Boat Financing

[Lake Chuck Duck]

I will be financing a boat soon and was wondering what the standard time/term that most people tend to finance their boat loans. I understand you can set it to what you want, but curious what most people do. The longer I finance the the lower the note and the better boat I can get to fit my budget. Interest rates are low so not too worried about that. Any suggestions?

[Top Dawg]

If u buy a new boat you can finance it however long. But I'm not sure about used boat. I financed both mine for 4 years that way I had it paid off and if I wanted to sell and upgrade I didn't owe. It's a good thing too because after I paid it off I had to buy a new motor lol. But I think it's personal preference really. Low note and pay long or high note and get it over with. You can also finance a long time with low comfortable note and double up if you want to pay off early.

[Tightline11]

If you r going with a new boat I wouldn't finance past the warranty on the motor. If your going with a used I would only go three years that is what I did on mine got it over with quick.

[Lake Chuck Duck]

Originally Posted by Top Dawg

If u buy a new boat you can finance it however long. But I'm not sure about used boat. I financed both mine for 4 years that way I had it paid off and if I wanted to sell and upgrade I didn't owe. It's a good thing too because after I paid it off I had to buy a new motor lol. But I think it's personal preference really. Low note and pay long or high note and get it over with. You can also finance a long time with low comfortable note and double up if you want to pay off early.

My thoughts exactly. Pay more when you can, but if you get in a bind just pay the regular note.

[jchief]

Originally Posted by Lake Chuck Duck

My thoughts exactly. Pay more when you can, but if you get in a bind just pay the regular note.

That is what I did

[Top Dawg]

Yep. But you will have to check with banks/credit union on used boats. I think some don't like to finance used boats long term. I could be wrong though.

["W"]

I would not go longer than 5-7years on a boat,,, some will finance u 10years

Rule of thumb is to finance the amount or time that you have on your warranty


I have a 5year on my mercury so I financed my boat for 5 years and do not but extended warranty because if your boat is paid for you don't need it. And most insurance will cover and major blow to s motor.

I went thought State Farm Bank for my boat as they had the best rates at the time.

[kcinnick]

I am debating financing a boat now or piling cash until Feb-March and picking up something then. I am pretty sure I will end up with a frontier 210 or 2104 which can be had right at 30k lightly rigged, 40k rigged out. If I pay cash I can get it bare bones and add the extras that I really need after getting to know the boat.

[swamp snorkler]

For sure check with a credit union if you a member and what ever insurance carrier you have for the lowest inrterest rates.

[weedeater]

CSE had 1.9% a few months ago so watch for that to come back or if you buy before then refinance it when you find a better rate...... that was a used boat, car or toy note

[Ray]

When I bought mine in 2009, the banks wanted anywhere between 8% to 13%. The dealership rate was over 13%.
Credit Union I belong to gave me a much lower rate.
If you don't belong to a credit union, find one and join. They are worth it when you need a loan. Their rates are always lower than regular bank rates.
I put $50/month into a savings account at the C.U. just to keep an account open for this reason. When the account gets up pretty good, that's what
I use for a down payment or to pay off a loan early. I got a 5 year loan on my boat and paid it off in 3 years with the money in the savings account.

Same for truck note. Ford Motor Credit was cheaper than the banks I use, but when I went to the Credit Union I belong to, they beat Ford.
I guess Ford wanted the business cause they dropped their rate to beat the C.U.
They were going to screw me with a higher rate, till I found a lower one. Then they dropped theirs.

I do what's best for Ray, not what's best for any lending organizations.

[Lake Chuck Duck]

I do all my loan needs through the credit union. Only way to go. Although I did recently refinance my vehicle through my insurance company to get a better rate.

[kcinnick]

Originally Posted by Lake Chuck Duck

I do all my loan needs through the credit union. Only way to go. Although I did recently refinance my vehicle through my insurance company to get a better rate.

My credit union wants 9% for boats! They are usually pretty competative, when I talked to the agent they said they got burnt pretty bad by a bunch of repo boats a few years ago and they haven't had good rates since. Car Refi's are under 3%.

[Ducktrickster]

Originally Posted by Ray

When I bought mine in 2009, the banks wanted anywhere between 8% to 13%. The dealership rate was over 13%.
Credit Union I belong to gave me a much lower rate.
If you don't belong to a credit union, find one and join. They are worth it when you need a loan. Their rates are always lower than regular bank rates.
I put $50/month into a savings account at the C.U. just to keep an account open for this reason. When the account gets up pretty good, that's what
I use for a down payment or to pay off a loan early. I got a 5 year loan on my boat and paid it off in 3 years with the money in the savings account.

Same for truck note. Ford Motor Credit was cheaper than the banks I use, but when I went to the Credit Union I belong to, they beat Ford.
I guess Ford wanted the business cause they dropped their rate to beat the C.U.
They were going to screw me with a higher rate, till I found a lower one. Then they dropped theirs.

I do what's best for Ray, not what's best for any lending organizations.

That's not Ford Motor Credit. That's your ford dealer trying to make a penny.

[Big Kahunaz]

Last thing I'd want is to be upside down on a boat. Especially after warranty is up on motor. Thin if u owed 60% of purchase price 8 yrs from now and boat is only worth 45-50% of that and your motor goes kaput! Plus if u decide later to upgrade etc u will have to come out of pocket Just my 2 cents.
Good luck on your purchase and post pics

[fishinpox]

if you go over 30k loan most will do a 10 year note. there are 2 diffrent schools of though on this. my school of thought is SAVE SAVE SAVE so you can put a good down payment and lower your term(lenght of note) . i hate paying intrest especially on a RECRATIONAL toy . the boat catches fish not the intrest no point in paying more than you need. i dont consider a boat an investment but i consider making the leap to buying a boat i use the same guidelines as investing ....most say have at least 3 months of living expense saved up, i say have 1 year of living expense saved up prior to major investments/ purchaces in case crap hit the fan . rate on a new boat will be lower than on a used boat but you will make out better if you shop smart and buy a good used boat ( let the other guy take the depreation hit) . best advice i can give is you know what you can handle financially , dont bite off more than you can chew(, have something put up for a rainy day , look into all the costs ( gas, insurance, maintence, ect) ......

["W"]

I got 5.99 rate for 5 years from State Farm Bank (new boat loan)

They were the best .....

["W"]

Originally Posted by Big Kahunaz

Last thing I'd want is to be upside down on a boat. Especially after warranty is up on motor. Thin if u owed 60% of purchase price 8 yrs from now and boat is only worth 45-50% of that and your motor goes kaput! Plus if u decide later to upgrade etc u will have to come out of pocket Just my 2 cents.
Good luck on your purchase and post pics

Almost any boat u buy u will be upside down unless you put a lot of cash down....

I owe 2 years left on my boat and I can now make money on it if I sold today

[Big Kahunaz]

Originally Posted by "W"

Almost any boat u buy u will be upside down unless you put a lot of cash down....

I owe 2 years left on my boat and I can now make money on it if I sold today

Just saying....
finance it for 10-12 and your upside down 6-8 of it. With min down. Seen to many friends get burned down the line cussing themselves later.
Enough down or out ahead with short finance period is best. Bought mine in '10 and will be paid off in 8 months. Not an expensive purchase but never had to sweat it. Blow a head and it's a zuk 4 stroke on it.

[Reel Aquaholic]

I got a 3.5% rate on a 4 year loan for my Nautic Star thru advancial credit union. I bought it used too. Check them out. They always have good rates.