The wife and I are finally deciding to upgrade the boat and buy something bigger newer and more powerful. I’ve never had a boat loan before , I’ve always paid cash. But I don’t have that much cash to drop on a boat. If you guys could give me any information I’d appreciate it. I’m not sure if we are going brand new or slightly used .
Thanks
With good credit, you can finance out to 15 years on new
Can finance out to 15 years on new. And no penalty to pay off early. I just get way out ahead, and if something comes up for a month, good to go till next month.
You can finance one for 100 years. Wings financial has always been recommended.
One mans opinion but I recommend put down what you’ve comfortable with and pay off In largychunks as soon as you can. We always had an amount when we got a caertain amount in savings we’d throw a chunk at payment
make sure you read the fine print at least twice.
for grins and giggles I priced a new boat and was going to put five grand down on it.
the gal ran the numbers and I was approved for a twelve year loan at 253 bucks a month,thats longer than my first marriage and more expensive!!!
I cant imagine how I would feel if eight years into it I was tired of it and couldnt sell it because of the payoff amount due on it.
anyway,the interest was six percent which put a twenty four K boat after the down payment near forty grand by the time it was paid off !!! uh,momma didnt raise any dummies !!
Yes I’m planning on putting down 5000 or so on it and paying double payments and whatever else I can, we are currently doing that with a brand new truck as well. I just want sure how boat loans worked. Since I’ve never taken one
Used, cash. No payment.
Ya still can get big boat. Sell current boat now, wait for fall and snatch one when people don’t want to store their boat over winter and or upgraded themselves. LOTS of boats available right now on CL, lots. When new boat sales skyrocket which they have alot are on the used market.
Personally I’d deal with the fix here fix there than pay $300 month 12 months out the year. Especially the prices they want for these 10-15yr old boats is F’in ridiculous. $30k new boat can go F itself as far I’m concerned.
Systems rigged against ya. Just got a quote for my windshield replacement on a 24 yr old crestliner, over $3k!! Like you serious dude, why even bother. For $3k I’ll buy a lifetime supply of rainbow coloroed umbrella hats for me and all my passengers and come out ahead.
nhamm spot on 10-15 years old could be pristine or junk they want a mint for it just like looking at used tractors might as well buy a nice one.
Buy a new one in August they want off the rack don’t order.pay off as soon as able
I was at Cabelas in Woodbury last week and snapped a couple of pictures.
I wonder how many they sell?
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I have done all of my recent vehicle loans thru Bob Bowman with Wings in Minnetonka. IDO member but don’t know that he is on very often recently. Very knowledgeable and easy to work with. No need to drive to Minnetonka either I have done all my transactions thru other branches closer to home. Feel free to shoot me a PM if you want contact info. Rates are usually as good as I could find anywhere.
Many threads over the years with Bob being the man to talk to for financing if you went that route.
Edit: 240 months!! Wowzer. Not sure any us construction dudes can guarantee we will be working for the next 20 yrs. I figure in the next 10 I have a 50/50 chance of mesothelioma or some crap like that. You concrete guys and that silica may have it even worse!!
Edit: 240 months!! Wowzer. Not sure any us construction dudes can guarantee we will be working for the next 20 yrs. I figure in the next 10 I have a 50/50 chance of mesothelioma or some crap like that. You concrete guys and that silica may have it even worse!!
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That’s 100 percent right, I cut concrete for a living so silica is a all day worry. But wear a respirator and get yearly lung screenings. The one good thing is nobody battles to run a wall saw or wire saw so I’ve been cutting since 07 with out ever being laid off and the slowest week I’ve ever had without wanting time off was 30 hours
Holy Fok stains! 240 mos? LOL. That’s longer than my house mortgage.
Regarding the OP, Spire credit union is not bad. Boat loans work like Car loans. IMO, if you need to stretch a boat/vehicle loan past 5 years, you can’t afford that one. At the very least, the warranty shouldn’t expire before you pay it off.
Wow. Just wow. Can’t imagine financing something for that long. My house was only financed 20 years. A boat? Not worth it.
According to bankrate. com the first boat will cost the owner $41k. The second, 106k over the term of the loan. No inland fishing boat is worth that.
I know you don’t want to hear it but since you can squirrel away enough each month to make double payments, my recommendation for your situation is wait. Wait 12 months and save that money to put more down or pay cash.
It sucks. I know. I went boatless for three summers in order to put down 80% on my current boat. 2 years on the other 20% and I was free of payments.
However, I’m payment averse. Went 7 years without a vehicle payment too before finally splurging on a new truck in 2015. Looking forward to not making payments again. Two more years.
Something else to consider for people thinking of taking out a loan now. Thinking bigger picture, we are that the tail end of one of the longest bull markets in US history. It won’t continue forever. Will you be able to make payments when the next recession hits, this fall, next fall, two years down the road?
Read an interesting story yesterday that showed the current economy is being driven by the lower percentile income earners borrowing money to make purchases. The higher earners are paying down debt and curtailing purchases. This is upside down from a typical healthy economy. Think of that story in terms of US GDP growth. It can be summed up as the least able to afford are the ones currently driving GDP.
Add in inflation from tariffs, combined with fed tightening to control that inflation and personally, I wouldn’t be taking out a new loan on a toy at this time.
Talk with LakeState Credit Union, they can help you. There is one in Cambridge, I just got my loan through them.
Holy doom and gloom! I disagree. Make sure your rate is fixed, dont stretch the term past say 6 or 7 years, and shop credit unions and their terms/rates. If your putting $5k down, and feel comfortable with that new payment, go buy that boat.
The only suggestion I would have for you or anyone looking to finance a new purchase whether it be boat, car, house, travel trailer, etc.. is to know your numbers.
Know your FICO: credit karma is a great source if you can ignore all the ads, but that’s why free. Good credit will save you money.
Know your debt to income ratio, so you know what you have left over at the end of the month after all bills are paid. Better yet, figure out your fixed monthly expenses like auto loans and mortgages. then look at the variable expenses, like utilities, credit cards, cell phone service etc. Then look at the expenses that can be dropped if scat hits the fan. Make sure every penny is accounted for. I’m more or less saying make a budget, and utilize net take home income, not gross when your figuring that DTI. I try to run our family finances like a business, and businesses use budgets and take out debt when they want to take a big growth step. Buying a boat is a big growth step for a family. Your opening doors to new opportunities.
I’ll finish with this. If you’ve got $25k earmarked in the bank ready to purchase a newer boat, put that in a CD for the term of your new loan. Your return isn’t great, but it will offset the rate your paying for the boat loan and you’ve still got liquid cash in case that scary recession hits again.
Thanks for the responses. I’m not taking a loan more then 3 years on a boat if o even do so. I’m just looking to spend maybe 20xxx at the most on something. So not sure if I go used slightly used or new. We’ve been shopping around a bit lately and I can’t believe boats are so highly priced. My brand new truck is less then half the boats we look at. All I want is a 17ft or 18 tiller. But couldn’t stand buying a beat up 99 for 13000 like I see all over craigslist.
Bearcat don’t worry about the many financial advisors on here, you know what you want to do, and sounds like you are being responsible about it. This topic comes up fairly regularly and generally the best rates are going to be from your local credit union. If you are in the Twin Cities Firefly, Spire, Wings or Bell Bank usually have competitive rates. Also, once you apply for a loan your credit is open for 30 days (I believe) and you can shop a few different financial institutions. The different banks may have different lending requirements and valuations they use, so you will want to find out about them before negotiating on a used boat purchase. For example you may be approved for a 25k loan with Bank A and Bank B, but Bank A won’t approve the full amount on the 2012 boat you want, whereas Bank B will. This is a good time to buy a boat, and even though the prices haven’t come down from the spring inflation, they should be soon. Get your financing figured out, and then you should be ready when the right opportunity comes about.
only a fool would take out a loan for anything ever! pay cash for everything including your home. if you cant afford a 200k house now then live in your parents basement until age 50 and then buy. only way to live.
when I take out my loans I use wings financial. Boat loans are no different then anything else. item X costs set amount. you go to the bank and if they agree item X is worth set amount they give you the money at an agreed upon rate. Should be pretty easy to get done unless its a used boat. I had a lot of trouble trying to finance a used boat as the banks use nada guides to determine the value of a boat and what the bank valued the boat at was usually about half of market value. only other advice I would give is to make sure there is no early termination fee but that sort of thing is pretty uncommon nowadays
only a fool would take out a loan for anything ever! pay cash for everything including your home. if you cant afford a 200k house now then live in your parents basement until age 50 and then buy. only way to live.
Sure glad I don’t live by that advice. I bought a house at 19 and had it paid off at 28. Sure glad I took a loan and not lived in my parents basement,
Obviously don’t be stupid and take any amount of money they offer. Look at wells Fargo they offered a thousand people home loans they couldn’t afford knowing they would get the house back within 5 years. But it’s also the buyers fault at that point
I think in the long run that bob clowncolor, Kyhl and tradersbayrookie projects a lot of smart insite on this subject.
Don’t see many used tillers like that you’re looking for. Have all your ducks in a row when you do start calling. Us cash guys who upgrade slowly over time will have first pickings on used rigs instead of waiting for appraisals, bank sign-offs, etc etc.
Good luck though. Hope everything works out in the end, post pics when she’s home!
If you have good credit, Wings is at 3.49% for 60 months now on new and used boats.
For what it’s worth, I’m vehicle shopping now, and I haven’t found any institution who can touch Wings right now (including USAA). A dealer tried to beat it for me the other day, and she called back a few hours later and said, “I give up. I can’t touch that.”
Credit unions are the ONLY place I will ever go if I need a loan. We just added a few thousand onto our car loan and it barely changed our payment….rest we saved. Few years ago I found my perfect boat. I waited until fall, set a limit of 10k and it took a while to find a well taken care of boat but I did it. You won’t believe how hard it is to find a clean boat 2005 or newer with dual console or walkthrough windshield! I bet you add 2k just for that extra console searching CL.
You should have an easier time finding a tiller. Hopefully you find an honest seller if you go the used route…..good luck.
Financing a toy; that’s why we as a community are in the shape we’re in…. buy for cash, make it what you want it to be,have more pride than debt.
Financing a toy; that’s why we as a community are in the shape we’re in…. buy for cash, make it what you want it to be,have more pride than debt.
I buy plenty of toys with cash. But financing both of our can ams is exactly how I started my credit and built it up, so I agree and disagree with you.
Financing a toy; that’s why we as a community are in the shape we’re in…. buy for cash, make it what you want it to be,have more pride than debt.
Thanks Dave Ramsey, so Bearcar89 make sure you BUY everything in CASH even new houses and new trucks and new boats.
<div class=”d4p-bbt-quote-title”>Harvester wrote:</div>
Financing a toy; that’s why we as a community are in the shape we’re in…. buy for cash, make it what you want it to be,have more pride than debt.Thanks Dave Ramsey, so Bearcar89 make sure you BUY everything in CASH even new houses and new trucks and new boats.
There is a difference between financing long term assets that are necessities versus financing luxury items. One is smart. The other can be questionable. I’m not saying don’t finance a boat, just be smart about it. It sounds like the OP is being smart about it.
Ideally, the best way to buy anything is to be able to use cash. That doesn’t mean that cash is the best way to buy everything.
On Wings, I’ve been a member there for 50 years, shortly after I was born. They can be tight with boat lending. Until recently, they were always the best deal in town for all of our vehicle purchases. They could not compete on our last two vehicles purchases. Wife’s last vehicle got 5 year 0% so it was understandable that they couldn’t beat that. Wings was a full point higher when I partially financed a truck three years ago. Their standard rate wasn’t even in the ballpark, being 30% higher than where I ended up.
It pays to shop around.
I read Personal Finance for Dummies, one thing I took away was to not finance things that depreciate-unfortunately almost everything depreciates, except for your house and education. Nice thing about boats is if you buy used and take care of the thing it can be a break even. Bought a canoe, used it for 10 years and sold it for what I paid for it. Buy used go to a credit union and enjoy your boat.
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