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Old 05-03-2016, 05:12 PM   #1
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BUC Boat Value

I'm trying to buy a Nordhavn trawler and the bank will only loan 90% of the value they find on BUC- and this value seems at least 30% off of reality- it's not even close. Not sure how BUC gets their values but in this instance the value is plainly wrong. Anyone ever run into this? Thanks
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Old 05-03-2016, 05:41 PM   #2
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Yes - I ran into this with financing on older boats. I'm happy to PM you contact info at a bank that was able to finance based on appraised value.
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Old 05-03-2016, 05:46 PM   #3
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BUC is almost worthless for larger, ie over 30' boats and particularly worthless for a Nordhavn. Find another bank. Key Bank, before the Great Recession was pretty good and understood how yachts are valued.

If you are working through a broker, and I imagine a Nordavn sale would be, ask the broker for a lender that knows his stuff.

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Old 05-03-2016, 05:59 PM   #4
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BigPop

It is not unusual that very nice and well tended vessels sell for well above market, thus befuddling banks. But the financial condition of the buyer can come into play also.

What % of the vessel's value (appraised from survey) are you wanting to finance? Anything over 60 to 70% normally raises eyebrows unless you are a known and well heeled customer.
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Old 05-03-2016, 06:05 PM   #5
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Any bank referrals would be welcomed- thanks
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Old 05-03-2016, 06:09 PM   #6
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Quote:
Originally Posted by bigpoppop View Post
I'm trying to buy a Nordhavn trawler and the bank will only loan 90% of the value they find on BUC- and this value seems at least 30% off of reality- it's not even close. Not sure how BUC gets their values but in this instance the value is plainly wrong. Anyone ever run into this? Thanks
You might check with Sun Trust Bank. They have a marine lending division that does nothing but make boat loans. 4.99% right now.

Also, if they will only loan 90% of the BUC value, and you think the BUC value is 30% low, then they will only loan 63% of what the purchase price is. To be honest, you might want to rethink borrowing more than that % anyway.

Edit: FWIW, on the boat I just bought, my loan to purchase price was 63.5%. Once I sell my sailboat, that loan will be knocked down to 40% as the principle from the sailboat will go to reducing the principle of the new boat loan. I view debt on any depreciating item a "very bad thing". Cars are the worst, but boats are a close second.
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Old 05-03-2016, 06:09 PM   #7
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Any bank referrals would be welcomed- thanks
PM sent - good luck.
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Old 05-03-2016, 08:54 PM   #8
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I view debt on any depreciating item a "very bad thing". Cars are the worst, but boats are a close second.
Ain't that the truth. Depreciation is one of the insidious costs of boat ownership. Love them and live with the costs or leave them.

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Old 05-03-2016, 10:21 PM   #9
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I've replied to some of your other posts - I have no input on this particular topic but good to see your plan moving along. Any particular boat in mind?
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Old 05-03-2016, 10:23 PM   #10
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Loan rates

Boat US offered me 4.12 on or recent purchase of a 2003 OA 456. I took a better offer of 3.6 from a boat-loan brokerage in Annapolis. The most important number it turns out is the fair value placed on the boat by the surveyor. BUC only came onto play on the pre-approval process.

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Old 05-03-2016, 10:32 PM   #11
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I can understand using BUC in the pre-approval process- but they should adjust based on the surveyor appraisal. In this instance the BUC value is way off- should be interesting to see how it plays out.

Thanks
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Old 05-04-2016, 02:13 AM   #12
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Get your broker or surveyor to run soldboats.com actual sales prices and show those to the bank.
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