Current Finance Market

[tamicatana]

Have read this and a few other threads including "Boat Financing Sucks."

Noted that the most recent is from 2011, and most posts were from '09, IIRC

Does anyone care to share a more recent boat financing experience? Is anyone out there lending on boats older than 15 years?

TIA

[DSDman]

I have been making the rounds. I have good credit but if the boat is over 30 years old, good luck. My bank makes boat loans and they have told me that if the boat surveys they are not so much interested on the age as the condition. but I have been with this bank over 20 years. the max they will loan is 99 k. several other banks won't even touch it because of the age. about 5.5% seems the going rate in the east coast us. so newer boat no problem.

[tamicatana]

Thanks DSDman, anyone else?

[Wavewacker]

Since there is not really an established secuirtized market financing will vary greatly from one borrower to another and from one institution to another. It's something you will have to shop for. The main three "C"s will come into play, credit, capacity and collateral. It seems you're stuck on the collateral side, but this is only one consideration and one can also have what lenders call "compensating factors" to overcome the low side of these three considerations.

A compensating factor would be more of a down payment, much better credit or very good income. Another is other collateral, if someone has a CD in that bank or other assets that can be listed as collateral, you lessen the risk associated with the loan. As mentioned above, having a banking relationship for 20 years will also be a factor, how many loans you have obtained and paid as agreed, not just your credit score.

How you reduce risk of default for the lender will dictate how much and what kind of loan terms you will get. So, each situation can be so different that asking here really won't give you that much to go on.

Such factors can be broadly viewed by smaller lenders...credit unions are great, large banks, IMO, are not the place for most individuals to use as they are geared to larger depositors and business accounts. Larger lenders are also burried by corporate policies and loan officers are usually locked in to compliance, regardless of who the borrower is. So, look for a mid size or smaller institution that can deal with you and while the interest may be slightly higher, in the grand scope of things, a few hundred dollars may mean obtaining the money as not.

You'll need to do your own homework due to your personal situation

[Mike OReilly]

We financed our two boat purchases through our local credit union. Both boats were 30ish years old. No problem, no added collateral required (boat was the asset), no requirement for a special survey.

Our loans were for smaller amounts (large for us though!): 20K & 40K. We have the best credit rating, and we'd been dealing with the CU for a long time; these factors certainly weighed in our favour, but I would definitely take a look at your local credit union (or locally owned bank).

[SV Demeter]

Local bank is probably your only route these days. I could not find any lenders through an online search that would touch collateral that was more than 15 years old. We financed our current boat and had a lot of trouble finding a lender even with great credit and putting 50% down and borrowing 40k. There are lenders out there who will do it but not many. Forget refinancing though.

[tamicatana]

Again, thanks. None of you go through a broker, ex Essex?

[SV Demeter]

Originally Posted by tamif27

Again, thanks. None of you go through a broker, ex Essex?

Thats how I came to find out that no one will touch collateral older than 15 years old. Started with the brokers. There are some who are good like boat loan boat financing boat loans house boat loan marine financing yacht financing - Scott Financial . They may be able to find lenders who will take older collateral but it is not easy and from what I hear getting harder.

[tamicatana]

I'm also given to understand that one's credit rating gets knocked whenever a bank does a check. If one wants to shop around, then it would appear that just because one is doing comparison shopping, then one's credit rating suffers. Any workarounds?

[CHM]

I purchased a 1988 Beneteau in December and secured a loan for $50K, just under 4% interest at my local credit union for 66 months. No problems. I had to provide a marine survey showing the value qualified and insurance.

[Wavewacker]

Originally Posted by tamif27

I'm also given to understand that one's credit rating gets knocked whenever a bank does a check. If one wants to shop around, then it would appear that just because one is doing comparison shopping, then one's credit rating suffers. Any workarounds?

The date of the credit inquiry will indicate someone is shopping and multiple inquiries will not hurt your rating unless it gets excessive which then begins to look like other lenders are turning you down for other reasons not on the credit report. So, having 3 or 4 in a short period of time should not be a concern. Having 12 in 3 months lookslike the credit report isn't telling the whole story!

Talk about price, down payment and basic collateral issues first, then loan terms subject to credit findings, then do the credit.

[Brian in Az]

Originally Posted by tamif27

Again, thanks. None of you go through a broker, ex Essex?

We are in the process of refinancing a motorhome with Essex. Their RV and boat rates are 4.54% IF you are a Costco member. They have a special Costco program. As long as the collateral passes inspection and you have a 700+ credit score, they are easy to work with.

[SV Demeter]

Best bet is to try and deal with a local bank or better yet credit union at which you have a relationship and deposits. Essex to my knowledge won't touch collateral that us more than 15 years old but I could be wrong.