Any good lenders for boats out there?

  • shew
    East Bethel, Minnesota
    Posts: 696
    #1254077

    Hey guys, heres the deal. I am ready to buy a used boat from a private party. The only problem is that I don’t have 38,000 cash on me. I have good credit but not sure where to go to finance a used boat. I just feel that if I go to my bank and tell them what I am looking at buying they would not see the boat for its total value. Is there a lender out there that deals with boats a lot and you would recommend? shoot me a pm or post it here please. Thanks for your help guys.

    dandorn
    M.I.N.N.E.S.O.T.A.
    Posts: 3201
    #552083

    If you own a home and have sufficient equity in it, check into the “RPM” that Bob posted about.

    City-County Federal Credit Uninon

    I’m in the process myself.

    Good Luck,

    Dan

    bucky12pt
    Isle Mn
    Posts: 953
    #552095

    if not Bobs credit union I would strongly recommend any credit union that you can become a member at. You will save $1000’s in the interest alone and I’ll bet 100 to 1 that you’ll recieve the best service you have ever encountered trying to get a loan.

    dan-larson
    Cedar, Min-E-So-Ta
    Posts: 1482
    #552100

    PM Sent…

    kooty
    Keymaster
    1 hour 15 mins to the Pond
    Posts: 18101
    #552108

    Shew,

    When I moved to the cities 7 years ago, the one thing I truly missed was the ability to have a personal relationship with my banker. Me: “Hey, I want to spend $xxxxx.00 on a new car/boat/4 wheeler” banker: “no problem, I’ll cover the check”.

    I met Bob Bowman a couple years back and won’t be looking for a new banker anytime soon. We not only had our second mortgage with Bob, but also my boat loan for the past few years. I’m currently in the process of refinancing my new 2nd with Bob to save a ton in interest payments.

    Can’t say enough about Bob and the personal service my family has received from him since switching to CCFU. PM me if you want to talk more about my experience.

    DanB1
    Posts: 29
    #552121

    I’ve had great luck w/ Wells Fargo Bank on the past couple of new boats I’ve purchased. It certainly wouldn’t hurt to check them out.

    Good Luck!

    Chris
    Rochester, MN
    Posts: 1396
    #552122

    Agreed! Go to a credit union and you will most likely save money through a lower interest rate and receive better service too! I work at a credit union in Rochester and I know I will never “bank” again If you have any questions ask away.

    Chris

    shew
    East Bethel, Minnesota
    Posts: 696
    #552173

    about six replys and nine pms thanks guys. It sure is nice knowing you guys are out there to help. I talked to Bob today he gets back in town Monday and I should be really close to that new boat. I WILL post photos when I get one.

    Todd_NE
    Posts: 701
    #552178

    an article I wrote a few years ago

    Boat Loans from the Eyes of a Lender
    Todd Consbruck

    Shannon Chase is one of the good guys in the banking industry. He keeps anglers from going in over their head on a bad boat deal but supports those looking to improve their fishing rig. We thought it would be interesting to get the prospective of a banking professional on securing boat financing.
    “To be honest, I’ve kind of seen it all,” said Shannon. “It does strike me though that the happiest people I know getting loans are those buying a boat!”
    Shannon feels it’s important for lenders to try to meet as many needs as possible for their customers and make sure they help borrowers make good decisions. “We like our outdoorsman and support them. We think outdoor pursuits are good for families and anything that helps build stronger relationships with children and families is certainly good for our communities.”
    These are the tips Shannon shares for prospective boat buyers:

    1. Buy a boat you can comfortably afford. Most lenders agree than no more than 64% of the gross income of a person or family should be “locked up” with monthly payments. This would include mortgage or rental, vehicle, utilities, etc. In other words, a borrower should have 36% “discretionary” income even after buying a boat.
    2. Make sure you have looked around at different dealers on even the same boat. “We see wide variations on the same boat sometimes. Many times it’s explained by different motors and equipment, but other times not.”
    3. “Non-Current” boats can be a great buy, but recognize depreciation has already started and that the book value of a boat is essentially at the used boat level of that year. A prospective owner should think through how soon they will trade the boat, it doesn’t make sense to buy a non-current boat if you plan to trade right away.
    4. Make sure your boat down-payment combined with monthly payments always keeps ahead of the depreciated value of your new boat. Getting “upside down” on boat value makes it hard for you to trade again and all banks generally avoid loans like this.
    5. Make sure you know what equipment you want to add to the boat up front. It’s not a problem to include such items in a loan, but many times clients want to add larger motors, newer electronics, tarps, and other items six months down the road or just after the loan has been signed. Almost every lender requires additional fees or even additional loan or refinancing papers for these additional requests.
    6. Boaters and everyone else like to beat up their banker over interest rates, it’s reasonable to do so in a nice way. The best way to get lower rates is to have a good credit history, provide additional collateral, keep your payment years shorter, and even have a co-signer (spouse or parent) on the loan.
    7. Make sure you consider the cost of insurance and remember you are required to have insurance at least to the extent of the loan amount.
    8. Try to have some type of monthly budget laid out for you lender when you go to speak to him or her. This helps clarify your financial position, especially if you are not a current “full” customer. Simple layouts of income and expenses are very helpful.
    9. Don’t be afraid to take advantage of manufacturers lending promotions. Often they are good deals for those looking for short-term loans but not great for longer terms. Most banks will be as competitive as they can, but recognize that manufacturers use these “offers” for marketing.
    10. If you are seeking a loan on a used boat, lenders will generally question why a boat is valued the way it is, particularly if the boat is over “book” value. This is where you have to explain the value to your lender, perhaps there is a larger motor than standard or the boat comes with $4,000 in additional equipment. Lenders do understand the “book” value on a boat doesn’t always tell the whole story. Pictures of a boat and even testimony about a test drive or independent mechanical report also help prove “value”.
    11. Explore using your home equity. Many times this is the best way to finance your next fishing rig to take advantage of tax implications like deductible mortgage interest.

    As you can see, Shannon has some good advice that can help you with your next boat loan whether you use his financial institution or yours.
    Shannon has recently taken a new position and can be reached at (719) 829-4577 at his new bank in McClave, Colorado or you can visit the Citizen’s National Bank website at http://www.cnbwisner.com where Steve Ausdemore is President.

    robstenger
    Northern Twin Cities, MN
    Posts: 11374
    #553528

    Bob Bowman and CCFCU got me in my new Dream Boat! Can’t say enough about the Service and the rate was untouched by anyone else I found.

    Bob Bowman
    MN
    Posts: 3544
    #553532

    Thanks guys. It was my pleasure to help you both out

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