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| Who do you feel is the best bank to finance a boat through? I will probably be looking at a $30-35K (after a $10K down payment) and a 10-12 year note.. |
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| First off, no bank will finance a boat for 10 - 12 years.
Your best bet for rates would be a credit union I would think.
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Posts: 378
Location: Michigan | I have found credit unions to be the best option. Usually at least 1/2% less than banks. Just my experiance. |
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Posts: 45
Location: Brooklyn Park | Banks are financing 10-12 yr loans all the time. you can even go 15 if you spend 30K. They are all credit score driven with the loan to value adding other options. |
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Posts: 1769
Location: Algonquin, ILL | You may be better off with a Home Equity loan, get some tax breaks on the interest
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Posts: 2112
Location: The Sportsman, home, or out on the water | I do not know if you are buying used, or new. But, allow me to share my experiance from 21 months ago:
Lori and I were looking at a 10 y/o boat (brand/ model was what I really had my heart set on).
Lori shows me an add from one of her clients, BLOWING out last year's hulls with a brand new outboard (never knew much about the hull, but the brand of outboard was right).
After a test drive Fell in love with the boat, never looked back. Fits us better with all the walleye fishing we do out of it, now too, that we would not been able to do out of the original boat we wanted) and comparing intrest rates of used, v.s. new boats, We are paying, over the life of the loan, the same as if we bought the 10 y/o boat.
Go to your local dealer, and ask "what do you really need to move from 2007?" They will bend over backwards for you, you get a new boat intrest rate, life is good. |
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| Depending on the interest rate, your usually buying the boat twice with a 10 year loan. Go to bass pro..They will do a 10 yr loan on a 16k note, no questions asked. The sales guy there was telling me that guys will do 30 year loans on 50K boats..Carzy! That was a few years back though.. |
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Posts: 2112
Location: The Sportsman, home, or out on the water | Ben K - 12/7/2007 8:23 PM
Depending on the interest rate, your usually buying the boat twice with a 10 year loan. Go to bass pro..They will do a 10 yr loan on a 16k note, no questions asked. The sales guy there was telling me that guys will do 30 year loans on 50K boats..Carzy! That was a few years back though..
YIKES!
Most folks will do whatever it takes to get a new boat, and some folks will succume to it. |
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| if you are financing a boat for 10 years it is a dumb investment. if makes no financial sense whatsoever. i would imagine that banks with strong portfolios do not make 10yr boat loans. they will however do them on a line of some sort. home equity, personal line of credit, ect...these are in some cases renewable annually and usually backed by strong collateral. (residence, securities...)
I digress...
but why would you finace a 30k for that long? |
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Posts: 342
Location: Passaic, NJ - Upper French River, ON | Why go 30 yrs on a boat ? Because it becomes a "second home " - you can usually prepay the loan, and the interest and registration fees are write offs.
"Living on a boat isn't required, though. All that's needed is a sleeping platform, toilet and cooking facilities, and some indication that the owner stays overnight on the boat at least 14 days a year, according to Internal Revenue Service regulations..."
The big problems are - does a flat screen work in direct sunlight for watching football games, and I can't find a boat that would have these features and you'd still be able to fig 8 out of ? |
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Posts: 5874
| WE can't all be rich bankers, that's why some finance boats for up to 10 years. Me, I waited a long time to get in good boats. Kept moving up every few years, as I could afford it. But what really slowed me was the rate of increase in price didn't follow a straight slope. It's been rising faster. So. for the first time, I have financed a portion of my new boats purchase price. Fortunately, I didn't have to go out 10 years, but would have if I needed to. I got mine through a credit union. Way better place to do businees than a bank. |
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Posts: 194
Location: Lincolnshire, IL | banker - 12/7/2007 10:37 PM
if you are financing a boat for 10 years it is a dumb investment. if makes no financial sense whatsoever. i would imagine that banks with strong portfolios do not make 10yr boat loans. they will however do them on a line of some sort. home equity, personal line of credit, ect...these are in some cases renewable annually and usually backed by strong collateral. (residence, securities...)
I digress...
but why would you finace a 30k for that long?
if you are financing a boat for 10 years it is a dumb investment - Not sure anyone called buying a pleasure/fishing boat an investment....
if makes no financial sense whatsoever...I believe if you look in Webster's Dictionary, this is part of the description that defines the word boat....
I can't remember the exact quote from the FLW angler during the tour championship..but it went something like...He didn't want to be the richest guy in the cemetary so he bought a new Ranger 620...Of course, he also sounded like he had been "investing" his money wisely thoughout a good portion of his life...
BOATS ARE TOO EXPENSIVE...but i couldn't live w/out one..... |
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| wade - lets not get hung up on words. anytime you are spending that type of money in one way or another it is an investment...not all have returns and some you lose on. in this case, financing for 10yrs is a bad investment. the difference between 10yrs and 6yrs is roughly 8k in interest payments or 1/4 of the purchase price.
to me, and being a commercial banker, this is what we would call a dumb borrower...but the kind most banks like if they offer a 10yr program.
guess, it really doesn't matter and i probably should not have even started posting on this thread... |
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Posts: 1
| Check the interest rates. When I financed my boat the interest rate was less on the 10yr loan vs. the 5 yr. Does not make much sense, but that was the way it was at the time and no prepayment penalties. Better to finance for longer and pay off early. |
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Posts: 194
Location: Lincolnshire, IL | banker - 12/8/2007 8:10 AM
wade - lets not get hung up on words. anytime you are spending that type of money in one way or another it is an investment...not all have returns and some you lose on. in this case, financing for 10yrs is a bad investment. the difference between 10yrs and 6yrs is roughly 8k in interest payments or 1/4 of the purchase price.
to me, and being a commercial banker, this is what we would call a dumb borrower...but the kind most banks like if they offer a 10yr program.
guess, it really doesn't matter and i probably should not have even started posting on this thread...
Ok , I will agree that it is an Investment in my Happiness  |
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| I was not looking for financial advise, if I am able to purchase a boat of that caliber, I must be doing something right financialy.. I generally get the lowest payments possible and than pay the loan off within 2-3 years.. I just paid off a loan for a truck that was a 72 month loan, in less than 15 months as well as a boat that was on a 11 year loan and paid off in 2 years..
All I am looking for is someone to give me advice on a bank that gave them good service and is good to work with... I will be putting $35K on a 10-12 year note, but will expect to pay the loan off in 3-4 years... I work off from bonuses, so some months I have an extra $3-4K and some months I'll only make the minimum... |
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Posts: 32939
Location: Rhinelander, Wisconsin | Try Associated Bank. |
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Posts: 2112
Location: The Sportsman, home, or out on the water | Ken's Sports in Little Chute, and Capitol C.U. |
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| if you were ever in the military, check out USAA. http://usaa.com
attractive financing rates if you have good credit, a variety of term length options, no pre-pay penalties, and hands down the best service of any financial institution i've ever worked with. everything you need in one place: banking, investing, credit, loans, insurance, etc. i've used a number of different services in each of those areas, and find USAA to provide the best and most personal service.
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Posts: 4053
Location: Land of the Musky | A 144 month loan on a 30K boat will cost you about $90k when your done. Just don't tell the wife what you did Not sure what your boat woudl look like after 12 years either.... |
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| always pay things off like boats/cars etc faster than they are depreciating unless you are going to hold on to them until they are paid off. The last thing you want is to be upside down on a loan, i.e. you pay 30k for a boat, but after 5 yrs of "cheap" payments you owe 25k on the loan but the boat is only worth 20k. you are upside down 5k. not good.
pay things off like that faster than they depreciate. imo try like heck to not have a payment at all on a boat. how fun is it to pay for something you only use a small part of the year and how many times. take the total out of pocket costs it costs you to own for a year, gas, payment, insurance, upkeep etc etc, divide that by the number of times you had it on the water and see how that sits with you.
I did that for a ski boat I had and the number I came up with made me sell it! |
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| I have used 5th 3rd out of Ohio several times for boats of 25-35,000.
They will go 15 years on a boat of that price without problem and they offer a pretty good interest rate.
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| For me I chose to finance my boat for 144 months. I did this with my last boat also and paid it off in 7 yrs. I own my own business and you never know what might come up, bad year, ect. I liked knowing I could make that smaller payment if I wanted to, I usually didn't but I also knew I could afford to keep my boat were I to have an off year financially. I just financed my new (to me) boat for 10 years with Wells Fargo, got a good rate, and they will take a 1/4 of a percent off if you do automatic withdrawal. |
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