Wreck removal: if the boat sinks, raising and removing her can be very expensive
• Uninsured boaters, medical payments and towing
• Navigation limits: many small-boat policies limit you to inland waters or a set distance offshore, while trawler policies can cover whole coasts. Tell the insurer your real plans.³
• Named-storm terms: the hurricane deductible, any haul-out requirement and coverage for hauling ahead of a storm
• Survey and age rules: one major program requires a survey for boats over 20 years old and 30 feet or more, or worth $50,000 or more, and a new one every five years at renewal⁴

A boating safety course, a clean claims history, a recent survey with the recommendations done, a hurricane plan and a higher deductible can all lower premiums. Ask which ones your insurer rewards.

A place to keep her

Before you sign a marina contract, read it for:

• What's billed: slip length or boat length, whichever is greater? Metered or flat electricity?
• Insurance requirements: minimum liability and naming the marina as an additional insured
• Liveaboard rules: many marinas allow few or none
• Work rules: can you do your own maintenance or bring in an outside mechanic?
• Storm rules: whether you must leave, haul out or add lines in a hurricane, and who pays
• Term, notice and waiting lists: in popular areas, slips can take years to get. Line one up before you buy.

Common questions

Can you get a loan for an old boat?

Often, but with limits. Many lenders cap the boat's age, want a bigger down payment or require a survey. Some specialist marine lenders and credit unions are more flexible. Ask about their rules before you shop.

How long can you finance a used boat?

Lenders in LendingTree's 2026 index offered terms from 12 months up to about 20 years. Shorter terms cost far less in total interest.

Do I need insurance to buy a boat?

The law often doesn't require it, but lenders and marinas almost always do. Get a quote before you offer, because some boats are hard to insure.