Low Down Payment Alert
Your down payment is below the recommended 20%. Consider increasing it to avoid owing more than the vehicle is worth due to depreciation.

Understanding Equity and Depreciation

Equity refers to the remaining value of a vehicle if it were sold. Equity can be positive (you take away money from a sale), neutral (the sale pays off the remaining loan balance), or negative (the sale doesn't cover the loan balance and you must pay the difference). Larger down payments and shorter loan terms are the keys to avoiding negative equity.

Boats are often financed at longer terms than other vehicles. This table shows the estimated depreciation of a new boat purchase based on publicly available data.

Year	Remaining Value	Depreciation Rate
1	88%	12%
2	84%	4.5%
3	80%	4.8%
4	77%	3.8%
5	74%	3.9%
6	71%	4.1%
7	69%	2.8%
8	67%	2.9%
9	65%	3.0%
10	63%	3.1%
11	61%	3.2%
12	59%	3.3%
13	57%	3.4%
14	55%	3.5%
15	53%	3.6%
16	51%	3.8%
17	49%	3.9%
18	47%	4.1%
19	45%	4.3%
20	43%	4.4%

Note that depreciation rates can vary based on factors such as brand, model, condition, and market demand.