What Happens If I Can’t Afford My Boat Payments?

Owning a boat is a dream for many, offering the perfect way to escape, relax, and enjoy time on the water with family and friends. But life happens.

You’re Not Alone, and There Are Options 

Owning a boat is a dream for many, offering the perfect way to escape, relax, and enjoy time on the water with family and friends. But life happens. Maybe your financial situation has changed, and now you’re struggling to keep up with your boat payments. You might be feeling overwhelmed, embarrassed, or even panicked about what to do next. 

First, take a deep breath. You are not alone. At Strong’s Marine, we’ve been in the boating industry since 1945, helping Long Island boaters navigate both the highs and the challenges of ownership. With 12 locations across the island, we’ve seen it all—and we’re here to help you figure out the best course of action if you can’t afford your boat payments. 

In this article, we’ll explore your options, from loan refinancing to selling your boat, avoiding repossession, and even creative ways to keep your boat while reducing your costs. By the end, you’ll have a clear action plan to move forward.

Understanding the Consequences of Missed Boat Payments

If you’re struggling to make your boat payments, it’s important to understand what can happen if you don’t take action. 

• Late Fees: Most lenders charge a late fee if you miss a payment deadline. 

• Damage to Your Credit Score: A missed payment can lower your credit score, making it harder to get loans in the future. 

• Risk of Repossession: If payments are missed for a long time, the lender may repossess the boat. 

• Legal Action: In extreme cases, lenders may take legal action to recover the debt. 

The sooner you address the issue, the more options you’ll have to avoid these consequences. 

Early Warning Signs That You May Struggle With Payments

Sometimes, financial struggles don’t happen overnight. Here are some warning signs that your boat payments may soon become a burden: 

• A decrease in income (job loss, reduced hours, unexpected expenses) 

• Struggling to pay other bills on time 

• Using credit cards or loans to cover everyday expenses 

• Dipping into savings to make payments 

• Feeling stressed every time your boat payment is due 

If any of these sound familiar, it’s time to take action before you fall behind. 

Options to Consider Before Missing a Payment

Refinancing Your Boat Loan 

Refinancing could lower your monthly payments by extending your loan term or securing a lower interest rate. If you have good credit, this could be a great way to make your payments more manageable. 

Negotiating With Your Lender 

Many lenders would rather work with you than repossess your boat. Contact your lender and explain your situation. They may offer options like temporarily reducing your payment or adjusting your loan terms. 

Exploring Deferment or Forbearance Options 

Some lenders allow you to temporarily pause payments due to financial hardship. Keep in mind that interest may still accrue, but it could give you time to get back on track. 

How to Determine Your Boat’s Market Value 

If you’re considering selling, start by researching what similar boats are selling for. Websites like Boat Trader and NADA Guides can help you gauge the market. 

Best Ways to Sell Your Boat Quickly 

• Sell through a dealership: Many dealers, including Strong’s Marine, offer consignment options where we handle the sale for you. Additionally Strong's Marine offers increased exposure due to their partnerships with Boat Trader, Yacht World and other marketplace sites. 

• List it online: Platforms such as Facebook Marketplace, Craigslist, and boating forums can assist in locating buyers, particularly for boats priced in the mid to lower range.
• Price it competitively: A well-priced boat sells faster. 
  

  It’s important to consider what’s most cost-effective for your boat. With high-end vessels, it’s not just about listing the boat—it’s about having a professional handle the sale, marketing, and photography. Buyers in this market are discerning, and boats that sit unsold for too long can raise red flags, much like in real estate. A strategic approach upfront can help avoid price reductions and extended time on the market. 

  For lower-priced boats, it may be more cost-effective to use platforms like Facebook Marketplace, since dealership brokerage fees can take a larger percentage of the sale.

Trading in Your Boat for a More Affordable Option 

If you still want to stay on the water but need a more budget-friendly option, consider trading in your boat for a smaller or older model with lower payments. 

Voluntary Repossession vs. Involuntary Repossession

What Happens If Your Boat Gets Repossessed? 

If you stop making payments and don’t communicate with your lender, they may take the boat back. This usually involves extra fees, storage costs, and damage to your credit. 

How Repossession Affects Your Credit Score 

A repossession can drop your credit score significantly, making it harder to get loans in the future. It stays on your credit report for up to seven years. 

Steps to Take After a Repossession 

• Check your loan balance: You may still owe money if the lender sells the boat for less than what you owe. 
• Rebuild your credit: Start making consistent payments on other debts to improve your credit over time. 
  

Alternatives to Selling or Repossession

Renting Out Your Boat to Cover Payments 

Consider renting your boat through services like Boatsetter or GetMyBoat. This can generate income to help with payments. 

Joining a Boat Club or Shared Ownership Program 

Some programs allow you to share the costs of ownership with others while still enjoying time on the water. 

Cutting Other Expenses to Prioritize Your Boat Loan 

Look at your budget to see if there are other areas where you can cut back to keep your boat. 

Preventing Future Financial Hardships With Boat Ownership

Understanding the True Cost of Boat Ownership 

Beyond your loan, remember to budget for maintenance, dockage, insurance, and fuel. 

Budgeting for Maintenance, Dockage, and Insurance 

Unexpected repairs can be costly. Setting aside a small amount each month can help cover these expenses without stress. 

Choosing the Right Financing Plan for Your Lifestyle 

Before buying a boat, work with a trusted dealer like Strong’s Marine to find a financing plan that fits your long-term budget. 

Making the Best Financial Decision for You

Struggling with boat payments is stressful, but there are solutions. Whether it’s refinancing, selling, or finding creative ways to cover costs, taking action early gives you more options. 

At Strong’s Marine, we’ve been helping boaters navigate these tough situations for nearly 80 years. If you need guidance, our team is here to help. Contact us today to discuss your options and find the best path forward for you and your boat. 

Need help selling your boat or finding a more affordable option? Reach out to Strong’s Marine today at 631-333-0081 to help with all of your boating needs.