Post a message

Muskie Discussion Forums

Search | Statistics | User Listing

You are logged in as a guest. ( logon | register )

Posting a reply to: Re: Used boat financing

Muskie Fishing -> Muskie Boats and Motors

Guest name

Subject

Message

Emoticons

[QUOTE]North of 8 - 10/18/2018  12:31 PM

[QUOTE]tkuntz - 10/18/2018  12:20 PM

[QUOTE]North of 8 - 10/18/2018  11:09 AM

[QUOTE]tkuntz - 10/18/2018  10:59 AM

I have not found banks to be helpful at all in buying used boats or vehicles from private sellers. No problem getting financing from THE SAME BANK/CU through a dealer, however. It's a racket and should be illegal, but financial institutions love stacking the deck against you.[/QUOTE]

Curious  why you think indirect lending should be illegal?  Dealers have a better handle on the true value of used vehicles/boats and an awful lot of consumers want to get financing on the spot at the dealers.  Last bank I worked for did not do much indirect because the profit margins are very thin and the number of dealers you can trust is also thin but I don't see anything about it that should be illegal.[/QUOTE]

It just seems like collusion to offer a loan for full boat worth plus the dealer mark up at dealerships and only half to 3/4 value for an identical boat from a private party. Am I wrong in assuming this? All it does is incentivizes buying from dealerships, which is just paying another extra person to hand you the keys.[/QUOTE]

In the case of indirect through a dealer, the lender has an agreement with the dealer and while the lender would normally do the actual underwriting, they have the expectation that the dealer knows the real value of the boat the loan is being made on, whereas a lender who only sees a few used boat deals a year my not have a good handle on actual value and would probably be more cautious for that reason.  And remember, during the recession the first loans that went bad were not home mortgages but loans on "toys", boats, motorcycles, snow machines, etc.  People defaulted on those in record numbers.[/QUOTE]

HTML: Yes
Anonymous: Yes
MBBS Code: Yes

Disable HTML
Post anonymously
Enable emoticons

You are replying to:

North of 8

Posted 10/18/2018 12:31 PM (#921198 - in reply to #921196)
Subject: Re: Used boat financing

tkuntz - 10/18/2018 12:20 PM

North of 8 - 10/18/2018 11:09 AM

tkuntz - 10/18/2018 10:59 AM

I have not found banks to be helpful at all in buying used boats or vehicles from private sellers. No problem getting financing from THE SAME BANK/CU through a dealer, however. It's a racket and should be illegal, but financial institutions love stacking the deck against you.

Curious why you think indirect lending should be illegal? Dealers have a better handle on the true value of used vehicles/boats and an awful lot of consumers want to get financing on the spot at the dealers. Last bank I worked for did not do much indirect because the profit margins are very thin and the number of dealers you can trust is also thin but I don't see anything about it that should be illegal.

In the case of indirect through a dealer, the lender has an agreement with the dealer and while the lender would normally do the actual underwriting, they have the expectation that the dealer knows the real value of the boat the loan is being made on, whereas a lender who only sees a few used boat deals a year my not have a good handle on actual value and would probably be more cautious for that reason. And remember, during the recession the first loans that went bad were not home mortgages but loans on "toys", boats, motorcycles, snow machines, etc. People defaulted on those in record numbers.