I need a Bad Credit Boat Loan

[boatpoker]

You want to borrow $7k for a boat thats worth between $k and $6k.
Don't you see the problem ?

[Cadence]

Originally Posted by fgd3

That kind of thinking is certainly consistent with a 640 credit score, isn't it? I don't think I've ever seen anyone with an 800+ credit score asking where he can get a loan to buy a boat.

Cheap sailboats are plentiful. I sold my MacGregor 23 with trailer for $2000 several years ago. I sold my Hunter 25 for $3000. Deals like that aren't hard to find.

Fabbian

That's because people with 800+ are smart enough not to pay interest on a depreciating item.

[Lake-Effect]

Originally Posted by rcttsoul2

Your exactly right, I am going to buy a sailboat on IMPULSE........... the decision has been made, PERIOD...... If I get approved, Im buying one, if the bank requires me to buy NEW then Ill buy NEW.

Can you clarify exactly WHAT you want to do with a boat? Sail as often as possible? Live aboard? Cruise to faraway places?

For a couple of years our boat was next to that of a guy who had bought on impulse. He paid near $10k for a new boat (18' dinghy).

We also bought on impulse, similar-sized boat, but the impulse was framed by reality - we considered our needs/wants, we researched sizes and prices, we set a budget which allowed for club membership, storage, upkeep and consumables, we agreed it had to be a cash purchase (no finance)... found some candidates, picked one and negotiated hard. Our impulse was formed in January (2007), and by May of that year we were sailing. At less than 1/3 the price of that other guy's boat.

We can now afford a bigger boat, but frankly, we're sailing the paint off the one we have now and loving it (and the trailerability, and the low costs). Small boats have small problems, and you will sail them more often.

Key thing - you can't own a Mercedes on a Kia budget. So buy the Kia and drive the tires off it. In other words, find a boat you can afford now and just start sailing. Or join a club and sail other people's boats for a while.

Other guy resigned from the club by year 3. He couldn't afford the $500/year to keep his boat there. Are you going to be that guy too?

[Sailorbob8599]

Well, there has been more than an abundance of advice given in response to the subject of a 'Bad credit Loan' ... will the OP take any of this advice? I doubt it very much. Many who ask advice on this subject rarely take that which is offered. The best thing we can do now is wish him well.
There appears to be one saving grace, that being the fact a proper custom made 'keel-boat' trailer including a 'tongue extension' to facilitate ease of launching on a shallow ramp is included in the price. Now, providing the mast can be raised by one person, that too will be a plus. If not, there's an abundance of information available on the subject.
I designed and built a tabernacle that allows me to do just that with a 30' stick, stepped on the cabin top of my 24' cutter however, my boat is NOT considered trailer-able due to being over-width. I wouldn't want to make a practice of raising and lowering the mast anyway, however simple the task is made.

[Captain-Avenger]

Originally Posted by fgd3

I don't think I've ever seen anyone with an 800+ credit score asking where he can get a loan to buy a boat.

Fabbian

Well here is one for you. I have an 849 credit score. I can easily sell stocks/MF's to pay for a $180,000 trawler I'll be in the market for soon. But selling the investments, which which have a higher return than a boat loan would cost, does not make financial sense...not to mention the tax consequences of a large cash out all at once vs. spread over a few years. People will high credit scores sometimes use loans to make more money!

[scgilligan]

Originally Posted by Cadence

That's because people with 800+ are smart enough not to pay interest on a depreciating item.

I know plenty of people with an 800+ credit rating that are financing automobiles. Having a good credit score does not mean they have hoards of cash laying around to pay for everything outright..just that they have been diligent in maintaining their credit rating. A car is a depreciating asset just as much as a boat..really the only asset that is not depreciating is a house.
Not to mention that people with good credit ratings get great finance rates..so, they'd rather keep their money in investments making better returns and pay the 0.9% finance rate on the car rather than dropping 50K in cash on the auto..also, most money smart people don't let hoards of cash lay around even if they do have it..they want it working "for" them, so it is put somewhere it can.

[valhalla360]

Originally Posted by Captain-Avenger

Well here is one for you. I have an 849 credit score. I can easily sell stocks/MF's to pay for a $180,000 trawler I'll be in the market for soon. But selling the investments, which which have a higher return than a boat loan would cost, does not make financial sense...not to mention the tax consequences of a large cash out all at once vs. spread over a few years. People will high credit scores sometimes use loans to make more money!

I think the point was someone who understands money and uses it wisely (unfortunately the banking industry has drilled it in that high credit score = smart with money which is not necessarily true)

If you are so well off, would you really have difficulty getting a loan? I mean what bank would question giving you a $180k loan secured against an investment account worth $500k.

We'll ignore the issues with your investment plan as it's not relevant to the discussion.

[sailorboy1]

Originally Posted by Rustic Charm

I'm a little surprised that the poll got 14 people to vote that sailing is for the elite

It's because lots of people would never admit they were well off no matter how much money they make. So they will never consider themselves more than "average".

[Rustic Charm]

Originally Posted by sailorboy1

It's because lots of people would never admit they were well off no matter how much money they make. So they will never consider themselves more than "average".

Well, I know a number of people who live in their sail boats and they we definately not 'well off'.

I suspect I'm 'reasonably well off' but then I've spent time in Ethiopia, so I know what it is to be poor. come to think of it, I came from a poorish family, though I don't think we knew that as kids.

But despite my thinking I 'reasonably well off', I certainly couldn't afford anything more than my $30k boat to which I then put about another $10k a year into doing it up.

[Captain-Avenger]

Originally Posted by valhalla360

If you are so well off, would you really have difficulty getting a loan? I mean what bank would question giving you a $180k loan secured against an investment account worth $500k.

We'll ignore the issues with your investment plan as it's not relevant to the discussion.

I of course will not have any trouble getting a loan, but that does not mean that I would not seek out the most favorable loan rates available to me. To pay higher loan rates than necessary would be foolish, and I did not get where I am by being foolish with my money. I am sure the original poster would choose the lower of two interest rates if presented with the choice.

I have no "issues with my investment plan" as it has profited me quite handsomely, and my comment was quite relevant as it was in direct response to somebody saying they have never ever seen anybody with a credit score above 800 seeking a boat loan. I'm sure there are many people on this forum with 800+ scores who have taken boat loans.

Whatever, have a good day, and good luck to the original poster in obtaining the outcome that is appropriate for his situation.

[Cadence]

Originally Posted by scgilligan

I know plenty of people with an 800+ credit rating that are financing automobiles. Having a good credit score does not mean they have hoards of cash laying around to pay for everything outright..just that they have been diligent in maintaining their credit rating. A car is a depreciating asset just as much as a boat..really the only asset that is not depreciating is a house.
Not to mention that people with good credit ratings get great finance rates..so, they'd rather keep their money in investments making better returns and pay the 0.9% finance rate on the car rather than dropping 50K in cash on the auto..also, most money smart people don't let hoards of cash lay around even if they do have it..they want it working "for" them, so it is put somewhere it can.

Since you quoted me, you are correct I should have said depreciating toys.

And yes someone can have and excellent credit score just by paying their debts in a timely manner.

I also agree on the home although I would expand that to real property/land.
I have found vacant land to be a better investment since taxes are generally less as is maintenance. JMHO

[rcttsoul2]

Originally Posted by Rustic Charm

Well, I know a number of people who live in their sail boats and they we definately not 'well off'.

I suspect I'm 'reasonably well off' but then I've spent time in Ethiopia, so I know what it is to be poor. come to think of it, I came from a poorish family, though I don't think we knew that as kids.

But despite my thinking I 'reasonably well off', I certainly couldn't afford anything more than my $30k boat to which I then put about another $10k a year into doing it up.

My credit score is not the best in the 640's, I got qualified for NEW and USED motor boats with payments up to $600 per month, I am thinking that if I get denighed on the OLD boat loan, Ill buy a NEW boat with a Marine Head so that I can bring women along, something that can proform in light winds such as below:
Catalina 275 Sport
Price is $80,000 on a 20 year loan it will cost $512 per month that the average working Sheeple can afford.

Second Choice is Com-Pac 23 Pilothouse Price is $57,000 at $350 per month for 20 years.

These are the only 2 Sailboat I would consider buying new, otherwise I would like to just get a used 22 Footer or something close to it.

[SV Miss Fe]

This might have already been mentioned but you could try asking for a line of credit from your bank. When I bought my boat I just setup an unsecured line of credit and pulled 10k out only took about too weeks and of course no questions asked about what its for. Anyways its another option to try.

[rcttsoul2]

Results are in, my local Credit Union says yes if my wife co-signs for me, she has a 763 score, unfortunately she want to buy a pop-up Camper and if she co-signs for me then she will get turned down, on the positive side, I can still buy a NEW Sailboat with my own signature, I just don't get it, banks are willing to loan me $80,000 on a new boat, but need a co-signer on a $6,500 used boat.

Cool thing is if I buy the Catalina 275 Sport, Ill have the BADDEST pocket cruiser on the market, down side I dont understand internal politics in the Sailing community, if you got these well off and RICH people in these sailing clubs that own most of the places that I need to get a job at, come to find out I have a NEWER NICER FASTER boat then they do, it could make it difficult to secure my income and/or maintain my job, as I have seen in the past when an average working Sheeple driving a nice sports car like an SRT Challenger or SS Camero to work, they usually dont last very long afterwords, as I can overhear management say something like this on lunch break:
Lets see if he is still driving that car with NO JOB.

This is why I am considering second choice, 23 Pilothouse is an Old Man boat and not too impressive, this is why I want to buy an OLD boat to begin with, and OLD boat will be HUMBLE and still suit my needs, even if the gear is all crap, I can buy new gear.
What do you all suggest?

[Sailorbob8599]

Something I learned many years ago . . . most Banks' will lend you as much money as you want, so long as you first prove to them you do not need it!