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Old 28-06-2016, 11:50   #16
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Re: Financing for an older boat

When I refinance my home at under 3% they asked if I wanted more money, and like a fool I said no. So I suppose you could refinance and get more money.

There's always home equity loans, which are usually at lower rates.
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Old 28-06-2016, 12:14   #17
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Re: Financing for an older boat

Hm.... Why would anyone surrender equity in a slowly APpreciating asset to take title to a rapidly DEpreciating asset???

Boats - even more than that other foolishly expensive purchase people make, motor cars - should be "financed" from one's savings account, and only to the extent that one can afford to absorb a total loss without having to give it a second thought.

A careful analysis of cost versus utility needs to be made :-)

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Old 28-06-2016, 12:23   #18
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Re: Financing for an older boat

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Hm.... Why would anyone surrender equity in a slowly APpreciating asset to take title to a rapidly DEpreciating asset???
Because they want a boat..and rather than financing the depreciating asset directly, you use the mortgage so that you can get a tax deduction on the interest paid?? That would be my assumption as to why to go that route..not saying it is a sound "investment"..just a means to an end.
Some people want a boat, and can afford a monthly payment easier than a large outpouring of cash..I know, I know...save that monthly until you can pay in cash..but, that is not the way of society..we want what we want and we want it now! Lol. Who wants to save 500/mo for 4-5 years when they can enjoy the boat for those 5 years and pay just a bit more in the end?
A friend once told me "a rich man asks 'how much?', a poor man asks 'how much per month?'".
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Old 28-06-2016, 14:05   #19
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Re: Financing for an older boat

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essexcredit.com they finance older boats, although at a higher interest rate..as long as the boat meets their NADA-type values. You will also need a higher down payment I believe. I have not used this company myself, so all of this is conjecture, but I have sent them questions a couple of times about this very subject. They require a minimum boat loan of 10K, 25K for a liveaboard. Minimum credit score is 690 IIRC. They use the boat as collateral, so no need to maintain a house..
If you go this route I would be interested in how the process worked out for you..since I may consider it in the future myself.
Nothing over 25 y.o. and not wood.
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Old 28-06-2016, 14:17   #20
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Re: Financing for an older boat

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essexcredit.com they finance older boats, although at a higher interest rate..as long as the boat meets their NADA-type values. You will also need a higher down payment I believe. I have not used this company myself, so all of this is conjecture, but I have sent them questions a couple of times about this very subject. They require a minimum boat loan of 10K, 25K for a liveaboard. Minimum credit score is 690 IIRC. They use the boat as collateral, so no need to maintain a house..
If you go this route I would be interested in how the process worked out for you..since I may consider it in the future myself.
I went with Sterling but the oldest boat they would do was 29 years old and they ignored the surveyors valuation. I have seen people on this forum claim they could get loans for 50 year old boats. The biggest thing I was concerned about was spending $10K on a survey, hotel, and travel to look at a $200K boat then have the lender toss the surveyor value and require a 75% down payment.
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Old 28-06-2016, 14:34   #21
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Re: Financing for an older boat

Put it on a credit card and keep transferring the balance to new cards. You can do that indefinitely and never have to make a payment. It will make your credit look great since you are paying off the old card every time you get a new one. You can cruise for years on credit cards doing that and then just have them discharged in a bankruptcy. Milk the system!!!!!!!!!!
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Old 28-06-2016, 15:05   #22
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Re: Financing for an older boat

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Nothing over 25 y.o. and not wood.
I sent a question via their website a while back..they told me that they would consider financing a 1977 boat for 10 years..again, depends on value of the boat I assume.
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Old 28-06-2016, 15:06   #23
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Re: Financing for an older boat

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Put it on a credit card and keep transferring the balance to new cards. You can do that indefinitely and never have to make a payment. It will make your credit look great since you are paying off the old card every time you get a new one. You can cruise for years on credit cards doing that and then just have them discharged in a bankruptcy. Milk the system!!!!!!!!!!
Meanwhile the balance keeps climbing at 10%.
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Old 28-06-2016, 15:34   #24
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Re: Financing for an older boat

Quote: "Meanwhile the balance keeps climbing at 10%."

10%??? Try 19%. Or 27%. Nuther detail that affects perception and options is that in this neckathewoods interest paid on a residential mortgage is NOT an expense for taxation purposes.

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Old 28-06-2016, 16:09   #25
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Re: Financing for an older boat

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I sent a question via their website a while back..they told me that they would consider financing a 1977 boat for 10 years..again, depends on value of the boat I assume.
They may "consider" but doubt seriously they would. Usually a finance company will simply do a personal loan. High interest rates, short term, and not tax deductible.
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Old 28-06-2016, 16:14   #26
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Re: Financing for an older boat

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Meanwhile the balance keeps climbing at 10%.
Will not work. The major credit card companies keep track of your total indebtedness and after a certain limit will stop extending more credit. Nice scam but a pipe dream. Plus based on your fica score, you are only authorized to transfer over a maximum amount to a new account. Once you hit that limit, you go broke paying the interest on the outstanding balance. Just live within your budget or get a second job.
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Old 28-06-2016, 16:35   #27
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Re: Financing for an older boat

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Hey cruisers! ,

Been dreaming about making the jump to full time cruiser for about 4 years now and have now found a wonderfully equipped vessel that I'm head over heels for ... unfortunately it was also built in 1974 which is presenting a problem all in itself attempting to get financing for her. I was wondering if anyone on here might be able to shed some light and point me in the right direction maybe a company or someone who would consider financing for such an old bird. Any wisdom would be greatly appreciated !!
I hope that you are enjoying all of the life lessons and unsolicited opinions that internet experts love to respond to questions that weren't asked. They obviously assume that you are twelve years old and/or have the IQ of a toaster and so are in dire need of their prognostications.

It is a wonderful thing that there is this kind of free financial advice from those who are so expert that they have no need to know your particulars or circumstances before dispensing their unique knowledge suited to your exact unstated situation.

The reality is that it is very hard to get a traditional marine loan for a vessel of that age. You could try some of the various agencies that advertise on marine sites and publications. They might be willing to steer you to someone.

Some have had good luck at their local credit union. Investigate that?

Good luck.
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Old 28-06-2016, 17:07   #28
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Re: Financing for an older boat

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I hope that you are enjoying all of the life lessons and unsolicited opinions that internet experts love to respond to questions that weren't asked. They obviously assume that you are twelve years old and/or have the IQ of a toaster and so are in dire need of their prognostications.

It is a wonderful thing that there is this kind of free financial advice from those who are so expert that they have no need to know your particulars or circumstances before dispensing their unique knowledge suited to your exact unstated situation.

The reality is that it is very hard to get a traditional marine loan for a vessel of that age. You could try some of the various agencies that advertise on marine sites and publications. They might be willing to steer you to someone.

Some have had good luck at their local credit union. Investigate that?

Good luck.
Dear Toaster, evidently the Bank of Nigeria does have loans for old boats made of wood. Please call them for particulars.
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Old 28-06-2016, 17:23   #29
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Re: Financing for an older boat

It is best to pay cash for an older boat as mentioned on the Atom Voyages Website.

From the link below:

A big plus for boats like the Pearson Ariel, Triton, Alberg 30, some of the Bristol and Cape Dory line and similar boats on this list is that they are relatively inexpensive. This means you have the option of not buying insurance and could even replace them with a small emergency savings fund, which I call being self-insured

Atom Voyages - Good Old Boats List

That way you don't have to insure it except for liability. If you destroy it, you then just buy another one which is the approach I took on my $2,000 Bristol 27

You may need to find a cheaper boat if you cannot pay cash for this one.

Also, walk the marinas and see all the financed boats that never move........
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Old 28-06-2016, 17:24   #30
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Re: Financing for an older boat

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Dear Toaster, evidently the Bank of Nigeria does have loans for old boats made of wood. Please call them for particulars.

You have a real gift for making the comprehensible incomprehensible. Is it simply an accident or an actual skill?
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