Reply
 
Thread Tools Search this Thread Display Modes
 
Old 05-19-2023, 04:42 PM   #1
Senior Member
 
City: Jacksonville
Join Date: Mar 2023
Posts: 242
Financing an older boat

Yes I know there are old threads, but .....

The Admiral wants to move from sail to a trawler. In looking into it seriously it looks to me that we would be looking at a 1980-1990 boat. In that range I can see a seemly jump in boat condition that would exceed the liquid funds I would have to put into the boat. Now I can acturally come up with the funds, but it comes with a 20+% hit and therefore would be less to finance it.

So who has recently managed to finance an 1980s boat at say a 30-40% loan to value ratio? If you did who did you use?
Don L is offline   Reply With Quote
Old 05-19-2023, 05:10 PM   #2
Guru
 
kthoennes's Avatar
 
City: Sioux Falls, South Dakota
Vessel Name: Xanadu
Vessel Model: Mainship 37 Motor Yacht
Join Date: Oct 2013
Posts: 2,231
You're right, this has been covered in previous threads but very quickly, before we bought our current boat, we did buy a 1985 Carver at one point, fairly recently. We used our local (well, state-based) credit union and they financed it like an RV, used the category of "recreational vehicle" they used for RV's, boats, ATV's and the like. We also have accounts with the big national banks like Wells Fargo and Bank of America, but we didn't even bother try those. Valuation on old boats can be a challenge because sales data is so limited, but it was a breeze for us. We financed our current boat that way too but didn't have the age challenge because it was newer. Our loan to value ratio was about 50% on the old boat, about 30% on the current boat.
kthoennes is offline   Reply With Quote
Old 05-19-2023, 06:50 PM   #3
FWT
Guru
 
City: Centreville MD
Vessel Name: Resilient
Vessel Model: Helmsman Trawlers 38E
Join Date: Dec 2020
Posts: 1,312
Looking in forums or social media is a natural first start, but it won't take you far. kthoennes used his local credit union but each and every one will be different. What matters on that avenue is the ones near you, so you just have to ask yours.

Ask the questions and research, but don't waste too much time doing it. Instead you are just going to have to commit the time to dig out a lot of sources and make the phone call to ask. Local banks. Lots of specialized boat lenders with an online presence you can find. Just make the lists, get the numbers and go down the list and call. There are no short cuts. It would not be shocking if you have to try a dozen on that age of boat. Count your blessings if its less.

I will second the comment above. Your notion of loan to value and theirs may well differ and differ substantially because their opinion of value can be very different than your purchase price. Since you have some room this should be surmountable.

Good luck.

Edited to add: if you buy via a broker, the broker will likely know what lender is likely to make the loan.
FWT is offline   Reply With Quote
Old 05-20-2023, 03:36 PM   #4
Senior Member
 
Action's Avatar
 
City: Phoenix, AZ
Vessel Name: Enigma
Vessel Model: 1997 Wellcraft Excel 26 SE
Join Date: Mar 2015
Posts: 379
Other solution would be to get a loan not secured to the boat. Taking the factors of the boat out of the equation.
Line of credit secured to Real Estate
Cash out loan on a F&C primary residence.
Unsecured loan
Cash out of some other asset
__________________
>>>>>>>>>>>Action
Action is offline   Reply With Quote
Old 05-20-2023, 03:55 PM   #5
Moderator Emeritus
 
Comodave's Avatar
 
City: Au Gres, MI
Vessel Name: Black Dog
Vessel Model: Formula 41PC
Join Date: Jul 2015
Posts: 19,154
There are some specialty loan brokers that have banks that will do older boats. We used Sterling Associates for our last boat.
__________________
Boat Nut:
If you are one there is no explanation necessary.
If you arenít one, there is no explanation possible.
Comodave is offline   Reply With Quote
Old 05-20-2023, 07:16 PM   #6
Guru
 
Seevee's Avatar
 
City: st pete
Vessel Model: 430 Mainship
Join Date: Sep 2016
Posts: 3,442
I could make an argument to not finance toys, but there are reasons for financing a boat...could be your home, or you're getting a better return on investing your dollars than the rates for financing.



If financing is needed, getting a loan on a dirt home (second or HELOC) is probably the cheapest money.



However, worth shopping it.
__________________
Seevee
Seevee is offline   Reply With Quote
Old 05-20-2023, 08:52 PM   #7
Senior Member
 
City: Jacksonville
Join Date: Mar 2023
Posts: 242
Quote:
Originally Posted by Action View Post
Other solution would be to get a loan not secured to the boat. Taking the factors of the boat out of the equation.
Line of credit secured to Real Estate
Cash out loan on a F&C primary residence.
Unsecured loan
Cash out of some other asset
Got no restate. Have more than enough in 401k/IRAs etc. But taking money out of them acturally works out to 20%+ loss/tax so a personal/boat loan is a better deal.
Don L is offline   Reply With Quote
Old 05-20-2023, 10:39 PM   #8
Guru
 
tiltrider1's Avatar
 
City: Seattle
Vessel Name: AZZURRA
Vessel Model: Ocean Alexander 54
Join Date: Aug 2017
Posts: 3,724
Right now I don’t know of anyone financing boats built before the 90’s. This doesn’t mean you can’t find some one. It does mean you will need to work hard at it.

You can borrow against a 401K but I don’t recommend it.

Sometimes, when it’s very difficult to do what you are trying to do, it’s a sign that maybe it’s not a smart thing to do.
tiltrider1 is offline   Reply With Quote
Old 05-20-2023, 10:55 PM   #9
Moderator Emeritus
 
Comodave's Avatar
 
City: Au Gres, MI
Vessel Name: Black Dog
Vessel Model: Formula 41PC
Join Date: Jul 2015
Posts: 19,154
I canít make any arguments either for against anyone else financing a boat. That is entirely their decision and everyones needs are different. It may take some effort to find a lender but keep at it and there is probably someplace that will do it.
__________________
Boat Nut:
If you are one there is no explanation necessary.
If you arenít one, there is no explanation possible.
Comodave is offline   Reply With Quote
Old 06-05-2023, 07:57 PM   #10
Senior Member
 
Cartouche's Avatar
 
City: Kingston Ontario
Vessel Name: On The EdJ
Vessel Model: Former 390 owner now Sundancer 380
Join Date: Dec 2017
Posts: 433
Quote:
Originally Posted by Don L View Post
Got no restate. Have more than enough in 401k/IRAs etc. But taking money out of them acturally works out to 20%+ loss/tax so a personal/boat loan is a better deal.
Mean this with the greatest of respect but if you need to finance a 50K boat and do not have Real estate you are probably going to run into problems as the boat needs fixing, as we all know older boats the purchase is only the beginning. I would stick to sailing and leave my retirement funds alone, just my 2 cents
__________________
Joanne & Edward Billing
M/V On the EdJ Sundancer 380
Home Port Kingston Marina in the 1000 Islands
Cartouche is offline   Reply With Quote
Old 06-05-2023, 08:25 PM   #11
Senior Member
 
City: Juneau
Vessel Name: Sea Dog
Vessel Model: DeFever 49 Raised Pilothouse
Join Date: Aug 2021
Posts: 172
I’ve financed several boats through a credit union, generally at more than 40% loan to value, without problems. One advantage to financing is that you may qualify for a second home tax deduction on the interest.
SeaDogAK is offline   Reply With Quote
Old 06-05-2023, 09:18 PM   #12
Senior Member
 
City: Jacksonville
Join Date: Mar 2023
Posts: 242
Quote:
Originally Posted by Cartouche View Post
Mean this with the greatest of respect but if you need to finance a 50K boat and do not have Real estate you are probably going to run into problems as the boat needs fixing, as we all know older boats the purchase is only the beginning. I would stick to sailing and leave my retirement funds alone, just my 2 cents
you didn't understand the question at all
Don L is offline   Reply With Quote
Old 06-05-2023, 09:57 PM   #13
Senior Member
 
City: Juneau
Vessel Name: Sea Dog
Vessel Model: DeFever 49 Raised Pilothouse
Join Date: Aug 2021
Posts: 172
I should have added that the credit unions Iíve dealt with didnít care how old the boat was, as long as it surveyed for enough.
SeaDogAK is offline   Reply With Quote
Old 06-05-2023, 10:06 PM   #14
Senior Member
 
Action's Avatar
 
City: Phoenix, AZ
Vessel Name: Enigma
Vessel Model: 1997 Wellcraft Excel 26 SE
Join Date: Mar 2015
Posts: 379
Quote:
Originally Posted by SeaDogAK View Post
I should have added that the credit unions Iíve dealt with didnít care how old the boat was, as long as it surveyed for enough.
In the past I have had the same experience. Especially if the risk (loan amount was low to value) was low enough. Many times if the loan is attractive a CU is open to bending some rules. Unless that have had a default.
Know that my experience is a couple of decades old when I financed a boat. I have not financed any boat or RV in this century.

Things do change so was not sure if that is the same now.

Action
__________________
>>>>>>>>>>>Action
Action is offline   Reply With Quote
Old Yesterday, 07:45 AM   #15
Guru
 
Pete Meisinger's Avatar
 
City: Oconto, WI
Vessel Name: Best Alternative
Vessel Model: 36 Albin Aft Cabin
Join Date: Oct 2012
Posts: 2,904
Use a home equity loan.

pete
Pete Meisinger is offline   Reply With Quote
Old Yesterday, 08:50 AM   #16
Moderator Emeritus
 
Comodave's Avatar
 
City: Au Gres, MI
Vessel Name: Black Dog
Vessel Model: Formula 41PC
Join Date: Jul 2015
Posts: 19,154
Quote:
Originally Posted by Pete Meisinger View Post
Use a home equity loan.

pete
Ha said he has no real estate.
__________________
Boat Nut:
If you are one there is no explanation necessary.
If you arenít one, there is no explanation possible.
Comodave is offline   Reply With Quote
Old Yesterday, 01:14 PM   #17
Senior Member
 
City: Jacksonville
Join Date: Mar 2023
Posts: 242
Quote:
Originally Posted by SeaDogAK View Post
I should have added that the credit unions Iíve dealt with didnít care how old the boat was, as long as it surveyed for enough.
mine cares about the boat age
Don L is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Trawler Port Captains
Port Captains are TF volunteers who can serve as local guides or assist with local arrangements and information. Search below to locate Port Captains near your destination. To learn more about this program read here: TF Port Captain Program





All times are GMT -5. The time now is 09:56 AM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2023, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0
Copyright 2006 - 2012