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Boat Loans...

nygooseduster26
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GANGGREEN

GANGGREEN

Posted
Posted

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

 

Unfortunately, that's part of the problem.  Even though prime is fairly low, boat loan interest rates, particularly on used boats, are NOT low.  Credit card rates, particularly for young guys with un-established credit, are NOT low.  I was fortunate to pay off my home mortgage and purchase a new boat with cash by taking out a home-equity line of credit at a very low rate but the OP doesn't have that option.

salmonite

salmonite

Posted
Posted

i was searching for some rates on boat loans and yes i am a 800 plus credit score and i was able to receive rates under 6% which in the grand scheme of things wasnt to bad at all. I elected not to borrow and bought a couple year older boat and paid cash ;)

GANGGREEN

GANGGREEN

Posted
Posted

Are those rates for new boats or used though? I'm also over 800 credit score and even with that,I was looking at 8% on a used loan the last time I went shopping. That's not a cheap way to use someone else's money. I'm purchasing my new rig on a home-equity line at 2.99%, plus I can write off the interest since I use the long form on my taxes. Not too shabby, but as I said previously, I've worked my whole life for that privilege.

rustyrat

rustyrat

Posted
Posted

Mine too. Made more sense for me to do the loan then take the money out of my cash reserves. I also got a very good deal on my rig.

Sent from my HTC6435LVW using Lake Ontario United mobile app

Adk1

Adk1

Posted
Posted (edited)

Boats are money pits..remember that once u own one that is just the beginning mr. Buying one is the easy part, maintaining is a different story. Add in insurance etc as well. Maybe u should look for a few buddies to go in on one with u

Edited by Adk1
Xxx

Xxx

Posted
Posted

I know this doesn't pertain to a loan but I sold 2 mid 90's boats 18fters and went 10 years backwards to afford the boat I wanted. I looked at many till I found this gem, it was stored in a barn for 18 years, yesterday while taking the kids tubing the hour meter rolled over to 400 hrs. I also stuck a few bucks into her. I'm happy with it. There was a thread on here " lets see your boat" and a comment was made about how many old boats are still taking guys fishing and how good they still look. Be patient and your ship will come in, meanwhile get a credit card or take out a small personal loan for 2 years and just make the timely payments and you will be ok.

Gator

Gator

Posted
Posted (edited)

I purchased a Thompson 21' Fisherman for $5000 when I started graduate school...one of the top reasons that I studied at UofR was that I was close to Lake O...but I only used it for two years. A lawyer who lived down the street loaned me the $$$ for a healthy return on his investment :thinking:.

I couldn't afford the upkeep on my $13K graduate student stipend (in the early 90s) and when the canvas went, the boat ended up sitting for years in somebodies yard until I let it go for the back payments I owed them on what it cost me to store it there  :puke: . Lesson learned.

 

I have lots of good memories of those two years. And I ate way too much mac and cheese the following three years until it was paid off. I honestly can't tell you whether I'd do it again or not, but f I did, at least I'd know to plan on unplanned expenses...and there's no way that I would swallow stupid high interest rates just to get a loan. That's how you really get in trouble.

Edited by Gator
Sk8man

Sk8man

Posted
Posted

There is a lot of very valuable input here. There are "no magic solutions" to this issue though....it would be a good idea to take all this information in (presented from many very different angles) and step back a bit from it and think to yourself

 

1,. Do I really NEED a boat right now to fish? or is it just that I WANT one right now.... two different issues..

 

2.  Given my current life situation and finances is it something I am prepared to embark on ....for example what if the motor has problem and needs repair (just changing an impeller cane be over $300 despite the $20 for the part because of labor charges and most places are around $100 per hour or more. Fuel prices at marinas can be at or near $5.00 per gallon for non ethanol gas (and you'll need oil as well). Boat insurance can run $400 or more. You also will have boat and trailer registration fees and an annual inspection. At the end of the season the motor and any water systems (e..g. live wells  etc.) have to be winterized. If you store your boat someplace else that can run "a few hundred dollars per season. If you keep it outside you'll either have to have it plastic wrapped (couple hundred or more for average sized boat) or build something to dissipate the snow and ice and a cover for it.

 

3. These are the realities of boat ownership that often relate to the "need" factor more heavily than the "want"  issue once you step back from the situation and objectively evaluate the differences between them some of the "luster" wears off :)

 

I'm not trying to dissuade you from purchasing a boat.... just trying to make you aware some of the issues that some of us "discovered" along the way which may not have seemed so important to consider while "looking" at boats prior to purchase. :lol:

BSmaster

BSmaster

Posted
Posted

MHO - this is the best time of year to p/u a boat.   Right now people are considering selling so they do not have to pay storage and winterizing fees.  As I said before, it is a tweener purchase that you should probably save up for.  The comment about using this loan to build up your credit score is a good one too, however, Personally, I do not like the idea of paying that much more than the boat is valued.  Sk8man made very good points.  You can not naively enter into this thinking that you have the money.  I am sure you have heard the term house poor.  Toys can make you poor too.  I even know people who are poor because they vacation above and beyond their means.  I think Ganggreen made very solid points as to how you should approach this dilemma/opportunity (My philosophy too).  My wife and I discuss wants and needs all the time.  Got to have a good perspective on this concept and life will be much more comfortable.  Needs demand more urgency and wants get scrutinized more carefully.  Currently, I get more wants because I am driving the wheels off my truck - no truck payment means more wants money.

 

This is a great topic because we can see the different paths taken to get to where we are and each of us probably have different circumstances that contributed to those decisions.

PD Buoy

PD Buoy

Posted
Posted

I think everybody on this site has given you excellent advice. Be patience and your day will come, wait for the best deal that suits your needs. Good luck and great fishing!!!

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