Boat Loan

[CaptAdam]

I am a new buyer. I very much want to look at a boat soon. I am wondering about your experience and knowledge of boat loans. I do not expect my bank to give me a boat loan (boat is a 1968, and I bank with Bank of America)... Although I might be able to take my money and put it in a local bank of mine. I am specifically wondering about boat loan companies. Are there some (or one) that I should call? Are there none worth it? Any information would be greatly appreciated! Thank you!

[barnakiel]

Is the boat this big? Buying with what you have not an option?

Asking because I bought my boat from a guy who bought her with a loan. He was less than happy selling her and I have been a more than happy owner ever since.

b.

[Capt Phil]

If a vessel is more than 30 years old, you may have a difficult time getting a loan, not so much from a condition or ability to pay standpoint but insurance companies don't like to write policies on older boats which is usually a condition of the lender. This may have changed in recent years but many lenders would not lend on wooden boats of any age because of unreliable maintenance in the past unless you had a AAA survey report. If you can secure a lender, be prepared to pay through the nose! Capt Phil

[LostAtSea2011]

Try a local credit union , I have bank of america also and had to find a credit union to finance my boat. My bank had no issues with age as long as it was in the NADA book. I use Progressive for insurance.

[CaptainBW]

You can also try Boat US (www.boatus.com). They have a financing service that you can check out by filling everything on line. My recent experience is that there are fewer banks lending for boats and the ones that are lending are very picky. They will use the BUC value as a basis for what they are willing to loan. Boat US can also get you the BUC value.

[CaptAdam]

Thank you all for your input! I have put together a packet for my application for a loan from a local bank. I can put 5 down, and the boat is under 30 grand, so hopefully I can make it work. What about using it as a business deal? I can do charters and such on it, I am licensed. Should I get a DBA name or start a charter company? Think that might help?

It is a 1968, but fiberglass hull. Maybe I should see if I can get it insured before handing my paperwork?

[sailorboy1]

sounds like something to ask your accountant and lawyer (and your banker on the loan and your insurance company for the boat) and not a bunch of boaties, not trying to brush you off but I wouldn't take a forum answer to such a question

[LookingForCruiser]

I couldn't get a loan on my 1969 Iroquois when I bought it, it was too old and there was no market for it - so it couldn't be priced reliably. I expect you'll run into a similar situation. I took out a personal loan instead. No collateral, but slightly higher interest. It wasn't nearly as big as your loan though. Good luck.

[Capt Phil]

I suggest you get the insurance question answered before doing the deal or at least make the deal contingent on an insurance policy for the amount of the loan being issued. There are quite a few marine underwriters in the Seattle area. If you do plan on doing charters, vessel should be inspected by CG for safety equipment, seaworthyness, etc., and good idea to form an LLC in the event someone is hurt whie aboard or decides to sue you. Good Luck, Cap'

[rgscpat]

Insurance will be different I would think if the boat is used commercially. The boat may not have to go through all the Coast Guard stuff if you can operate as a six-pack (OUPV) but your insurance company will still no doubt have requirements. I have a friend who is a 100 ton licensed skipper and ASA certified sailing instructor who pays around $1,000 per year for liability insurance just so he can give sailing lessons on his boat during the summer. He doesn't really make any money as an instructor but just likes to do it.