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Old 09-06-2011, 15:35   #1
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Current Financing Options for Older Monohulls

First:: before everyone yells at me to search archives.. I did however much of the financing topics are older and this topic can be a bit time sensitive.

Second: If this is the wrong forum sorry and please feel free to move.. I didn't see any forum that fit.

OK now ... I am considering a 1980's vintage Pearson 39. The boat itself seems to pass the initial tests and before I start wasting time I wanted to make sure that I could get financing for the boat.

The problem is that I am not able to find a financing source that will either finance older boats or if they do they have low max values. Traditional lenders are only interested it seems in underwriting new boat loans. Others like Pentagon Federal cut off at a maximum of $39K . Other marine lenders have said that it would be a longshot to get 50% financing.

The owner doesn't seem to want to finance it. I didn't ask but it hasn't been offered. My bank (I've been a customer for decades) won't touch old boats. I live in Florida some home equity won't work because our real estate market is so screwed.

I can qualify all day long for an expensive new boat.. but really am having a hard time with this older boat market.

Anyone have any ideas or lenders?
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Old 09-06-2011, 16:53   #2
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Re: Current financing options for older monohulls

I have the impression that of the members of this Forum with older boats most would own them outright.

I would not be surprised to learn that lending institutions have been stung more than one in financing an older boat.

I haven't done the numbers but I would expect that the cost of upkeep on an older boat plus repayments would exceed the financial resources of many.

Pearson 39.net states that the 39 was built between 1971 and 1978.
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Old 09-06-2011, 17:06   #3
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Re: Current financing options for older monohulls

Work your a@@ off for a couple of years and pay cash. Boats are expensive enough, tagging on interest is IMO financially irresponsible.

Maybe you could sell some things around the house you don't use anymore. Get a second job, just a thought.

I'll step down now. Good luck to you!!
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Old 09-06-2011, 17:09   #4
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Re: Current financing options for older monohulls

Maybe Pearson 39-2 helps.

I'd think that on a properly maintained boat the actual cost of upkeep will be similar to a new model.



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I have the impression that of the members of this Forum with older boats most would own them outright.

I would not be surprised to learn that lending institutions have been stung more than one in financing an older boat.

I haven't done the numbers but I would expect that the cost of upkeep on an older boat plus repayments would exceed the financial resources of many.

Pearson 39.net states that the 39 was built between 1971 and 1978.
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Old 09-06-2011, 17:56   #5
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In Maryland, community banks and local credit unions offer loans.
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Old 09-06-2011, 18:12   #6
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Re: Current financing options for older monohulls

Try BoatUS.com: BoatUS Home Page
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Old 09-06-2011, 18:35   #7
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Re: Current financing options for older monohulls

In response to your question, offline, I asked a banker friend of mine what was up with well qualified borrowers having a problem financing older boats and he replied that it was purely a question of an older boat competing with a newer boat for funds. A friend of mine found himself in that exact circumstance which prompted the question. Although the boat market remains fairly soft, when a banker has a choice between financing a brandy new, out of the box vessel and an older but well maintained boat, the banker will always and he emphasized ALWAYS choose the new boat for collateral. He went on to say that bankers try and balance their collateral across several asset groups; cars, real estate, boats, planes and plant and equipment. If a particular lender concentrates on one sector, another division of the same underwriter will balance that in a different market according to him.
I know it doesn't help you in your situation but it at least it may help explain why.
My guess is it isn't quite that simple and many times the lenders 'Head Office' has made a decree that no boats over X years are to be financed based on some 26 year old MBA who can't find his ass with both hands opinion that it isn't a good investment. Capt Phil
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Old 09-06-2011, 18:41   #8
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Re: Current financing options for older monohulls

Do you own real estate? If you have equity, take out a mortgage on the real estate (at a much lower interest rate than any boat loan) and use it to finance the boat.
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Old 09-06-2011, 18:49   #9
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Re: Current financing options for older monohulls

Curmudgeon.

Yes we own our home but this is Florida and although we own our home the reality is that despite 18 years the current real estate market leaves us with only a small amount of "equity". Pretty sad actually... never a missed payment and we've never taken equity loans out... don't get me started... GRRRR



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Do you own real estate? If you have equity, take out a mortgage on the real estate (at a much lower interest rate than any boat loan) and use it to finance the boat.
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Old 09-06-2011, 18:51   #10
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Re: Current financing options for older monohulls

Quote:
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My guess is it isn't quite that simple and many times the lenders 'Head Office' has made a decree that no boats over X years are to be financed based on some 26 year old MBA who can't find his ass with both hands opinion that it isn't a good investment. Capt Phil
I can't believe someone used the word "investment" with the word "boat" in the same sentence...
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Old 09-06-2011, 18:58   #11
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Where in Florida are you ?
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Old 09-06-2011, 19:02   #12
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Re: Current financing options for older monohulls

Jaasun71...

Palm Beach County..
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Old 09-06-2011, 19:08   #13
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Re: Current financing options for older monohulls

boats are not investments. period. they are money pits.
old boat should be less than 39k for 39 ft pearson. negotiate and look for another boat. is a BUYERS market 100 percent. if you cannot find a boat you can afford then there is a big problem. brokers do not have the answer. look in haul yards and storage yards and marinas....look in other countries. shouldnt have to pay 1000 per foot or more for a 39 ft or any boat in this rotten market. i bought my 41 for 10k and is loaded with everything--i just had to change out engine and stuff packing gland and go.
good luck and have fun looking--buy wisely. pearson is good boat, but ye can get for lots less than i think you are being hooked for. always negotiate down a lot more than you seemingly have so far. smooth sailing
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Old 09-06-2011, 19:25   #14
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Re: Current financing options for older monohulls

Gee, Zee... I made money on my last boat and broke even on the one before that. When you add up what you've spent on Solitary Bird, I'll bet you'll come out ahead of the game. Once again, congratulations on getting to Maz'. I spent 2 hurricane seasons at El Cid and the marina up the estuary just past the hotel with no problems even though 3 or 4 hurricanes either slid by or came ashore within 15 miles of the town so you are in the right area to safely hide for the season... cheers, Capt Phil
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Old 09-06-2011, 19:51   #15
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Re: Current financing options for older monohulls

Quote:
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Jaasun71...

Palm Beach County..

Call Space Coast Credit Union....They will finance 1977 and newer.
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