The best way is to talk to your banker about this get his or her thoughts – my opinion. This maybe doesn’t quite fit your situation but it’s an article I wrote a few years ago on the subject.
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.
Both my wife and I have outstanding credit, we have both been banking with Wells Fargo for many years, and have had loans with them in the past…all paid off well in advance of the due date. I would have thought we would get the best deal thru them, but not so. 
I would talk to your dealer and see what options they have for you, or contact a credit union possibly.
