Loans and used boats?

[hostage]

I bought my first boat with cash, but now as I am helping my friends get new skis and boats, it is making me itch for something new ><. I have had my 2000 for about 5 years and wouldn't mind something larger. I am thinking of spending anywhere from $15-30k on a good used boat. Do they have limitations on age on boats, while I can afford to pay cash, I don't want to clear out the bank account to do it. If I can sell my boat for close to $10k, I could use that to cover part of the costs for a used boat?

 

[Texasmark]

Why don't you go and ask the banker where you are planning on having the financing handled and take your boat by an appraiser for an appraisal. Don't expect to sell it for what it's worth, especially if you are in a hurry!

 

[Pony]

Agreed. Best bet is to actually talk to the banks. Used boat loans are tricky.....I tried to get one a few years back, and the market value versus the NADA value or whatever they are using to blue book rarely ever matched up for approval. Lost out on a few boats that way.

 

[tpenfield]

Got any home equity? Sometimes those lines of credit can be easier to utilize, particularly in your situation.

 

[boatman37]

try lightstream.com. they are a division of sun trust. i went through them for my new boat. good rates and fast response. very easy to work with. its a no collateral loan so you can get the funds before you buy. they seem to cater to those with better than average credit scores

 

[MTboatguy]

I would say, look into a credit line based on your credit and not tied to any collateral, that way, they are basing their decision on you and not your boat, car or what ever else you are buying. Now a days when I have to borrow, I get a personal loan against my credit union account, then I know no matter what happens to me, it will be paid off and our credit won't suffer if something happens to me and my wife is left to pick up the pieces. If you have enough to pay 30K for a boat, most likely you have enough to borrow on a personal credit line.

That said, talk to the bank you are wanting to work with and find out what they have to say about how they do things these days, I bought a used 5th wheel a couple of years ago and because of the age, the interest was going to be 12% so I took out a loan against one of my accounts and the interest is 2% makes a big difference in total you eventually spend.

 

[Slip Away]

Got any home equity? Sometimes those lines of credit can be easier to utilize, particularly in your situation.

Easy ????? If youi don't mind providing your home title, paying closing fees, etc. Major pain IMO.

 

[Slide]

Go to your local credit union. They are much easier to work with than the big bank, and are more flexible with financing. If you can prove its value (NADA, market, etc) you shouldn't have a problem financing it.

 

[MTboatguy]

Easy ????? If youi don't mind providing your home title, paying closing fees, etc. Major pain IMO.

I have a line of credit on my home, didn't have to pay closing costs or any other associated fee's, it works basically the same way a credit card does, my bank issued us a debit card that is tied directly to that line of credit, if you own your home or have equity in your home, things are actually very flexible these days on what credit products are offered. Equity lines of credit and 2nd mortgages are not the same thing.

 

[tpenfield]

Easy ????? If you don't mind providing your home title, paying closing fees, etc. Major pain IMO.

I guess that all depends on the financial institution and your particular situation . . . for some it can be easy, others not so much.

 

[jkust]

Easy ????? If youi don't mind providing your home title, paying closing fees, etc. Major pain IMO.

'Easy' is relative to everyone...just go boat shopping and see how relative 'excellent condition' is.

 

[boatman37]

my credit union was anywhere from 9.5% to 13% interest depending on boat (9.5% was brand new 36 month). doesn't matter what your credit score is. i got 5.2% through lightstream.

 

[Slide]

my credit union was anywhere from 9.5% to 13% interest depending on boat (9.5% was brand new 36 month). doesn't matter what your credit score is. i got 5.2% through lightstream.

What a turd of a credit union. I belong to two, and neither offer a product higher than 10%. Every year, GE Credit Union has a sale on boat loans at 4.49%. That may still be going on right now, but I believe you need to live in the Cincinnati area (or work for GE) to join.

 

[444]

I agree, line of credit is your best and easiest bet. Best part on them is you don't have a set payment other than covering the interest.