Boat Loans...

[nygooseduster26]

Hey guys, I need some input on getting a boat loan.

I'm 20 years old and have a steady 40-50 hour work week each week. The only loan I have is my truck loan which is paid off next December. I've never had a credit card so my truck is the only thing I have on my credit line. Never missed a payment or made a late payment in my life. My credit score is over 700 but when trying to get a loan for $3500 for a boat I am told I need a cosigner due to my limited credit history. I had a co signer for my truck. I have nobody to cosign for me now for the boat. Does anybody know of any banks or credit unions that would give somebody in my position a loan. Even a place with unreasonable percentages...

Any advice helps.

Thanks,

Brad

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[dvdegeorge]

Get a credit card or two and establish your credit. make sure to pay the balance in full every month 

[insufishent]

You have to consider your income to dept ratio when applying for a loan. Another option may be an unsecured line of credit from your bank or credit union these have different terms due to no collateral involved.

[Thun]

Sell the truck, buy a $1500 beater, live at home and for the next five years save every penny you make. You're going to want to relax that later part in life and that first part is almost over. Work hard now so you can have that 25' walk around when you retire. My 2 cents and I wish I had listened when given this advice.

[Frogger]

_{Brad, good question, I know this would be hard, but in my opinion, if you can make this work, you will be that farther ahead.  1. Agree with Dvd, get your credit established, youll need it down the road for future morgage etc. 2. Dont get a loan for the boat, if you cant pay for it now with cash wait till you get it.  Save a little each week on top of your truck payment if you can.  Once the truck is payed off, take that addtional money each month and save for a boat.  Next spring / summer youll have some cash to lay down and much happier about it.  The cosigner will also be happy and your credit score will go up because of your completed loan.  Just an opinion.}

[TileMan Dan]

Why not just get a credit card with low interest and pay for it that way. If your credit rating is what you say it shouldn't be a problem. Don't make minimum payments or it will take you 30 years to pay for it and you would pay more in interest than the boat itself.

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[Crazy Eddy]

Refinance your truck loan on its equity. Auto loan rate a lot less then boat loan and only have to deal with one payment.

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[buckboardjr]

One thing that isn't taught or you here very few people or kids say anymore is: "I'm saving up for a ______!

Everyone wants immediate satisfaction. A boat is a toy. Save up for it and buy with cash!

[overthelimit]

For a $3500 boat just save up some cash. If you need a loan for that boat you might have some money issues when you start considering equipment, repairs, launching, etc. plus insurance if the bank owns it. Remember there's a lot of expense associated with the boat besides the loan. Money makes money, debt makes debt. I tell my wife all the time if I didn't fish I'd be a millionaire.

[bettieanne]

A little hard to save up 3500 cash wen ur a younge buck trying to make it on your own. If you gota get a loan for a boat do it. You only live once, I took a loan 4 a boat for 15000 when I was 21. Glad I did because I have used that same money when I sold it and upgraded my boat which would have been imposible to do now with kids.

[BSmaster]

I had the same problem as you do.

 

I took out a student loan and proceeded to pay it off with a new credit card which I proceeded to pay off with the money I had already saved up.

 

I took out a car loan.  made payments.

 

I paid for everything with my visa for a long time.  I never spent more than what I could afford to pay off every month.

 

It won't help you right away but it is what you need to do.  I had to take a loan from my parents (in writing) when I bought my house because there was no electronic trail of the money that was in my sock.  These institutions do not recognize ethical people - only those that live in the world of credit and payment options.  It was a shock to me that my money was no good because it didn't come from my bank account in their financial institution.  Good luck, I know what you are feeling.  I consider the boat in that range to be a tweener purchase where you should probably just save up cash and negotiate with a seller.

[Pete Collin]

Do what I did in my twenties.  Make friends with boat owners, and fish in their boats.  When you are older, you can afford one and you won't have to stick your neck out.  Then you can take out people that don't have a boat. If you can't afford the boat now, you definitley won't be able to afford the maintenance/repairs.

[Custom Deluxe]

Alot of good advice on here.  My rule of thumb is "never finance toys". Boats, atv's, snowmobiles, are all toys so if i dont have the cash to spend on it i dont buy them.  Of course my atv is a 30 year old 3 wheeler, and my boat is 22 years old but i dont make monthly payments on either of them, and my bank account is that much heathier for it. Also rememeber, boats are alot cheaper in January when no one wants them. 

Edited August 11, 2014 by Sammy Dog

[Guppy35]

I agree that a good way to establish your credit history is to get a credit card and buy small things with it.  As BSMaster said, don't put more on there than you can afford to pay off in full every month.  I even make a couple payments a month on my credit card so by the end of the month when i have to pay off the balance, it isn't a huge shock how much i owe.  As others have said, a boat is a toy and if you can save up and pay for it in cash, that is the way to go (might even be able to get a discount for paying in cash).  If you are working 40 - 50 hours a week and make decent money, try to put $100 aside every week if you can afford it, and by January you'll have 2000 - 2500 saved up.  Then you can find a boat and buy it during the winter months when people are lowering their prices to get rid of boats that they do not want to store all winter.  Good luck!!

[Sk8man]

All good advice here. I can empathize with BSmaster. I never had a credit card until my mid thirties always paid cash for everything. When I tried to get a mortgage for my first house they said you have no credit history. I said but I don't owe anything to anybody. They said doesn't matter you would be in better shape credit wise if you did owe money but had a successful payment history. you might want to think about the overall picture here and your future (hard to do at 20 I know but necessary). It took me over 20 years to save the nearly $50,000 for my boat (taken from retirement deferred compensation separate from my retirement) but I still took out a loan for it and then paid the loan off (small interest payment first) and it boosted my credit rating, and no monthly payments which spread over say 10 years would have at least doubled the original amount .  It pays to really think it through.

Edited August 11, 2014 by Sk8man

[MikeyP]

All good advice here. I can empathize with BSmaster. I never had a credit card until my mid thirties always paid cash for everything. When I tried to get a mortgage for my first house they said you have no credit history. I said but I don't owe anything to anybody. They said doesn't matter you would be in better shape credit wise if you did owe money but had a successful payment history. you might want to think about the overall picture here and your future (hard to do at 20 I know but necessary). It took me over 20 years to save the nearly $50,000 for my boat (taken from retirement deferred compensation separate from my retirement) but I still took out a loan for it and then paid the loan off (small interest payment first) and it boosted my credit rating, and no monthly payments which spread over say 10 years would have at least doubled the original amount .  It pays to really think it through.

 That 18 Whaler cost nearly 50 grand? Yikes! No wonder people can't afford new boats these days.

Edited August 11, 2014 by MikeyP

[TileMan Dan]

In addition to all the great advice you got so far , just the purchase price of the boat will be your cheapest expense. Remember boat= break out another thousand. Nobody needs a piece of junk sitting around the house to remind themselves of a poor decision.

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[Great Lakes Lure Maker]

I found a couple people interested in trading a boat for my 4 wheeler (around $3,500)  last winter when I was considering a bigger boat. I almost traded for a 24 ft boat, but changed my mind in the end. (needed some work, but nothing I couldn't handle) Probably should have finished the transaction. The boat would get a lot more use. My 4 wheeler just sits in the yard. My only reason for not trading was we couldn't put the boat in the water as it was winterized and shrink wrapped. The original owner refused to allow it to be put in the water. My 4 wheeler just sits in the yard now, and the boat was sold.

 

Got any toys around, 4 wheeler, snowmobile etc, your not in need of ? If you do, check craigs list. I'd consider a boat over a snowmobile (for instance) any day.

 

Also, like said here before, you should know enough people who could take you fishing, and I don't live far from you, if you want to go sometime. I rarely turn down a fishing trip!!  

 

Good luck with whatever you choose. 

Jason

[Sk8man]

Well it was $42,000 and $6,000 in canvas and no kicker or other stuff in 2002 dollars       

[Bada Bing]

I saw a 14 footer yesterday on craigslist with a 15 hp for 350. It's not the bow its the Indian.

[Captain Carl Bish]

The best boat to own is one you pay cash for!

The season is wrapping up now....save $100 for the next 35 weeks and buy one in the spring.

That's my 2 cents.

[rustyrat]

3500 bucks on a 3 year boat loan is about 100 bucks a month. Nothing wrong with financing it if you can afford it. Just remember stuff breaks and maintenance costs and add that in to your budget. I have financed my last 2 boats at a 3 year term. Good luck.

RR

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[GANGGREEN]

Believe me, I can appreciate working hard and feeling like you want a boat but I have to agree with the guys that suggest being patient and saving your money and working on your credit history at the same time.  I'm in my (very) late 40s and it's only now that I can really spend money on things that I want after many years of raising kids and making sacrifices but now I'm intending to live life the way I choose to live it.  I've recently purchased a new truck, just purchased a new boat and may eventually be able to manage a lake/vacation home and I could never afford these things at this stage in life if I didn't make sacrifices as a young man. 

 

I really hope to have a very long retirement when that time comes (hopefully within the next 5 years) and it's nice knowing that I've saved enough and been fiscally responsible enough to have a thoroughly enjoyable retirement doing the things that I want to do. 

 

Good luck to you either way.

[rustyrat]

A loan for 3500 will help his credit score for sure. 3500 dollar loan is a good small step to increasing the credit. We aren't talking 50 grand here. Just make sure you can afford it and make your payments.

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[salmonite]

this economy and these rates dont support the savers, it supports the borrowers!   nothing wrong with using somebody else's money when its cheap but all depends on the lender and rates.