Boat Loans-the good, the bad & the ugly

[watered down]

OK, lets hear who you have/had a loan with AND any info. on who to stay away from. Thanks

 

[tommays]

Re: Boat Loans-the good, the bad & the ugly

the only annoying thing i have had happen is that the loan will often be sold resulting in many leans on the title<br /><br /><br />which becomes your problem to keep track of the various banks papers to clear up the title when your done paying<br /><br />on a 10 year loan you could easly have 3 banks own the boat<br /><br />tommays

 

[watered down]

Re: Boat Loans-the good, the bad & the ugly

Good point, had that happen on our home equity loan awhile back. Don't plan on keeping the boat loan that long. It will be paid off in a few years at most.

 

[swist]

Re: Boat Loans-the good, the bad & the ugly

I got some quotes and if there is some other way you can raise the money, go for it (home equity, loan against securities, etc). I found the rates to be very high given today's low interest rate climate.

 

[BillP]

Re: Boat Loans-the good, the bad & the ugly

The last boat loan I got was from a local bank. No down payment and no monthly payments..but a full payoff at the end of year which included principle and interest, etc.. They held the title and interest was higher than a regular loan with monthly payments. <br /> <br />I read in a financial pub that the avg payoff on boat loans is only 2 yrs and they are one of the least defaulted on.<br /><br />The best advice I can give is to remember that bank policies on lending are only "policies" and can be changed to suit the customer. If "policy" terms aren't what you want ask to see the bank manager/pres. Tell him what you want. Give him a plan. Negotiate.

 

[Dreamer1Q]

Re: Boat Loans-the good, the bad & the ugly

I just bought my 19.5 foot Sierra open bow about 4 weeks ago. I paid 3500 for the boat, gave the guy my wifes old Chevy Corsica for 1500 and took a 2000 dollar loan out. I got 8.25 interest and a 3 year loan with payments of 62 bucks a month. I intend on having it paid off by spring, but I didnt think it was that bad a deal. I did use my local credit union too.

 

[swist]

Re: Boat Loans-the good, the bad & the ugly

I think 8.25 is too high for a secured loan (assuming a good credit rating). What are the typical rates for auto loans these days? Is this a case of sticking it to the boating public again?

 

[kywildcat]

Re: Boat Loans-the good, the bad & the ugly

You might want to consider a home equity line of credit, sometimes referred to a a HELOC. Its simply a flexible mortgage secured by real estate that allows you to use it at your convenience, and the best part is the interest is tax deductible because of the real estate(so at least you can get part of your money back). I use it for vehicles also because for the deduction. The only drawback: you have to be disciplined enough to pay it off in a certain number of months to make it work and not just pay the minimum monthly payment. Your lender can run you an amortization table to show what the payment would be on 24 mos, 36 mos and so on. Good luck!

 

[watered down]

Re: Boat Loans-the good, the bad & the ugly

I have the HELOC and considered using it, but rates are going up evertime the fed meets. I just got a quote for 6.24% fixed. I already have a huge interest deduction on my 1st...I'm starting to worry about the AMT <br /><br />Just rrying to get some real world info on diff. lenders and any companies to watch out for. Thanks

 

[timfromfc]

Re: Boat Loans-the good, the bad & the ugly

While this topic is on loans, the other option is to save up and pay cash for it. If you lose your job, at least you can still go boating with your newly found spare time!

 

[craze1cars]

Re: Boat Loans-the good, the bad & the ugly

Originally posted by Tim's Floater:<br /> While this topic is on loans, the other option is to save up and pay cash for it. If you lose your job, at least you can still go boating with your newly found spare time!

This is the best suggestion of all. Make payments to yourself into a savings account. When you have enough to pay cash, THEN buy the boat. Such fiscal responsibility is why our grandparents never declared bankrupcy...it seems to be a lost concept in today's world.

 

[sergioy]

Re: Boat Loans-the good, the bad & the ugly

Right on Tim, that's what happened to me in 2003. I was failry new to boating, when I got laid off, I went boating till I almost passed out. Man was that a fun year. I don't believe I will ever finance a boat, if I can't buy it cash, then I just don't need it. In 2.5 years I have owned 5 boats. My initial investment was $600 for a 1963 Mark Twain with a 75 hp Johnny. I am now up to 1989 Kingfisher bass boat with a 200 hp Suzuki. Aside from the initial investment, each boat has financed the newer one.

 

[watered down]

Re: Boat Loans-the good, the bad & the ugly

Originally posted by swist:<br /> I think 8.25 is too high for a secured loan (assuming a good credit rating). What are the typical rates for auto loans these days? Is this a case of sticking it to the boating public again?

Yeah, I agree. I got a quote from Key bank of 6.24% and Essex at 8.99%, so rates are all over the board. Capital ONe auto loan is 4.99%-5.49% so go figure.<br /><br />AS for cash only...I agree it is the preferable way to go. The argument is valid. However, I'm nearing 50 and my kids are old enough to really enjoy watersports, etc. (me too.) <br /><br />I'm putting money away for retirement, and the kids college but still want to enjoy life while I can.<br /><br />My dad never spent anything cause he wanted to save for retirement when he and mom could enjoy themselves...unfortunately, mom didn't make it to retirement. My dad now wishes he bought the things they wanted and traveled like they wanted when they could.

 

[Mnemonic]

Re: Boat Loans-the good, the bad & the ugly

I took a boat loan with Digital Federal Credit Union (DCU) for a 6% rate on a 5 year term... I still havent even registered the boat and it's been 4 months and they havent even *****ed about being a leinholder on the title... very laid back bank... Actual HUMANS who approve the loan.