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Used boat financing


commodore

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I am buying a used boat off my buddy next year and wanted to see if anyone had any advice on financing options.

Boat will cost around 17k. I have zero debt and perfect credit, but I don't have 17 grand laying around either (fresh out of school).

Anyone have any experience with this type of loan? Any advice would be appreciated!

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I am in the process of purchasing a 1997 Echelon for $10k and we are in the same financial situation as you. The most important thing that I found out is to shop around and realize that rates, terms and % down are always negotiable. My current credit union would only give me a 36 month loan at 11.25% with 30% down. The credit union in the next town quoted me 60 months at 5% with 0 down. I am switching banks for sure. So don't just go to one place if they give you discouraging results. Also, be sure to get pre-approved on a good loan before you shop. That way when you find what you want you are prepared to jump on it.

Where do you live maybe you could go through my new credit union?

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I am in the process of purchasing a 1997 Echelon for $10k and we are in the same financial situation as you. The most important thing that I found out is to shop around and realize that rates, terms and % down are always negotiable. My current credit union would only give me a 36 month loan at 11.25% with 30% down. The credit union in the next town quoted me 60 months at 5% with 0 down. I am switching banks for sure. So don't just go to one place if they give you discouraging results. Also, be sure to get pre-approved on a good loan before you shop. That way when you find what you want you are prepared to jump on it.

Where do you live maybe you could go through my new credit union?

There are a couple threads about this, so do a search.

But I fianced my used 04 Vlx, and the credit union was my best bet. I did 33% down, 8 years, 7%, with no early payment penality. After 4 months, I've already got the payment down to 6 years :)

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Credit is tight for boats right now, and almost all banks are sticking to NADA as a lending guide. A lot of banks and credit unions are going to want 30% down, and that's 30% of NADA, they don't care about what you actually agree to pay. Also, the length of the term and rate will usually be better on a bigger loan and a newer boat. Shop around, because there are exceptions to the rules, and it might pay to call a dealer and ask them who they are using for lenders. You can also use this to your advantage on price negotiations: "the bank says your boat isn't worth that much and I can't get money to pay for it."

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I promise not to go in my pay cash for everything position. So, with that said at least do this....

You said you're buying it next year. This being April, that means it will be at least 8 months (if you buy in Jan 2012) until the big day. I would guess a typical loan like you're talking about would mean payments of $200 - $300 per month. Start saving that now and you will have a nice down payment. If you can't set that amount aside every month for the rest of this year than you can't afford the boat. I don't say this to be mean or rain on your parade. I believe I'm being realistic in the advice I'm giving. Whatever you choose, just choose something you can afford. Good luck.

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