Seek recommendations for sources of boat loans

[Gratitude]

I am getting serious about getting a 22' C-Dory, and am curious about various sources of boat loans. I go back and forth between older, and newer models. However, the sources that I have discovered seem to finance no longer than about 12 years old.

Thanks.
Gratitude (Jim)

[Don and Brenda]

Hi Jim

My C-Dory was through Bank of America, but I believe they changed their loan policy now to very large boat loans only. US Boat finances but on the west coast they did not have a bank to service them, but they will give you some names. If you buy Honda power they usually have financing the whole boat and motor. My current boat was done by a broker which was Trident funding, all paperwork will be via email and fax. My rate in Sept. on the Ranger tug was 4.99%

Don

[ssobol]

Since most boats are play toys and not necessities (like a car), one thing to consider is that most boat (and RV) loans require a 20% down payment.

On the other hand, some boats (like a C-Dory) can qualify as second homes and then the loan interest can be a tax deduction. To qualify as a home, the boat must have a separate sleeping area, cooking facilities, and a toilet. If you have a C-Dory with berth, stove, and a porta-potti, it qualifies. You have to spend at least 14 nights a year on it to claim the deduction.

[Matt Gurnsey]

Key Bank usually has pretty good boat loan terms. People's Bank has a boat loan program.

On an older boat you will probably need a survey to determine value, as NADA and other guides don't value C-Dory's properly.

[eagle57]

If you have served in the military usaa bank will loan. I got my loan in less then 30 min

[thataway]

USAA is certainly excellent. We have used them a number of times in the past for various vehicle loans. One of the issues with the C Dory is also price. NADA does not reflect the going prices of a C Dory (even with the outboard and trailer allowance). You have to refer the bank to this web site to see the selling prices.. You may have difficulty with a boat which is over 10 years old. Agree that a survey will help. Although I don't normally recommend this-you can consider a second on your home. You won't get the deduction, but it may be a far better rate. (I know that seconds are harder to get these days). It helps to have the loan pre-approved when you are negotiating on the boat.

[potter water]

What you don't need when your are buying a C-Dory with all of its mystique and luring qualities and your "really want it" bone in high chat, is someone to give you a treatise on using caution in boat buying. BUT...not knowing your age or situation in life, I have a few thoughts that may be useful, or downright insulting. They are however based on my middle class background and having bought and lost a LOT of money on motorized toys over the years.

1. There is nothing wrong with wanting a nice boat and the C-dorys are in fact, very nice boats.

2. Boats fall into two classes, disposables, and C-dorys. The disposables have common names, familiar to us all...bayliner being one of many. Some people call them milk-bottle boats. In any case, C-dory and a very small group of other boats are built for the maximum pleasure over the longest period of time. So, you are on the right track for a boat.

3. All boats, including C-dory, over the first year or two are never as thrilling as they seem in the beginning. The new boat buyer needs to be particularly aware of his or her ability to choose quality and long term enjoyment over immediate gratification of something powerful and painted nice and equipped for maximum escape from the humdrum of daily life. (Hmmm, kinda sounds like picking a wife or husband.) Another way to put it is that some boats are marketed to front load the pleasure to get you to put out the maximum price. The letdown comes a couple year later. You won't find that with C-dorys.

4. If you haven't bought a lot of boats over the years, consider carefully buying a well used, but well maintained C-Dory, even if it is 20 plus years old. If it has been maintained, you will be buying a nice boat for 20 or 25 grand instead of 50 to 70 grand.

How does this obvious stuff relate to your post? Even if full financing is available, it is a sucker deal over the life of the loan. And, stuff happens and that big ol' monthly payment may be a real albatross in the future. The 20% rule is a good one. My boat and other powered toy buying has always been with 50% down. That way I KNOW that I can get out from under that loan within a week or two because my boat will sell easily and at least cover the loan balance even if I have to sell it in the off season.

Consequently, in my personal financial position, that keeps me in the used boat market. That is a rich market. After all, a well built and maintained boat has a near infinite life when re-powered and re-electronic'd over the years.

So, I would always recommend that you find a boat that fits your ability to put 20 to 25% cash down, or even more if you can, and end up with payments that are relatively trivial to your own financial position.

You will be able to find C-dorys that are solid and with long life left on motors and electronics for half or a third the price of a new one. Someone else will have taken the major depreciation hit of the first year of two.

Now, if you are one of those folks who can pony up the money for a brand new boat, then god bless you. Without folks buying the new ones, then there would be fewer good used boats on the market for guys like me.

In any case, a boat is only as valuable as the amount of time you spend using it. Some boats cost their owners a thousand dollars and hour over the life of the owners owning that boat. because they use is so little. Others will own that same boat and only be paying a few bucks an hour because they put so many hours on their boat.

I hope you are or will be the latter.

So, there are my stream-of-consciousness thoughts which may or may not apply to your situation.

Oh, to comment on what you asked, I've done all of my boat and toy buying through a credit union. They seem to have more understanding and flexibility than any bank I've ever worked with.

Cheers, and happy C-Dory...ing.

[DuckDogTitus]

[Wefings]

Bank of the West has an excellent boat loan program , thats who we write through exclusively. Used boats are always an issue with C Dory if they are older and in good shape. 2 things affect rate , loab to value [your equity] and credit score . Have written 3.99% loans this year on larger purchases with correct parameters met.
Marc

[tcr_pnw]

Call a few local credit unions. In WA that's where I had the best luck.

HAPO Community Credit Union finances 100% of appraised value plus tax/licensing (if needed) with rates 5.99% and up on older boats.

BECU will finance up to 20% with required 20% down but at rates of 3.99%. And for those of you in WA, they will finance up to 100% of appraised value at 3.99% if you already have a loan through another lender. I had purchased my boat through HAPO but then ended up swapping to BECU only 2 months later after learning that. No fees and took about 4 hours. They both used my marine survey/appraisal for the value vs. NADA/BUC.

Troy

[DuckDogTitus]

[richnkay]

another way of financing a boat is through a home equity loan, we got a good rate through our credit union plus the tax advantage.

[Gratitude]

Thank you one and all for the breadth of your recommendations. We will consider all suggestions.

All the best,
Gratitude (Jim)

[Gratitude]

Just to be clear, are both the Home Equity Loan or a boat loan tax deductible? I know that we get a statement each year for the interest paid on our Home Equity Loan. Would we get the same interest statement from a boat loan, and is the interest on that loan also tax deductible as a second home.

[chimoii]