Educate me on used boat financing options….

[Basscatbates]

Looking at buying a used boat from a private seller. What options do I have for financing? Where do I begin? Where can I get the best interest rate? Thanks in advance for your responses.

[polaris425]

Credit Unions usually have better rates than banks… but depending on the year model of the boat, most will only go 4 to 5 years on them.13 PIV w/ 200 MercIG: WarriorRiverCustomRods

[CoosaCat.basscatowners]

Most people dont like the idea of it, but if someone isnt planning to keep a boat more than a couple years, a longer term on a loan is a viable option with good credit and a decent down payment. Im no financial expert, but from what Ive seen, credit score, credit history, and loan-to-book value all becomes a factor. Shop around with some of the larger national banks, maybe even go through a lending company to do that for you. They do charge for their services, but if someone is looking to spend $40K or more on a boat, then a $300-500 fee will easily be out-weighed by shaving a couple points off of your rate, which they can likely do for you. You might be surprised how low of an interest rate you could qualify for through the right lender.

[bwp777]

you can also balloon the note especially if you dont plan to keep the boat. the balloon will still work but remember that when the balloon balance comes due, you may or may not have the option to refinance the rig. im not sure what the banks loan out on the years. ive heard up to 15yrs. that is a long time but the boat/motor should last that long if taken care of.

[mike dominick]

RECLending over on Bass Boat Central seems to have a big following.

[Mainliner61]

I use a credit union. Most will disagree with me on this one but, I finance for 15 years and triple up on the payments which allows me to pay them off in 4 years or a little less. The reason I do this is because I have seen many “rainy days” and a large payment would be tough. If you have a bad month or so, you only have to make a small payment.

[polaris425]

Mainliner61 wrote:I use a credit union. Most will disagree with me on this one but, I finance for 15 years and triple up on the payments which allows me to pay them off in 4 years or a little less. The reason I do this is because I have seen many “rainy days” and a large payment would be tough. If you have a bad month or so, you only have to make a small payment.How didyou get your CU to go 15 years? Mine refuses to go over 4, though, that was for a used boat…. could be different with new.13 PIV w/ 200 MercIG: WarriorRiverCustomRods

[Mainliner61]

Polaris425, it is for new boats. I havent financed a used one so I dont know their terms on used.

[Toadrustler]

Its really easy you go in your bank and tell your banker you found a sweet deal on a boat and tell him how much you want to put down and how long you want to finance it. I got a smokin rate on my pII. I also dont like financing a boat over five years. And if your bank doesnt offer a good rate just get another bank. I left one after 14 yrs last year and its saved me quite a bit in interest.

[schodackbassman]

Home equity loans are an option too which takes the boat out of the equation. Get lower interest rates (2% around here at credit union) and the interest you pay is usually tax deductible if you itemize. I wouldnt suggest it if finances are really tight as there is a chance you could loose your home if you ran into problems. But if you are in a very secure position and especially if your mortgage is paid off, its an option. Been years since I could itemize because we paid of the house years ago but when we carried a first mortgage and had a lot of equity, we used equity loans to finance cars etc. due to the tax advantage. Good luck.

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