# Financing



## brunyan (May 22, 2012)

Depends on your credit. Also used boat or new? If you belong to a credit union that's a great place to start. If your buying something from a large retailer sometimes they have good financing particularly this time of year. Just don't get sucked in to "no payments til...." or anything variable interest. Im saying this very humble but I have good credit and would shoot for something under 3%. But that's without any boat loan experience so I could be off basis.


----------



## Saltyroots4life (Dec 1, 2013)

We'll as much as I would like to get a new boat a used one may be more practical when it comes to price. From what I saw though a 3% rate would be extremely good. But thank you for your input!


----------



## jacack (Jan 3, 2011)

Bank of American and penfed credit union are good with boats. I would be expecting 5 % or more depending on your credit.


----------



## Saltyroots4life (Dec 1, 2013)

That sounds pretty good! Thanks


----------



## DuckNut (Apr 3, 2009)

Rates for used are usually higher than new.

Personally I feel it is a bad financial decision to finance a boat. Just my opinion and obviously you feel different.


----------



## Saltyroots4life (Dec 1, 2013)

We'll I would love to pay cash for a boat but like most people I don't have 20-30 grand to go and buy one.


----------



## Capt. Eli Whidden (Jun 7, 2012)

What's your fico score? If your anywhere in the low 700s expect to get a interest rate at around 7-10 percent with nothing down. Good luck


----------



## CurtisWright (May 9, 2012)

I would advise against financing a boat. Its not a necessity like a home or car. You dont have to spend 20-30 grand. There are plenty 5K boats out there that will get you on the water and fishing. What kind of a boat are you looking for? I am sure there are tons of people on here that can help you find a good deal.


----------



## mxbeebop (Mar 22, 2013)

I think 5% is a pretty good rate. Even if you had 30K in the bank it would not be wise to tie all your cash up on a toy, put enough down to make it liquid-able if you need to bail and hang on to your savings IMO


----------



## MariettaMike (Jun 14, 2012)

Don't forget you'll have to get comprehensive insurance coverage as a loan requirement...and then you will see why they are called "premiums"


----------



## pudding08 (Sep 5, 2010)

Your best bet is most likely a credit union. You will most likely need some money down. The only drawback is if you need to sell it within a year or two. 

If you still owe money on it and can't pay it off yourself and you are selling it to pay it off it gets tough. Whomever buys it, is basically paying off the loan. The bank will release the electronic title then the state will take anywhere from 2-14 days to release it. You then can go get it printed at any DMV. The buyer has to then trust you to pay off your loan and you will send him or her the title.


----------



## bakinsey (Jul 1, 2013)

I am a banker for a large national bank, and just looked up our rates for boat loans. Rates for new and used boats range from 10-20% based on loan amount, term and credit score. Whether it is a flats boat, center console, or bowrider does not make a difference. 

I don't know anything about your current situation, but I sold my boat while I was in college and kicked myself for it. Before I graduated I started putting away a little money every month. Once I graduated and got a job last December, I lived way below my means and threw money into a savings account like no tomorrow, ended up buying my Maverick with cash in July....food for thought.


----------



## kimcampbell (Dec 9, 2013)

wow -- that's pretty high interest -- 10-20 % in this interest climate. Mind you, I guess banks get to charge what people will pay. Although my bank is only paying me about 1% on my deposits in return. Sorry to sound grumbly, but it does sound like banks are not just making a living (we all get to do that) but coining money -- at customers' expense


----------



## Saltyroots4life (Dec 1, 2013)

I know there are some decent boats out there for 5-10k. But I have a boat like that and am not happy with it. And I feel like I am financially stable enough to afford a boat payment. I realize financing may not be the "best" way to go. Of course I'm not gonna just go get a boat because I can afford it I was just curious to what a good intrest rate was and if I can get a decent rate and if it would be worth it then I would go get a boat. Thanks again to everyone who has posted on this topic!


----------



## ifsteve (Jul 1, 2010)

Sure paying cash is nice. 

But there is nothing wrong with financing a boat if you have a secure work position and the loan amount doesn't tilt your monthly take home pay.

Just try not to finance so much that if something happens so you are forced to sell it that you are upside down on the loan.

Good luck and happy boating!


----------



## el9surf (Dec 23, 2008)

Check orlando federal credit union they have rates starting around 5.9% and going up depending on payment term, age of boat and credit score. They will also finance 100% of the value if you don't want to tie up your cash. 
Also as mentioned you will be required to keep insurance. I keep insurance regardless of whether I have a loan or not, too many stupid drivers on the road to not have a policy protecting the money you have committed.


----------



## cutrunner (Jun 8, 2010)

Lots of good opinions shared
I personally see nothing wrong with a loan on a boat. Yes its not as nice as a paid off boat but I know many people that have cars and houses paid off and they get a loan on a boat so they don't tie up their cash. I personally wouldn't get a "boat loan" on anything under $15k. I would get a personal loan or something else that way I have the title in my hand just in case


----------



## bakinsey (Jul 1, 2013)

> I know there are some decent boats out there for 5-10k. But I have a boat like that and am not happy with it. And I feel like I am financially stable enough to afford a boat payment. I realize financing may not be the "best" way to go. Of course I'm not gonna just go get a boat because I can afford it I was just curious to what a good intrest rate was and if I can get a decent rate and if it would be worth it then I would go get a boat. Thanks again to everyone who has posted on this topic!


If you're in the position to do it, go for it. I just see a lot of the other side - people trying to live beyond their means and ruining themselves financially, and I have a hard time paying all that interest on something that isn't a 'necessity' - just me though, diff'rent strokes


----------



## Saltyroots4life (Dec 1, 2013)

If you're in the position to do it, go for it. I just see a lot of the other side - people trying to live beyond their means and ruining themselves financially, and I have a hard time paying all that interest on something that isn't a 'necessity' - just me though, diff'rent strokes[/quote]

Yeah I see what your saying. I don't want to over extend myself and like you said potentially really screwing myself over. 



Another question, how much does insurance run? I know it varies but let's just say like a $25,000 boat.


----------



## erussell (Mar 31, 2011)

Most banks or credit unions wont finance a boat unless its 7 years old or less and have a minimum amount to be financed (usually (10-25k). That being said, there is a credit union in Orlando that will finance a little older than that as long as you have NADA comparables of what the boat, motor, and trailer are worth and as long as you are asking for less than or up to the value of what the boat is worth they will usually do it. If your credit score is good, you can get around 5% with them. I'm sure we all can attest that having a boat is well worth the enjoyment factor whether it be financed or a cash sale. Just gotta find out what is in your budget and what you're comfortable with (of course you don't want to over extend your finances to get the dream boat if you can't swing it). Feel free to PM me with any questions about the credit union/contacts there. Good luck in your search!


----------



## --AL-- (Nov 28, 2012)

If I was gonna finance a boat, I'd get the biggest damn boat I could afford. Main reason I do inshore fishing is because the boats and gas are cheap and I wanted to buy a boat cash. If I'm paying 10-20% interest (I'd laugh my way OUT of the bank, btw) that boat better have a bed and bathroom.


----------



## devrep (Feb 22, 2009)

my dad always told me not to finance my toys. good advice that I have been fortunate enough to be able to follow.


----------



## Capt. Eli Whidden (Jun 7, 2012)

I just financed a hellsbay 2 months ago, through my credit union. I interest rate is 7.99. My credit score is in the 700s


Insurance is cheap. Charter lakes is a good place to start.


----------



## erussell (Mar 31, 2011)

Everyone has their reasons for paying cash or financing. I believe the OP here was just asking for some advice as to interest rates and insurance. We are all here for the same purpose and share a common interest. While I do agree it is nice to pay cash for toys, let's try to help him out so he can make an informed decision on what good rates etc might be, not try and sway his decision.


----------



## el9surf (Dec 23, 2008)

Some people finance cars and homes, some people pay cash. Everybody has their own unique situation. Don't spend your entire savings on a boat, you never know when you will need the money. Don't finance a boat that has a payment that is going to cause you stress, again you never know what can happen.
I have been laid off once before and was glad I had financed my boat rather than paid in cash. I was able to float the payment till I found the new job and got to keep my toy. Had I committed all of my savings to buy the boat I would have been in a bad position where I had to sell it to recoup some of the money invested. 

If you are going to end up paying 10-20% I would definitely think twice about financing. At that point I would start saving and building my credit. Probably pickup a gheenoe or something minimal to get me by. Also keep in mind no matter the rate you can pay extra to cut down on the interest paid over the term of the loan. 


Orlando Federal Credit union has been great to work with over the years. Rates are good, they finance 100% with rates into the 5% range. They will finance on older boats (10+ yrs) depending on NADA. I'm going with Charter Lakes on insurance as well.

Insurance on a 25k boat can range around 350-450 per year, guess it depends on the coverage, type of program and carrier.


----------



## Paul_Barnard (Oct 28, 2011)

> Rates for used are usually higher than new.
> 
> Personally I feel it is a bad financial decision to finance a boat.  Just my opinion and obviously you feel different.


I hear this idiotic crap all the time. Why in the name of God would someone pay 20,000 cash for a boat when they can invest that money and easily get 10% back on it. Borrowing at 3% makes more sense.


----------



## mxbeebop (Mar 22, 2013)

[quote
Another question, how much does insurance run? I know it varies but let's just say like a $25,000 boat. [/quote]

Insurance (progressive)on my Caimen at a $36K replacement value is 380$ a year. Make sure you buy a policy with the replacement value spelled out and stay away from that GAP insurance scam. 

Having been in the boat buying position a few months back I saw several people finance their boats through BOA at rate less then 6% and no money down. I'm sure Credit score was a factor.

Something to consider, a skiff like a hells bay will have more resale value then most cars, even at the very low auto rates, it might be better to finance a nice skiff versus a car or truck.


----------



## Marshfly (Nov 4, 2012)

> > Rates for used are usually higher than new.
> >
> > Personally I feel it is a bad financial decision to finance a boat.  Just my opinion and obviously you feel different.
> 
> ...



Because the people that ask, don't have the $20k in the first place. The people that do, quietly pay cash for their toys and leave their investments alone. It's different pots of money, never the two shall mix.


----------



## DuckNut (Apr 3, 2009)

> > > Rates for used are usually higher than new.
> > >
> > > Personally I feel it is a bad financial decision to finance a boat.  Just my opinion and obviously you feel different.
> >
> ...


Exactly Marsh but I want to add a couple items.

There are tax reasons why not to finance. You can not deduct interest on a boat loan.

Second I would like to have Paul tell all of us where he can get a guaranteed 10% return for the next 3-4 years so we can all go and finance a boat and get paid 7% to do so.

Sorry Paul but that trade does not exist and lenders never give away free money.

In my opinion if you can't purchase a boat for cash without borrowing or depleting your savings beyond a safe, comfortable level, you should not buy one until you can. boats, cars, motorcycles, etc all fit in this category.

There are some instances where financing makes sense but a skiff is not in that realm.

There has been several posts on various interest rates from lenders and the only function of these lenders is to give you a false sense of well being- all of which are designed to keep you broke by thinking what you are doing is a sound financial decision.

Sorry OP, just my opinion.


----------



## anytide (Jul 30, 2009)

boats are luxuries, if you need to finance a luxury - you dont need it.
paul - stay outside........
whats up grampa?


----------



## coconutgroves (Sep 23, 2013)

Buy the most you can with as little financing as possible. Buy one with a good resale value. Those two things add up to always having equity in an asset where you can move it from boat to boat as you want to try new things. If you are paying a high interest rate over 10 - 15 years, you'll be upside down pretty quick, regardless of the resale value of the boat.

Also don't forget a 401k loan. If you have to get a loan, it is better to be your own bank. At least you are paying yourself interest.


----------



## Rookiemistake (Jan 30, 2013)

I guess the guy would probably not ask about it unless it was the only way to make it happen.nothing wrong with financing. As long as you can afford it.im seriously looking into financing a boat myself just havnt taken the leap yet.we dont all have 30k+ in the bank. Credit union is probably easier to deal with than banks imo.i would just go ask them and not these guys.then you will know where you stand.


----------



## peterpalmieri (Sep 25, 2013)

No offense but this sound financial decision talk is making me sick. Since when do you have to have $5,000,000 saved before you can have any fun. 

There are obvious guidelines within a budget of what makes sense but saying financing is always bad is just silly.


----------



## AfterHours2 (Aug 2, 2010)

I could see if you were a Capt. and used your boat to make a living. Financing would make plenty of sense. There are too many people out there that depend on "status" to make it through life. I think I would rather keep my paid for boat and spend my cash on something eventually more profitable like real estate. Then, when I get old and retire one day I can finally afford to purchase those items of "status." But that's just me and the way I was raised so if you want to pay $500 a month for boat then do whatever makes you happy at the end of the day. Life is short....


----------



## el9surf (Dec 23, 2008)

> No offense but this sound financial decision talk is making me sick. Since when do you have to have $5,000,000 saved before you can have any fun.
> 
> There are obvious guidelines within a budget of what makes sense but saying financing is always bad is just silly.


The 20% rates exist for people with your mentality. 
Sh!t happens, it's one thing that is a certainty in life. If you don't have a savings how are you going to pay your bills when something unexpected happens? You can't, then you have to juggle your bills, borrow from friends and ultimately default on your loan. Kiss your shiny "fun" new toy goodbye. What's your rate next time you go to finance? The answer, sorry we are not able to loan you anything your credit score is too low. 

You might want to rethink your fun vs. responsibility theory, it won't sustain itself for long.


----------



## DuckNut (Apr 3, 2009)

> You might want to rethink your fun vs. responsibility theory, it won't sustain itself for long.


I got my Obamaphone, why can't I get an Obamaboat?


----------



## m.latorre555 (May 25, 2011)

You should be able to get an interest rate below 5 percent from a credit union. I financed my used maverick in August at 2.75 for 60 months. My credit score was around 740. I was required to put money down though.


----------



## peterpalmieri (Sep 25, 2013)

> > No offense but this sound financial decision talk is making me sick. Since when do you have to have $5,000,000 saved before you can have any fun.
> >
> > There are obvious guidelines within a budget of what makes sense but saying financing is always bad is just silly.
> 
> ...


You like many others presume to know my, the OP and everyone else's finances and because you know all the details you can with certainty know what is good and bad for everyone. 

I'm not promoting bad decision making just disagreeing with a blanket statement. 

I'm wondering exactly where I said the things you assume about my post like not having savings or a bad credit report. Any idea about me or anyone else's savings, debt to income ratio or anything else?

There is nothing wrong with financing if you do it responsibly, you just falsely assume everyone that does is irresponsible.


----------



## ifsteve (Jul 1, 2010)

Certainly everyone needs to make these kinds of decisions carefully based on their particular circumstances.

But I will toss out something my Dad said many times while he was with us. It pertained to just about every decision we make.

"I want to live before I die."

Would it be awesome to pay cash for a $25 or 50K boat? Sure it would. But I financed my boat so that I could have it and enjoy my retirement while I still have my health. All of us can die tomorrow! You can't go through life always looking over your shoulder waiting for some bad thing to happen. Be prudent for sure but like everything else in life you can take that too far.


----------



## erussell (Mar 31, 2011)

The man just asked what a decent rate to expect was. He didn't ask for your opinions on whether he should finance a boat or not. It sounds like he has already made his mind up hence why he is asking. I have done both and there is absolutely nothing wrong with financing a boat. Albeit, you don't want to take a mortgage out on a boat and pay 500 a month for 30 years, or get into an uncomfortable financial situation over it. I took a 3 year loan out on my boat at an excellent interest rate, put about half down, and paid it off in a year. This being because I recently graduated college debt free, all I had was revolving credit (credit card lines) and wanted installment loan history to build my credit even more so when I go to purchase a house in the next few years it will be a no brainer for the bank. Everyone has their reason for financing vs. paying cash. It is not our job to determine what is right for someone else and their financial circumstances. Being a member of this forum, I believe the intent is to help others out in making sound decisions related to boating and fishing and share the same passion; not bash someone who might not have a stacked bank account for wanting to purchase a vessel to help him experience what he enjoys.


----------



## el9surf (Dec 23, 2008)

Just to clarify I never said financing was bad I have financed several boats and paid cash for 2 others. If you finance just do it in a responsible manner. Your comment about not needing a savings before you can have fun is what I was picking on. Plenty of these folks out there, just saying. 
To the op do what you want


----------



## cutrunner (Jun 8, 2010)

> Certainly everyone needs to make these kinds of decisions carefully based on their particular circumstances.
> 
> But I will toss out something my Dad said many times while he was with us. It pertained to just about every decision we make.
> 
> ...


Amen. I'm not saying be irresponsible with money but something doesn't sit right with me when I hear "work hard a pinch pennys all your life so when you retire at 60 you can buy what you want".
Sorry, I wanna enjoy life while I'm still physically fit and capable not when its a task for me to step off the dock into the boat.. when I'm that age I will sell my big toys and buy a jon boat and a dog and go catch crappie on the lake.


----------



## mxbeebop (Mar 22, 2013)

You know if we all went out and financed something the Economy would come roaring back and we would all benefit, it is integral part of the free market, and their is no shame in using it responsibly.

I just wish someone would explain that responsible part to those Yahoo's in DC, of course when you can print your own money whats another trillion.


----------



## MUD_MINNOW (Oct 16, 2011)

I still wanna know where the heck you are getting 10% on your money!!


----------



## mzob7 (Nov 11, 2013)

I have been in search of a boat to guide out of. In my journey the main obstacle seems to be the year of the boat. Anything older than 07 or 09 they won't lend on, even with a solid business plan. So a large down payment, and long income history seem to help out. It's a pickle because the boat dealer will finance you for a 40k brand new boat that you will lose your shirt on when you sell in 4 years...


----------



## Capt. Eli Whidden (Jun 7, 2012)

When financing my 12 year old hellsbay I had to fight tooth and nail to get the bank to approve. Sighting incorrect nada values, others currently selling or sold in the same price range, and most importantly, an insurance policy covering the purchase price of the boat, no matter the depresheaited value.


----------



## Marshfly (Nov 4, 2012)

> I still wanna know where the heck you are getting 10% on your money!!


If you didn't make (considerably more than) 10% on your investments this year, we can't help you. The S&P500 is up almost 25% YTD. A lot of mutual funds are up considerably more than that. Rental property bought correctly returns 10% at least. Business investments better return considerably more than 10%.

Lots of places, although one has to have money in the first place. (Not directed at you.)


----------



## swampfox (May 9, 2007)

If you guys have a decent 401k. You can bank on yourself. You can take out a percentage (15%?)of your savings without penalty. Then you pay yourself back with a low interest. Instead of paying the bank. Then all the money and then some ends back in your nest egg. The drawback/advantage is it will not be in the stock market. I did this to buy my Lostmen. I sold a boat. Then barrowed a small amount from myself. It literally only took a few minutes on the phone. Then a check to me was in my mail box. To buy what ever I wanted no matter the year. And a guaranteed ROI


----------

