Help a girl get out on the water...

[kyboatgirl]

I have a deposit on a 1993 Sea Ray Cuddy Cabin. boat that I need financing for. I have been approved for financing for 10 yrs at 8.99%. The thing is, the finance guys want a $200 up front fee and the bank wants a $75 fee on top of all that.. Will I get these extreme fees and bad rates everywhere I go? THANKS!

 

[Mahoney]

Re: Help a girl get out on the water...

not sure what the up front fee's are for but I would probably get over that $275 pretty quick. If that is the most expensive "suprise" you have in boat ownership, you have bested us all!<br /><br />But seriously, you should check to see what those fee's are for. Always shop around, when applying for a car or home loan, the multiple checks on your credit don't count on your credit score. Something like a 30 day grace period to shop around for a loan.

 

[vipzach]

Re: Help a girl get out on the water...

I don't know what those fees are for either. I would call around and ask others about their financing before they run your credit. The credit checks don't really hurt as long as not too many, but places don't like to see alot of them recently. It makes them begin to wonder why. Good Luck and welcome to iboats!

 

[crazy charlie]

Re: Help a girl get out on the water...

You should ALWAYS investigate your own source of financing.If the rates at your own bank or credit union are about the same as the dealer,then let the dealer handle it for you and in turn the bank will pay him a commission for the loan.It will be much easier for you and better for him.If your bank offers a rate lower than the dealer by 1 point or more then tell the dealer that you want to get your own loan unless his bank can give the same rate.Sometimes the banks have flexibility with the rates for dealers because of the volume of business the dealer gives them.The only extra cost should be whatever motor vehicle and titling fees which vary by state.Charlie

 

[roscoe]

Re: Help a girl get out on the water...

Why use a "finance guy" ?<br />Why not deal directly with the bank or better yet, a credit union?

 

[RatFish]

Re: Help a girl get out on the water...

I deal with 2 credit unions. Both do not have any fees associated with obtaining a car, RV or boat loan. IMHO, I would look elsewhere.

 

[kyboatgirl]

Re: Help a girl get out on the water...

Welll... I know what the fees are for, I was just hoping someone might know where I can finance to get the same term without the fees. I have checked with banks and credit unions, and finally checked Russo (linked on iboats.com) and they had the best term... Does anyone have the same term and approximately same rate w/o fees? Or is that the norm when dealing with this (like closing costs on a house)?

 

[vipzach]

Re: Help a girl get out on the water...

I don't think it is the norm to have those fees. I have seen handling fees of like $25 dollars back when I worked at a car dealership. What are the fees for? You should be able to finance somewhere else for the same terms as you are offered now.

 

[JRJ]

Re: Help a girl get out on the water...

How much are you paying for the boat? I'm surprised any bank would finance a 12 year old boat for 10 years. 8.99 sounds high to me also.

 

[kyboatgirl]

Re: Help a girl get out on the water...

Those rates are comparable to everywhere I've checked out.. The fees are $100 processing fee and $100 closing fee. Yes, I was glad, but surprised, that a bank would finance it for 10 years as well, but it's what I wanted to do for now.. Obviously I will be paying it off after the third year, but right now, I wanted that lower payment.. The selling price for the boat is $11,000. Do you all have any suggestions of places I can try to get a rate/term quote that will offer lower (or no) fees? Thanks again!!

 

[prockvoan]

Re: Help a girl get out on the water...

Used boats with a loan value of less then $20,000 is much higher,right at 9%,thats a little high.10 years on a 12 year old boat will do that.<br />That $275 fee,don't think so,whats it for?

 

[kyboatgirl]

Re: Help a girl get out on the water...

I guess my question really is, do you all think it's likely that I will find another lender that will give me 10 years for a 12 yr old boat, or should I go ahead and spend the money on the fees for this one (because a lot of places I had called wouldn't go over 5 years..)? Now that I know it doesn't seem to be the norm to have such high fees, it looks like it may be something I may just have to pay to get the loan term I want... Right?

 

[jlinder]

Re: Help a girl get out on the water...

I have a different thought. $11,000 for the boat, over 10 years, at about 9% sounds like about $100/month. Paid off when the boat is 22 years old.<br /><br />I don't know your finances, but if you are stretching it over 10 years becasue that is your limit I would reevaluate the entier purchase.<br /><br />I would hate to see you in over your head.

 

[mattttt25]

Re: Help a girl get out on the water...

i've pissed people off in the past answering questions like these, but here goes...<br /><br />financing a (relatively) cheap, 12 yr old boat for 10 years is not the best idea (like others have said). you're seeing the high interest rate that comes with it when you actually find a bank that will agree to the terms. for comparison, i financed for 5 years on a 11 year old boat, at an interest rate of 5.9%.<br /><br />with that said, if it means a bunch to you and you really want to be on the water, be aware- at any time during the first 5-8 years of the loan you decide to sell the boat, you will probably take a loss (need to send additional pocket money to clear the lien). just a fact of economics on a boat and finance term like that. your payments just have no way of keeping up with the depreciation. as long as you understand that and can deal with it, i wish you luck.<br /><br />as for the fees, i'd just ask what they are for, and ask that they be waived. the bank is going to make plenty off of you, pretty certain they won't lose the deal over $275 up front cash.

 

[kyboatgirl]

Re: Help a girl get out on the water...

thank you for the concern... I am well aware of all the economics involved, and I appreciate you telling me in the case that I didn't know. so I know what I'm getting into and already have a plan to pay off the boat in a much shorter term than 10 years.. (but it has to be after 36 months so i avoid the early pay-off penalty). so once again, thanks, but I got it covered.. thanks everyone for your input, i appreciate it...

 

[mattttt25]

Re: Help a girl get out on the water...

sorry, didn't mean to sound condesending. but more advice- you should be able to find a simple loan (no early payoff penalties), they are everywhere.

 

[kyboatgirl]

Re: Help a girl get out on the water...

thanks! you weren't condescending at all, because had I not understood that, it would have been helpful.

 

[Luna Sea]

Re: Help a girl get out on the water...

Hey, the nice weather's here, you want a boat, you got the financing, I say do it. <br /><br />I've had my share of credit/money problems so the last few new to me used trucks I bought, I couldn't pay too much attention to the the rates and the fine print. And those "lend to anyone institutions" do charge fees like you mention, don't ask how I know.... <br /><br />I think the most important thing though is to get a survey, and make sure you don't get stuck with a lemon. Don't take the marina/sellers word for nothing!<br /><br />Good luck, and post us a picture later on, of the boat of course I mean.

 

[CntrySngr]

Re: Help a girl get out on the water...

I just purchased mine at a Credit Union here in Indiana, no fees, 8.75% with 100% financing. I didn't have to worry about anything up front. Have you tried looking into a Credit Union?

 

[kyboatgirl]

Re: Help a girl get out on the water...

i did. the credit union i looked into wouldn't finance anything under a 1998. and they said if they did, it would be a note loan for 36 months at 10-18%. YIKES! <br /><br /> pics will be coming soon... of the boat.. haha