Boat Finance

[hottyscotty]

Anyone own a boat that has been bought with a loan?

Who are you with at the moment? Or any recommendations of a broker?

i know it may possibly differ from people to people. But i just want to get an idea whats out there. I've googled some but i want consumer experience too

[jewgaffer]

Hi Scotty, if you have assets other than only having a deposit for the boat itself, the best way to go would be to apply for a personal loan from either a bank or a building society at the best reducible interest rate you can find, and pay cash for the boat..By taking out a secured personal loan you avoid the extra costs involved in having a bill of sale placed over the boat..If you don't have assests as such, someone else can still take out a loan on your behalf or act as a guaranteur for the loan.

Cheers

jewgaffer

[tuffy]

Scotty, this is my area of business. Some suggestions if I may. When you are considering a loan for a boat just be mindful of the fact that this loan may stretch from 3 to 5 years, or sometime longer. My suggestion would be to enter into this carefully, considering that a boat is not a necessity item, but a luxury item, so therefore you may be still paying after the initial "gloss" has worn off. The other thing is make certain that you do not borrow the full amount of the purchase price ( in other words have anything up to about a 50% deposit if possible), because if you run into financial difficulty and have to sell the boat you will not realize the money you paid for it, resulting in a shortfall to pay out the loan.It is very rare for anybody to sell their boat for more than they paid for it.Also keep in mind ALL your other financial commitments, ie, car loan, rent/board etc, plus the ongoing costs associated with boat ownership, insurance, maintenance, fuel etc. If you have weighed all these things up and are still determined to proceed with this idea, then certainly shop around for an ACCEPTABLE interest rate. Keep in mind that you will not achieve a low rate for a boat loan because it is a luxury item as previously mentioned - not like a car for example. The other thing is that there are not many lending institutions that will lend for a boat,so you will be a bit limited as to your sources of funds.Those that do lend on boats usually require a reasonable deposit of some sort.If it is a new boat you are thinking of , then check out some of the finance packages on offer from certain dealers, as some factory finance, such as Yamaha Finance, often have very attractive packages. Again, just be aware that ANY loan you enter into must be affordable and not cause any financial strain, and any BOAT loan you enter into should be paid out of money you didn't need in the first place. Unsecured personal bank or Credit Union loans are probably the better options, so if you do have to sell the boat then there are no issues with the lender. In saying that, Unsecured Personal loans always have a higher interest rate applicable to them - anything up to 14%.In deference to Jewgaffer's comments ( sorry Byron), I would not recommend obtaining a loan in any one else's name, as this can be fraught with danger.I am happy to provide you with further information ( that is if I haven't totally scared you off the idea), and may be able to point you in the right direction and give you an idea if you indeed do qualify for a boat loan, and may be able to provide you with the names of some financiers that do boat loans. PM me if interested or call me on 0402 110 666.

cheers, Russ.

[Dezmo]

I don't know your circumstances, but you really want to go into debt for a boat? Can you save for a few more years or buy a smaller boat...

[davebrewer]

Or,instead of waiting,build your own,you spread the cost that way so it's manageable from your own money,you'll save a considerable amount over the cost of a bought one and have a lot of fun doing it.You can save for a trailer and motor while you're building.PM me if you want more information-I'm about to launch my second boat(not counting canoes) and plan to start a new one this year.

Cheers,

Dave.

[Floating_Medic]

Look around for a older style hull that will come good with a bit of work.

I did that, and ended up getting one of the best Hulls ever made with a brand new trailer for $800. Only thing i needed to finance was the motor cause i didnt want to go second hand (Well, i did at first but that motor literally blew up). I had about $4k to play with, so i kept a thousand for essentials like radio and safety gear, and then used the other $3k for a deposit with Yamaha Motor Finance. They were easy to deal with, very proffessional and had me approved and ready for fitment in less than 6 hours!!!!

So now when i do sell the boat, i should make back the price of the outboard plus some.