Originally Posted by bigpoppop
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.