Financing a boat that will cross borders

[DerivativeGuru]

And maybe the name of your insurer would also be helpful.

Thanks in advance!

[mausgras]

Financing your boat is only one of your problems. If plan to leave it in SE Asia you had better check out the import conditions. In Thailand you are allowed to leave the boat for up to 6 months for "repairs". More than that they consider you have imported the boat and you have to pay import duty and register the boat there.
Other countries I am not too sure.

[DerivativeGuru]

Originally Posted by mausgras

Financing your boat is only one of your problems. If plan to leave it in SE Asia you had better check out the import conditions. In Thailand you are allowed to leave the boat for up to 6 months for "repairs". More than that they consider you have imported the boat and you have to pay import duty and register the boat there.
Other countries I am not too sure.

Thanks for your concern, but that part I am not worried about. I would likely register in Langkawi and cruise the region. By the way, at present it's possible to extend you a vessel's stay with a nominal fee up to two years. Either way, Langkawi isn't far away.

[markpierce]

Originally Posted by DerivativeGuru

I am an American considering purchasing a boat in Europe that will be transported and used primarily in SE Asia.

Does anyone have any experience to know how American lenders would view lending on such a vessel?

Thanks in advance for any advice!

Why would I lend you money for that unless you gave me a lien on your liquid assets (instantly converted to cash dollars) exceeding the value to the loan?

[DerivativeGuru]

Originally Posted by markpierce

Why would I lend you money for that unless you gave me a lien on your liquid assets (instantly converted to cash dollars) exceeding the value to the loan?

Because I have paid for an insurance policy that guarantees you the amount you loaned if I run off and the vessel is declared a loss??

This was the experience of others mentioned earlier in the thread, Mark.

[markpierce]

Originally Posted by DerivativeGuru

Because I have paid for an insurance policy that guarantees you the amount you loaned if I run off and the vessel is declared a loss??

This was the experience of others mentioned earlier in the thread, Mark.

Sounds good enough.

[BandB]

Originally Posted by DerivativeGuru

Because I have paid for an insurance policy that guarantees you the amount you loaned if I run off and the vessel is declared a loss??

This was the experience of others mentioned earlier in the thread, Mark.

No, the insurance policy mentioned only covers a casualty type loss. It covers that even if you're in an area you shouldn't be. But it does not cover them if you just stop paying. In that case the vessel isn't declared a loss. Just you aren't paying.

[markpierce]

Now, if I can only find the next channel markers ....

[accomplice]

I don't think my lender cared where the boat was at the time (nor did they know, to my knowledge). They cared that I had breach of warranty coverage and that they were listed as a mortgage on the US coast guard documentation.

The lender was BB&T, although it was arranged through a mortgage broker. I can highly recommend Bob Dunford of Trident Funding in Sheldon, CT. My insurance is through Pantenaeius. My insurance broker found them after getting multiple quotes. The only real hiccup was that the lender insisted that the insurance be in place before they would wire the money, so I had to pay to insure the boat for a few days before I bought it.

The terms were 30% down (they would've written for smaller down payment), 84 months (they would've done longer, not shorter), 3.99%.

The insurance does have list of exclusions, including a large area of the northwest Indian Ocean, Red Sea, Arabian Gulf area. And, as is common, I need to be north of 30deg50 between July and October if I'm in the North Atlantic.

Good luck.

[valhalla360]

Originally Posted by Hud3

I checked the loan docs before we headed out of the US and there were no requirements that the boat remain located in the US, nor any requirement that we notify the lender of the location of the boat. So I saw no need to inform them.

Fair enough. I'll file that under the gray area of better to ask forgiveness than permission.

[Kenomac]

I tried to do the same thing 3 years ago. The final answer was none of the US lenders would do it. Needed to pay cash, it was the only way. It has more to do with the mortgaged asset leaving US waters and never returning, than credit worthiness. Good Luck.

[Boater3]

anyone have any recommendations for an insurance carrier that might insure a yacht for a few weeks in Turkey while its loaded onto cargo ship for import into USA? Seems that Pantenaeius no longer writes insurance in the USA. Thanks!

[goboatingnow]

Originally Posted by Boater3

anyone have any recommendations for an insurance carrier that might insure a yacht for a few weeks in Turkey while its loaded onto cargo ship for import into USA? Seems that Pantenaeius no longer writes insurance in the USA. Thanks!

You need to approach underwriters in the country of the primary long term destination of the vessel. Hence this would be the USA. You would then arrange normal domestic cover and specifically extend it ( with perhaps additional premium ) to cover the once off journey. This is what I have done in the past.