Boat loan for older boat. Brokers?

[Seevee]

We used our local credit union, but then it's an exceptionally good one with great customer service. They didn't really have a lending category for a boat as big as ours so they categorized the loan as an RV. Yes most boats are toys, but when you see what banks so easily lend on giant RV'S - which are often also toys - I don't understand why so many lenders makes boats so much more difficult. We got a good rate but then we were lucky and only had to finance about 50% of the current value, for a relatively short time. 18 year old boat at the time. 20 would have been their limit for RVs.

(I know the topic of loans for toys has been debated 1001 times on the forum so I won't rehash it, but now that we have kids I have a very different perspective. Sure, it's financially wiser to defer my gratification and pay cash years from now but they won't be with us forever. Family memories...)

Kthoennes,

And that makes sense.

 

[Seevee]

I have seen the OP’s question come up several times on this forum. To date I have yet to see anyone say they actually got a loan on a boat older than 30 years. I am under the opinion that there is no source of money willing to accept a 30+ year old boat as collateral.

I know I had a conversation with Peoples Bank that has a marine loan division. Their comment to me was, “ we can get you the money, we just won’t use the boat as collateral “. They don’t do boat loans on boats over 30 years old.

Tilt,

You can get the seller to finance it for you. There are other non bank sources, too. Occasionally requires thinking out side the box.

 

[Pack Mule]

I guess if you decide to make the boat your only residence (live aboard) it just gets worse trying to find a loan. It’s still considered a toy and not a home .

 

[AKDoug]

When I bought, I borrowed 80% on a boat less than 15 years from manufacture. The percentage they would loan went down significantly based on the number of years since the manufacture. I financed with Essex, and they wound up selling the loan to Great West. That's not a complaint, just a point of interest...

 

[Ventana]

I have seen the OP’s question come up several times on this forum. To date I have yet to see anyone say they actually got a loan on a boat older than 30 years. I am under the opinion that there is no source of money willing to accept a 30+ year old boat as collateral.

In several of those threads, including this one, I have posted saying we did exactly that, got a loan on a boat more than 30 years old.
There are still options available, but not many. If you insist on telling the bank you will use the vessel as a residence I think the number quickly goes to zero.

 

[tiltrider1]

Seevee,

Some day I will want to sell my boat and I don't want to carry the paper. Odd thing is I do hard money loans on multifamily projects. For now my exit strategy is to own the boat for so long that its residual value will be so small that I can give it away.

 

[tiltrider1]

Stripper, thanks for posting again. You did mention key bank. I wrongly discounted your post as I was pretty sure they were on the 30 year program. Now I see that you actually did a boat older than 30 years. I know of several older OA's in excellent shape looking for financing. I will send them to key bank.

 

[Nopistn]

Seevee,

Some day I will want to sell my boat and I don't want to carry the paper. Odd thing is I do hard money loans on multifamily projects. For now my exit strategy is to own the boat for so long that its residual value will be so small that I can give it away.

Haha that's a very realistic plan.

 

[Seevee]

Seevee,

Some day I will want to sell my boat and I don't want to carry the paper. Odd thing is I do hard money loans on multifamily projects. For now my exit strategy is to own the boat for so long that its residual value will be so small that I can give it away.

Seevee,

Some day I will want to sell my boat and I don't want to carry the paper. Odd thing is I do hard money loans on multifamily projects. For now my exit strategy is to own the boat for so long that its residual value will be so small that I can give it away.

Tilt rider,

Heck, just take a note against the guys house or other property. Often a second has a ton of value.

 

[kthoennes]

Tilt rider,

Heck, just take a note against the guys house or other property. Often a second has a ton of value.

Good luck collecting though if the boat payments ever stop. That's the problem, having a claim against an asset by itself doesn't put a dime in your pocket.

 

[Seevee]

Good luck collecting though if the boat payments ever stop. That's the problem, having a claim against an asset by itself doesn't put a dime in your pocket.

Kthoennes,

Well, if done right you will collect and sometimes handsomely. You just need an asset that have equity in it and it's marketable. A second on a nice home with a good first can be golden.

One needs to know the foreclosure procedures and how this stuff works.

I could argue against owning a note on something that moves (boat, car, plane), but have had them work fine, too. Gotta know the creditor a bit better than a note on a house.

 

[rdh4190]

I would imagine it depends on the boat but ours is a 1988 and we bought it last year. Used Cindy Lewis at Sterling. No issues.

 

[JohnEasley]

I would imagine it depends on the boat but ours is a 1988 and we bought it last year. Used Cindy Lewis at Sterling. No issues.

In the end, we walked away from that boat... partly due to the age and condition. When one door closes, another opens... we found a boat 12 years newer in far better condition, that seems like it was made and equipped specifically for us and it's the same price. We have it under contract. Pending survey and sea trial. Closing is set for March 1.

Thanks for the input, everyone.

John

 

[foreverunderway]

The first thing you should probably do is research insurance policies. It can sometimes be prohibitively expensive to insure older boats, and no one is going to loan you money on an uninsured boat.
Sorry.

 

[tn6437]

just last year i had 100% financing approved on a 1985 36 ft trawler i was going to buy, wound up walking away when the surveyor found high moisture readings and soft spots in the stringers. the loan was with general electric credit union and i was buying it through my s corporation...i have heard the credit unions are way easier to work with than banks.

 

[Bearspirit]

Never a typical bank , ever.
- credit union
- HELOC
- a specialized lender like Essex or Coastal (there are a few others as well)

The lenders are concerned about a number of things, all related to minimizing risk of losing their investment. Even if you are a great potential customer due to sterling credit, there are always potential loss vectors that could leave them in the lurch on a largish loan, so they are indeed cautious.

I bought my 1976 Grand Banks 42 about a year and a half ago. I have a great credit score so that wasn't ever an issue. I got the boat for far less than typical resale because of certain very fixable age and maintenance related issues which I was willing to undertake, so my risk amount for the bank loan wasn't nearly as great as yours. Even so, my regular bank would not give me a loan because the boat was older than ten years-old. It's just a risk limit for them because for the most part they're dealing with trailerable boats and not something like a large well-built old trawler.

I ended up using Essex Credit, who are a division of Bank of the West specializing in boat and RV loans. They will finance older vessels. Be prepared to have a survey in hand to send them as part of the application process because you won't get far without one. The process was rather lengthy and to be honest the Essex loan officer who handled my loan was not particularly responsive or thorough regarding communications and had trouble delivering the closing paperwork to our marine title company in a timely fashion, but I honestly believe that he was the exception rather than the rule. Essex as a whole was fairly straightforward to work with.

Best of luck.

 

[AusCan]

I don't know much about American banks, but one way to borrow here in Australia is by setting up a line of credit on your home. We set this up about 20 years ago, and have borrowed and paid off a variety of items on many occasions since then. The bank does not care what the loan is for; They'd be happy to grab our house to cover borrowings worth a fraction of the house value.

I personally wouldn't use any loan for a boat, new or old, but that's just how I work.

 

[81CHB45]

Boat loan for older boat

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

John, we purchased an 81 using a home equity loan. It was the first for our bank but it went through with no delays
Al

 

[tiltrider1]

In the end, we walked away from that boat... partly due to the age and condition. When one door closes, another opens... we found a boat 12 years newer in far better condition, that seems like it was made and equipped specifically for us and it's the same price. We have it under contract. Pending survey and sea trial. Closing is set for March 1.

Thanks for the input, everyone.

John

What did you find?

 

[ben2go]

Maybe this should be a topic for another thread but I'll ask here first.


This 30+ year-old boat cut off for loans, will this cause a dramatic drop in older boat values and prices over the next few years?

 

[tiltrider1]

There is a price drop as boats cross over from 29 years to 31 years. Its not very noticeable on boats $100k or less but starts to be more noticeable on boats above $150k.

 

[ben2go]

There is a price drop as boats cross over from 29 years to 31 years. Its not very noticeable on boats $100k or less but starts to be more noticeable on boats above $150k.

 

[bgillroy]

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

John marine lenders won't do that age as you know. Credit unions banks might provide collateral loan .... Second M on house ? Pledge other assets stocks etc?