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Old 01-05-2019, 10:21 AM   #1
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Boat loan for older boat. Brokers?

Good morning all,

We're in search of a lender that will lend $100k on a 32 year old boat to someone with good credit, a good job, and little debt. Recommendations?

Thanks.

John
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Old 01-05-2019, 10:27 AM   #2
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Good morning all,

We're in search of a lender that will lend $100k on a 32 year old boat to someone with good credit, a good job, and little debt. Recommendations?

Thanks.

John
Never a typical bank , ever.
- credit union
- HELOC
- a specialized lender like Essex or Coastal (there are a few others as well)
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Old 01-05-2019, 11:27 AM   #3
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John,

Hope you don't mind an add on question.

Are boat loans for a used boat usually a percentage of the appraised value?

Jim
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Old 01-05-2019, 11:39 AM   #4
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John,

Hope you don't mind an add on question.

Are boat loans for a used boat usually a percentage of the appraised value?

Jim
Hey Jim,

Having only had one other boat loan and it was a percentage of appraised value, I would say yes. This boat should appraise well and the loan would only be for about 60% of value. Shouldn't be an issue.

John
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Old 01-05-2019, 07:27 PM   #5
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Boat loan for older boat. Brokers?

USBank gave us a pretty good rate and service but our new boat is 2000 model year. Our previous loan was with SunTrust. They were okay, but it was a high rate for our 86 trawler. Cold call a few brokers in your area and just ask for a reco for a lending institution they have seem people use for older boats.
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Old 01-05-2019, 09:23 PM   #6
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I had really good service with Cindy Lewis at Sterling. PM me for her phone number.
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Old 01-05-2019, 10:28 PM   #7
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Start with Jen @ Yachtcloser.
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Old 01-06-2019, 09:12 PM   #8
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I had really good service with Cindy Lewis at Sterling. PM me for her phone number.
I'll second Cindy. She got me a great rate and terms and closed very quickly with zero snags on a 35YO 53 Hatteras my, they did the uscg doc as well. She also hooked me up with an insurance co. Tell her Steve sent you.



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Old 01-10-2019, 04:23 AM   #9
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I'll second Cindy. She got me a great rate and terms and closed very quickly with zero snags on a 35YO 53 Hatteras my, they did the uscg doc as well. She also hooked me up with an insurance co. Tell her Steve sent you.



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I just applied for one on a 31 year old boat (1988), she said over 30 years isn't possible.
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Old 01-10-2019, 07:29 AM   #10
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I just applied for one on a 31 year old boat (1988), she said over 30 years isn't possible.
Yeah, perhaps the rules have changed because she turned us down, too. A couple of other companies told us the same thing. We took it as a sign and withdrew our interest in that boat.
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Old 01-10-2019, 10:02 AM   #11
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Yeah, perhaps the rules have changed because she turned us down, too. A couple of other companies told us the same thing. We took it as a sign and withdrew our interest in that boat.
Glad it wasn't just me!
She suggested that I look at a newer boat, but a lot of great boats were made 30+ years ago!
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Old 01-10-2019, 01:54 PM   #12
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i used a home equity line to buy my slip and 33 year old boat. if you have the option the APR is better also.
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Old 01-10-2019, 02:11 PM   #13
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i used a home equity line to buy my slip and 33 year old boat. if you have the option the APR is better also.
Risking your home over a boat is generally not a good idea...
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Old 01-10-2019, 02:17 PM   #14
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I played a little what if game with YW to see how many diesel power boats 60' and under, were 30 years old or older and it came out to be almost 24%. That seems like a very high number of boats to exclude from financing if in fact no one will finance a boat over 30 years old.
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Old 01-10-2019, 02:18 PM   #15
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We just recently did one through Key Bank. They were the ONLY ones we found, out of more than 20 contacted, that would look at a boat over 30 years old. There may be others but not that we found.
The banker we used was incompetent so I wouldn't recommend him, but I think all the issues we had were because of him and not the bank.
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Old 01-10-2019, 02:21 PM   #16
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I played a little what if game with YW to see how many diesel power boats 60' and under, were 30 years old or older and it came out to be almost 24%. That seems like a very high number of boats to exclude from financing if in fact no one will finance a boat over 30 years old.
There are many different types of loans that can be used to finance a boat... there are uncollateralized boat loans, personal loans, collateralized boat loans, etc.
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Old 01-10-2019, 02:36 PM   #17
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Risking your home over a boat is generally not a good idea...
i guess if things get that bad the boat will become my home.
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Old 01-10-2019, 03:57 PM   #18
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Risking your home over a boat is generally not a good idea...
I could argue that ANY loan on a boat, which is a toy, is generally not a good idea. Consumer debt of ANY kind is very high risk and the reason people run out of money and go broke.

BUT, if the boat is your home, one could justify a loan for it. Or, if they can get a load at a lower rate than their investments. And, in some cases, when a deal is just too good to be true, borrowing could be a good idea.

As for using home equity, it's often a much lower rate and better terms. And if free and clear better yet... but theres still risk.

Also, if one can figure out how to make the boat (or toy) revenue producing the banks may look more favorably.

Back in the years, I had a plane(s) that I used in charter, and the banks were very favorable back then to loan money. I could have easily financed the whole thing and it would have paid for itself. I was temped, but didn't. But could be a good way to pay for the boat.
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Old 01-10-2019, 04:33 PM   #19
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I could argue that ANY loan on a boat, which is a toy, is generally not a good idea. Consumer debt of ANY kind is very high risk and the reason people run out of money and go broke.

BUT, if the boat is your home, one could justify a loan for it. Or, if they can get a load at a lower rate than their investments. And, in some cases, when a deal is just too good to be true, borrowing could be a good idea.

As for using home equity, it's often a much lower rate and better terms. And if free and clear better yet... but theres still risk.

Also, if one can figure out how to make the boat (or toy) revenue producing the banks may look more favorably.

Back in the years, I had a plane(s) that I used in charter, and the banks were very favorable back then to loan money. I could have easily financed the whole thing and it would have paid for itself. I was temped, but didn't. But could be a good way to pay for the boat.
History has proven that toys are first to go/payments stopped on. Stopping payment on a home equity line that was used to pay for a boat would put one's home in jeopardy instead of just a boat being repossessed it could be a home being foreclosed on.

Most lenders do not look favorably upon toys (boats) that are revenue generators (i.e. used for chartering, commercial purposes). They are higher risk. You will see higher interest payments as a result and fewer lenders willing to loan. Its not like a home that has a legal income producing apartment or extra unit which a mortgage lender would consider to be favorable.
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Old 01-10-2019, 05:15 PM   #20
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I've also found recently that even if you can get around the 30+ years on boat age, those lenders still interested won't loan on a boat over 28' LOA.

I'm assuming it's because any larger makes them too hard to REPO...???
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