Boat Financing Questions

I am considering a first boat purchase and wondering if someone could educate me on financing a boat since I don't have the cash sittting around to cover thr full cost.

What are rates for new and used boats?
What is the length of loans available?
Do dealerships or manufacturers provide finance options?
What are the best sources for loans if not? Personal bank or other lenders?
Any recommendations for best rates?

Best rates I know of Bank of America I am not a fan of the bank but they are the best rates I have seen published. Most dealers also have banks they work with.

You might be able to get the best rates from your credit union, I got 4%. If you can't get a good interest rate these are the best older boats and they will hold their value
http://forums.wakeboarder.com/viewtopic.php?t=59748

My local credit union has new boat loan 2.99% for 10 years.

It really depends on how much you want to spend on a boat. I'm actually in the process of upgrading my boat right now and shopping for a loan. Unfortunately, bank of america will only loan you money on a boat younger than 6 years. This might work for you, but I'm only looking to borrow about 10k for a 2001 SANTE. Also, many of the places I went will only give a boat loan for 25k or more.

Also how is your credit? You generally will also need 20% down.

So it sounds like I would be better off having pre-approved loan from a bank or credit union prior to walking in to a showroom, or approaching a third party on a used boat. My credit is excellent so that won't be an issue.

I just talked to US Bank and their rates are awesome. They will finance up to a 12 year old boat for 12 years @ 6% apr.

^^lol... go to a credit union. I am at 3.49% on a boat that is 12 years old. Credit unions are WAY more flexible, some of the big branch banks wouldnt even touch a loan for the boat I bought and if they did the rate was in the 6's.

Also, with a credit unions (or atleast with mine), I have heard many people who have found lower rates once their loan is all finalized and called up the credit union and they matched someone elses lower published rate.

My recent boat purchase was with a credit union and this was my first time working with a credit union. With that being said, they will likely be getting the refinance on my mortgage as well!

I was able to look online a little today and all of the big banks and boatloan.com sites seem to be looking at 5.25 to 5.5 % based upon 20% down and between 25,000 and 50,000 loan. I still don't quite understand how the bigger the loan and the longer term gets you the better rate. Backwards from everything I have learned in buying and refinancing homes and cars....

I will have to check into the credit unions. Anyone steer me in the right direction on credit unions?

Originally Posted by KevinC

I was able to look online a little today and all of the big banks and boatloan.com sites seem to be looking at 5.25 to 5.5 % based upon 20% down and between 25,000 and 50,000 loan. I still don't quite understand how the bigger the loan and the longer term gets you the better rate. Backwards from everything I have learned in buying and refinancing homes and cars....

I will have to check into the credit unions. Anyone steer me in the right direction on credit unions?

because the bank makes the money back on the interest, due to stretching the loan out and having a larger principle.

When it comes to financing ANYTHING, always shop around for rates and walk into the dealership with prior loan approval. Then when you find the boat you want to purchase, you tell the guy, "Listen, I am financing the boat. I am approved for a 10 year loan at 5% by Acme Bank. Can you beat that rate?" (obviously those numbers are an example). Chances are, they will run your credit and try their best to beat that rate. With car dealerships, it's pretty common for the rate to be better through a dealership since they have some buying power, I am sure that it's no different with boat dealers. They work closely with banks so that they can get people into boats.

I've been shopping around too. One bank has me at 4.74% on a 15 year loan, with 20% down. Another has me at 5.25% on a 20 yr loan, with 10% down.

Credit union. Anything else is stupid. You'll typically pay half the rate.


Just go join one. It's just like joining a bank. Show up, open an account and boom save money on interest.

No offense.

I have checked my credit union and looked at many and I can not get them even to close to what your posting. I have used my credit union before for a car but even then USAA had better rates. What are you doing to get that rate? My credit is perfect.

I had a similar situation to yours...

2 years ago with great credit and paying about 50% of the boat cost up front, I got a rate of 6.25% from my credit union for a 2004 SANTE. The term was 5 years I think. I paid it off in about 18 months as I was not psyched to have a loan with that rate.

i just got 4.45 from bank of am on a 10yr for a new enzo 244. they did not require no money down, i will pay it off in 2 years or so, but if you can't find really low rates, do the math and find out how much a month you need to add to the payment to buy down the rate vs time. usually its not that much. I always want a really low rate, but make sure there is no loop holes in the loan, prepayment penalties, term programs that lock you into 12m no payoff. most banks will push you to keep the loan for 12m thats when they break even on overhead, etc etc good luck