I will be in the market for a slightly used (2-3 year old) fishing boat this Spring. I’ve looked at a few 17′ & 18′ Alumacrafts and Lunds.
As most of you know, the price of properly rigged boats can be absurd. I’d be looking to put down about 25-30% of the total cost in cash.
Where have some of you found reasonable financing in Eastern MN? Researching average interest rates for various watercraft yields very few specifics about actual rates
Thanks for the help!
Credit unions have great deals.
My credit union (Members Cooperative CU)currently has recreational vehicle loans advertised starting at 5.24% for boats and vehicles no older than 2007. Obviously, that rate would be based on excellent credit scores and I believe you also have to have been a member in good standing for a number of years to get the best rates.
I would guess that a realistic actual rate for someone with average credit scores would be somewhere in the 7 to 9% range depending on term, age of the vehicle, and down payment.
Some banks won’t touch a used recreational vehicle loan at all.
Grouse
if you’re looking for a 2-3 year old lund or alumacraft in this market, why not buy new?
I’ve looked at a few brand new rigs, but I’d really like to stay in the $25k or less range if possible. Any of the new 17′ boats that fall in that range seem to not have the max hp for the hull, marginal electronics, and barely sufficient trolling motors (if anything is included). I wouldn’t be against buying new, but the odds of meeting my budget seem slim.
I really am interested in an Alumacraft Dominator or Navigator 175. Most comparable Lunds seem to run 4-5k higher.
I would check with a local credit union. I financed at 2.5 percent at mine.
Wings Financial was really chasing business recently.
Also some dealers have financing. Call Cal at Skeeter Boat Center in Ramsey 763-450-0400 and see if they have any used rigs that would interest you. They take a lot of boats in on trade.
Home equity loan is another option
I bought a new truck this week financed through my credit union at 2.49%. While doing the paperwork I noticed advertising for “boat and toy” loans for 2.49%.
This is at United Educators Credit Union.
St Paul Fed CU was offering 1.99% on up to 7 years a few months ago for “A” credits (775 or higher credit score is my guess). They could be a little higher since rates have risen recently.
As stated above several times, credit unions have the best rates. Wings for example has great rates depending on credit score. Best credit and best rate is 2.49% up to 72 months. Some credit unions have specifics where they will only finance boats up to 3 years old where some will go as far back as 7 years or even 10 years. A simple call to any credit union and asking a loan officer a few questions will get you rates and terms. Be prepared to know where your credit stands. Good Luck with the new/used boat purchase.
If you have any further questions feel free to ask or PM!
…Any of the new 17′ boats that fall in that range seem to not have the max hp for the hull, marginal electronics, and barely sufficient trolling motors (if anything is included)…
Yeah, what’s the deal with that?
What most others have said…Credit Unions-mine especially-are awesome. For more than just boat loans. 
Wings Credit Union is effortless and their rates in the 25k range should be at 2.49%. I’m surprised no one has chimed in with the whole “don’t finance your toys” line…
Once you get your rig, post up some pictures! We all love seeing folks new boats!
Good luck with the new boat
Have been very happy with Think Bank with all kinds of personal and vehicle loans. Looks like they’re between 3.50% and 4.10% for best rate boat loans but it’s another option.
Call LaCannes Marine and talk with Nick, just give him a shot at that new boat and see what they can come up with. They also had a decent selection of used trade ins on hand.
Just some advice. Check several places. I found out that interest rates can be negotiated. If your preferred financial institution doesn’t have the best rate ask them to match whatever place that has the best rate. Most will match to get the business.
Can you borrow against your 401k?
You would be paying yourself the interest rather than someone else.
St Paul Fed CU was offering 1.99% on up to 7 years a few months ago for “A” credits (775 or higher credit score is my guess). They could be a little higher since rates have risen recently.
It’s still the same at St Paul Fed CU. I just moved my boat loan last week from Firefly CU (5.5%) to St. Paul Fed (1.99%). I have a 2007 boat loan.
So if you borrow 25,000 from your 401k isn’t that 25000 that’s not making money in the market? My 401k offers loans at 3.5 percent but I’m just not willing to do that.
Credit union. I got an awesome rate and the whole process was super simple. I went through Firefly Credit Union.
You guys are great. Thanks for all the suggestions. I’ll be making some phone calls and will keep you posted.
<div class=”d4p-bbt-quote-title”>targaman wrote:</div>
So if you borrow 25,000 from your 401k isn’t that 25000 that’s not making money in the market? My 401k offers loans at 3.5 percent but I’m just not willing to do that.I’d second this…not a good idea. I’d only borrow against investments in emergent situations, not buying a boat. 2% seems like a great rate which would only put you less than two grand over buying price pending your down payment.
I have borrowed against my 401(k). It all depends on your situation and other factors. If you have any fixed income or bond funds in your investment mix, you simply replace this with a loan to yourself which is typically getting a better rate. I usually bump up my investment percentage so that I am replacing the amount taken out with tax deferred contributions.
I think in general you are right, probably not a great idea. But it can be a good tool depending on your situation.
I’ve had good luck with Wings Financial.
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