Cruisers Forum

Join CruisersForum Today

Thread Tools Rate Thread Display Modes
Old 13-01-2009, 09:23   #1
Registered User

Join Date: Apr 2008
Location: Panama
Boat: FP Belize 43
Posts: 124
Current Financing Options

Hello all,

I'm looking at financing a $200K Catamaran with 30% down. Does anyone have a favorite company or some helpful advice on getting the best deal? I have never financed a boat, is it different than borrowing for a house?


Meck is offline   Reply With Quote
Old 13-01-2009, 16:48   #2
Registered User

Join Date: Dec 2007
Posts: 151
Scott Boat Loans is pretty aggressive. National City directly from their website has good specials (their rats fluctuates up to 1.5 points!) but to get the best rate, you better just have perfect flawless shiny credit report. They wouldn't give me the best rate because I had one item in dispute....a $30 double charge by a restaurant! Sterling & Associates is good too. Just remember, this is a snapshot in week, month or year a different brokerage will find a funding source that needs to loan out, and would be different levels of aggressiveness. Although most still operate on spreads on Treasuries. BUT...its the "lending standards" that vary, ie best rate at 720+ Fico...vs 700 Fico if someone is more agressive. Income levels...LTV, etc.

Here's what you have to watch out for.

1) Prepayment penalty. Sometimes to get the lowest rate, you have to agree to a prepay penalty. The best rates right now (late dec '08 / early jan '09) are around 6.8%. Depending on your perspective, thats a bit high. So what the brokers will do is offer you 6.8% with a big prepay if you refinance in the first 3 years. OR they'll give you a slightly higher rate like 7.25% with no prepay. Depending on your belief, either option would work better. I chose the higher rate with no prepay because I had seen rates as low as 6% just before October 2008, right when the credit freeze hit the fan. I do believe rates will normalize...and I needed flexibility to refinance

2) If its a new boat, negotiate your coast guard documentation fee ahead of time! Scumbags at a brokerage I used said "your fee will be $400" over the phone...then delivered an invoice over $800 when it came due! Reality, CG documentation costs ~$200...and if they tell you "only approved agents can do this" threaten to walk. The trick is to negotiate AHEAD of signing your papers. I made this mistake...I had already signed the paperwork when they stuck it to me.

Any other feedback board?
night0wl is offline   Reply With Quote
Old 13-01-2009, 17:01   #3
Registered User

Join Date: Aug 2007
Posts: 902
Nice advice and heads-up nightOwl!! I will definitely keep that Coast Guard price very handy!! Cheers!!
shadow is offline   Reply With Quote


Thread Tools
Display Modes Rate This Thread
Rate This Thread:

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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Canadians - Boat Financing Lodesman Dollars & Cents 14 12-10-2016 06:19
Seller Financing? kenackr Boat Ownership & Making a Living 19 27-04-2014 09:31
Financing In Canada joshw5144 Dollars & Cents 9 16-09-2009 13:33
current share with 2 wires northerncat Electrical: Batteries, Generators & Solar 14 26-03-2008 12:04
A C units and errant current stuffinbox Plumbing Systems and Fixtures 10 10-07-2007 08:04

Our Communities

Our communities encompass many different hobbies and interests, but each one is built on friendly, intelligent membership.

» More about our Communities

Automotive Communities

Our Automotive communities encompass many different makes and models. From U.S. domestics to European Saloons.

» More about our Automotive Communities

Marine Communities

Our Marine websites focus on Cruising and Sailing Vessels, including forums and the largest cruising Wiki project on the web today.

» More about our Marine Communities

Copyright 2002-2015 Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 20:02.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.