Boat loan ?s

I currently have a pro air nautique and want to upgrade to a newer v drive. I was just curious what type of payments I would be looking at for a 40- 50k boat. How long can you finance them etc. Our last boat my brother paid cash for. Any insight would help so I could establish what my budget is.

Too many factors to say. It depends on your credit, how much is the boat, how much do you want to put down, how long is the term of the loan?

Input your numbers on a "loan calculator" for a monthly payment:

http://www.bankrate.com/calculators/...alculator.aspx

Your looking at about $380 a month for 40K on a 15 year @ 8%. Boat loans are tough right now. You will need excellent credit with about 20% down. Make sure you factor in things like sales tax, registration and insurance

Be sure to check out your local credit unions too.

The age of the boat will also play a part in the rate you get, typically anything over 10 years old will add a percentage point to the rate. (I was about to pull the trigger on a 97 Nautique and the rate from the bank was still below 7%)

just got preapproved on a Bank of America boat loan online.. 4.5% on 10 Years for a new boat purchase..

got 4% for a 7 year loan on a 5 yo boat

check out western financial, they were quick and easy on a used boat loan

I'm going to recommend B of A also. Mine's 4.9% for 15 years and they offered to finance the whole kit and caboodle, including tax and licensing. They would be my first stop.

yep, I had a customer get 4.25 on a new boat with B of A, and he is 26, his Insurance was not so nice

you guys that are getting these BofA loans in the 4% range what is your credit score?

Ive always thought my Credit Union had the best rates but just doing a little searching I see they dont

Lowest 6%
https://www.navyfederal.org/products...e-rv-rates.php

BofA
http://www.bankofamerica.com/vehicle...at_loans&type=

joeshmoe what bank did you get 4% with?

Will banks match rates? If I tell my credit Union that BofA will give me 4.5% I wonder if my CU will match that?

More than likely they will. Tell them BoA will give you 4.25 if you move all of your accounts.

Originally Posted by smitty1258

Will banks match rates? If I tell my credit Union that BofA will give me 4.5% I wonder if my CU will match that?

Obviously it depends on your relationship with your credit union. I originally financed my boat through my credit union and then received an offer to refi with another bank. Even though my credit union does not refi used boat loans they still adjusted my rate down. I try to give my credit union as much of my business as possible.

For sure check with local credit unions. I am 26 and just got a 2003 SAN 210 this year, 5 year loan at 2%. Not a typo 2%. Got a comparable rate from a different CU and mine beat it. Shop around and see what you can get.


Seriously, I should have gotten an extra 20K for 2%.... Even in this market I could do better than 2%.

When I was searching for a loan, I went to bofa and they approved me at 6.5%, and that's with crest in the mid 700. Boat loans are hard to come by right now unless you have have at minimum 20% down. Its hard getting a home loan, there not just giving loans on luxury items that are high risk. 4% is quite impressive, unless they are writing the loan as a home equity loan or something along those lines

Originally Posted by smitty1258

you guys that are getting these BofA loans in the 4% range what is your credit score?

Ive always thought my Credit Union had the best rates but just doing a little searching I see they dont

Lowest 6%
https://www.navyfederal.org/products...e-rv-rates.php

BofA
http://www.bankofamerica.com/vehicle...at_loans&type=

joeshmoe what bank did you get 4% with?

Will banks match rates? If I tell my credit Union that BofA will give me 4.5% I wonder if my CU will match that?

Mine was 743. Pays to build and maintain good credit!

Originally Posted by wakebrdr94

When I was searching for a loan, I went to bofa and they approved me at 6.5%, and that's with crest in the mid 700. Boat loans are hard to come by right now unless you have have at minimum 20% down. Its hard getting a home loan, there not just giving loans on luxury items that are high risk. 4% is quite impressive, unless they are writing the loan as a home equity loan or something along those lines

Did you apply online or go in? I think they offer better rates online. My score is similar to yours and I had a totally different experience.

I applied online. I went through several different banks and cu's, but they were all about the same. We ended up paying cash, we were trying not to use our capital up front, but then just did it anyway. Afterall, with rates so low, its crazy to use your own cash if you dont have to. Who doesnt like free money. Of course this was back in february, so some things have changed. It is still unusual to see luxury item loans with a lower percentage than car loans. Especially now with consumer confidence so low. If it comes to not paying a monthly bill, the boat will not be paid versus say a car or power bill.

I wouldn't say the rates are lower than cars. I got 2.9% on a used SUV earlier this summer. My CU's rates are start at 2.89% on used cars as of Monday. Plus at pretty much any given time you can find some new car company offering 0% financing on their vehicles. With that being said 4% on a boat is pretty amazing.

I guess that's the point I was trying to make. Rates are AMAZING right now.

i can't believe you guys are financing a boat for over 7 years.... wow!! No wondering boat prices are getting outrageous

They offer 5 and 6the year terms on a car loan, why not 7the on a boat? Most will keep a boat longer than a car. Prices are going up because people are willing to pay it.

Originally Posted by petrey10

i can't believe you guys are financing a boat for over 7 years.... wow!! No wondering boat prices are getting outrageous

Thanks, dad.

I can't believe it took this long for a lecture on financial responsibility. WakeWorld is getting soft.

Smitty, I got the loan at my credit union, I have always had great credit but really never cared because if someone charged too much interest I just wouldn't buy whatever. Now with the changes in borrowing money I am very glad I have good credit and it is more important than ever. I did get 3% on my truck, but I had to sign up for a checking account which I will not use. Also I am not upside down on anything I own.

Originally Posted by petrey10

i can't believe you guys are financing a boat for over 7 years.... wow!! No wondering boat prices are getting outrageous

Seven, shoot, I'm doing 15 and terms up to 20 years were offered. But at the rates that are offered most people can earn more on their cash than the interest costs, so there's actually a net negative cost to borrow. Add inflation to that and the scenario is even better. Frankly, I think the most irresponsible thing you can do right now is pay cash unless you have tons of it to burn. It does probably drive prices up a little since many people make a buying decision based on the monthly payment, but The price has also gone up because the cost of production is increasing and they keep adding wonderful new toys!

I'm sorry, but if you are doing a 15 year loan on a boat, you obviously can't afford that boat. Too many people think they are "ballers" when they are really just broke.

The only exception might be a yacht or houseboat that you spend time living on and can write off the interest as a 2nd home.

Really "nitrousbird" maybe some just want to have a boat and have money to use it. Who cares what people are spending there money on. If you want to spend all your money on a boat and you enjoy it then who cares. Too many people have to judge others because they buy this or that. i say who gives a sh*t. Its there money. Being a "baller" doesnt necessarily mean you have all sorts of money. Let me see are you a "baller" because you spend daddy's money or seem like you have a bad ass boat and in reality your a loser that has a ****ty job and lives with his parents?? Hmmm who cares, imo, seriously if your out doing what your doing and you enjoy it then whatever. I wish I could flaunt what my parents gave me. Im not that fortunate but oh well. For me I actually just sold my Tige Rz4, looking for something a little bit smaller. Anyways was financed for 10yrs at 9.75% through a local bank. CU offered 4.5% but only a 5year term so my payment almost would have doubled. At the time I was looking for money saved each month then over all. Now I would look at more money down by waiting to buy and get that lower interest rate. Anyways could I afford it?? Well I could when I was using it. Now that its gone I have alot of money left over but at the same time I dont have any lake time. I had given up going out all the time and constantly buying little stupid things to have a 60k. Was it a bad idea, hell no!! I had great times out on the water. Anyways seriously who cares what people have and what they seem like. Its not always the case. So nitrousbird maybe you should learn how to read and answer the forum question not your smart *ss remarks.

Originally Posted by joaquin12345

Really "nitrousbird" maybe some just want to have a boat and have money to use it. Who cares what people are spending there money on. If you want to spend all your money on a boat and you enjoy it then who cares. Too many people have to judge others because they buy this or that. i say who gives a sh*t. Its there money. Being a "baller" doesnt necessarily mean you have all sorts of money. Let me see are you a "baller" because you spend daddy's money or seem like you have a bad ass boat and in reality your a loser that has a ****ty job and lives with his parents?? Hmmm who cares, imo, seriously if your out doing what your doing and you enjoy it then whatever. I wish I could flaunt what my parents gave me. Im not that fortunate but oh well. For me I actually just sold my Tige Rz4, looking for something a little bit smaller. Anyways was financed for 10yrs at 9.75% through a local bank. CU offered 4.5% but only a 5year term so my payment almost would have doubled. At the time I was looking for money saved each month then over all. Now I would look at more money down by waiting to buy and get that lower interest rate. Anyways could I afford it?? Well I could when I was using it. Now that its gone I have alot of money left over but at the same time I dont have any lake time. I had given up going out all the time and constantly buying little stupid things to have a 60k. Was it a bad idea, hell no!! I had great times out on the water. Anyways seriously who cares what people have and what they seem like. Its not always the case. So nitrousbird maybe you should learn how to read and answer the forum question not your smart *ss remarks.

- I have made more money for many years than my parents ever had. Paid my way through college, and wasn't handed ****. But thanks for playing.

- 9.75%. L-O-L. You couldn't afford it. You financed out your arse to be able to pay for it. Really, it is no different than these hood rats rolling around in 70k Escalades they lease and share between them in order to be "ballers" while living in a roach infested hell hole.

- Obviously you just HAVE to spend 60k in order to go wakeboarding. There is no way there are any good sub 30k options out there that can get the job done, right?

- Sure it is no one's business. Just like it was no one's business when banks were handing out all these home loans that defaulted causing a huge housing market crash and a downturn of the GLOBAL MARKET. Yep, just mind our own business and move along, right? Let people spend, spend, spend with no accountability and I'm sure it won't have any impact on the rest of us.

Originally Posted by nitrousbird

I'm sorry, but if you are doing a 15 year loan on a boat, you obviously can't afford that boat. Too many people think they are "ballers" when they are really just broke.

The only exception might be a yacht or houseboat that you spend time living on and can write off the interest as a 2nd home.

That argument holds as much water as someone saying you're broke for rocking a 2001 boat. Neither makes much sense now do they....

FWIW no I didn't finance for 15 yrs, just another perspective.

Not everyone who is getting a 15 year loan is buying a 60k+ boat or is upside down. For example, how is it irresponsible for someone to put 8k down on 30k boat and get a 15 year loan so that they can keep the monthly payments at about $300 a month?

People aren't getting any younger, and how many people are going to enjoy wakeboarding when they're 80 and can afford to buy a boat outright?

Originally Posted by 05mobiuslsv

That argument holds as much water as someone saying you're broke for rocking a 2001 boat. Neither makes much sense now do they....

Paid cash. If not being in debt is being broke, sign me up.

Originally Posted by austin

Not everyone who is getting a 15 year loan is buying a 60k+ boat or is upside down. For example, how is it irresponsible for someone to put 8k down on 30k boat and get a 15 year loan so that they can keep the monthly payments at about $300 a month?

People aren't getting any younger, and how many people are going to enjoy wakeboarding when they're 80 and can afford to buy a boat outright?

15 year loan = underwater on a boat (pardon the pun) through most of the ownership. This is why there are so may wakeboat repos. People get these long-ass loans, owe a fortune on the boat. Something comes up where they need to sell it, can't because they owe far more than it is worth, then just default on the loan.

Also, in your scenario, you could do that loan as an 8 year loan for ~$300/month @ 7.5%. Get a nice 4.5% loan, and you are looking at 7 years.

Originally Posted by nitrousbird

15 year loan = underwater on a boat (pardon the pun) through most of the ownership. This is why there are so may wakeboat repos. People get these long-ass loans, owe a fortune on the boat. Something comes up where they need to sell it, can't because they owe far more than it is worth, then just default on the loan.

Based on what I've seen, wakeboard boat (V-drives generally speaking with a few specific direct drives also) prices tend to bottom out around 20-25k. If it's an inboard wakeboarding boat and in decent shape, you're generally not going to see it for less than that. With boat prices soaring--especially new boats--older boats are holding their value if not increasing in value in some cases. Plenty of people are selling used boats for as much or more than they bought them for.

So if someone buys a 30k boat with 8k down, their loan is for about 24k (assuming 2k taxes). The boat's value is not going to drop below 25k until well after you paid quite a bit on the loan. Eventually, yes, you could get underwater possibly, but I tend to prefer low-balling on the monthly payments planning for a worst-case scenario. You can always pay more and/or pay the loan off early if and when finances allow. I did my car that way. I had a 5 or 6 year loan with low monthly payments that I knew I would be able to handle no matter what. Then with the extra money I saved up I paid the loan off a couple years early and saved myself the extra interest payments.

I think the numbers I ran through a loan calculator were actually assuming a 7k down payment instead of 8k, and I was accounting for about 2k of tax as well. I was going off of a 7% interest rate because that's what I'm seeing quoted on a number of boat loan websites right now. Just looking online, I'm definitely not seeing the 4% rates everyone else on this thread is talking about.

EDIT: Nvm. I just went back and checked. Apparently the calculator I was using maxed at 10 years. So yeah, my numbers were more for a 10 year loan instead of 15.

Originally Posted by nitrousbird

15 year loan = underwater on a boat (pardon the pun) through most of the ownership. This is why there are so may wakeboat repos. People get these long-ass loans, owe a fortune on the boat. Something comes up where they need to sell it, can't because they owe far more than it is worth, then just default on the loan.

This is a very general statement. It depends on the boat, how well you care for it, what kind of deal you got at purchase, how much you put down & how much you put towards the payment every month.

I have a 15 year and I'm far from upside-down. The benefit of a 15 is that I have flexibility on the payment. I can pay less during the summer months when I have the large expense of using the boat and more during the winter when it's stored. Either way I normally put money towards the principal every month

It cracks me up that everyone becomes a financial expert when giving money/loan advice to other people. In a country where the average household has almost 16k in just credit card debt, its hard to believe that wakeboarders are so good with their money. In a sport that looks at 50k boats as entry level, maybe you have to be a financial expert...

Originally Posted by joaquin12345

Really "nitrousbird" maybe some just want to have a boat and have money to use it. Who cares what people are spending there money on. If you want to spend all your money on a boat and you enjoy it then who cares. Too many people have to judge others because they buy this or that. i say who gives a sh*t. Its there money. Being a "baller" doesnt necessarily mean you have all sorts of money. Let me see are you a "baller" because you spend daddy's money or seem like you have a bad ass boat and in reality your a loser that has a ****ty job and lives with his parents?? Hmmm who cares, imo, seriously if your out doing what your doing and you enjoy it then whatever. I wish I could flaunt what my parents gave me. Im not that fortunate but oh well. For me I actually just sold my Tige Rz4, looking for something a little bit smaller. Anyways was financed for 10yrs at 9.75% through a local bank. CU offered 4.5% but only a 5year term so my payment almost would have doubled. At the time I was looking for money saved each month then over all. Now I would look at more money down by waiting to buy and get that lower interest rate. Anyways could I afford it?? Well I could when I was using it. Now that its gone I have alot of money left over but at the same time I dont have any lake time. I had given up going out all the time and constantly buying little stupid things to have a 60k. Was it a bad idea, hell no!! I had great times out on the water. Anyways seriously who cares what people have and what they seem like. Its not always the case. So nitrousbird maybe you should learn how to read and answer the forum question not your smart *ss remarks.

It's foolish to assume you know someone's financial situation. If you're as wise as you think you are you'd know that.

First I wasnt assuming anything just like you werent assuming anything when you originally posted saying people are broke if they have to finance for any amount of time right?? Anyways if you took my reply as meaning I was talking about you then maybe someone is feeling guilty. As far as your accomplishments Im pretty proud of you. Always awesome to see others do exactly as I have and have come from a poor family, paid for there own college, and now have made more then there parents 18k a year salary. I only came at this to pretty much say we dont need to come in here and judge others because they ask a question about financing. For some yeah a 15yr term is what gets them into that boat and if thats what makes them happy then oh well let them be. When I purchased my boat, first of all I waited and got a demo boat that was originally 90k sticker, was used by the owner of my dealership for 22hours, price was reduced to 70k I waited till end of season and got it for 52999 6 months later, paid 30k down and financed the rest, yes at 9.75% for 10 years. Got my payment where I wanted it to be. Also I sold my previous boat and put that money in the bank and had it there as a "just in case" enough payments for a year. My payments I made using the money I make xtra on one of my 2 rent houses. Now 2 seasons later I sold the boat for 51000, so I dont see it as a loss. Anyways my whole point being on this is that yes if your looking at a boat in any price range, #1 you need to make sure you can afford it. If you decide to live in a trailer house so you can afford a bad ass boat then do it. If that makes you happy. Some people want to have really nice houses and ****ty cars, or really nice cars and a crap house. Oh well that was my point. As far as actually trying to see what your looking at paying. Pretty much its a rough estimate and we cant tell you what kind of interest rate you will get but if you just divide the total price of whatever you get then add about $35 per 1% interest you will come up with a payment. 50000k boat / 120months = 416.66 + (7.5%apr x $35 = 262.50) = $678.66 a month. Thats not including insurance either so always remember that part. And this is just a rough estimate. Has come close for me in the things that I have bought.

Actually that was my bad, that reply was meant for nitrousbird not you. Not sure what happened. I think you got my post mixed up with nitrousbird as well. I never said people are broke if they finance, he did and that was the purpose of my misdirected reply.

Originally Posted by nitrousbird

The only exception might be a yacht or houseboat that you spend time living on and can write off the interest as a 2nd home.

Wrong again. I slap my company logo all over the boat and write most of it off as a promotional expense. There's a lot of ways to get write-offs besides mortgage interest.

Originally Posted by nitrousbird

Sure it is no one's business. Just like it was no one's business when banks were handing out all these home loans that defaulted causing a huge housing market crash and a downturn of the GLOBAL MARKET. Yep, just mind our own business and move along, right? Let people spend, spend, spend with no accountability and I'm sure it won't have any impact on the rest of us.

You're absolutely right. If only you were perusing these boards spreading your message of fiscal responsibility in 2005 this all could have been avoided.

Bottom line dude you're making broad statements that you can not and do not know anything about. The fact that you don't understand net borrowing costs further proves you're blowing smoke. As I ponder your potential motives for these comments I can only come to one conclusion: You're a hater.