Question-Financing a new boat

[stump jumper]

What are the typical terms for loans on new and pre-owned bass boats?
What are the interest rates like for someone with good credit?
What percent do they normally like to see as a down payment?

If an example helps, let's say I wanted to spend $30K on the boat, including taxes.

Thanks! emoThumbsup SJ

 

[Davo]

Lyle,
They'll finance boats forever. Amsouth wanted me to go for 10 years. Of course, if you think about it, that's not that bad, you get a lower payment and can make additional payments whenever you want and still have the low payment if something comes up and you are short one month. I can't remember what my interest rate was, but it was pretty good.

 

[Pointer 78]

Put as much down as you can. And yes, you can make extra payments towards the principle but it takes discipline (something I don't have). My father used to say that if you can't pay off something in 3 years, you can't afford it.

 

[Fishin' Junkie]

Come see me Lyle! I work at SunTrust. (423)266-3062.

 

[Liveliner]

The first question to ask is "What is the lowest interest rate you can offer?" That is the main concern in any loan. Second; With a lower interest rate you then get into how much are the payments and for how long. Think -Highest payment that you can afford for the shortest period of time. The lending businesses want you to stretch out your loan by making those low easy monthly payments look so good. That will put about double the money they would normally make in their pockets and out of yours.

1) lowest interest rate

2) highest payment you can afford

3) Shortest time frame on the loan

1, 2 & 3 all work together to give to you the best deal.
Remember this, They need you more than you need them. They will not admit it but they know that you can always go somewhere else.

 

[G-MAN]

Lowest interest rate is not always the cheapest payment. Some loans are compounded differently and may even have some other cost thrown in with them.

Example: My credit union had a lower rate than my bank for a 4 year car loan, but the credit union's monthly payment was going to be more. Of course I took the lower monthly payment from the bank. Since that time, I have always made sure to compare monthly payments and not just interest rates.

 

[stump jumper]

Thanks guys.

In case someone else is wondering I did find some slightly more specific information on Bank of America's website.

Looks like a $30,000 boat financed at 8.5% for 120 months would cost approximately $372 a month.

Here is the link:

http://www.bankofamerica.com/vehicle_and_personal_loans/index.cfm?template=boat_loans&statecheck=TN

Today's Rates for Tennessee
June 26, 2007, 05:44 PM Eastern

Loan Amount, Term up to (Number of Months), Annual Percentage Rates (APR)
$5,000 - $9,999, 84, 13.75
$10,000 - $14,999, 144, 9.25
$15,000 - $24,999, 144, 8.75
$25,000 - $49,999, 180, 8.25
$50,000 - $74,999, 180, 7.99
$75,000 - $149,999, 180, 7.99
$150,000 and up, 180, 7.50

 

[Liveliner]

After the loan......................... If you buy a pre-owned boat, this advise will save you some money. Be sure to get two Bills of sale. You will need one for the NADA Value of the stripped down boat hull less the motor and accessories. If you live in a State that requires a trailer tag then you will need a Bill of Sale for just the trailer NADA value. The Courthouse will check the NADA value as you register your boat, As long as your Bill of Sale states that the amount you paid is within 80% of the used value you are okay. If you present the actual bill of sale for the boat trailer, engine, trolling motor, electronics and everything else, they will look at you like you are crazy and then allow you to pay taxes on the whole lot.

How I found this out is that I paid cash for my boat off Ebay. I got one bill of sale for everything including even my Bait tank. I went to register my boat at the court house. The lady checked the value and then asked me why I had paid so much. She said the value of the boat was about 1/3 of what I paid. I felt pretty rotten about that. I had been looking at saltwater boats for a couple years and had very good knowledge of boat values. So I thought,

Well I was right, I bought my boat for about $5,000.00 less than the market value of a Proline Bay Boat at that time. The lady at the court said that I could register the boat but she would have to use the only Bill of Sale I had, Or, I could leave and get a bill of sale that represented the value of the boat only. What made it tough in my case was that the guy I had bought the boat from was out of town in SC. I contacted him and explained what the lady had advised me to do. He and I found out that my hull was almost worthless compared to my engine, Trolling Motor, electronics, Super Bait tank and that all aluminum tandom trailer. To add to this the Proline Bay series was not listed in the NADA guide so the lady at the courthouse was forced to use the value of the cheaper Proline Walk.

I will not bore you with numbers but I think the end result was that I had to pay sales tax on approximately 85% of the hull only value of a used Proline Walk boat.

The rules are set up for you to pay a tax on certain parts of your boat and that is the law. If you choose to pay taxes on a bunch of accessories that's your business.

 

[digitalcb]

Pointer 78 - 6/26/2007 1:46 PM

Put as much down as you can. And yes, you can make extra payments towards the principle but it takes discipline (something I don't have). My father used to say that if you can't pay off something in 3 years, you can't afford it.

I'm with Pointer's dad only I'd go for One Year, save a little and trade up--gradually,

Know your boat values
Shop-Shop-Shop
Don't buy if it is not a bargain

 

[m17glock]

i financed the bullet through tva credit union [email protected]% for 4 years. you might want to check them out as well

 

[stump jumper]

Thanks guys...

I'm not looking to do anything real soon, just curious as to if it compared to buying a car, which it sounds like it does, just with a longer finance period available.

 

[cooperjd]

you could also look at balloon notes. this is how my folks buy all their vehicles, and i did one several years back. i dont' know the exact rules, but i think you dont' really have set payments. you can pay whatever you want whenever, and as long as you get the interest paid for the year you are ok. that isn't a smart way to go about it, just paying the interest, but this way you can throw all you can at the loan and get it paid down as quickly as possible. as far as interest rates as compared to other types of loans i cannot speak to, check with the banks.

 

[churly]

Thats great info guys. Ive been looking hard for a good deal. I found several deals on boats in the $10k range that were absolutely awsome on-line. But, most were in other states.

Lyle, if you look hard there are some good deals out there!

 

[Guest]

One other option is if you can get a Equity Line of Credit, say like on your house or land...the interest rates are a lot lower, allowing you to afford more boat for your money, and or shorter terms. I think my interest rate was 4 or 5 %. And the shorter terms you can go the better. On a 120 month note your interest adds up, and you end up paying an enormous amount of money for something.

 

[TritonCarl]

Looks like a $30,000 boat financed at 8.5% for 120 months would cost approximately $372 a month.

Plugged that into the calculator and the total comes out to $44,640!!! I think when I was looking at boats, one dealer mentioned financing up to 15 years and I almost laughed in his face, that's WAY too long to be paying on a boat, in my opinion. A house for 15 years, I can see, but NOT a boat!!! Wait a couple of years and just go ahead and do a 100% down payment....I was able to do it and have been extremely happy that I was able to. Anyone interested in a 2003 TR-19 w/ 200 HO Evinrude!!!!!!!????emoPoke emoPoke carl

 

[stump jumper]

Thanks again guys. I'm not planning to do anything until sometime next year and I plan to save up a heafty down payment and finance for 5 years or less. I agree, and I calculated it also, $44K is retarded for a $30K boat.

Dave Ramsey... Total Money Makeover

 

[SNUFFY]

most of your financial institutions will be at the late winter /early spring boat shows with lower than normal rates....usually in the 6% range from credit unions and banks. Keep it as short as you can stand it time wise.

 

[cooperjd]

you can also work out a payment that you can make each month. then get a lower monthly payment. pay your monthly payment on the day its due, say the 1st of the month. then say mid month, mail in a second payment for principal only. as long as you ask up front "can i make multiple payments per month if i can" if they say yes, then its ok and you are doing nothing wrong. the bank may call you and say what are you doing, but you are perfectly ok. also check and make sure you have no penalties for paying the loan off early. what this method can do is 1.lower your principal much quicker by the 2nd payment going to just principal and no interest, and 2. if you have a crisis one month you still have a luxury of a lower payment that you 'have' to make. you can pay off a loan much quicker saving on a ton of interest.

 

[Burger]

You're selling the Triton already Carl? What are you getting next?

 

[Bassallday]

Just a thaught stump jumper,but when you are ready to buy there is a lot of great deals on e-bay.Some boat's are hardly used like new and the owner just does'nt want it anymore.Others are junk.It is worth checking out.