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Old 16-04-2018, 11:25   #1
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Older Vessel Financing

Has anyone in the US had any luck getting a boat loan for a boat older than 25 years? If you have, I would love to know who you worked with. There are some excellent boats available that have been built in the late 80's and early 90's, yet most traditional yacht finance groups won't touch them. For some reason you can get a loan on a 15 year old Beneteau that has been trashed in a charter fleet, but you can't get a loan on a 30 year Alden or Shannon.
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Old 16-04-2018, 11:38   #2
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Re: Older Vessel Financing

When we sold our 1991 Catalina 42 last year (2017) the buyer financed it through his credit union. We had to do the closing there.
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Old 16-04-2018, 11:43   #3
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Re: Older Vessel Financing

Ditto on working with a personal bank/credit union. That's how I did it.
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Old 16-04-2018, 11:48   #4
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Re: Older Vessel Financing

Thanks for the responses. I checked with my credit union and they want to do some kind of funky balloon loan. I much prefer a traditional ships mortgage, but I guess I will have to bite the bullet and work with my C.U. Thanks, again.
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Old 16-04-2018, 12:30   #5
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Re: Older Vessel Financing

We just closed on a 1979 boat financed through Key Bank. We put 10% down and financed the remaining 90% over 20 years.
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Old 16-04-2018, 12:30   #6
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Re: Older Vessel Financing

Try Space Coast Credit Union, they financed my boat
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Old 16-04-2018, 12:57   #7
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Re: Older Vessel Financing

Thanks Knot_Home. Unfortunately Key bank does not service the state I live in.
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Old 25-04-2018, 11:47   #8
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Re: Older Vessel Financing

Hello everyone! I too am having difficulty finding a place, that services California, that will finance an older boat purchase. It seems most do not want to go back farther than 2003. Does anyone have any knowledge they could spit my way please?
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Old 25-04-2018, 12:02   #9
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Re: Older Vessel Financing

You may need to go some non-traditional routes.

Do you have any collateral? Heloc against terrestrial property, or borrow against IRA/401K. (Note there is a difference between securing a loan with a 401K and withdrawing from a 401k. I'm not suggesting cashing in your retirement).

Balloon loans, personal credit? Look at credit unions.

Are you using traditional banks or lending instutions that specialize in the marine industry? (Essex for example).

Have you looked at financing newer over longer terms, with possibly lower interest rates? It might net out close enough to work for you.
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Old 25-04-2018, 13:02   #10
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Re: Older Vessel Financing

We went thru Suntrust, but those jerks refused to go by the surveyors valuation. There was only two boats like ours sold in the previous 2 or 3 years and they used those numbers. We put down nearly 50% on a 29 year old boat. If the boat was 1 year older they would not have loaned us anything.
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Old 25-04-2018, 13:04   #11
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Re: Older Vessel Financing

Quote:
Originally Posted by Shrew View Post
You may need to go some non-traditional routes.

Do you have any collateral? Heloc against terrestrial property, or borrow against IRA/401K. (Note there is a difference between securing a loan with a 401K and withdrawing from a 401k. I'm not suggesting cashing in your retirement).

Balloon loans, personal credit? Look at credit unions.

Are you using traditional banks or lending instutions that specialize in the marine industry? (Essex for example).

Have you looked at financing newer over longer terms, with possibly lower interest rates? It might net out close enough to work for you.
IIRC you cannot use 401K’s or IRA’s as collateral. They can be used for credit worthiness though.
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Old 25-04-2018, 13:12   #12
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Re: Older Vessel Financing

Essex might do it for you.

The funky balloon loan might be your credit union's way of saying they'll make the loan...but when the boat turns 30(whatever), they want to bail out of it.
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Old 29-04-2018, 20:50   #13
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Re: Older Vessel Financing

I have not been able to find a bank or credit union that will make a loan to a resident of Iowa(I will keep the boat in Wisconsin and sail Lake Superior). The most viable option is to get a secured loan, using shares of stock, as collateral. Many banks will let you use stock as collateral if you have a loan that is less than 70% of the stocks value. Not the best option, but it may be the only one I have.

Thanks for all the responses.
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Old 01-05-2018, 05:37   #14
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Re: Older Vessel Financing

The first time I did this, I used collateral - equity in real property - and my local bank with whom I had a reputation.

Every other time I obtained a signature loan, with good credit. I prefer this way since the institution has zero requirements for a boat: i.e.: no age restrictions, no survey, and no insurance requirements.
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