Special financing for those with shaky credit

[Lundman]

I know they do it in the automobile dealer industry,but I wonder if they are able to do it in the boating industry as well. I have have/had ran into some
bumps in the road as far as finances are concrened and I am wanting to rebuild/re-establish my credit some way. Now,...I am not going out to try and buy a big 21 ft. Bass boat that costs $45,000. All I want is just a little 14 Ft.
aluminum boat package in the less than $6,000.00 price range(have a 14 ft.
Lund model A-14 boat,Shorelandr' trailer,and 15 HP Mercury four stroke outboard priced at about $5,400.00)that I really want to be able to purchase
later on. What type of lending institutions would be able to do this kind of special financing for those who want to get back into boating but have shaky
credit? Any suggestions would help get me back on the water.

 

[ezmobee]

Re: Special financing for those with shaky credit

Completely taking out of account your personal situation......I don't really understand why people buy these types of boats new. I mean I know someone's gotta do it! But it doesn't need to be you. Not much can go majorly wrong with an aluminum boat and a 15 Horse brand name outboard and these kind of combos can be had used any day of the week for less then $2000 on Craigslist/eBay/local classifieds.

 

[Gary H NC]

Re: Special financing for those with shaky credit

I think most finance companies would rather finance a higher priced boat.
They don't make much off of a 5000 loan.

 

[tashasdaddy]

Re: Special financing for those with shaky credit

with the economy, and the loan market, you are going to have a hard time. by the way, i have not bought a new boat since 1969. i learned then to let the 1st owner take the big depreciation hit.

 

[BamaAlum97]

Re: Special financing for those with shaky credit

Whether you should or should not buy it is up to you...if you want to get financing, gather up as much documentation as you can about your monthly income and your monthly bills...then go and visit your local bank or credit union. If you can truly afford it, they will find a way to finance you. If they decline you, you can take it a good hint that maybe you can't afford that loan at this time...

 

[bhammer]

Re: Special financing for those with shaky credit

Yes, there are lots of companies out there that help folks with a couple bumps... The issue is, the loan amount. It is a lot of money to some but to a loan company, it isn't much and I think many stop below 10K.

I guy I know was trying to do the same thing with a used boat from a dealer. They tried it on a 11,000 boat and he had to put down 3,000. Then the loan companies didn't want it becasue the amoutn was too small.

He ended up with a little bigger boat with an amount finance just north of 11k.

 

[ribbit1072]

Re: Special financing for those with shaky credit

There are places, Medallion Bank is who we had to use, but our interest rate was 18.94 for 10 years. I refinanced it through our new credit union at 10% for 5 years. It can be done, but it'll cost you big, unless you get your credit cleaned up. That's what we did, bought it and then worked on our credit reports, joined a credit union (which rock by the way) and refinanced.

 

[Lundman]

Re: Special financing for those with shaky credit

There are places, Medallion Bank is who we had to use, but our interest rate was 18.94 for 10 years. I refinanced it through our new credit union at 10% for 5 years. It can be done, but it'll cost you big, unless you get your credit cleaned up. That's what we did, bought it and then worked on our credit reports, joined a credit union (which rock by the way) and refinanced.

The place I work at has an in-house credit union. I have had a couple very small personal loans through them and paid them both off. Plus,I have worked for this company for six years now. The best I can do at this point is present
them with the price of the boat/motor/trailer package I have in mind and get an example of what they might be able to do,how many years they can go,and what the interest rate might be. It is totally up to me when and if I want to "spring"for it now or wait a bit until some of the mess is cleaned up a bit. I could also search the "Craigs list" for pre-owned Lunds and see if I can't find something a bit lower in cost. But still want new if at all possible.

 

[cmcpherson]

Re: Special financing for those with shaky credit

I think buying a boat is a very bad idea to try and "rebuild" your credit. The car industry takes these risks because most people have to have a car. Boats are about as much of a luxury item as you can get, why would any lending institution take much of a risk on a purely luxury item? If you have to take out a loan on something like a boat and you are worried about your credit, your priorities are seriously out of whack. Just my $.02...

 

[Lundman]

Re: Special financing for those with shaky credit

Whether you should or should not buy it is up to you...if you want to get financing, gather up as much documentation as you can about your monthly income and your monthly bills...then go and visit your local bank or credit union. If you can truly afford it, they will find a way to finance you. If they decline you, you can take it a good hint that maybe you can't afford that loan at this time...

What you are saying sounds quite logical. In fact,I have been doing some calculations on what can possibly work,payment wise,and what won't . Going
pre-owned over new is one option I am more than willing to consider,but it is not the only option. I want to go new as possible so that I can have a warranty,., but still have an affordable package. Being a fisherman,I look at a boat as a tool,...but it does not have to be the most expensive one. I would rather re-establish credit with a small affordable 14 ft. aluminum boat,...than
with "plastic money". If nothing else,..at least save for a down payment so
that if I would need to finance,I won't have to finance as much. If the bank sees I have a down payment,...they may look at it more positively. As they
say,...sometimes bad things happen to good people,and I am one of those.
But I feel I deserve a chance to rebuild,so why not do it with a small boat
that I know I can afford,and have it payed off in four or five years.

 

[Mark42]

Re: Special financing for those with shaky credit

Got a Credit Union where you work? They will be able to work out a loan, either personal, or on the boat purchase.

 

[haskindm]

Re: Special financing for those with shaky credit

If you need "four or five years" to pay off a $5000 boat, perhaps you should re-think your decision to buy a boat. The old saying that a "boat is a hole in the water into which one pours money" holds allot of truth. You will find that owning a boat includes expenses beyond the purchase price. If every piece of gear, maintenance expense, or repair is a major crises financially, owning the boat will not be a pleasant experience. IMHO if you can't pay cash for a boat in that price range - you should not buy it. That is not popular advice, but it is the advice that your grandfather would have given you.

 

[erikgreen]

Re: Special financing for those with shaky credit

I'm in agreement on that. Don't take on a payment plan if you can't pay it off faster than $1000 a year.

Instead, save cash for a few months (the cash you would use for payments) and buy a used boat from craigslist or similar... there are a lot out there, especially right now and more so in the fall.

We'll help you with info on repair and maintenance, and when you're done with it you can sell the boat to help finance your next one.

It's not as fun as buying a new shiny boat, but it'll be less stress and easier on your wallet.


Erik

 

[marine4003]

Re: Special financing for those with shaky credit

5 yrs to pay off 5K.....so thats $83.00 a month,$2.76 a day.

Not bad,lets figure 15%,so thats an additional $750.
then there's misc stuff ,so lets add another $400, for safety gear, (PFD"s / Handheld radio - flairs ect...)
Then we need a trailer $800.00. Registration & documentation
add another $100.00
Total = $7050.00
My Friend you can do the same thing for 2-3K !!!!
A 5K loan wont do wonders for your credit,a revolving charge account paid on time each month will double the positive impact on your credit,not to mention spending 7K for something worth 4K after deprecation.
I've bought LOTS of boats,still owe 23K on the Scarab,have delt with credit unions,banks,finance company's ect..Best overall is your bank,whoever it may be. Buy used and repair credit with something the bank will deem tangible not luxury.

 

[Lundman]

Re: Special financing for those with shaky credit

5 yrs to pay off 5K.....so thats $83.00 a month,$2.76 a day.

Not bad,lets figure 15%,so thats an additional $750.
then there's misc stuff ,so lets add another $400, for safety gear, (PFD"s / Handheld radio - flairs ect...)
Then we need a trailer $800.00. Registration & documentation
add another $100.00
Total = $7050.00
My Friend you can do the same thing for 2-3K !!!!
A 5K loan wont do wonders for your credit,a revolving charge account paid on time each month will double the positive impact on your credit,not to mention spending 7K for something worth 4K after deprecation.
I've bought LOTS of boats,still owe 23K on the Scarab,have delt with credit unions,banks,finance company's ect..Best overall is your bank,whoever it may be. Buy used and repair credit with something the bank will deem tangible not luxury.

Safety gear,....hmmmmm,...I still have at least two life vests from the old boat and are still in good shape. Still have the anchor,and what else did I keep? Buy used? Consider it as long as it is a Lund and that I can find one
that is less than $3,500.00 and still in really good shape for it's type(utility-v
bottom such as a WC series or SSV series type boat. A WC series 16 Ft. would have to have a 25 hp motor,and the SSV series would have to have at least a 35 hp motor on a 16 ft. rig). Sorry,but any boat I end up with eventually HAS to be a Lund,...new or used! Won't accept anything but a Lund. If pre-owned,the motor can be either Evinrude,Johnson,or Mercury.
If brand new,...only Mercury if it is to be purchased as a package outfit.
Will try my credit union at work first.

 

[cmcpherson]

Re: Special financing for those with shaky credit

Again, I really question your priorities...

 

[pugbro]

Re: Special financing for those with shaky credit

not wanting to be a "nay sayer" but trying to re-establish credit with a "luxury" item throws up all sorts of flags for lending institutions,,,,My sister works in the loan dept of a major bank in Atlanta, Ga and she said they almost always turn down such loans that you mention....She said your best bet to re-establish credit is through your bank or credit Union..Ask for a small loan and tell them you want to get the loan to re-establish your good credit name. Make the payments on time, every time and be patient. I ran into the same situation about 30 yrs ago due to some major illness and it took me over 7 yrs to get re-established. Credit bureaus are sorta like the IRS...They never forget or forgive!!!!
Good Luck

 

[Kyshorthair]

Re: Special financing for those with shaky credit

You may have trouble finding a used Lund but there are plenty of other great boat makers out there. I picked up a used 15 foot mod-v 1991 Alumacraft with a 1999 Johnson 25 hp with electric start and a trolling motor with a decent trailer for less than $2000. Everything was in good shape. Deals are out there you just need to keep on top of all the ads and go look at the boats. I am very happy with this boat and am can't imagine paying new prices.

 

[eaglejim]

Re: Special financing for those with shaky credit

Get a part-time job work like a dog for a couple months find a boat on Craigs List, (or in somebodys back yard) pay cash and injoy

 

[marine4003]

Re: Special financing for those with shaky credit

Lundman
No offense but it sounds like a pre-ordained question,like no matter the advice given you are bound and determined to purchase this boat,offered here is reasonable reasons why 1) buying a 5000 boat with a loan wont do much for your credit,if you can even FIND financing.2)-why pay all that interest when you will NEVER recoup the money on resale.3) -used and cheaper till you save the money for new seems the most logical & economical sound way to do this.So if you do get the loan & boat ..Good Luck Sir.