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Buy a boat: boat loan or leasing?

Blog | Car Credit | Various

Your dream is to buy a boat in Switzerland? Whether a sailboat, yacht, fishing boat, what are the financing options available? Which is the best one, and what will be the real cost for you? Discover our explanations.

What are the solutions to buy a boat?

If you do not have the finances for your project, or if you prefer to opt for a financing plan to spread your purchase over several months or years, there are basically two solutions: credit or leasing.

Boat leasing: interesting in the long term

A leasing consists of “renting” your boat over time. The price will depend mainly on the interest rate, and the value of the vehicle as well as the contract duration. If the leasing is a interesting long-term solution, you should also consider that:

  • The boat won’t fully belong to you, and you may be subject to restrictions, such as the inability to resell your boat while the leasing contract is ongoing.
  • Once the contract is over, and depending on the type of contract, you may need to pay the residual value of the boat.

Boat loan: the alternative

The boat loan is consists to borrow money from a bank in order to buy your boat. The cost of a boat loan will mainly depend on the rate and the loan duration. A credit, compared to leasing, offers the following services:

  • The boat belongs to you: you are free to sell if necessary.
  • You are free to choose the type of boat, the brand and concessionaire.
  • Low cost if you are considering a shor-term boat loan (12, 24 or 36 months). Over a longer period, the cost will however increase significantly.

How much does it cost?

In general, the cost is hard to evaluade. Indeed, it mainly depends on the type of contract established. However, you can consider that a 50,000 Chf boat loan over 24 months will cost a total of 5’110 interest with a 9.95% rate.

Maintenance costs

Future boat owners often forget maintenance costs. It is considered that, on average, the maintenance costs for a boat will be of 10% of the total value. For example, a 50’000 Chf boat will generate a maintenance cost of 420 Chf / month.

Buy a boat: an example of cost

For example, a 50,000 Chf boat paid with a 5 years loan (with a low rate of 9.95%) will cost montly:

  • Loan repayment: 1,050 Chf / month (interest included)
  • Maintenance costs: 417 Chf / month
  • Total: 1,467 Chf / month over 5 years

Article written by CreditLoan – the loan specialist in Switzerland (www.creditloan.ch).