I need a Bad Credit Boat Loan

[Captain-Avenger]

Originally Posted by S/V Illusion

Look at it as a good thing. Financially, it's never a good idea to finance a depreciating asset. If you really need a loan to buy a boat, you shouldn't be doing it.

I might tend to disagree with this. I will be in the market soon to buy a trawler, looking in the neighborhood of $180K. I could easily sell some of my stocks to cover the entire $180K, however my investments are earning more than say a $150K boat loan would cost in interest. Is it wiser to give up higher paying investments and suffering the tax consequences of a large cash out (pretty high capital gains on my investments), or pay the lower interest rate of a boat loan and tax manage my stock sales over several years to manage taxes better? I have an 849 credit score, haven't been late on a payment or bill in over 30 years, and have no idea why they won't give me that last point, so I am looking at one of their better rates.

Some times a short term loan makes sense.

[Bertie68]

I don't know how it's in the US, but here in Spain it's said that there are two kinds of sailors (or in general, boat owners): those that can afford to pay a huge amount for having a boat afloat in the marina and use it two or three sundays a year, and those others that live in some kind of "boat induced poverty" but sail as often as they can.

Doing the math, in my town I'd have to pay about 3000€/yr just for the mooring of a 30' boat, and that's quite difficult to justify taking into account the actual sailing time (well, I'd probably spend the whole weekend that way, but the rest of my family maybe it's not so enthusiastic about that lifestyle). Still I don't lose hope...

So that's how it looks in this part of the world, and regrettably I had to chose the 2nd option in the poll

[kmacdonald]

With todays interest rates it makes no sense to use your own money. Low interest loans are the way to go. Just don't get upside down with a long term.

[rcttsoul2]

Originally Posted by Captain-Avenger

I have an 849 credit score,

Captain-Avenger............ can you Co-Sign for me ?..........
Well I found a local credit union that might finance me with $0 down payment, 6% yearly interest with payments of $197 per month for 3 years, I am sure hoping it gets approved, please everyone, pray for me.

[Lepke]

There are people and banks that make risky loans, but don't expect normal interest rates. Try Craig's list.
I sold a business in 1979. One person trying to get financing found an investment bank in SF. One of the owners was the mayor. They only wanted 3% a week.
Make sure you have good health insurance.

[Fiveslide]

Originally Posted by rcttsoul2

The boat I want to buy comes with a trailer, I even called and asked, it has a 4 HP outboard, he says ready to sail right now, he says its in the dock right now, we can go and sail it once you know you have the ability to buy it.

That trailer will be nice to have, you can save money on a slip in the winter. But I don't think you will find it practical to launch and retrieve a fin keel Catalina 25 every time you want to sail. It is the fin keel isn't it? You'll probably want to keep the slip, I would.

Sent from my XT1080 using Cruisers Sailing Forum mobile app

[Jsta_Rebel]

Originally Posted by rcttsoul2

As far as budget goes im covered, im not poor, I can afford a $500 monthly payment comfortably and more if needed, I have also considered buying the Catalina 275 Sport for $80,000 on a 20 year loan the payments would be a little over $500 per month, but to get the loan you need 10% cash down of $8,000 that I would need to save vs. putting $650 down payment and sailing RIGHT NOW, just need yall to point me in the right direction to acquire a loan for an old sailboat for $6,500.

Can't help with a bank, but I can give you an idea how to buy your boat.. There are many people who have the dream of sailing the Caribbean. There are many Americans that go to the USVI (St. Thomas & St. Croix) buy a boat, and start in on fixing her. Then reality sets in one way or another and their dream falls to the wayside for one reason or another. They put the boat up for sale, and it sits for a couple of years with no love. The Lagoon in St. Thomas is full of them as is Vessup bay, Charlotte Amalie and you will even see a couple in honeymoon Bay off Water Island. The people that have these boats are desperate to get rid of them and will take payments especially if you have money to put down on it. Look online in the Virgin Islands Daily News and possibly the Island Trader St. Thomas and you should find what you're looking for. I would also imagine that you could do the same thing I the states if you try. Bottom line is that you sometimes need to think outside the box to make your dreams a reality. Usually you get screwed if you're in a hurry or deal with a bank.. BTW, You do know that the bank will want you to insure your boat if they loan you money on it. Good luck trying to get insurance on an older boat listing the bank as "Payee and additional insured".

Good luck with your dream, and I hope it works out for you better than it does for many whom have tried what you are trying to do.

[rcttsoul2]

Originally Posted by Jsta_Rebel

Good luck trying to get insurance on an older boat listing the bank as "Payee and additional insured".

I got my car insurance company Geico to full coverage insure that boat for $18 per month

[Jsta_Rebel]

Originally Posted by rcttsoul2

I got my car insurance company Geico to full coverage insure that boat for $18 per month

Try and get Geico to insure anything in USVI or any Island in the Caribbean. Not saying the op is here, but I am, and Geico does t exist here.

[StuM]

Originally Posted by jwing

If you need to borrow $7000 to buy a boat, you should not be buying that boat. Either save up until you can have the cash, or buy a smaller boat.

Especially if you need to borrow $7000 to buy a $7000 boat!

[Jacknast]

32 footer is about $390 with electric per month at $10/foot at a municipal marina.

so now you have $110 left for you, your play, and your boat for the month. Not enough IMO, hopefully everything works and doesn't need maintenance.

32 footer from 1978, ins. about $150 a year, liability only, florida only. Full coverage, same area, about $1100 + a year, and would need to pass a survey before insured. This was in 9/15 with seaworthy, which is now gieco. Get the title or you have to have full coverage.

[Jacknast]

Originally Posted by Captain-Avenger

I might tend to disagree with this. I will be in the market soon to buy a trawler, looking in the neighborhood of $180K. I could easily sell some of my stocks to cover the entire $180K, however my investments are earning more than say a $150K boat loan would cost in interest. Is it wiser to give up higher paying investments and suffering the tax consequences of a large cash out (pretty high capital gains on my investments), or pay the lower interest rate of a boat loan and tax manage my stock sales over several years to manage taxes better? I have an 849 credit score, haven't been late on a payment or bill in over 30 years, and have no idea why they won't give me that last point, so I am looking at one of their better rates.

Some times a short term loan makes sense.

Well you could go to a credit union and get a no interest loan on the stock certificates. At about 70-80% par. and still collect your divys.

[Cadence]

Originally Posted by Jacknast

Well you could go to a credit union and get a no interest loan on the stock certificates. At about 70-80% par. and still collect your divys.

Somehow I doubt that is not applicable?

[latka]

Originally Posted by rcttsoul2

Iv applied to a few boat loan website and got denied.
The first denial said: We don't loan for Sailboats
The second said you need a 690 Credit score or higher ( mine is 640's )
The third said you qualify for a normal motor boat but you need a 730 score or higher to qualify for a Sailboat, please point me in the right direction.

Try Squirrell Money

[Captain-Avenger]

Originally Posted by Jacknast

Well you could go to a credit union and get a no interest loan on the stock certificates. At about 70-80% par. and still collect your divys.

It makes no sense that my credit union would give me a 0% interest loan just because it is secured. I can see a better interest rate for a secured versus an unsecured loan, but nowhere near 0%.