Loan length on 1999

I am looking at a couple boats in the 1999-2000 range that cost between $20,000-$23,000. Is it possible for a loan to still go 10 years at a decent interest rate?

I got 7yrs @ 6% through a credit union.

yes it is possible. Bank of America gave us a 15 year loan on a 99.

I just got a preapproval back from Key bank out to 144 months (12 years), but their best rate for the term and year is 8%. Isn't that high, or normal for the year.

Usually older cars, boats, rec vehicles are at a higher rate. Since Prime is 7.25, I would say that rate isn't bad.
For a 23K loan over 12 years you are going to pay $12,851 in interest with a payment of 248.
Take it down to 7years and your payment goes up to 358, but the interest drops to 7,112. Your call.

They should all be simple interest loans w/ no penalty for prepayment. Take the loan out 12 years if yrou comfortable with the rate and pay additonal principal if/when you can. That way you never get yrouself in a money cruch over the high payment. I typically pay double my payment in the winter as I don't use my boat that much and all the cost associated with it are down.

Todd,
That rate isn't bad for that year. I financed through Key and anything over 5 years old had a slightly higher rate. That's a good rate for a 5-6 year old boat considering they have been going up lately. IMO of course.

Through Keybank I had a $300 penalty if I paid of the loan earlier than 3 years.

Brian

(Message edited by bstroop on January 23, 2006)

Adam, thats a great pt. if you can pay extra, it is nice not to be strapped to a huge payment if something comes up.

Is there a minimun credit score to get these loans? I make enough money, but haven't been able to get my credit score up very much after destroying it in college.

Credit scores are only part of it, but usually high 600s and up are considered average. Make sure you pay any collections you have on your CR. That helps raise it, and make sure you don't have to much credit available to you. Close credit cards you don't use etc.

Remember boats are not like cars or houses, they are luxury itmes....the way the lender see's it is what's the last thing you will pay if you have money problems? your toys.....try and get your score over 700 (you can get in with 0 down), it makes the whole process easier and of course cheaper. But like Paul said high 600's should get you in a loan, but more than likely they will require a down payment.

If possible always always always use a home Equity loan (not line but a loan) to by your boat. Just my .02...

Interest is tax dedeuctible, you can usually pull 20 even 30 year loans if you want and your rate should be considerably less than that on a recreational vehicle. If you rate is not lower, find yourself a new bank..

Thanks for the input guys, guess it's not bad then.