Boat Dock Financing: Smart Strategies For Success

Building a boat dock can be an expensive endeavour, with costs ranging from $3,000 to $30,000. This includes the cost of materials and installation. With such a high price tag, many people opt to finance their boat dock through loans. There are several options for financing a boat dock, including personal loans, home equity loans, and credit cards. Personal loans are a popular choice as they do not require collateral and can provide borrowers with a lump sum of cash to cover the cost of building or repairing a boat dock. When considering a loan, it is important to shop around for the best interest rates and terms to ensure you get the most favourable deal.

Floating docks: $15-$35 per square foot

Floating docks are a great option for lakes with mud bottoms or fluctuating/deep water levels. They are not suitable for shorelines with aggressive wave action. They are also ideal for seasonal boat owners as they are easy to install and remove. If you live in an area with extreme weather, you can remove a floating dock in preparation for a storm.

A floating dock costs $15 to $35 per square foot, with labor accounting for roughly half the total price. The price includes both the dock and labor. The cost can vary depending on the type of decking you choose. If you are looking for a more affordable floating dock, consider a prefabricated aluminum type. On the cheaper side, prefabricated aluminum floating docks can cost as little as $1,500.

The average dock with a boat lift costs $15,000 - $55,000+. A platform is constructed over airtight barrels that rise and fall with changing water levels. Floating docks are easily removed and stored and have fewer permitting requirements since they do not damage the sediment.

When choosing a floating dock, consider the following:

• Size: The average dock length varies by location. Most municipalities restrict dock length to 1/3 the width of the waterbody.
• Material: Dock decking costs $4 to $15 per square foot for materials alone. Pressure-treated wood decking costs $5 to $8 per square foot and requires regular sanding, sealing, and staining. Composite decking is the most expensive but has the longest lifespan.
• Features: Additional features such as boat lifts, ramps, bumpers, and ladders will increase the cost.
• Installation: Permanent docks have higher labor costs, while floating docks are often a simple DIY installation.
• Location: Waterbodies that freeze in winter require a removable dock installation. Floating docks are more likely to survive wind and waves in hurricane-prone areas.
• Permits: Boat dock installation typically requires permits from local, state, or federal agencies.

Crib docks: $10,000-$50,000 total

Crib docks are a permanent type of boat dock. They are usually custom-built wooden frames or crates known as "cribs". These "cribs" are placed along the bottom of the water and filled with large rocks. The crib dock is then covered with decking. This type of dock is known for its stability and longevity, and it can withstand harsh weather and water conditions. However, crib docks can be very expensive and may cost anywhere from $10,000 to $50,000 or more.

Crib docks are considered a more permanent option and are usually installed by professionals. The high cost of crib docks is due to the labour-intensive installation process and the need for specialised knowledge and skills to ensure safety and stability. The installation cost is higher compared to other types of docks because of the complexity of the process.

When considering a crib dock, it is important to note that they are prohibited in some areas due to their potential impact on the environment. Crib docks can cause long-term environmental problems by disturbing the natural flow of water and wildlife along the shoreline. Therefore, it is essential to check with local regulations before planning to install a crib dock.

To finance a crib dock, you may need to look into boat dock financing options, such as personal loans, home equity loans, or specialised lenders in the marine industry. The cost of a crib dock will depend on various factors, including the size, materials used, labour expenses, and any additional features you may want, such as boat lifts or ramps.

Piling docks: $20-$40 per square foot

Piling docks are a type of temporary boat dock that can withstand harsh weather conditions. Compared to floating docks, piling docks are generally more expensive to build and maintain. They are also usually unable to adjust to changing water levels. That being said, piling docks are ideal for larger boats and can be customised into boathouses, gazebos, and party decks.

The cost of piling docks varies depending on the materials used, the location of the dock, and any additional features or customisations. On average, piling docks cost between $20 and $40 per square foot, including installation. This price range includes expenses related to pilings, decking, and other structural components.

When choosing the type of wood or composite material for the pilings, it is important to select high-quality options to ensure the stability and longevity of the dock. The cost of the dock will also depend on the length and diameter of the pilings, as well as the installation method.

It is worth noting that labour costs for piling docks can be significant, contributing to the overall price range. Additionally, the depth of the pilings needed to support the dock will depend on the composition of the lake bed or ocean floor.

To ensure the safety and longevity of your piling dock, it is recommended to engage a specialised contractor and possibly a marine engineering firm, especially in areas prone to hurricanes or strong winds and waves. While piling docks may be more expensive than floating docks, they offer durability, customisability, and the potential for permanent installation.

Personal loans: no collateral, easy to qualify

If you're looking to finance a boat dock, personal loans are a great option. They are usually easy to qualify for and do not require collateral. This means that you won't need to put up any assets as security for the loan, which can be beneficial if you don't have valuable possessions or if you're not comfortable risking them.

Personal loans are typically issued as a lump sum of money that can be used for just about any purpose. You can secure a personal loan through a bank, credit union, or online lender. Online lenders usually have fast application processes and quick funding, and they may also be easier to qualify for. Good and bad credit borrowers can qualify for personal loans through lenders like PrimeRates and Acorn Finance.

Personal loans can provide borrowers with a large sum of cash that can be used to build or repair a boat dock, as well as cover other expenses such as permits. When it comes to securing a personal loan, it is recommended to find a lender that offers an unsecured and fixed personal loan. Unsecured personal loans do not require collateral or a down payment, meaning there is little to no risk for the borrower. Fixed personal loans have a consistent monthly payment and interest rate that should not change during the loan term.

The general idea of how boat dock financing works is simple: you borrow a large amount of money and make smaller monthly payments until it's repaid. If you use a personal loan, you will likely repay the loan monthly with interest. If your loan does not have an early payoff penalty, you can pay off the loan early and save money on interest. Paying as little as 10% extra each month can save you hundreds of dollars in interest.

It's important to note that the interest rate and loan term for a personal loan will depend on various factors, including your credit score and the lender you choose. Most lenders require a credit score of 620 or higher for a boat dock loan, and a higher credit score may result in a lower interest rate. Additionally, the loan term can impact the monthly payment amount, with longer terms resulting in lower monthly payments.

Before applying for a personal loan for a boat dock, it is recommended to determine the cost of your project and what kind of monthly payment you can afford. This will help you apply for the correct loan amount and choose the most favourable terms for your budget.

Boat loan types: fixed-rate, adjustable-rate, secured, unsecured

When it comes to financing a boat dock, there are several loan options available, each with its own unique features. Here's a detailed overview of the different types of boat loans:

Fixed-Rate Loans

Fixed-rate loans are the most popular choice among boat owners as they offer predictability and stability. With a fixed-rate loan, you lock in a specific interest rate for the entire duration of the loan. This means your monthly payments remain consistent, making it easier to budget and plan. Fixed-rate loans are ideal if you want long-term certainty and don't want to worry about fluctuating interest rates affecting your payments.

Adjustable-Rate Loans

Adjustable-rate loans, also known as variable-rate loans, offer more flexibility by allowing the interest rate to adjust over time. When you take out an adjustable-rate loan, you may be able to secure a low introductory rate, followed by a rate that changes according to market conditions. This type of loan can be beneficial if you anticipate interest rates dropping in the future. However, it's important to closely monitor the adjustments to ensure your payments remain manageable.

Secured Loans

Secured loans are backed by collateral, which means the boat you purchase acts as security for the loan. If you default on the loan, the lender has the right to repossess the boat. Secured loans often come with more competitive interest rates and longer repayment terms because the lender assumes less risk. These loans are a good option if you have a strong credit score and want to benefit from lower rates.

Unsecured Loans

Unsecured loans, on the other hand, do not require any collateral. This means that if you fail to make payments, the lender cannot automatically take possession of your boat. Unsecured loans are typically easier to obtain, especially if you have a good credit score. They are also a safer option if you don't want to risk losing your boat. However, unsecured loans usually come with higher interest rates and shorter repayment terms.

When deciding between these loan types, it's important to consider your financial situation, credit history, and personal preferences. Each loan type has its advantages and disadvantages, so be sure to understand the terms and conditions before making a decision.

Frequently asked questions