# Buying a used boat from private seller with a loan



## C.Ward (Jan 19, 2016)

Total hassle for the seller. some lenders will want the title for the boat and trailer before they will release funds. I wouldn't send my title off without the cash in my hand if I were selling a boat. Some lenders only want a copy of the title to issue funds then you send them the title after you purchase the boat. If the boat is going to be used as collateral the lender may want an inspection performed on the boat.


----------



## stussing (Oct 29, 2018)

BlÖthar said:


> Hey guys, first time boat buyer. I searched through this and looked at some articles online but I am still having a hard time get my head around this, partly because I read some confusing things. So, if you are approved for a loan to buy a boat at a certain amount from a lender (my credit union), and you want to buy a boat owned by an individual and not a dealership, how does that work? Is it a hassle for the seller? I mean obviously it might be. I know you should get someone to look over the boat like mechanic etc, and I see marine surveyors, but don't they just do big boats? Also, is there a disadvantage to getting financing through a dealership? like with a car, the financing through a dealer is sometimes a bit sketchy. I am not financing much of the purchase, but I would get there a bit quicker with a loan. Any help would be appreciated.


It is going to take coordination with the seller and the lender. It can be done. It is more work for the seller instead of just taking your cash. Same process for buying a private car. First step is to find out what the bank is going to require from you and the seller.


----------



## BlÖthar (Apr 30, 2020)

thanks folks! Should know these things but I've actually only ever paid cash for used cars in the past...Should prolly do the same with a boat.


----------



## TieOneOnJax (May 24, 2018)

If the loan isn’t very large some banks will issue a “non-secured” loan which won’t require collateral. In the event of default the harm is done to your credit but repossession isn’t an available option. The available rate depends largely on your credit, the term of the loan, and the loan amount, but they will range anywhere from around 5% to above 15% interest. You’re bank may offer this as would a credit union if you’re part of one. If you’re approved the lender will deposit the funds into your account for you to withdraw and pay the seller. This avoids having to get the title freed up to receive the funds.


----------



## Padre (Jul 29, 2016)

I know my credit union wanted the title before they released the funds, which is not a problem if the seller is local because you can just do the transaction at the credit union. Of course, right now that might be difficult as most bank offices aren't open yet. Another way you can do it is give the seller a large non-refundable deposit to send the title before the rest of the funds are released.


----------



## State fish rob (Jan 25, 2017)

On a skiff I sold recently , pictures of titles & registrations , prior to sale, were requested by buyer/bank. I signed over day of exchange.( 6’ w G loves )He had them notarized , Drive thru window at bank.


----------



## jay.bush1434 (Dec 27, 2014)

I did this a couple years ago. The bank wanted seller to send signed titles then fund him. We told the bank that we weren't going to do it that way, instead, bank would fund seller, he would overnight titles to bank. They were ok with it and did it our way.
You can also use an online escrow company like www.escrow.com to handle the transaction. It's definitely a secure way to handle the transfer but you do have a percentage to pay to escrow company.


----------



## 321nole (Jan 11, 2016)

lightstream through suntrust (or whatever they are now) is probably the easiest way to do it for smaller loan amounts. quick approval, reasonable rates, and they deposit the money in your account within like a day, making you a cash buyer.


----------



## TwoHooks (Aug 2, 2018)

I have had my credit union cut several checks for different boats from private sellers and manufacturers without issue of needing title beforehand.


----------



## TheAdamsProject (Oct 29, 2007)

Sold my last boat to a guy who had a loan through a credit union. Honestly, wasn't a hassle although a few more steps were involved but the boat was a going to a good guy and I was happy to help. We decided on a price, he gave me a deposit and we planned to meet at his credit union on a specific day and time. I brought the title, everyone signed on the lines and in 10 minutes I had my money and was on my way. He was 2hrs away so really wasn't all that bad. I drive farther to hunt or fish at times so it was no sweat.


----------



## BlÖthar (Apr 30, 2020)

TheAdamsProject said:


> Sold my last boat to a guy who had a loan through a credit union. Honestly, wasn't a hassle although a few more steps were involved but the boat was a going to a good guy and I was happy to help. We decided on a price, he gave me a deposit and we planned to meet at his credit union on a specific day and time. I brought the title, everyone signed on the lines and in 10 minutes I had my money and was on my way. He was 2hrs away so really wasn't all that bad. I drive farther to hunt or fish at times so it was no sweat.


Awfully nice of you actually. Unfortunately, my credit union is in Virginia and I would be buying the boat where I live now in Florida.


----------



## TieOneOnJax (May 24, 2018)

I recently used LightStream. Approved in under 24 hours, cash deposited into my account the same day I requested it, and what I consider a reasonable rate for a used toy.


----------



## AggieFlyGuy (Jun 12, 2018)

I am actually dealing with this very scenario this week. I have good credit, which helped, but the lender wanted me to send copies of the Bill of Sale itemizing separate costs for the boat, motor and trailer. I had to send copies of the front and back of the title, provide proof of insurance naming the credit union as an endorsed insured, pictures of my driver's license and the seller's license and then the Seller is required to sign an actual transfer of title. Crazy. Only then will they cut a cashier's check to the seller and there is likely a delay of one day. I sold my EC Caimen to a guy last week who financed through USAA and it was a MUCH easier process.


----------



## Scrob (Aug 26, 2015)

TieOneOnJax said:


> I recently used LightStream. Approved in under 24 hours, cash deposited into my account the same day I requested it, and what I consider a reasonable rate for a used toy.


This. Simple and they don't ask anything about what you're buying except needing to pick a general category. Keep the cash in your pocket while doing the wet test like I did and pay the man at the dock. What could've gone wrong?1?! Oh yeah, he left the boat key on his bumper and drove home 50 miles. Both of us didn't realize it until the next day when he saw it sitting there. That was fun. Good luck with your purchase and don't forget to call you insurer while driving away with it.


----------



## Padre (Jul 29, 2016)

Scrob said:


> This. Simple and they don't ask anything about what you're buying except needing to pick a general category. Keep the cash in your pocket while doing the wet test like I did and pay the man at the dock. What could've gone wrong?1?! Oh yeah, he left the boat key on his bumper and drove home 50 miles. Both of us didn't realize it until the next day when he saw it sitting there. That was fun. Good luck with your purchase and don't forget to call you insurer while driving away with it.


I did the same thing when I sold my boat. We got in my truck after the wet test to do the exchange of money, etc. We hooked up the trailer to his truck and he drove off. After about 30 miles, I look down and there are the keys to the boat and he is already headed back to SC. Luckily, I always kept a spare key and kill switch thingy in the boat just in case I got to the ramp and forgot to bring the keys. So I called him and told him I would mail them and he used the spare until he got them in the mail.


----------



## mbhale (Feb 13, 2019)

+1 on Lightstream. You're basically a cash buyer once approved. Think you need pretty good credit though.


----------



## redchaser (Aug 24, 2015)

BlÖthar said:


> Hey guys, first time boat buyer. I searched through this and looked at some articles online but I am still having a hard time get my head around this, partly because I read some confusing things. So, if you are approved for a loan to buy a boat at a certain amount from a lender (my credit union), and you want to buy a boat owned by an individual and not a dealership, how does that work? Is it a hassle for the seller? I mean obviously it might be. I know you should get someone to look over the boat like mechanic etc, and I see marine surveyors, but don't they just do big boats? Also, is there a disadvantage to getting financing through a dealership? like with a car, the financing through a dealer is sometimes a bit sketchy. I am not financing much of the purchase, but I would get there a bit quicker with a loan. Any help would be appreciated.


I just went through the process. The credit union wanted title and registration, signed bills of sale etc before releasing the funds. The seller was a friend so there was trust, also I was putting $5k cash down so I sent that to the seller as security for the title. I’m in Louisiana, the seller lives in Washington state, but the boat was registered and located in Florida, so it was a juggling act but not horrible. It would be much easier if you and the seller were in the same area. Another option is Lightstream, their loans are a signature loan, the boat is not collateral so that part is easier.


----------

