Went to a local credit union today to finance a new boat. Rates were very high. 8.5 % between 20 and 40 K on a 10 year loan. I remember last summer they were 5.75%. At the boat show last year SCFCU had a special then at 4.99%. WTF - They told me that they did not want to loan any money on boats now. Too many people are unemployed and have defauted on loans. Any recomendations on who to check out would be appreciated. Thanks
I got mine threw Bank of the West. They were easy to deal with but the rate was like 7% about 4 years ago.
If you have equity in your house, get a home equity loan and pay for the boat with that. Then you can write off all the interest (form 1098 to the IRS). Looks like SCFCU’s HE loan rates are around 5%.
KeyWest 1720cc 90 Ymha
Home equity was the way to go when i bought my boats, better than any boat rate esp. for a used boat.
21 Contender
You could check out some brokers like boatloans.net or essexcredit.com. I used Intercoastal Finanancil Group (boatloans.net) TWICE before I quit financing my toys. Even 7-10 years ago, their rates were 8-8.5% on anything less than $40K. What the CU told you is correct…Boats are non-essential items, thus the high interest rates. A boat payment is the first thing most folks stop making when their finances go south.
On a side note, I spoke with a mortgage broker last week in MS who said banks are declining loan applications for buyers with 700+ Beacon scores if their debt to income (DTI) ratios were too high.
This is the HOPE and CHANGE America voted in last year.
I did Home Equity, tax deductible and a rate of 3.25%.
mine is with first federal rate was good a couple months ago and financing was easy
Team Allure Fishing
183 ranger ghost
www.zmanfishing.com
are banks or whoever loaning money for used boats ?
I wouldn’t borrow money or use SCFCU to finance a load of crap. Call Carol Braswell with Scott Boat Loans, she’s great to work with and makes the process easy.
http://www.scottboatloan.com/contactus.html
Mark
Mako 262 Twin Yammaha F200s
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.
“Life’s tough…It’s even tougher if you’re stupid” John Wayne
try farm bureau bank in san antonio texax. they have been extremely good to me the last 10 years. do not know what their rates on boats are but on autos /trucks it runs around 5-6.5 their number is 800-492-3276. good luck
It’s funny how we see financing a boat. There is a reason the boat loan interest rate from a bank is so much higher than prime or LIBOR. It’s because the bank doesn’t want to own a rapidly depreciating asset (your new boat after it’s driven off the lot). If you stop making payments; they take the boat. Now the bank owns a rapidly depreciating asset and they don’t like that. Sooooo, they try to get more money with a higher interest rate. If you pay off the loan without defaulting they got a bonanza- where else can you get that return (interest rate) in the marketplace? Kinda like a junk bond- higher risk, higher return.
That’s why the home equity loan has a lower interest rate. They have your home as collateral. Of course the loan $$$ goes to an improvemnet that increases the value of the collateral (the house). I guess a new boat in the driveway qualifies.
Buying a new boat stimulates the economy, helps out manufacturers and dealers and I’m in favor of you doing your part there. Your accountant however may disapprove of a boat loan. Plenty of posts archived on this subject.
What the heck- have fun and spend your money before your kids do.
Thanks for all your help! I will be calling around tomorrow. This site has alot of good rescources if you can put up with all the BS. Thank you!
I would think in this market you could post “i will take over your payments” and you would have 20 nice boats lined up at your feet.
Cash is King!
Long Enuff
www.boatus.com
Finance, Insure, survey, classifieds, the list goes on and on…
Captain Steve Little
TowBoat US Charleston
Psalm 107:23-32
www.towboatcharleston.com
We are a dealer for Heritage Trust Federal Credit Union. The rates are around 6% for excellent credit and 8% on the high end.
Berkeley Outdoors
122 Oakley Rd.
Moncks Corner, SC 29461
Authorized Warranty Center for Yamaha, Mercury and Evinrude!
“Well worth the drive!”
quote:
Originally posted by scboatserviceWe are a dealer for Heritage Trust Federal Credit Union. The rates are around 6% for excellent credit and 8% on the high end.
Berkeley Outdoors
122 Oakley Rd.
Moncks Corner, SC 29461Authorized Warranty Center for Yamaha, Mercury and Evinrude!
“Well worth the drive!”
That’s a good bank. Used them last year. Actually can get the interest rate even lower if you let them electronically withdraw the payment every month. I think I got mine down to 5.75%. And that was on a three year old boat also.