Let's talk boat financing

[Guest]

Having only purchased 1 boat which was used and all cash I'm curious as to the options available for financing a new or used boat. Over the last couple of years it seems like using a HELOC was the most common way for guys to purchase that new boat, but I'm wondering what type of financing is available for someone like myself possibly looking to move up to a bigger boat.

Outside of going to my bank and shopping around, what kind of terms is someone looking at for say a $20,000 boat purchase (number of months, example interest rate to equate to a monthly payment). Are there more financing options available to someone buying a boat on consignment at a dealer than just a private party sale? If someone found a used boat online, is it possible to discuss financing for the boat through a boat dealership whom already has access to financing terms.

Just thinking outside the box & I'd like to hear some input on the financing subject.

Thanks.

[bigbass111]

The average term for say 20K is 144 months. And the rate varies from 8.25-9.99 depending on the lender (good credit). Now term does vary, you can go shorter with a larger payment, But most of the loans are simple intrest with no pre-payment penalties. Now if you credit is good, your debt to income still has to be in line. Most banks will not finance a luxury item if their outgoing is more than 40% of whats coming in.

$20,000 @ 9.99% for 144mos =$238 mnth..
$20,000 @ 8.50% for 144mos =$222 mnth..

Most lenders are also asking for 10% down on new product and 20-30% on aged.

These quotes are based off of the std Marine lenders (bofa, bnk wst, US bk and so on). Some credit unions offer lower rates but will not go over 72mos in most cases...


Hope this helps.

[Guest]

Most banks will not finance a luxury item if their outgoing is more than 40% of whats coming in.

Can you explain this in more detail?

[Guest]

Thanks Mike. That's what I thought.

[TomAtkeson]

USAA is also VERY good.

[bigbass111]

Debt to Income @ 40% means you cannot have more than 40% of your income already going out in bills per month. If you make 4k a month and $2500 is what you pay in bills, a loan will be harder to get.

And as far as Credit union loans go, yes their rates are usually better but their term is usually half. So alot of people choose the higher rates and longer term to get a more affordable payment.

[gabuelhaj]

Let's talk about sound financial planning. Do NOT finance any boat. You will pay way more than what the boat is worth. It's a losing proposition no matter which way you look at it. Pay cash and you will be way ahead of the game. This is for both used and new.

But, if you do need to finance a portion of the boat, Credit Unions are usually a better option when compared to other lending institutions...

Another option is to take a loan out on any paid off vehicles but you'll give up the title until it's paid off.

Good luck!

[DeltaDan]

Let's talk about sound financial planning. Do NOT finance any boat. You will pay way more than what the boat is worth. It's a losing proposition no matter which way you look at it. Pay cash and you will be way ahead of the game. This is for both used and new.

[Greg_Cornish]

If you have ever served in the armed services they have the best credit union deals on the planet...

Now you tell me after I buy a $30,000 van. Oh hell, I'm paying it off in a couple months anyway. I found 9% on a credit union in St. Paul. Unity One Credit Union on Jackson Street. 72 Months. I had no mortgage or car loan history or I might have gotten 7 or 8 %.

[ash]

Greg, your such a patriot... dont tell me did you register your vehicle as a vessel so that it is not property of the state?