hard to find a lender

[tadpole34]

I own an older boat that I payed cash for and I am now ready to move up to a newer nicer. My credit score is over700 but no one that I have found will loan on a boat longer than 3 yrs term. I have found an 04 deck boat that is superb, but no one wanting to loan me the11000 for any time over 3 yrs. Anyone know of a good place to finance through?

 

[dvtran]

Re: hard to find a lender

Banks will only give out a 3 year term on luxury item loans on toys that are 5 years and older. You best bet is to go and get a 10k line of credit. Then get a 5-6 k loan over three years. Pay that off along with the interest every month on the 5-6k you take out on the line of credit. Or if you have any equity in your home, borrow cash using your house as collateral.

 

[spoilsofwar]

Re: hard to find a lender

Tell us about the boat... I'm not surprised no one will lend you $11,000 for a 10 year old deckboat, really. Especially considering it would be 14 years old by the time you paid it off, based on your desired terms. It is probably not worth the risk to the lender.

With a good credit score like yours, they'd probably be more then happy to lend you 3 times as much money as you're needing, but the boat would have to be new.

 

[crabby captain john]

Re: hard to find a lender

Banks are tougher now than ever on toys. Generally, getting a loan on a boat 10 years old or more is an even greater challenge. Did you call Boat US? Good luck.

 

[etracer68]

Re: hard to find a lender

I would try a Credit Union, not a bank. You may have to pay about 10% interest on a toy older then 2005. Most CU in my area are offering under 3% but thats for an 3 yr note on 2005 or newer. Interest goes up fast on older, and longer year notes.

 

[steven_p]

Re: hard to find a lender

Try Essex Credit. They do a lot of deals on old boats.

 

[spdracr39]

Re: hard to find a lender

In my area Iberia Bank is the boat lender of choice but I do not know their terms and conditions.

 

[southkogs]

Re: hard to find a lender

Another option ... with an $11k budget, take the rest of the summer and the fall to save up $5K. Buy an $11k boat this winter (probably a better deal), and take the 3yr terms on the remaining $6k you need.

The deck boat is probably nice, but there will be another nice one later on too.

 

[cannonman]

Re: hard to find a lender

Or if you have any equity in your home, borrow cash using your house as collateral.

I would avoid risking my families home for the purpose of buying a toy. Try to save up as much money as you can and pay cash or at least a hefty deposit. It will make you appreciate your purchase even more and save you interest money.

 

[spdracr39]

Re: hard to find a lender

I agree with this but sometimes the rates on a home equity loan are much better than any others and you can save a ton of money.

 

[crabby captain john]

Re: hard to find a lender

Although I never borrow for toy purchases you are correct AND the interest is deductible.

I agree with this but sometimes the rates on a home equity loan are much better than any others and you can save a ton of money.

 

[roscoe]

Re: hard to find a lender

Another option ... with an $11k budget, take the rest of the summer and the fall to save up $5K. Buy an $11k boat this winter (probably a better deal), and take the 3yr terms on the remaining $6k you need.

The deck boat is probably nice, but there will be another nice one later on too.

If he could come up with $5,000 in the next 6 months, he wouldn't be inquiring about a long term loan. He would be comfortable with the 3 year loan.

 

[tadpole34]

Re: hard to find a lender

Us bank took care of it....120 months at 6%.....thanks for all the input ppl. I appreciate it

 

[crabby captain john]

Re: hard to find a lender

I have always wondered why banks would not lend under NADA on an older boat. If there is a down payment involved and good credit why limit to 3 years when most move on or up within 5 years? A 10 year loan paid off early would be more profitable for the bank.

Us bank took care of it....120 months at 6%.....thanks for all the input ppl. I appreciate it