Boat loans?

IcantDo55

Petty Officer 2nd Class
Joined
Jul 6, 2004
Messages
112
So I found a boat I want its 2 years old and sold by a private party out of my state. He has a loan on the boat now. How do I go about this as this is new to me as I have bought things cash all my life.

Go to my bank or any other bank for a loan? Recommend anyplace? Bet it be a PITA to get his paid off and mine set up especially out of state. Should I contact the bank he is with and see if they offer me a loan that might make things easier.

Thanks for any info you can give.

Boat is 35K I got 10K to put down and my credit is excellent.
 

southkogs

Moderator
Staff member
Joined
Jul 7, 2010
Messages
14,945
I gotta' tell ya' - I wouldn't touch the seller's loan or relationship with the lender with a 10' pole. Either they can sell the boat, or they can't. If they can't, then go find the next one.

I would secure your loan with the lender of your choice (I would use my bank because I have a good relationship with them), and I would also find out what your state requires to register a boat purchased out of state. Make sure all of the documentation is square.

Leave the seller's business to the seller. IMHO.
 

Starcraft5834

Lieutenant Commander
Joined
Jun 2, 2013
Messages
1,677
seller has a loan on the boat... you give him cash for the boat... will the seller pay off his boat loan and transfer boat title to you? or keep your cash.. give you the boat... and never pay off the loan on the boat... you end up with a boat in your possession which is legally owned by the sellers bank.. a dogs breakfast..........I'd deal directly with the sellers bank.. if you can. if not, move on
 

dingbat

Supreme Mariner
Joined
Nov 20, 2001
Messages
16,202
I went through the same scenario when I bought my boat out of State.

Guy still owed the bank $16K on the boat. I secured the loan from my credit union and the two banks handled the transaction internally.

I received the lien title to the boat 3 weeks later and the lean release when I paid the boat off 3 years later.

The boat had to be surveyed as part of the sales agreement.
 

kaulbr

Seaman
Joined
Aug 12, 2018
Messages
55
I can't imagine this is a big deal at all. Doesn't this happen all the time with cars? People sell cars when they are still making payments on them. My guess is that whatever bank you get the loan from will make out a check to whatever bank the current boat owner has a loan through so that that money can only be used to pay off loan. I'd be sure to find a bank that's familiar with boat loans and this can't be a new situation for them. I used a credit union near me that had done them before and it was very easy.
 

NicoPags

Petty Officer 1st Class
Joined
Mar 24, 2014
Messages
217
I've done quite a few loans for Boats for the bank I work for. And Yea, Banks and Credit unions have become much better at personal property liens. If you do indeed borrow the money on a secured installment loan, your bank or union would complete a UCC search (USA) or a PPSA (in Canada) which is equivalent to title search for Real Estate property. The search would indicate if there is a financial interest charge. Very well the seller could have just borrowed money and used the funds to buy the boat, but calls it a boat loan. You could do the same as well, via unsecured loan. Your credit score would get you a comparable rate ether secured or unsecured. If you did secured, your bank would order a payout/discharge statement from the other bank, they would issue the funds in 2 drafts, 1 going to the bank with the payout balance, and the other would go to the seller.
 
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