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Catalina/Capri 25/250 Sailor's Forums

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Where to finance a boat

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Ben
Master Marine Consultant

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USA
1234 Posts

Initially Posted - 10/30/2002 : 09:52:27

Hi All,

My search for a C25 may be nearing an end. But I'm not sure where to finance the boat. Should I simply go to my local bank? Or are there places that specialize in financing for boats?

Another thing, I heard a long time ago that you can get a longer loan on boats if they have a head and a galley. It's a second home loan, or something like that. Is this true?

Thanks again. Any advise you can give to this novice is greatly appreciated.

Ben

Ben

Edited by - on

Bill Holcomb
Admiral

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USA
769 Posts

Response Posted - 10/30/2002 : 10:09:04

Hi Ben,

Where to finance will depend on each persons individual financial situation. However, your personal bank or credit union is generally a good place to start looking for money.

The length of the loan probably will have more to do with the bank's lending rules and limits. Check with your CPA though, the interest you pay on the boat loan may be considered deductable as other mortgage interest may be tax deductable - again depending on your personal situation.

Bill Holcomb - C25 Snickerdoodle

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Douglas
Master Marine Consultant

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1595 Posts

Response Posted - 10/30/2002 : 12:01:11

I just bought a baot. I aproached Boatloan.com I dont recomend them. Credit Union for where I work NO No the rate was toooooo high. Over the market by at least 2 interest points. I ended up with Key Bank. WOW are they nice. Everything is going well and I should be finished either today or Thursday. Easy to work with and good rate. Boatloan.com wanted 600 dollars to Coast Guard document with a 360 dollar paperwork fee anothe fee of 75 dollars to handle regestration and on and on. Just watch all the fees.

Doug&Ruth
Triska (Alberg 29)
Tacoma Wa.

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jellyfish
Navigator

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USA
171 Posts

Response Posted - 10/30/2002 : 12:02:11

a boat may be considered a 2nd home and qualify for the 2nd home deduction provided it has sleeping, cooking, and tiolet. most C25s have all this. financing as Bill said depends on you, shop,shop,shop till you find the lowest rate and the longest payment plan.

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dlucier
Master Marine Consultant

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Virgin Islands (United Kingdom)
7583 Posts

Response Posted - 10/30/2002 : 12:21:19

I'm not sure since I've never got a loan for a boat, but I believe that used boat loans at lending institutions generally have high interest rates and most will only finance 80% of the blue book value. Additonally, they may want a survey which is probably advisable(I self surveyed my boat) that will cost you more money.

With today's current lending rates, a "home equity line of credit" account through your mortagage company is a good and relatively low cost financing option, providing that you have equity in your home. Home Equity lines of credit generally have lower interest rates(depending on the prime rate) and long term paybacks. With this type of financing you can write a check to purchase the boat and if you need more cash to fix it up, just write another check from the account.

Just another option worth investigating.

Don Lucier, 'North Star'
Catalina

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Champipple
Master Marine Consultant

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USA
6855 Posts

Response Posted - 10/30/2002 : 12:59:30

Additionally, many boat loan places won't play around with anything under 10k....That would give you one helluva nice c-25...

with home rates what they are, have you thought about a second mortgage? An equity loan against your home would be tax deductible plus you could extend the term to the point where your payments would be squat.

Duane Wolff
"The Flying Wasp"
C-25, #401 std,sk
Chief Measurer C-25/250 National Assn.
<img src="http://im1.shutterfly.com/procserv/47b2d603b3127cce9f858f0ef3ef0000001010" border=0>

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Bryan Beamer
Master Marine Consultant

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USA
1038 Posts

Response Posted - 10/30/2002 : 17:47:44

I have my c250 loan thru Key bank as well. I agree with Doug they were great to work with had good rates and even do direct withdraw out of a checking account. At our choice we put 25% down but they only asked for 10%.This was on a new boat I don't know about their terms on a used boat. I have been able to write off the interest paid each year because it is considered a second home.

Bryan Beamer
Daylight Again
C250wk #495

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Rick Heaverly 86 C25 5382
Navigator

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Belize
206 Posts

Response Posted - 11/02/2002 : 12:24:44

we also went thru key bank. purchased invictus for $5000 and financed $7000 for three years. the extra $2000 gave us enough to purchased needed items.

Rick Heaverly
"Invictus"

Edited by - Rick Heaverly 86 C25 5382 TR-FK on 11/02/2002 12:25:18

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The Officers, Staff and members of this site only provide information based upon the concept that anyone utilizing this information does so at their own risk and holds harmless all contributors to this site.