February 17, 2020 - Vehicles
Boat owners are often faced with the idea of pawning their boat title to receive funds for those unexpected life emergencies. Whether you have a $1 million-dollar yacht or a $1,000-dollar bowrider, you can pawn your boat title to get cash in your hands now.
The key to pawning equity—regardless of the item—is to get the best offer. We recommend using PawnGuru to list your boat. This simple approach to listing collateral can help boat owners comparison-shop, quick and easy. PawnGuru ensures you get the best offer for interest rates and financing options.
Technically, boats do not have titles. When you pawn your boat, the industry commonly refers to this process as a boat title loan. You’ll receive money against your boat with a similar contract to a pawn loan. Your boat will be the collateral used to secure your cash. Typically, a pawnshop will store the boat throughout the loan term. Pawnshops have a safe, secure storage unit to house your boat.
After you’ve made interest payments and pay the loan back in full, your boat is returned in the same condition as it was stored. Just as with a standard pawn loan, you can make interest payments to extend the loan or even have the loan re-written with different financing terms. This can be a straightforward way to get money quickly, without the hassle of other loan options.
Boats are not an investment; they’re more of a toy. According to Price Economics, boats lose 20% of their value the first year. So, if you own a $30,000 boat, the value after the first year is now $24,000. In the second year of owning a boat, the value depreciates by 15%, then 14% on the third year. Depending on the market, the value-decrease continues in this same pattern.
If you need cash, and your boat is just sitting around in a marina or on a trailer hitch, it may be wise to pawn your boat, instead of letting it collect dust—losing value over time.
Right now, you could list your boat and get cash today for a fair appraisal. Once you’re financially able, you can get your boat back or keep the money. With pawning, you have options. We advise you to protect your property and make sure you’re not getting ripped off by a dishonest pawnshop dealer. One of the best ways to do this is to start by listing your boat with PawnGuru. This ideal approach allows you to compare multiple offers seamlessly—getting the most money while also veering from dubious lenders.
Most boat owners already know the reference-acronym for B.O.A.T.—Bust Out Another Thousand. The average yearly expenses for a boat is 10% of the purchasing price. Meaning, if you buy a boat for $10,000 you pay $1,000 just to keep the boat running. Most boats cost much more than this and upkeep can get expensive. Not to mention the price of gas to take the boat on the water, marina slip fees, or storage yard fees.
Owning a boat has the tendency to ‘burn holes in their owner’s pockets.’ If you’re in a financial place where you need cash quickly it may be intuitive to pawn your boat title rather than let your boat continue to be a financial burden.
Taking out a collateral loan on your boat title has advantages. When you pawn your boat title, often you’ll receive funds the very same day. Instead of continuing to pay for a marina slip or storage unit for a boat on a trailer hitch, you can get the money you need for your financial emergency right away. This also alleviates personal costs associated with storing your boat.
Working with a pawnshop dealer, you’re not subject to a damaging credit check. The process of pawning is much more streamlined. All you’ll need is collateral (your boat), a valid I.D., and for some states— proof of residence. Pawnshops offer much more flexible financing options than the rigid terms of bank loans and other lenders. This route is much quicker! The more you wait, the more expenses pile up and you’ll be back in the same indebted situation.
Since boats are extremely valuable and are bought and sold in a niche market, it’s important to get the best financing terms and loan amount. We recommend using PawnGuru to gauge the value of your boat before contacting pawnshops.
With PawnGuru, you can list your boat for free without any obligations to pawn. Dealers will view your boat and send you an offer based on a description, make & model, etc. From this list, you can narrow down pawnshop candidates based on reputability, the amount offered, and financing options.
This saves precious time and money! PawnGuru also functions as a selling and buying site for local pawnshops in your area. PawnGuru is a one-stop-shop.
David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.More Articles