Financing first boat purchase

[JPK]

Yeah... just be careful how "cute" you get with your insurance carrier. Telling them it's a weekend boat and then living aboard full-time gives them every excuse they need to deny a claim down the road.

[Chotu]

Originally Posted by JPK

Yeah... just be careful how "cute" you get with your insurance carrier. Telling them it's a weekend boat and then living aboard full-time gives them every excuse they need to deny a claim down the road.

Prove I’m living on it full time. In real life this doesn’t happen.

Of course on the internet, you’re going to get life in prison or the death penalty for this. Lol

You can use your boat as much or as little as you want.

[JPK]

You really think it's that hard for an insurance claims adjuster to tell the difference between a boat that's being lived on full-time vs. a boat that's used on weekends?

You do you, man. No prison or death penalty, just common sense.

[Shrew]

Originally Posted by ChrisJHC

I have comprehensive insurance on my 40-year old boat.
It is at the lower end of the price range.
Insurance through one of the general house/boat/car insurers rather than a specialist marine insurer.

I've been around long enough to understand that the world does not operate in absolutes. That is why I specifically use words like "Not Many" and "Most". You'll find that in the post you're quoting, if you look back.

However, you're implying that since you were able to obtain comprehensive that it is easily obtained by all, which I also don't believe is true.

However, I'm seeing WAY too many posts with people struggling to get new comprehensive policies written on boats older than 30-40 years. In other threads we see folks claim they obtained insurance with no problems, only to find out its Liability. Or that they've been getting the same policy renewed for 15 years. (Not the same as writing a new policy, the insurance has already made a profit on the 15 yr old policy with no claims)

Does that mean ALL? Absolutely not. (That is about the only time Ill use an absolute)

[Enfant Du Vent]

Post # 11

Yeeears ago I was in your same position in SF. Had finished college, had no credit, and the banks wanted a house for collateral to backup a boat loan. I made up a flyer that said something like
“ Wanted, Catalina 30. Owner or easy financing” with my phone number on it on bright gold paper, took it down to kinko’s and had em knock out about 50 of them. I went to the annual boat show and posted it on all the food booths and toilet doors.
Needless to say I had everybody, even yacht brokers calling me. Some awesome deals came out of it. Turned out I was able to pick my deal instead of struggling to find a deal.
I call this an active opportunist approach…


MY example of this approach occurred when I was a 20 year bank worker in Ontario.
One weekend in February I flew to the New York Boat show and walked around s-l-o-w-l-y with signs on my front and back which read, "I'm for SAIL, apply within". Got an offer to be deckhand on a 45' powerboat that was chartered out for research. I never lived or worked away from the ocean again!

[S/V Illusion]

Originally Posted by Chotu

Prove I’m living on it full time. In real life this doesn’t happen.

Of course on the internet, you’re going to get life in prison or the death penalty for this. Lol

You can use your boat as much or as little as you want.

Actually, they dont have to "prove" anything. They simply deny a claim because they have reason to doubt and it's on you to prove them wrong. That unfortunately is the way it works

[boatpoker]

Originally Posted by S/V Illusion

Actually, they dont have to "prove" anything. They simply deny a claim because they have reason to doubt and it's on you to prove them wrong. That unfortunately is the way it works

Sad but true. One of the reasons I quit doing those investigations years ago.
The other reason was the absolute BS from 90% of the claimants.

[akopac]

Originally Posted by boatpoker

Even if you manage to acquire a vessel in that age range and get insurance,

I doubt you have any concept of what it will cost to maintain and make it

safe/functional.



The cost of hiring people to fix anything will rapidly exceed your monthly loan payments.



I suggest you read all of these articles and give it some thought.

If you feel up to tackling all this stuff your self ... you may have a shot.

All about marine surveys and checklists

Working on your own boat is key to long term cruising and water sailing">blue water sailing as well

[Chotu]

Originally Posted by S/V Illusion

Actually, they dont have to "prove" anything. They simply deny a claim because they have reason to doubt and it's on you to prove them wrong. That unfortunately is the way it works

I thought this was a thread about financing a boat purchase. No?

Many of the responses here have nothing to do with the thread topic.

There is no “claim” when you’re setting up financing and making payments on a boat.

[keepondancin]

Long time dead! If you want to reach beyond norms to try something different, just do it. At a younger age you have plenty of time to correct your mistakes. If I followed people’s practical advice I wouldn’t have had nearly 40 years of cruising, including 10 year in the Caribbean. As my late wife said, “I want to be sitting in the rocking chair saying remember when? Not I wish I had!”

[S/V Illusion]

Originally Posted by Chotu

I thought this was a thread about financing a boat purchase. No?

Many of the responses here have nothing to do with the thread topic.

There is no “claim” when you’re setting up financing and making payments on a boat.

I was responding to the person who brought it up. Why not harass the person who actually mentioned it?


Wow!

[Montanan]

As noted previously, financing an old boat as you have indicated at 40+ years, will be quite difficult. Boats are depreciating assets and a 40 year old boat is pretty much fully depreciated. Additionally, a lender will require insurance for the collateral asset and an old boat is very difficult to obtain hull insurance.

Before you purchase a boat be sure to include as a contingency in your offer that purchase is subject to obtaining satisfactory insurance and yeah, also that the offer is contingent on a survey of the boat and if need be obtaining satisfactory financing.

By the way, interest rates have increased markedly over the last couple of years, so a loan will be expensive and with short repayment term.

An old boat will be fraught with loads of repairs which cost will add up to a lot.

[Icarus]

Originally Posted by S/V Illusion

Economics 101 - never finance a depreciating asset particularly one which is a toy. As with all generalities, there are exceptions but only when your capital is an appreciating asset. In your description, it doesn’t sound like the case.

People buy cars on credit...
Strange to think boats are toys...
They can be an abode...

[sinnerman]

If you had a home, you could take out a home equity loan (i.e. second mortgage).

Use the loan to buy the boat.

The bank does not care what you do with the money. You could spend it at the casino or on strippers if you like.

Cheers

[S/V Illusion]

Originally Posted by Icarus

People buy cars on credit...
Strange to think boats are toys...
They can be an abode...

Cars generally are considered a necessity. And more people live in a car than do in a boat according to NTA statistics.