Marine Financing

[bchandler02]

I'm looking to make a purchase.. hopefully in the next 30-60 days, but more importantly when I find what I am looking for. One thing I am having trouble figuring out is my best finance option. Credit is not an issue (don't want to post my credit score here, but we can say "excellent").

The problem seems to be what I am spending... I'm looking boats in the 22,000-26,000 range. It seems like all the marine specific lenders will not do a loan under 25k, and they want you to start at 27,500 - 10% = 25k net loan. The local credit union I normally use will not loan anything older then a 2004 model under any circumstance, so looking at the credit union my parents use and they will approve the loan with a good interest rate, but they won't go above 60 months despite their website saying up to 12year terms.

I'm ideally hoping to write the loan at 24k (or 25k minimum if required), put some down, and write it at about 10 years, with the intent of paying sooner, but a lower payment if something comes up. It seems like the loan is too big for the credit unions, but too small for marine specific lenders.

Are there any particular lenders I should be looking at that have a good reputation in the boating community, or that specialize in this size of a loan?

Appreciate any input!
Thanks
BC

 

[Purecarnagge]

Re: Marine Financing

your best bet is to pound the pavement with local banks/credit unions. Where you can speak to the local lender directly. I'm guessing they won't do a 10 year loan though. Too much time in a deappreciating item.

 

[Philster]

Re: Marine Financing

Trident. Excellent credit w/ a solid pro marine survey and they will waive some requirements (such as loan am't, terms, age of boat).

The marine survey will cost about 20 bucks per foot.

Good luck.

 

[180Fisherman]

Re: Marine Financing

If you are buying through a dealer let them source the financing for you. That is where you'll get the best rate and terms.

 

[Home Cookin']

Re: Marine Financing

home equity line

 

[bchandler02]

Re: Marine Financing

Really appreciate the feedback. Checking with Trident now. Home equity is not an option at this time. I'll continue to check with local banks as well, found a few that will go that length on the term but want a higher rate. Trident sounds like it might be a good option from what I have read so far.

 

[spikeitaudi]

Re: Marine Financing

I kinda just went through this also. I have a Tier 1 Credit history and the average APR for a loan was 6.99-7.99. Going through the Marina banks at 10 years. I went on my own bank that I use for my morgage and got 6.49% for ten years. Plan on paying off much quicker, but its nice to have that option for long term if needed.

If you are buying a new boat in the current year you can problay put down 10% of the boat value. If you are buying a new boat but it is not the current year, most banks will require you to put more down. 20% or greater. This is to cover them incase you totally lose the boat in the near term and insurance only covers the actual cost of the boat. You will also need to show proof of insurance (Binder).

If you have anymore question shoot me a PM.

Hope that helps.

 

[H20Rat]

Re: Marine Financing

home equity line

put your home on the line to finance a toy? I had to check the date of the post to make sure I wasn't replying to a 5 year old thread!

 

[JimJam]

Re: Marine Financing

As far as new boats go, I believe that some banks will finance up to 20% above dealer invoice (cost). They actually ask to see the dealer invoice. Depending on the deal you are (or are not) getting, this could have an effect on the required down payment.
Hope this helps.

 

[Gromulin]

Re: Marine Financing

Doing a private party sale is a real P.I.T.A. right now if you are looking for financing. It will take at least a week just to get an ANSWER from them. And we have A+ credit and dual-income...so that wasn't the holdup.

My credit union finally came down with the following, after a week of going back and forth (glad I didn't make an offer on that boat...find a way to get cash in hand. We ended up doing a secured loan against one of our cars (@4.99%), and put that cash in a separate account)

1. Nothing over 10 model years old
2. 20% down payment
3. Total value not-to-exceed NADA values for boat and trailer (pay attention to the NADA details...some boat pricing includes the trailer, some don't)
4. Be prepared to try and convince your seller to wait a week, on good faith, that the underwriters will fund the loan.

Unless you are going through a dealer that will arrange the financing, find a way to get cash together.

Just my .02

 

[RickJ6956]

Re: Marine Financing

Keep checking small credit unions. Ask everyone you know for suggestions. A friend referred one that financed my '87 Carver for ten years at a competitive rate with 20% down. Dealt directly with the CEO.

 

[bchandler02]

Re: Marine Financing

Keep checking small credit unions. Ask everyone you know for suggestions. A friend referred one that financed my '87 Carver for ten years at a competitive rate with 20% down. Dealt directly with the CEO.

Just curious Rick - how long ago was this? If I could get that exact same deal I'd be set right now! By chance is this a credit union anyone can join through easy qualifications, or is it region based? (For example.. PenFed which I menitoned in another post.. anyone can join if you join the marine family assoication for 20 bucks)

 

[asm_]

Re: Marine Financing

home equity line

Then short sale or foreclose the home after you got all your toys.

That's seems to be a common theme around where I live.

 

[PeteyDaMan]

Re: Marine Financing

When I bought my 2007 Chaparral last year (used), i got a 10 year loan through my local credit union. They approved the load in only 1 day and had a check ready the next day. Granted, I walked into the credit union with the marine survey already done and 20% down payment ready.

 

[RickJ6956]

Re: Marine Financing

Just curious Rick - how long ago was this? If I could get that exact same deal I'd be set right now! By chance is this a credit union anyone can join through easy qualifications, or is it region based? (For example.. PenFed which I menitoned in another post.. anyone can join if you join the marine family assoication for 20 bucks)

This was almost exactly a year ago, so credit was tight then too. It's a local community FCU.

Keep looking. They're out there.

 

[Cuyose]

Re: Marine Financing

Ill reply to this as I am currently all set up to pull the trigger on a marine loan today through USAA, which I would highly recommend.

It is 120 month 6.39 APR, with no pre-pay penalty or anything. They financed 100% of NADA value plus options, no marine survey required.(it had a recent one anyhow)

If you can't get the NADA value to equal the purchase price(this is usually always the case up here in the Puget Sound area) you will either need a marine survey to determine the local market value of the boat or come up with the rest in cash.

 

[Brewman61]

Re: Marine Financing

All things considered, you did fine.