Where to start researching boat loans/financing?
Vincent Osory
with saving money and paying off debts this year, my son is graduating
from college in June, and I am so ready to buy myself a gift. I'm
starting some research on financing a boat right now. I'm wondering
whether it is preferable to go through a traditional lending institution,
or something more specialized. Could others who have gone through this
process share your experiences, and maybe point me to a book or website
with useful info?
Thanks a lot,
Vincent
Harry Krause
Go to your bank or a credit union where they know you. Your own bank typically
will give you a better deal if you have a good record with it. Boat loans
mostly are made on the track record of the borrower, not the collateral.
--
Harry Krause
------------
That's Washington. That's the place where you find people getting ready to
jump
out of the foxholes before the first shot is fired. -GW Bush
Paul VandenBosch
near as much of a down payment as I thought. But don't let the
unexpected costs get you, slip fee, repairs, new toys, I mean
equipment, upgrades, there's no end. I pay 20% of the cost of my boat
for slip fees.
Paul V
--
Paul VandenBosch
The Guide to Sailing and Cruising Stories: http://cruisenews.net
Sent via Deja.com
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PrinceMyshkin
vincxntoSP...@ksanmail.com says...
>
>My 2001 resolution is to finally purchase a boat.
(Snip)
How big a boat? How much do you plan to spend? It matters. You may find that
your bank doesn't do boat loans and will lend money only as a high cost
consumer loan. Go to sonme boat shows and go around the boat finance booths.
Those people know what they are doing and can be very helpful. Whichever one
you deal with will eventually assign your loan to a bank. Essentially, they
are brokers. But you will get the best rates and terms through one of them.
How big a down payment, the term of the loan and the rate will all depend on
how much you want to borrow and the age and condition of the boat. Be sure to
budget for lots of things you never thought of in the first year. Insurance,
documentation perhaps, sales tax of course, survey, yard charges for prep and
launching, replacement of worn out or obsolete equipment, mooring or dockage,
etc., etc., and etc. There is no end of it. Try to pay cash as much as
possible or get a boat that is new enough, even though more costly than you
planned, so that you don't have to lay out a lot more money up front,
especially not on credit. Try to include as much as possible in the boat loan
itself. It will be your cheapest source of money.
I have written a few articles on the subject but I can't find them now.
Once upon a time lenders fell all over themselves to finance boats. The idea
was that these were affluent people with money to burn and no loan could be
safer. What they forgot is that a boat is a discretionary expenditure and when
things turn sour the boat is the first to go. A lot of lenders ended up in the
boat business where they did not want to be. They are a whole lot more careful
now.
Good luck and good sailing (or putt-putting as the case may be).
--
"When the game is going against you, stay calm -- and cheat." Gen. Sir Harry
Flashman, VC, KG
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RybMark
Vincent,
I financed my 35 ft. sailboat through Sterling Acceptance Corporation
(1-800-276-6511). They broker loans through several different banks which
specialize in marine financing. The rates and terms are normally better than
those from your local bank. I believe they will be able to give you a good
feeling for the financing options available.
Good luck in your search! Mark
Rosalie B.
>Vincent Osory wrote:
>>
>> My 2001 resolution is to finally purchase a boat. We've done a great job
>> with saving money and paying off debts this year, my son is graduating
>> from college in June, and I am so ready to buy myself a gift. I'm
>> starting some research on financing a boat right now. I'm wondering
>> whether it is preferable to go through a traditional lending institution,
>> or something more specialized. Could others who have gone through this
>> process share your experiences, and maybe point me to a book or website
>> with useful info?
>
>Go to your bank or a credit union where they know you. Your own bank typically
>will give you a better deal if you have a good record with it. Boat loans
>mostly are made on the track record of the borrower, not the collateral.
If you own real property (i.e. a house), you can often get the bank to loan
you the money with that as collateral. That's what we did - we have both a
home improvement loan (short term) and a boat loan with our local bank.
grandma Rosalie
Larry
I know that Key Bank USA does marine loans. I think they are partnered
with Boats.com now, IIRC.
HTH,
Larry
Glenn Ashmore
Ft. Lauderdale but work with local branches. If you bank with them, ask
your local banker to contact them.
Vincent Osory wrote:
--
Glenn Ashmore
I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at: http://www.mindspring.com/~gashmore
Tim Hasson
FWIW I've had very pleasant experiences with Key. They did a "no doc" loan
on my last boat, and rates were competitive.
Larry <lpi...@spamnot.ragingbull.com> wrote in message
news:MPG.14bc13e6...@news.earthlink.net...
Racine Riverside Marine
depend a great deal on the type of boat you wish to buy and the amount of
money you choose to spend. Many of the marine finance specialists we deal
with have a $25,000 minimum. $100,000 (or more) loans with 20 year
amortization are not uncommon.
If you are going to spend less than $25,000 your local bank or credit untio
is probaby as good a place as any. Going to finance more than $25,000 and
want an amortization schedule more than a few years? Then you will most
likely need to find someone who specializes in marine financing.
Boat shows are a good place to look. "Soundings" also has several pages of
financing ads.
Bill Murin
Racine Riverside Marine