Financing a used boat

[healey8390]

Sorry if this is in the wrong section.

has anyone financed a used boat in the 10-15k range? I did some research on new boat loans and learned you can get financing for 10+ years but can’t find much on used.I’m looking at a 96 Whaler Outrage with a 96’ Johnson 150 for 11k. I think that’s a great price (opinions?) but will a bank finance something that old. Thanks!!

 

[Scott Danforth]

unless you have lots of liquid assets for the bank to use for a personal loan, a 25 year old boat is way too old to get a loan for.

however the price seams really hi

 

[JimS123]

Why not ask your banker, or try several bankers. Regardless, you might have an issue getting insurance first time on one that old.

 

[roffey]

A friend of mine insured a 20 plus year old Carver so I think it is doable. I bet you might have to get it surveyed tho. I bet a line of credit might be a better way to go.

 

[ahicks]

I can share that not all banks are going to be real keen on a marine loan of any type. They don't know crap about them so they avoid them. Others can be much easier to work with.

 

[dingbat]

however the price seams really hi

Take it you never priced some of the more desirable "classic" hulls.

https://www.boattrader.com/boats/make-boston-whaler/model-190-outrage/

 

[roffey]

Take it you never priced some of the more desirable "classic" hulls.

https://www.boattrader.com/boats/make-boston-whaler/model-190-outrage/

I think the price on a boat is what ever your willing to pay for the boat. If you the the buyer comes across the boat you've been looking for price is secondary. Very few buy boats to make money on the resale. If a boat check all the boxes then price is next, IMHO.

 

[Scott Danforth]

Take it you never priced some of the more desirable "classic" hulls.

https://www.boattrader.com/boats/make-boston-whaler/model-190-outrage/

I have, however I know where to look..... and in spring, you dont look for deals on the east coast or in the upper mid-west.

either way, back to the OP's question. unless the OP has a really really really good relationship with his local bank or credit union, 24 years is way too old to get a loan for.

 

[Captain Caveman]

This forum is littered with posts from folks buying boats that ended up having massive problems. Lenders don't want to take on that risk with a used boat loan. They are generally fine with new boats.

Used boats are pretty much a cash purchase. Save up and buy the one you want without paying interest to a bank. You can then break out your credit card to finance the first major repair!

 

[TyeeMan]

You may have to go to one of these loan "shops" like One Main Financial, used to be Citi Financial. They possibly will finance a portion of the loan along with other collateral that you will need to give them. And you'll pay a handsome interest rate.

 

[Scott Danforth]

....used to be Citi Financial. ....... And you'll pay a handsome interest rate.

I believe they were in the 30% range

 

[JimS123]

Many years ago, while with the very first financial advisor I ever had, his advice was "the only thing you ever borrow money on was a house". If the item depreciates over time, you must pay cash. If you can't afford cash, do without.

His other advice was don't put money in an IRA if you are young and there is no company match.

I largely followed his advice, except for the IRA part. So here I sit, happily retired, with a good income stream due to long employment and good planning. Except.......the money I take out of old IRAs is generating a higher percentage of taxes than it would have if I had paid the taxes originally and simply put it in a CD.

Bottom line - the old codger was right - pay cash for the boat.

 

[tpenfield]

Obviously ask a few banks and boat financing companies, but . . . You may find that used boat loans stop at 10 years of age for many of the reasons stated.

Personal line of credit may be the way to go. Not sure taking a loan for a potential money pit (which any used boat could be) is a good idea.

 

[roffey]

I completely agree with tpenfield . Boats are a terrible investment and likely one you will never get your money out of. The memory's are priceless. My grand daughter said her best day is when grandpa takes her out in the boat then ice cream and next the beach to wash off.. love my boat, bought her brand new right off the show room floor, I will never re cope my investment, but the memory's are what keep her in the water.

Never say never there is always someone waiting to loan you some money its just what is it going to cost and will it be worth it?