What are the standard terms for financing a boat?
Gary C. Way
few years or so. While we have had expereince sailing on other
people's boats and/or charter boats, we have never owned a boat
ourselves.
Obviouslym, one of the first steps in taking and extended cruise is to
forcase your resource requirements (e.g. money). For purposes of
forcasting the cash flow necessary to take an extended cruise, can
anybody advise what the standard terms (i.e. downpayment requirement
and loan terms) are for boat loans? Also, would a lender be
influenced by our intention to quit our jobs and take our collataral
on an around the world trip?
Please advise if you can help me with this question. Thanks
Gary C. Way
gc...@ix.netcom.com
Jeff Thompson
>
> Buying a boat is somewhat like buying a house or condo, unless the boat is
> older and inexpensive or you're wealthy (like, you can pay cash). When I
> purchased a boat last Fall, the rates were about 9% for 10+ years on > $15K
> (Boat/US, I think). Fifteen year terms are typical for newer boats, but I
> don't think they extend any longer than that. The rates may have changed some
> since the Fall (fallen, maybe?). Better rates were available for new(er)
> boats, but then the prices (and mortgages) were higher, too. I took a 10 yr
> mortgage (fixed 5 yrs, adjustment up to 6%, fixed for 5 yr) at 9% (just under
> $15K) through a regional marine finance agency and with a local bank. There
> are all kinds of financing packages out there, just as for homes. It
> definitely pays to shop around.
>
> As for blue-water cruising and/or circumnavigating in a boat with a
> mortgage...good luck! It isn't impossible, but...I'm waiting to pay off my
> boat before I get out of the (covered-by-standard-insurers) coastal areas.
> There was a recent article in Cruising World (Jan. or Feb. issue...I'll try to
> find it for you) by a guy who bought a 31 foot cutter and I think
> circumnavigate the Atlantic with his wife for a year, all while still having a
> mortage on his newly-purchased boat. He describes the difficulty he had in
> getting insurance on the boat (a must for the bank holding the note). From all
-------------------------------------------------------
> I've read, it's almost impossible to get off-shore insurance on a boat more
> than about ten years old. Since I can't afford to cruise if I buy a boat that
> new, I'm choosing to buy an older boat, pay it off, then take my chances...
>
> Again, good luck!
>
> Scott
There's no boat age limit associated with insurance - it's more to do
with the condition - lots or 30 yr old boats qualify for insurance -
mime's 18 and no problem.
--
Jeff's Pacific Cruising Notes =
http://home.earthlink.net/~jkthompson/cruise/mainpage.html
mark edward balcom
ships mortgage" which gives the lender better security and you lower
interest rates. If she is state numbered you may not be allowed to take
her out of the state until the loan is paid. The best information is
available at a bank that is familiar with "prefered ships mortgages".
Mark S/V Kaiulani
Scott Adams
>Scott Adams wrote:
>>
---snip---
>> I've read, it's almost impossible to get off-shore insurance on a boat more
>> than about ten years old. Since I can't afford to cruise if I buy a boat that
>> new, I'm choosing to buy an older boat, pay it off, then take my chances...
>>
>> Again, good luck!
>>
>> Scott
>
>
>There's no boat age limit associated with insurance - it's more to do
>with the condition - lots or 30 yr old boats qualify for insurance -
>mime's 18 and no problem.
>--
>
>Jeff's Pacific Cruising Notes =
>http://home.earthlink.net/~jkthompson/cruise/mainpage.html
If that's true, then it's a welcome relief from all the other info I've been
getting! Standard coastal insurance is easy to get, but what about going
offshore? My policy doesn't set a limit that is a fixed distance offshore, but
clearly states that it is a coastal policy (Boat/US). It also has restrictions
southward (doesn't include most of Florida, the Keys or the Gulf). I can get a
rider for Florida, but to be honest I haven't yet tried for an offshore rider
(based on what other's have said about Boat/US Insurance's response when
they've asked).
What insurance company did you use when you cruised the Pacific, and how could
I contanct them (and do they insure on both coasts)?
Thanks for any info,