Thursday, June 30, 2022

Can You Finance An Older Boat

Can You Get A Boat Loan On An Old Boat

Boat Loan Basics, Insider Secrets to Marine Lending for Boat Buyers

Getting approved for a boat loan on an older watercraft can be tricky, but it is certainly possible. Some lenders will offer used and refi loans on boats as old as 19 years. If the boat is of high value, you may even find lenders willing to finance a watercraft as old as 25 or 30 years.

Expect that interest rates for old boat loans may be higher than those for newer boats, and you may even encounter higher down payment requirements.

If youre unable to find a lender willing to finance your old boat purchase, consider taking out a personal loan instead.

Can You Finance A Boat For 20 Years

Can you finance a boat for 20 years? Possibly yes. If the boat is expensive, you may be able to obtain a 20-year term for a secured loan with your boat as collateral. Even if the boat is less expensive, you may be able to finance it over a 20-year period through either a home equity loan or home equity line of credit.

Shouldnt I Just Go With The Lowest Rate For My Boat Loan

A low rate on a boat loan is certainly seductive, but it is not the only factor to consider when securing financing. A Boat loan specialist can help you consider the big picture and factors that might affect your cost over the life of the loan, such as how long you intend to keep the Boat, what the terms are, and if there are any prepayment penalties. An experienced Boat loan Representative will make sure you dont miss the small print!

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How Long Does It Take To Get Approved For A Boat Loan

New Boat loans can be processed and closed in a week, which is much faster and easier than real estate loans. Financing for pre-owned vessels takes longer. However, Boat Loan Specialists, working with Lenders who know the marine industry, can process paperwork faster, provide guidelines of all the things that are needed for a Boat purchase, and refer needed resources. They are, more knowledgeable, faster and easier to work with than a personal banker.

Boat Buying & Financing Tips

In Loans: Boat Loans

You have decided to enjoy the boating lifestyle, and like many people you ask – where do I start? This article is designed to answer many of those questions you may have.

  • Primarily plan to cruise or fish or a combination of both?
  • Need overnight accommodations if so, for how many people?
  • Need a boat designed for specific sea conditions that you might be exposed to?
  • Want an express style or cabin style vessel? An express style boat allows everyone to be on the same level and makes line handling easier while a flybridge sedan vessel gives you greater interior room and better visibility from the helm.
  • Want the economy of a single engine vessel or do you want the increased performance, maneuverability, and safety of a twin engine vessel?
  • Want a gas or diesel powered vessel? Gas powered vessels are less expensive initially while diesel power offers superior performance, long term reliability, and safety.
  • Want a new or used vessel? A new vessel will have warranties, a used vessel may offer a better value and has already been equipped but may require higher maintenance based on the age of the vessel.
  • Questions specific to a sailing vessel:
  • What are the vessels sailing characteristics versus interior accommodations?
  • How accessible are the systems on the vessel?
  • Does the vessel have adequate storage space and ventilation?
  • What is the location of the traveler, is it more suitable for cruising or racing?

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How Many Years Can You Finance A Boat Is Also Determined By What Type Of Boat You Are Interested In

Some boats may not be worth as much as others which would result in them being bought by somebody who doesnt necessarily need them to use every day. If this is the case then you can probably get a shorter term loan to keep the boat in good shape until it sells. These loans tend to have a shorter payment schedule than most long term loans but there are some lenders that will work with you even if you have a high interest rate.

You can also ask how many years can you finance a boat based on how much you are planning on spending on it. Always consider how much money you want to put down when determining how long you can finance a boat. You should also factor in how much money you have saved and how much you plan on spending on a new boat. If you have a limited budget and you dont have much saved then you should probably try and find a used boat. However, if you do have a lot saved or have enough money to purchase a new boat then you are probably better off buying a new boat.

If you are not sure on how many years you can finance a boat then it is important to find a boat loan that has a reasonable amount of flexibility.

Most people take a boat loan for several years, whereas some people will finance a boat for five years or longer. Finding a boat loan with enough flexibility is important because you may be able to refinance after your current boat loan expires if you find that you are not enjoying it too much.

Best Boat Loans Of 2021

Why We Chose It: Essex Credit is our choice for best overall boat loan because it offers multiple types of loans including ones for borrowers who use the boat recreationally and for those who want to live on their boat. It has a simple online application process, has been in business since 1981, and offers long terms.

  • Multiple types of boat loans

  • Long history in the marine industry

  • Live-aboard loans which all lenders dont offer

  • You cant finance a boat that was manufactured before 2000

  • Some negative customer reviews

  • No short-term boat loans

Essex Credit is a division of Bank of the West. Its goal is to get you approved for a boat loan as quickly and easily as possible. It offers boat loans for new and used boats as well as RV loans and boat refinancing options. The company has mixed customer reviews with some customers appreciating the ease of the online applications while others had a difficult time getting in touch with someone from customer service.

The company performs an instant credit review when you apply for a boat loan online but funding times vary based on the type of vessel and type of loan. Essex Credit finances most types of boats except those that go over 99 mph.

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Whats The Longest Loan Term For A Boat

Types of boat loans Term length is usually 15 to 20 years for example, if you have a loan in the $25,000 range, you may be able to finance it for 15 years. Higher loan amounts often equate to longer boat loan terms. Keep in mind that a down payment is typically 15% to 20% and is required by many lenders.

Can I Get A Loan For A Used Boat

What they don’t tell you about boat loans. Our experience financing our boat.

You can get a loan for a used boat but there are some limitations. The boat lender usually requires that the boat be no older than a certain age. Most lenders wont finance a boat that was built before 1999 or 2000. However, some lenders will finance boats of any age and price range, but you may end up paying a higher rate and putting down a larger down payment.

Different lenders have varying requirements when it comes to financing used boats. Some lenders will require an inspection and an appraisal and others will only finance up to 85% LTV and will expect a down payment.

Financing a used boat is usually more affordable than financing a new boat, but its important to know the condition of the boat so you dont end up with unexpected repair costs.

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Navy Federal Credit Union

Navy Federal Credit Union offers loans for new and used boats and personal watercraft, with terms of up to 180 months. Military members with direct deposit may qualify for a rate discount. Service members in all branches of the armed forces, along with their families and household members, are eligible for credit union membership.

Applying For A Boat Loan

There are a few steps youll need to take in order to apply for a boat loan. These include:

  • Whether youre interested in a sailboat, motor boat, or houseboat, what boat you want to purchase will influence what type of loan you need from a lender.
  • Compare rates: When shopping for a loan, you should compare rates from multiple different lenders. This can help to ensure that you get the best deal possible.
  • Review your credit score: Some lenders have minimum credit score requirements, while others reserve the most competitive rates for borrowers with excellent credit. Make sure your score is in a good place before applying.
  • Make sure you have enough for a down payment: Typical down payments range from 10% to 30% of the total loan amount.
  • Complete a loan application: To apply for a loan, youll need to provide information about yourself and the boat you want to buy, including your name, address, social security number.

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Can I Finance A Pre

Used boats can be financed and most times a Boat Loan Specialists terms are the same as on a New Boat. Used boats need a Survey or an Appraisal, to assess its fair market value. A Title examination will be needed to make sure there are no outstanding liens. A Boat loan specialist can help guide you through the process of Financing a pre-owned Boat in many ways they will act as your Fiduciary and Concierge.

Using Boatsetter To Help You Decide

How long can you finance a boat

In addition to helping you try out the type of boat you may want to purchase, Boatsetter can help you get an idea of how much your dream boat is going to cost you. One of the best ways to experience a luxurious boat is to rent it out with a few friends. If you split the costs, youll get a reasonably cheap day out on the water, and youll get a better idea of whether or not you want to shell out the big bucks and buy a boat of your own.

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Best Overall: Bank Of The West

Bank of the West

Bank of the West is our top overall pick for a boat loan. The lender features low rates, flexible loan amounts, and widespread availability, making it a great choice for borrowers with good credit looking to purchase a boat.

  • Loans up to $5 million

  • Repayment terms between four and 20 years

  • Available in all 50 states

  • Full-time and liveaboard accepted

  • Fees can be rolled into loan

  • Rates as low as 3.59% APR

  • No cosigners allowed

Bank of the West is arguably one of the most popular watercraft lenders around. Founded in 1874, Bank of the West, also known as Essex Credit, operates and provides loans to creditworthy borrowers in all 50 states. Boat loans through Bank of the West can range from $10,000 all the way up to $5 million, with repayment terms from four to 20 years depending on the loan amount.

While the wide range of loan amounts and repayment terms is great, this lender wins our best overall spot because of the types of boats it accepts. Bank of the West offers to finance for boat model year 2001 or newer. Allowed boats include standard and custom power, sailboats, multi-hull boats, pontoon boats, electrical boats, high-performance boats, houseboats, and wood hull boats. One of Essexs few exceptions is boats that are capable of speeds of 99 mph or higher.

Bank Of The West Boat Loans

Types of boats financed: Boats must be model year 2001 or newer to be eligible. Bank of the West specifically says that it finances standard or custom power or sailboats, multi-hull boats, pontoon boats, and electric boats. The lender also offers loans for high-performance boats, houseboats, and wood hull boats. However, it does not finance boats that can exceed 99 miles per hour.

4.29% to 9.99% for both new and used purchases, and 3.59% to 3.94% for live-aboard boats

Loan amounts available: $10,000 and up for new and used boats, $25,000 and up for live-aboard boats. Loans over $2 million are available.

Watch out for: Credit score requirements. Bank of the West states on its site that it lends only to people with credit scores of 700 or higher.

Boat loans through Bank of the West and its lending division, Essex Credit, are a good option for people planning to get a boat loan of $50,000 or above.

A $10,000 boat loan with Bank of the West would have a starting interest rate of 8.89%, a $15,000 boat loan would start at 8.39%, and a $50,000 loan starts at 4.29%. While their rates for loan amounts over $50,000 are competitive, anyone looking for a smaller loan may find a better rate with LightStream.

It’s worth noting that this lender does have a loan processing fee that could add to your total cost of borrowing. A 10% down payment is also required for loans between $10,000 and $200,000, and percentages increase for higher loan amounts.

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Whats Considered A Good Credit Score For A Boat Loan

As noted, there are many different types of boat loans and different types of lenders that offer them. As a general rule of thumb, the higher your credit score, the lower your interest rate. This means that you will end up paying less over the term of the loan than someone with a lower credit score.

Typically, 700 is considered a good credit score for a boat loan. However, some lenders dont require a minimum credit score or will consider your debt to income ratio, work history, and the cost of the boat alongside your credit score.

Can I Finance My Fish Finder Chart Plotter Radar And Other Fishing Electronics

Can You Buy a Boat With a Mortgage?

Financing is not only for the price of the Boat. Tangible assets can often be rolled into a Boat loan, including Marine electronics, trolling motor or Anchoring packages and Bottom paint. Note that labor to install the Electronics or perform commissioning tasks for new boats cannot be Financed.

-Tom Smith is President of Sterling Associates, a Financial Services Firm headquartered in Massachusetts that provides Financing, Insurance and Coast Guard Documentation services for all types of boats. Let Sterling get you, On The Water!!!

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Can I Buy A Boat With A 650 Credit Score

A 650 credit score is considered fair or near-prime. With boats being a luxury item, lenders would prefer good credit before approving a loan. However, if approved, as long as you keep up with payments, a boat loan can increase your 650 FICO® score as payment history accounts for 35% of your credit rating.

How To Finance A Boat

A boat, large or small, motor or sail, can be a great place to relax after a hard week in the office. Learn how to finance your own dream yacht. It’s not only Popeye the Sailor Man who dreams of cruising on the high seas. People from all walks of life share the same goal. But pleasure craft are expensive. So unless you’re already sitting on a big pot of money, you’ll need to address the question of how to finance a boat. Fortunately, you have several options

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Terms Of Depreciation Waivers Are Getting Tighter

Editors note: Our recent article on marineinsurance prompted many questions from readers regarding insurance for older boats. For answers, we turned to Mark Pellerin of BoatUS these questions, offered this updateon changes in its depreciation terms. Depreciation and other policy details can vary greatly, so be sure to check your policy closesly to be aware of the terms of coverage. For more on marine insurance, see A Sailors Guide to Marine Insurance, PS October 2012).

Drew Fryes Consequential Damage Coverage along with subsequent letters from Ron Russell and Gary Golden has put some focus on the issue of boat insurance. As a leading insurer of recreational boats and as one source for Mr. Fryes story, we recognize that we can do better explaining coverages we offer. With some additional changes coming to all BoatUS Marine Insurance Program agreed value policies , wed like to take a moment to do that.

To address Mr. Russells concern, lets look at the three types of things considered in an agreed hull value policy when a partial loss occurs: hard goods,soft goods, and machinery. Note that I am using these terms merely to explain, and this issue confirms that every boater needs to understand their individual policy coverages and terminology.

Depreciation Categories

We encourage all boat owners to keep receipts documenting when equipment has been repaired or replaced as this can be a factor in reducing depreciation applied in the event of a partial loss.

How Old Of A Boat Can You Finance

Few Tips To Help You Find The Best Boat Loan Rates ...

We may get commissions for purchases made through links in this post.

Buying a boat can be exciting. For many, buying a used boat is more affordable than buying a used one. Yet financing a used boat brings with it challenges beyond those of financing new boats. The age of the boat that can be financed depends upon the value of the boat, the source of financing and type of loan.

Loans for boats can be obtained through several sources:

  • the boat dealer
  • banks

Most of these loans work similarly to car loans. The lender holds an interest in the boat as collateral. If you make all your payments, the boat is yours free and clear at the end of the loan term. If you default on the loan, the lender can repossess the boat and sell it to cover your loan. For that reason, lenders want to be sure that your boat will be worth at least as much as you owe on it throughout the life of the loan. This need on the part of lenders is a key factor in how old of a boat they will finance.

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