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Muskie Fishing -> Muskie Boats and Motors -> Used boat financing
 
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Message Subject: Used boat financing
fishcrazed
Posted 10/17/2018 9:53 AM (#921086)
Subject: Used boat financing




Posts: 171


Location: indiana
What are some of the better lending institutions nationally that you have used. So many out there don’t know where to start. Want to avoid the horror stories. It will be for a used boat. Thanks in advance. Todd

TCESOX
Posted 10/17/2018 10:20 AM (#921089 - in reply to #921086)
Subject: Re: Used boat financing





Posts: 1168


Why a national lending institution? Your local credit union will probably give you as good a rate as anybody, and let you pick you payment date.
Espy
Posted 10/17/2018 10:56 AM (#921092 - in reply to #921089)
Subject: Re: Used boat financing





Posts: 323


Location: Elk River, MN
Second the local Credit Union, excellent rates and they're flexible with dates, and very personable compared to a national institution. You can join and have a loan in a day or two.
Musky Brian
Posted 10/17/2018 11:20 AM (#921093 - in reply to #921086)
Subject: Re: Used boat financing





Posts: 1767


Location: Lake Country, Wisconsin
Credit union, as stated. That’s the way to do it
Craig Holland
Posted 10/17/2018 11:23 AM (#921094 - in reply to #921086)
Subject: RE: Used boat financing




Posts: 52


Agree local credit union. Us bank actually I had the best rate when I financed previous on a new boat and I called about 10 banks and credit unions. I guess there are exceptions but credit unions would be the best.
fishcrazed
Posted 10/17/2018 11:37 AM (#921096 - in reply to #921086)
Subject: Re: Used boat financing




Posts: 171


Location: indiana
Thanks for the responses!
ntr0880
Posted 10/18/2018 8:03 AM (#921150 - in reply to #921086)
Subject: Re: Used boat financing




Posts: 51


Just a heads up with used boat financing from my recent purchase this year. I went through my local credit union. They go off of nada guides/blue book prices. With used boat prices higher than normal you may not get the amount of financing you expect based on how the bank/credit union views that boat/motor is worth. I wanted to finance a larger portion of my used boat but the credit union didn't value it at what the seller was selling it for. I had to pony up some extra cash but it was well worth it. Hope everything goes smoothly for you. It may be different if you find a lender that uses market value instead of using the nada guides/blue book prices.
tkuntz
Posted 10/18/2018 10:59 AM (#921180 - in reply to #921086)
Subject: Re: Used boat financing




Posts: 815


Location: Waukee, IA
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.

Edited by tkuntz 10/18/2018 11:00 AM
North of 8
Posted 10/18/2018 11:09 AM (#921182 - in reply to #921180)
Subject: Re: Used boat financing




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.
TCESOX
Posted 10/18/2018 11:26 AM (#921187 - in reply to #921180)
Subject: Re: Used boat financing





Posts: 1168


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.



I don't know. Over the last 35 years, I just go into the CU and tell them what I am buying (car, truck, boat, etc.), how much I need, and they cut a check. Multiple boats and vehicles both from individuals and dealers. I haven't encountered any issues. Don't forget, a credit union (at least mine) is run by the people it serves.
25homes
Posted 10/18/2018 12:17 PM (#921195 - in reply to #921086)
Subject: Re: Used boat financing





Posts: 983


I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs
tkuntz
Posted 10/18/2018 12:20 PM (#921196 - in reply to #921182)
Subject: Re: Used boat financing




Posts: 815


Location: Waukee, IA
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.


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.
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.


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.


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.
tkuntz
Posted 10/18/2018 12:33 PM (#921199 - in reply to #921086)
Subject: Re: Used boat financing




Posts: 815


Location: Waukee, IA
So you're saying they do collude for their mutual benefit. Got ya, should be illegal.
TCESOX
Posted 10/18/2018 1:02 PM (#921204 - in reply to #921086)
Subject: Re: Used boat financing





Posts: 1168


They must all operate differently. My CU has a chart of interest rates and length of loan, based on the age of the boat or car. The newer the item, the longer the loan you can get, and the longer the loan, the higher the interest rate. You just choose from the chart, which terms you want. The last boat I bought(five years ago), the loan officer said it was her fifth boat that week, so they must do enough boats that they know what they are worth. Not sure what method they use to value a boat. She didn't even ask if it was a dealer or individual, just who do we make the check out to. I'm sure if I was overpaying a significant amount for the boat, that would have been an issue.
14ledo81
Posted 10/18/2018 1:11 PM (#921206 - in reply to #921199)
Subject: Re: Used boat financing





Posts: 4269


Location: Ashland WI
tkuntz - 10/18/2018 12:33 PM

So you're saying they do collude for their mutual benefit. Got ya, should be illegal.


I would not consider that collusion at all. They feel more comfortable entering into an agreement with someone they know (the dealer). Therefore they can offer a better deal.

If I am pricing work (plumbing/HVAC) with a general contractor we work with all the time, my pricing is typically lower than with an unknown general or direct to a homeowner.
North of 8
Posted 10/18/2018 2:49 PM (#921210 - in reply to #921199)
Subject: Re: Used boat financing




tkuntz - 10/18/2018 12:33 PM

So you're saying they do collude for their mutual benefit. Got ya, should be illegal.



No, not at all. If the bank or credit union that did few boat loans did not work through dealers there would be far fewer loans made. How would that help the consumer? Not sure why this is hard to understand or why you would feel it is inappropriate.

My guess is a lot of consumers would be hacked if they could not get a loan from the dealer and had to run around checking with a variety of lenders. Many dealers can use multiple sources of funding.
Espy
Posted 10/18/2018 3:34 PM (#921214 - in reply to #921195)
Subject: Re: Used boat financing





Posts: 323


Location: Elk River, MN
25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


I suppose that too depends on the institution, like TC mentioned the CU I went through on a loan they had a chart, basically with term lengths and interest rates based on the age of the boat. They did also look at the NADA value/guide but that was no issue either as I found a boat in a softer market area where values weren't ridiculous
Muskie Gal
Posted 10/18/2018 3:34 PM (#921215 - in reply to #921195)
Subject: Re: Used boat financing




Posts: 199


25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.
Pointerpride102
Posted 10/18/2018 8:19 PM (#921233 - in reply to #921215)
Subject: Re: Used boat financing





Posts: 16632


Location: The desert
Muskie Gal - 10/18/2018 3:34 PM

25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.


There are boats out there that cost more than my house.
14ledo81
Posted 10/18/2018 8:31 PM (#921236 - in reply to #921233)
Subject: Re: Used boat financing





Posts: 4269


Location: Ashland WI
Pointerpride102 - 10/18/2018 8:19 PM

Muskie Gal - 10/18/2018 3:34 PM

25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.


There are boats out there that cost more than my house.


I don't think that is what she is arguing.. I think she was trying to "scold" him...
esox911
Posted 10/18/2018 8:44 PM (#921237 - in reply to #921086)
Subject: Re: Used boat financing




Posts: 556


Just did a boat purchase--Local C.U. was the best -- 4.9% rate and no problem with the loan-- I did have a good amount down so I was way under the NADA value on the boat--probably helped me some...
Pointerpride102
Posted 10/18/2018 9:29 PM (#921241 - in reply to #921236)
Subject: Re: Used boat financing





Posts: 16632


Location: The desert
14ledo81 - 10/18/2018 8:31 PM

Pointerpride102 - 10/18/2018 8:19 PM

Muskie Gal - 10/18/2018 3:34 PM

25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.


There are boats out there that cost more than my house.


I don't think that is what she is arguing.. I think she was trying to "scold" him...


Oh, I get it. But if someone wants a boat like that and can't afford it on a shorter loan, their only option is a much longer loan. I get the point, but if one is single, has stable income, and understands the extra interest, I guess it doesn't seem like that big of a deal. Hell, there are places here that offer 10+ year loans on ice castle fish houses.

It's only money, can't take it with you.
North of 8
Posted 10/18/2018 9:53 PM (#921247 - in reply to #921241)
Subject: Re: Used boat financing




Most people that take a long term loan on a boat or an RV have no intention of keeping it for a long time. They simply want the lowest payment for a couple years, then move on to something else. Building equity is not important to them.
I have been out of the banking business for a few years, but even home mortgages typically only ran 7 years or less before being paid off, but most mortgages are 15,20 or 30 years. It is about affordability for most folks.



Edited by North of 8 10/18/2018 9:58 PM
TCESOX
Posted 10/19/2018 9:41 AM (#921270 - in reply to #921086)
Subject: Re: Used boat financing





Posts: 1168


A couple of boats ago, I took a longer term loan to get the payment down, for flexibility. I paid double or triple the payment amount each month for about 18 to 20 months. I had a couple of months that I only made the minimum payment due to anticipated cash flow issues. Then I re-fied to a four year at a better interest rate, and ended up paying that off before it was due. Probably paid a small amount more in interest versus a shorter original loan, but it gave me the flexibility to make a much smaller payment on a few occasions, which, for me at the time, was worth what little difference there was in the long run. Many ways you can juggle things to fit your situation. Just have to get out the old abacus and amortization charts, and do some math.
North of 8
Posted 10/19/2018 12:11 PM (#921275 - in reply to #921270)
Subject: Re: Used boat financing




TCESOX - 10/19/2018 9:41 AM

A couple of boats ago, I took a longer term loan to get the payment down, for flexibility. I paid double or triple the payment amount each month for about 18 to 20 months. I had a couple of months that I only made the minimum payment due to anticipated cash flow issues. Then I re-fied to a four year at a better interest rate, and ended up paying that off before it was due. Probably paid a small amount more in interest versus a shorter original loan, but it gave me the flexibility to make a much smaller payment on a few occasions, which, for me at the time, was worth what little difference there was in the long run. Many ways you can juggle things to fit your situation. Just have to get out the old abacus and amortization charts, and do some math.



This is a good way to do a loan decision. I saw home owners who would go with a shorter term mortgage to get lower rate, but that impacted their cash flow and if they had to lay out a chunk of money for an unexpected expense, like a furnace, it often ended up on a credit card where the interest rate was double digits. Everyone's situation and financial goals are different. Need to really think about it, what is the best way for you to go.
miket55
Posted 10/19/2018 6:15 PM (#921287 - in reply to #921215)
Subject: Re: Used boat financing




Posts: 1191


Location: E. Tenn
Muskie Gal - 10/18/2018 4:34 PM

25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.


Even a 25K loan @ 1.99%, for 36 months = $770 in interest... it adds up quick!!
North of 8
Posted 10/19/2018 6:27 PM (#921289 - in reply to #921287)
Subject: Re: Used boat financing




miket55 - 10/19/2018 6:15 PM

Muskie Gal - 10/18/2018 4:34 PM

25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.


Even a 25K loan @ 1.99%, for 36 months = $770 in interest... it adds up quick!!



It does, but without looking real hard you can put that 25K in a 36 month CD and earn 2.5% to 2.6%.
miket55
Posted 10/19/2018 9:00 PM (#921295 - in reply to #921289)
Subject: Re: Used boat financing




Posts: 1191


Location: E. Tenn
North of 8 - 10/19/2018 7:27 PM

It does, but without looking real hard you can put that 25K in a 36 month CD and earn 2.5% to 2.6%.


Which is exactly why I took out the loan, vs. pulling the $$ out of the IRA..
25homes
Posted 10/31/2018 12:27 PM (#922221 - in reply to #921215)
Subject: Re: Used boat financing





Posts: 983


Muskie Gal - 10/18/2018 3:34 PM

25homes - 10/18/2018 12:17 PM

I really like my CU have couple loans through them but when I asked about a boat they treat like a car and only wanna do a loan for 4-5yrs which is usually fine but if your looking at a used 08-12 and gonna be $40k plus ID like little longer loan which I know lots of lender do extended financing on boats 10-15yrs


This is not a house, a boat is a toy. You have any idea how much interest you would pay over 15 years.


Yea that is told to you up front and considering I work with auto loans daily I know exactly what its gonna cost if you get 4% for 15 years cost you over 11k in interest based on buying 50k boat with 15k down which is about where I would be if I made a move...I wouldn't hold loan for 15 years gives you low payment in the $200s so I can pay xtra when I want but have low payment on a TOY!! To me No big deal ppl do it every day with cars just they do 6-7yr loans but then trade in at 3 yrs roll negative and have payments for 15 years strait no different ... I cant afford a 30k-40k boat on a 4 year loan let alone afford a 90k boat on a short term loan so 15 years no biggie can payoff early some of the banks will go 20 years plus on new Ranger boats..If you don't want a $1000-1500 a month boat payment your choice is older boat or extended financing.. I haven't done it yet paid 11k cash for last boat but would have no issue throwing down 15k on a 50k boat and financing 35k for 15 years can payoff early and 50k 620 gonna hold value well if you take care of!! Like the Old sane Goes....YOU GOTTA PAY TO PLAY!!!!


Edited by 25homes 10/31/2018 12:30 PM
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