I need a Bad Credit Boat Loan

[Phisher]

Originally Posted by S/V Illusion

Look at it as a good thing. Financially, it's never a good idea to finance a depreciating asset. If you really need a loan to buy a boat, you shouldn't be doing it.

EXACTLY!!

[valhalla360]

If you can afford $500/month and coming up with $7k requires a loan, there is something you aren't telling us.

[Fibonacci]

Talking from someone who might have some insight. As a retired Certified Financial Planner - my advise --- very simply---- only buy what you can afford. By "can afford", one should only spend 1/3 of their available liquid assets on a boat (new or used). So whatever cash you are able to get your hands on ONLY allot 1/3 towards the purchase of a boat (sail or motor). Never, never borrow to buy a boat. Unless you have assets that are earning a high interest rate than what the bank/lender is offering you is the ONLY exception. This is just good business sense.

Once you have a boat, you will discover many - many unforeseen expenses (even on a new boat). These expenses add up very quickly, everyone I have encountered have surprise at the unforeseen expenses.

I haven't even mentioned the on-going maintenance costs and operating cost, that you will experience.

Just my financial advice - from someone who has seen it all (other peoples bad financial decisions)!

[sailpower]

Originally Posted by rcttsoul2

As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

Marine loans aren't like car loans.

Most marine lenders aren't interested in a 7k loan. Minimum used to be 25k. Even then 30 year old boats require high down payments sometimes as high as 30%-40% down.

7k you could put on a credit card cash advance, right? I don't know why you would but that is your decision to make.

[Maine Sail]

Originally Posted by rcttsoul2

As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

I don't know of any legit boat loan lender that will loan for anything less than 20-25K and even then it depends upon survey value and a good chunk of money down. No lender is going 100% LTV on a 30 year old boat unless they are insane or charging 45% interest..

All lenders I know of require a survey and insurance so your $500.00 per month quickly becomes more $$$ and you've not even dipped into the maintenance & upkeep bucket yet..

For $6500.00 get a home equity line or personal credit line or slap it on your credit card. Pay it back in 13 months...

The easiest answer is called saving your money. Take the $500.00 per month you suggest to be able to spend on a boat, sock it away for 13 months and you now own the boat free and clear, saved interest, and now have $500.00 clams to throw at it each month, in maintenance, and you will.....

[a64pilot]

Originally Posted by Fibonacci

Talking from someone who might have some insight. As a retired Certified Financial Planner - my advise --- very simply---- only buy what you can afford. By "can afford", one should only spend 1/3 of their available liquid assets on a boat (new or used). So whatever cash you are able to get your hands on ONLY allot 1/3 towards the purchase of a boat (sail or motor). Never, never borrow to buy a boat. Unless you have assets that are earning a high interest rate than what the bank/lender is offering you is the ONLY exception. This is just good business sense.

Once you have a boat, you will discover many - many unforeseen expenses (even on a new boat). These expenses add up very quickly, everyone I have encountered have surprise at the unforeseen expenses.

I haven't even mentioned the on-going maintenance costs and operating cost, that you will experience.

Just my financial advice - from someone who has seen it all (other peoples bad financial decisions)!

Read this, then read it again, sleep on it and read it one more time.
Not trying to be a smart a$$, but your way to financial freedom, not slaving for the man, whatever you call it is through this method.
Borrowing money for any reason is a recipe for disaster, once you get ahead enough that your saving and paying cash for everything, it's like you got a 20% raise in pay, cause when your paying cash, you always get a better deal, and your not paying interest, you save both ways.

[sailorboy1]

Originally Posted by rcttsoul2

As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed

well a $7k boat loan is really a personal loan as it is doubtful that would be worth the banks time for a secured boat loan

BUT

If you have $500+ comfortably per month to spend, yet your credit score is 640, I would say your money management needs work.

BTW - boats aren't low operational cost toys

[Sojurnr]

Originally Posted by Phisher

EXACTLY!!

My sentiments exactly.

If you can afford $500 a month, why don't you get some plans and start building a modest one? When finished you'll have something you know everything about, the pride of having done it yourself and a debt free boat.

Just my $.02

JK

[Cheechako]

Talk with someone you have a relationship with, your bank, etc.

[Sailorbob8599]

If you are wanting to finance the whole $7k purchase price, then you sure as hell can't afford the boat.
You need to understand, it's not the initial cost of the boat that's expensive, it's the moorage, insurance, maintenance and general upkeep ... which is never ending.
I spent that amount of money last year on sails alone and that wasn't even a full suit for my little 24' cutter. (30' sail plan).
You do intend to look after it don't you? If not, it will very quickly become one of those derelict vessels tied to the dock that nobody ever comes near, and every marina already has a number of those. There are half a doz such vessels on the dock where I keep my boat and it's a god-awful shame. I could take any one of them and with a few weeks hard work, turn them into a good looking vessel again. But no, they sit there and deteriorate more and more every month, the dirt and filth so thick on their decks it's pathetic and yet, at some time in their existence they were somebody's pride and joy but hard times has reduced them to what they are today.

[scgilligan]

Originally Posted by rcttsoul2

.. and more difficult to REPO.
...

Difficult to repo an asset that tops out at 7Knots and cannot be pulled into an enclosed slip/garage that is less than 50' tall? Seems odd. Lol.
I got that same excuse when buying my previous motorcycle..hard to repo because you can hide it easier...wanted me to have other collateral.

I have heard tell that Essex is good for boat loans, but I have no personal experience with them. I do know that their website says minimum boat loan is something like 10-15K for pleasure boat (used)..interest rates go up with age..and I think they require 690 minimum beacon score also. If you are at 640s, just take that 500/mo and clear up some bad credit..you should be 690 in no time I would think.

I hear all the people saying "buy with cash" etc. and that would be the best way to go, but I understand your predicament also..I have marginal credit due to divorce, etc. but make good money. Good enough to pay the payments without much of an issue. I make those things that I want work out, but have a little more trouble putting together a large sum of cash at once..things come up to take that stash along the way. Does that mean you should not have a boat? Not to me..there are a million reasons I should not have a $22,000 motorcycle, but I make the payments and ride it hard just the same.

When I find the way to get a decent boat, whether financed or not, that is what I will do. I'd rather finance enjoyment/happiness than have none at all.

[Dave22q]

Loans on an old boat generally reflect your personal credit much more than the value of the asset. I would be amazed if you could get your loan on a similarly aged motor boat unless it's because your target boat is not trailer-able. I suspect that if you need 7,000 to buy this boat, you may not be able to afford her. You might be better off carefully figuring your budget and buying a trailer-able day sailer.

[rcttsoul2]

Originally Posted by Dave22q

Loans on an old boat generally reflect your personal credit much more than the value of the asset. I would be amazed if you could get your loan on a similarly aged motor boat unless it's because your target boat is not trailer-able. I suspect that if you need 7,000 to buy this boat, you may not be able to afford her. You might be better off carefully figuring your budget and buying a trailer-able day sailer.

The boat I want to buy comes with a trailer, I even called and asked, it has a 4 HP outboard, he says ready to sail right now, he says its in the dock right now, we can go and sail it once you know you have the ability to buy it.

[Cadence]

Originally Posted by rcttsoul2

As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

If you can afford $500/mo. save it and buy cash in a year.
Then you will have $500/mo. for all of the expenses involved with owning a boat.

[ohdrinkboy]

For the bank, the administration of dealing with a boat loan for $7k is a losing money proposition. With overhead, documentation (boat documentation is not easy), and loan maintenance it just isn't profitable.

Mainesail gave you sound advice.