Boat lending has become really tough in the past few years with even the best lenders like USAA taking a much harder stance on underwriting. Remember when times get tough, it is the first thing many people quit paying and maintaining so it is a big risk to the "front-line" lenders.
The first question is why this boat? Do you plan on it being the last boat you buy and keeping it for the rest of your life?
If you plan to cruise
for a few years to indefinitely, you have to weigh the options. What happens if you hate it after a year or two? What happens if you get sick and have to sell the boat?
Look at Yachtworld or sailboatlistings for a few months and you will find some truly spectacular boats at awesome prices that have been for sale
for months and years because they hit that sore point of not being a boat someone with cash would go after and not being a loan candidate for the average Joe's like us.
Look at production boats that just hit the cutoff for age for financing
and they are 20-50% less than the same boat in half the condition a year newer. The ability to finance the boat is HUGE in resale.
thing is the bank rules also affect the bank rules. IE, the value is based upon what they will loan and established through NADA in the US. Used to primarily be BUC. NADA uses a depreciation formula that is flawed in the true value of the boat, but sides towards the bank. You may find a bank that loans to 100% of NADA, but NADA is 30% below comps. NADA also does a poor job at valuing equipment
as each boat uses the same factor. BUC does a far better job in looking at comps, hull
value, and condition score. I can't prove it, but I would also bet the algorithm takes into account total sales much like it does cars. Sorry NADA, airplanes and boats are not consumables that can use the same factors as production cars.
If you love the boat and are going to be buried in it, find a good creative financial adviser as there are ways. But keep in mind that if you ever plan to sell it, the next person is going to be up against the same issues.
For whomever said the marinas
require 300K liability but don't check. If that requirement is in writing and part of the contract
you signed, they don't have to check. The onus is on you and their insurance
company will sobrogate against you if any damage is done. After which, the marina's insurance
goes up, and the rest of us pay in increased slip fees
. The marina can go after you for something as small as a little oil
in the bilge
being pumped out that can turn into thousands in remediation.