When buying a boat, used or new, cash is always better than financing. You can save money with cash, as there are no finance charges. Financing charges can get high, very high in fact if you don't know a lot about it.

If you simply must finance your purchase, it's a smart idea to use a home equity loan instead. This way, it'll be tax deductible. Always be on the lookout for boat show financing, and never, ever use it. Several boat show financing ploys will extend the loan out over the course of 10 – 15 years.

Choosing the right financing source can be just as important as choosing the right boat.

When choosing a source of financing, there are several things to consider. The first factor is how long you plan to keep the boat. If you are buying a first boat, it'll make more sense to find a loan that will be flexible enough for an early payoff via private party or even a trade in.

If you are purchasing the boat of your dreams, you should expect to have it financed for a long time which makes it important to get a fixed rate loan with terms that allow for a low monthly payment.

Another factor you'll need to consider is the down payment. Most lenders or dealers would like to see at least ten percent down. Normally, the down payment doesn't significantly change the monthly payment for your boat loan.

Choosing the right type of boat loan is a very important part of the entire buying process. You can start with a boat finance brokerage, which will show you how each one of the available options fit into your profile.

Whatever you do, make sure you don't spend all of your money on the just the boat itself. When you purchase the boat, you'll need to have enough money for taxes, registration, storage, towing insurance, gas, equipment, and even minor repairs if your boat requires them.

A new boater will either advance with boating or get out of it all together. Most boaters don't keep their boat for more than 10 years, which is reason enough not to get an extended finance loan on your boat.