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05-06-2014, 09:02 AM
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#1
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Senior Member
City: Baltimore
Join Date: Nov 2013
Posts: 305
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How my (small) bank comes up boat values.
We are starting the process of looking for a new boat. we have only had our present one less than a year but simply put it was to good of a deal to not test the waters with (pun intended). we paid cash so that certainly made matters less complicated.
As we are starting to look at boats I gave community bank a call to see what they could do as far as rates and such. I have been dealing with them for years and they always come close or beat the big banks with rates.
I ask about the process of acquiring a loan, requirements and how they placed a value, i assumed a survey. But no, they use exclusively NADA guides. Which, if you are a boat buyer, is a great but not realistic, place to get a value from. For example, a 2000 Nordic Tug books at $132,000. Oh and that Nordhavan, 2005 43' it is worth $250,000.
This particular bank isn't really in the business of yacht lending and the few boats that they hold interest to are bass boats, ski boats and the occasional 25'ish cabin cutey. They are humans and if i wanted an exception to this i am sure that they would at least take my cause to their board of directors.
Where or how does NADA get values? because it looks like they just started throwing out numbers.
Oh and if anyone knows where i can by a 'average' condition Nordhavan 43 for 250K please forward it to me!
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05-06-2014, 09:27 AM
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#2
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Moderator Emeritus
City: SEWARD ALASKA
Vessel Name: DOS PECES
Vessel Model: BAYLINER 4788
Join Date: Feb 2011
Posts: 6,266
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I would keep looking for financing. There are several lenders that will loan money on large boats and actually understand them and how they are valuated as collateral.
One method would be to go to yachtworld.com and click on one of the several financing links that are available there.
In the bigger boat world most boats are valuated by a survey, much like a home gets an appraisal.
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05-06-2014, 09:31 AM
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#3
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Guru
City: Vermont
Join Date: Jan 2013
Posts: 10,092
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I think SunTrust has a department that focuses on "yachts", i.e. not bass boats and center consoles.
__________________
MVTanglewood.com
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05-06-2014, 09:38 AM
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#4
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Enigma
City: Slicker?
Join Date: Oct 2007
Posts: 16,566
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Greetings,
Mr. e. I've often wondered where NADA gets their "values" as well. A few years back, coming up tax time the county assessed our vessel @ $XXX and they evidently got this value from a NADA book. I went to NADA on line and plugged in my numbers and came up with a lesser ($Xxx) value. Took a print out to the tax office and said "Here's what she's worth according to NADA on line so I should be paying taxes in THIS amount". You can easily imagine what response I got. Would have made a difference of several hundred $$. No arguing with City Hall. Keep in mind NADA also has a range of values based on condition. Probably your bank is using the lowest value and my tax office the highest. Somebody's laughing somewhere...
__________________
RTF
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05-06-2014, 09:51 AM
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#5
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Guru
City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
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Quote:
Originally Posted by ksanders
I would keep looking for financing. There are several lenders that will loan money on large boats and actually understand them and how they are valuated as collateral.
One method would be to go to yachtworld.com and click on one of the several financing links that are available there.
In the bigger boat world most boats are valuated by a survey, much like a home gets an appraisal.
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Quote:
Originally Posted by twistedtree
I think SunTrust has a department that focuses on "yachts", i.e. not bass boats and center consoles.
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Absolutely correct. There are plenty of specialty marine lenders to choose from; some will lend off survey value, others a percentage of same or the BUC valuation. NADA is useless for the marine business.
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Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!
1989 52' PT Overseas yachtfisher
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05-06-2014, 10:12 AM
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#6
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Guru
City: Vero Beach, FL.
Vessel Name: FIREFLY
Vessel Model: Pilgrim 40
Join Date: Nov 2012
Posts: 918
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What are their terms, 80% of NADA value for 7 years at prime plus 8 or 10? That would be the best that my old credit union would do 15 years ago.
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05-06-2014, 10:27 AM
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#7
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Guru
City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
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All depends on the lending institution. Wings Financial CU has 2.99% at 85% LTV; Key Bank has 4.7% at 80% LTV. You can find a really great rate with some research.
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Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!
1989 52' PT Overseas yachtfisher
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05-06-2014, 11:14 AM
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#8
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Senior Member
City: Baltimore
Join Date: Nov 2013
Posts: 305
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Quote:
Originally Posted by SCOTTEDAVIS
What are their terms, 80% of NADA value for 7 years at prime plus 8 or 10? That would be the best that my old credit union would do 15 years ago.
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Actually, they are 100% of value, 6.5% for 120 months.
Lots of replies here but no one can tell where i can buy that 250K Nordhavan.
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05-06-2014, 12:19 PM
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#9
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Senior Member
City: Fort Lauderdale, FL
Vessel Model: I have keys to lots of boats...
Join Date: Jan 2011
Posts: 438
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NADA and BUC have no relationship to reality on values of boats over 30 feet and anything over 10 years old.
You might contact a marine lender and get pre-approved, then show that to your local bank if you would prefer to do business with them.
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Tucker Fallon CPYB
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05-06-2014, 12:38 PM
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#10
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Guru
City: Trenton
Join Date: Apr 2012
Posts: 1,522
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Don't overlook BoatUS. They work with a lot of different financing institutions that you might not think of. They came up a winner with a major bank for a lower rate and better terms. They handled all paperwork. Painless.
__________________
Al Johnson
34' Marine Trader
"Angelina"
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05-06-2014, 08:11 PM
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#11
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Senior Member
City: Hendersonville, NC
Vessel Name: Hot Shot
Vessel Model: Mainship 390
Join Date: May 2012
Posts: 122
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Trident. Good people that know boats.
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05-06-2014, 09:23 PM
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#12
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Guru
City: Sioux Falls, South Dakota
Vessel Name: Xanadu
Vessel Model: Mainship 37 Motor Yacht
Join Date: Oct 2013
Posts: 2,472
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My credit union strictly uses NADA too, whether or not it makes any sense at all. Our old Carver (1983, 3207) booked out at the mid-20's when they made the loan. Heck, we were buying it for $15K -- although that was an unusually good deal. They gave us fantastic terms, like 3-something percent but then we were only financing for 36 months. Might have helped too that we didn't really have to finance it at all but at that rate, it made us feel better than raiding the balance in our safety net.
I tend to think it's not a bad thing though. The NADA values tend to be very low (as you mentioned for that Nordhavn) and so it forces people to be very conservative and not finance boats to the hilt. If you need to finance 100% LTV (or even more) then you can't afford that boat anyway.
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05-06-2014, 09:31 PM
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#13
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Guru
City: Cruising East Coast US
Vessel Name: Grace
Vessel Model: DeFever 48
Join Date: Apr 2008
Posts: 2,420
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Call Dave Trostle at Sterling Acceptance Corp 800-525-0554. Tell him I sent you.
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Cruiser
Esse Quam Videri
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05-06-2014, 09:41 PM
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#14
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Guru
City: Santa Cruz, CA
Vessel Name: Concerto
Vessel Model: 1980 Cheoy Lee
Join Date: May 2013
Posts: 1,531
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I don't know where you live, but i was solicited by alaska credit union and I live in california. We ended up going with them and got a great rate. And they use survey values not Nada.
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