New Boat Financing

[98buphon]

So after some thinking over and test driving new and used I've decided to try for a 2010 Vride. My dealer told me that financing is real hit and miss right now. For example there are people that were pre-approved months ago but now cannot get the financing. So my question is for the people that purchased new this year. Where have you had luck getting financing and what kind of interest rates? I am going to begin the process next week. My dealer is working on the final numbers right now for me so I know what to ask for. My first thought of trying is Bank of America who has a %6.69 interest rate. If that doesn't work out my dealer has a place they use which is giving %6.99 interest. I don't want any kind of run around from banks or any heartbreak if I don't get approved so any kind of feedback would be great. Thanks

[rodman]

If your credit is over 1000000 a bank may buy a boat loan. Only kidding banks do not like boat loans. If you own a home you could get a home equity loan @ 4.25% right now.

Put in your dealers hands if he wants to sell the boat bad enough let him get you the loan that you want.

[kiley]

So after some thinking over and test driving new and used I've decided to try for a 2010 Vride. My dealer told me that financing is real hit and miss right now. For example there are people that were pre-approved months ago but now cannot get the financing. So my question is for the people that purchased new this year. Where have you had luck getting financing and what kind of interest rates? I am going to begin the process next week. My dealer is working on the final numbers right now for me so I know what to ask for. My first thought of trying is Bank of America who has a %6.69 interest rate. If that doesn't work out my dealer has a place they use which is giving %6.99 interest. I don't want any kind of run around from banks or any heartbreak if I don't get approved so any kind of feedback would be great. Thanks

Try your local credit union. I have had much better luck with financing through there than at regular banks. Ususally much better rates. Call around, you will be amazed at what you can get for rates. Mine is at 5.05%, just lowered a couple of months ago.

[InvisibleMask]

Banks suck!

Paradise here in Temecula,ca couldn't get anyone financed for 2 months when I bought mine (last year). They told me I was the first one that got approved in those 2 months. How frustrating it must be trying to sell a boat and nobody would get approved. But I think things are better now. Like the post above, try a credit union but I would first see what the boat dealership can do for you.

I managed to get my boat paid off last month so I'm excited about that

did I already mention banks suck...

[WakingMeHappy]

Check out Dave Ramsey. There's a lot of good advice about making loans. Go to the archives and listen to his radio show on-line.

[Dexter]

+1 for the local credit union, even better if you 've banked with them for a while. Shop around and ask a lot of questions, then apply where you think you have the best chance. Every hard inquiry in to your credit report lowers your score.

[REW]

+1 for the local credit union, even better if you 've banked with them for a while. Shop around and ask a lot of questions, then apply where you think you have the best chance. Every hard inquiry in to your credit report lowers your score.

Even the soft inquiries (capital one) will make a mention when buying a house. But you are right in that too many inquiries in the credit will lower the score.

[RTS]

The algorithms used by the credit reporting agencies are supposedly designed so that multiple inquiries for the same type of loan (a mortgage, car loan, etc.) should count as one inquiry, thereby not lowering your score by more than a couple/few points. They should not punish you for shopping around for a loan.

To the OP, the banks have money to loan right now, but their credit standards have tighened up...probably to late 1990's/early 2000's levels when you actually had to show that you could pay back a loan before they would give you one.

The days of 'sign and drive - no credit, no problem', especially with recreational vehicles, are certainly over. But if you can afford the boat, you'll get the loan you need/want for it. And the rates for those who do qualify are pretty good (below 7% for a boat is an historically great rate, especially for a boat or other RV, because they factor in the risk that the boat will be the first thing you stop paying for if things go south for you)

[ScooterM]

Check out Dave Ramsey. There's a lot of good advice about making loans. Go to the archives and listen to his radio show on-line.

IT'S A TRAP! Just kidding, I have been following Dave Ramsey for about 8 years and when I first got out of college his program was indepensable and really helped us a lot. I am suprised though, to find out he has advice about making loans for anything other than a mortgage. Using his program, I have paid cash for all major purchases except for my house since then.

Enter boat-lust stage left: I found myself down and the local credit union last week and unfortunately found out that they would loan me whatever I needed as long as the boats blue book was at least that amount (@6.75% simple interest). The guilt is killing me but I don't want to wait/save 2 more summers while my kids get 2 years older.

So.. good luck and as was mentioned before, be selective about where you run your credit, don't apply too many places. Every time your credit gets run past just a couple of times your FICO score starts going down. Most places know what your minimum score needs to be to get their best rate and once it gets run once you should know what your score is, so just ask them. Might save you time filling out apps and credit check hits. Also, I have heard that loan shopping for the same loan "shouldn't" hurt your credit score, but I am skeptical of this. Why take a chance if a little research ahead of time can save you from having to do an inquiry.

[lakefreak]

+1 for the local credit union, even better if you 've banked with them for a while. Shop around and ask a lot of questions, then apply where you think you have the best chance. Every hard inquiry in to your credit report lowers your score.

Agreed. I just bought and the credit union was a way better rate than what the dealer or large banks could do.

[JDubya]

Or just sign up for Credit moniotoring service from your bank or other reputable source.

We pay BofA to monitor ours using their Privacy Assist Program (3rd party monitoring company). I get email notifications of any new credit inquiries and I get a quarterly update and copy of my creit report as well as my scores from all 3 agencies every quarter. And a monthly update on what has changed in my credit report.

They also have cool tools for doing "what-if" scenarios as well debt reduction panning (if I pay this to that how does that help my score).

Not a bad deal for $12.99/mo. Like ScooterM said this would prevent you from running your credit multiple times. Get your score before you shop.

Edited June 9, 2010 by Ramman17

[WakingMeHappy]

IT'S A TRAP! Just kidding, I have been following Dave Ramsey for about 8 years and when I first got out of college his program was indepensable and really helped us a lot. I am suprised though, to find out he has advice about making loans for anything other than a mortgage. Using his program, I have paid cash for all major purchases except for my house since then...

Actually it was a trap. Dave is adamant about not borrowing for anything other than a 15 year, fixed rate mortgage. He just gives good sound advice...

Edited June 10, 2010 by WakingMeHappy

[TheKiwi]

IT'S A TRAP! Just kidding, I have been following Dave Ramsey for about 8 years and when I first got out of college his program was indepensable and really helped us a lot. I am suprised though, to find out he has advice about making loans for anything other than a mortgage. Using his program, I have paid cash for all major purchases except for my house since then.

Enter boat-lust stage left: I found myself down and the local credit union last week and unfortunately found out that they would loan me whatever I needed as long as the boats blue book was at least that amount (@6.75% simple interest). The guilt is killing me but I don't want to wait/save 2 more summers while my kids get 2 years older.

So.. good luck and as was mentioned before, be selective about where you run your credit, don't apply too many places. Every time your credit gets run past just a couple of times your FICO score starts going down. Most places know what your minimum score needs to be to get their best rate and once it gets run once you should know what your score is, so just ask them. Might save you time filling out apps and credit check hits. Also, I have heard that loan shopping for the same loan "shouldn't" hurt your credit score, but I am skeptical of this. Why take a chance if a little research ahead of time can save you from having to do an inquiry.

I'm in the same boat, lol. I have never financed anything major, and saving for new boat will take me another 2 summers at the least. I know I'll use it and it would bring a tonne of enjoyment, but I can't get over the guilt right now.

Or just sign up for Credit moniotoring service from your bank or other reputable source.

We pay BofA to monitor ours using their Privacy Assist Program (3rd party monitoring company). I get email notifications of any new credit inquiries and I get a quarterly update and copy of my creit report as well as my scores from all 3 agencies every quarter. And a monthly update on what has changed in my credit report.

They also have cool tools for doing "what-if" scenarios as well debt reduction panning (if I pay this to that how does that help my score).

Not a bad deal for $12.99/mo. Like ScooterM said this would prevent you from running your credit multiple times. Get your score before you shop.

I have this as well, except with Equifax for Canada.

Edited June 10, 2010 by TheKiwi

[ScooterM]

He just gives good sound advice...

I agree whole heartedly. It is my deep down inside voice (that sounds like Dave) that keeps telling me I don't deserve it till I can pay in cash for ALL of it. Listening to D. Ramsey and following his advice has brought "financial peace" to my family's life.

[ScooterM]

P.S. Sorry I gave away your trap. I couldn't resist.. it made me chuckle when I read your first post

[apwrx]

Another vote for a credit union,If you want to get a loan for something freakin get a loan for it.There is definately something to be said about paying cash for everything, however I wanted a newer boat while me and my family are young enough to enjoy it

[TheKiwi]

What are credit unions loans like when buying a used boat? Or do they only lend to buying a new one?

I'd grab a loan if I could settle it with myself, but theres no way I'm spending $80k haha.

[98buphon]

I ended up talking to my credit union who I have been with for some time and have my current boat loan with yesterday. They don't even offer the type of loan I am looking for but I gave them the whole story on how I would rather do business with them and they are working on tailoring a loan just for me at 6.75% interest. Hopefully it works out and thank you all for the info. I will keep you posted and hopefully be posting pictures soon of the new Vride.

[ScooterM]

What are credit unions loans like when buying a used boat? Or do they only lend to buying a new one?

I'd grab a loan if I could settle it with myself, but theres no way I'm spending $80k haha.

My credit union said no year model restrictions. Everything is dependant on appraised NADA blue book value. Be ready to tell them all the options. I brought in a filled out online consumer level one to show my loan officer, she copied it verbatum. I was looking at a 2004 at the time.