<10% down on a used boat
Anyone had any luck finding someone to finance a used boat recently with less than 10% down? My wife and I are looking to purchase our first boat and payments/credit are no problem for boats costing twice what we are looking at. However, everyone we talk to won't even consider less than 10% down. We are looking at inboards in the 15-20k range. Any thoughts?
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Have you tried a credit union? Sometimes they have different policies. I got a loan in that range from my CU with no money down and super low interest rate.
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I just used Bank of America - no money down.
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Hate to be that guy, but if you don't have $2,000 to put down owning a boat might be a rough experience. Boats (used especially) can get expensive really quickly.
I would highly suggest not trying to finance 100% of the boat, even if you could find a lender who would. |
My credit union requires 20% on used boats.
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How old is the boat? I know US bank was running a deal around here for 5.74% for 10-12 years on 100% LTV for qualified buyers. The older the boat, the less they'll want to finance. Anything older than 8-9 years old will probably raise issues.
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My bank (coastal fcu) required 0 down. I ended up "paying" for the trailer on my down payment so its mine and put alil down on the boat too. Was weird and not sure if it had to do with the value of the boat vs the loan amount etc.
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I'm with Nick on this one...
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I did alot of shopping around for financing when I was purchasing my boat. I found the best deal to be at a credit union where it was 0 down and 5% with my credit score. The crazy thing is rates are cheaper for boats than on school loans!
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we spend $200 a day on the water in gas between the tow vehicle and the boat. 10% down is only 10 days on the water (not counting insurance, maintenance, depreciation, food....)
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For a $20k or less range on a toy I believe you should be paying cash. No wasted money on interest, no payment, not stuck with boat if you want to sell, no worries about anything, etc. I always pay cash for all my toys, cars, whatever. If you have to finance it, you can't afford it. If you prefer to finance it if your money is making you more than you'd pay on the loan, that's different but in that case you should have no problem putting 10% down.
My advise is if you have $20k (in cash) to spend on this, put at least 10% down. If you don't have $20k (in cash), save your pennies or lower your budget so you 're not paying interest on a toy. |
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PS I will fully agree with what he said for a more expensive boat. if you were buying a 70k new boat then yea get that money down.......for 10-20k you know what your budget is obviously. Now if your interest rate comes in higher than giraffe poon then rethink that philosophy |
Does everyone in here seem to have over 20k extra laying around for toys? I don't feel like I need to have a 6 figure job to afford a 15k boat. I'm only 28 and we have a cheap house mortgage (74k). Between the wife and I we clear 6 figures but not by much. We also don't want to wait until we are 50 years old to enjoy things. Like I said, I can put 10% down but I would prefer not to. I am saving for a down payment on our next house and don't want to dip into that fund.
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watch out! money bags just walked in LOL:banghead: |
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I always love Cory D, AKA Money Mike, Money Bags, Richie Rich....that guy. If I had a dollar for every time I have seen that exact post I'd be as rich as him. Dude you must keep it on the paste key. I do better than alot but I don't keep much in savings any more because they pay less than 1%. That ties money up longer term where you make good rates. I have 2.99% on my boat so I pay a payment because the cash I could pay off that loan with makes 8%-13% on average. As an accountant that makes sense to me...your logic is not right for everyone. If it works for you great, but why do you feel the need to run people down if they can't pay cash for something they want? Of the people with newer boats I bet 90% on here pay payments, whether they will admit it or not.
Cory S, the OP. My advice is do what you are comfortable with. 10% down isn't much on a loan that size, as some have suggested used boats can and will get expensive fast. BOAT=Bust Out Another Thousand!! My advise is put down enough to stay ahead of the market value. On a toy I always like to stay in a position that I can sell if the unforseen happens. I understand wanting it now versus later. Its fine, responsible use of credit never hurt anyone. If you guys are making 6 figures and your credit is good and DTI is low, getting financing for full value shouldn't be an issue. But this time of year in some markets boats sell above retail, then if you have to pay tax you you are over market by a ways. You may hit 10% of the total paying that. You can find the loan you desire, just might take some looking. Worst case you pay the 10% down if you have to, you said you have it anyway. |
I just did $40K no down...USAA
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Thanks, I will try USAA.
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To the OP.. Find a bank you can put 0% down on and then refinance later on. Use the banks money! |
I finance everything just piss that dude off!!! America fu*k yaa!
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Thats funny right there.
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Financial underwriters network (fun) Had some great rates.
Just because you can't pay 20 k cash for a used boat doesn't mean u can't afford it. People who get raises, get a new job or start budgeting differently can find a way to come up with a monthly payment and that's perfectly ok to afford a nice toy in my eyes. I have no issues with that. Used boats really don't depreciate that much very quickly. In most cases even with 0 down you can stay at least even and in some cases depending on the deal get ahead in case you all of a sudden need to sell. It's people financing new 100k 80k 70k wakeboats that boggle my mind..,,...especially with 15 yr plus loans. That's rediculous. How banks give 0-10% down loans for those is blasphemy. With out at least 30% down you will instantly be upside down in most cases. In this case having cash for a down payment to me is a must and people should not be given loans if they can't come with the amount to keep the financed value even or under the value it immediately turns when labled used. A 15 yr loan will take forever before you rich the point where u owe equal or less than the actual value with no money down. The boat looses its value a ton once you sing the dotted line and title it. In the used scenarios you don't take an initial huge hit. So if you keep up the steady payments you can "stay ahead" |
Different priorities for different people, but I don't view going into debt for a toy as wise. I don't understand why people think those who pay cash and avoid debt, or don't take loans at higher interest rates than what they earn on their investments, are rich. RB, if you read my first post I did say, as I typically do, that if you earn more on your investments than you'd pay in interest it does not make sense to pull from those investments to pay cash. Aside from that though, maybe someone who thinks cash buyers are rich could explain why you have that view and why paying cash for luxuries is looked down upon as it seems to be here?
I'm far from rich and have never claimed to be rich, but when I went boat shopping I had $15k in my pocket. It's easy to save for a boat when you don't need the latest high dollar toy and all the luxuries that most people seem to think are necessities these days. Debt is slavery, it prevents you from taking opportunities when they come up, and limits your options. OP is about the same age as me but he has two incomes totaling a lot more than mine and I'm sure his monthly expenses before he can think about putting gas in the boat are lower than mine, given the major expense he mentions is a $74k mortgage along with saving (hmm, that word again) for another house later on. It's pretty simple to pay cash or "have over $20k laying around for toys" if you're saving for something that's important to you. It just has to be more important than the other wants and luxuries, and it's not a split second decision. You don't just wake up one day and say "I want a $20k boat so I'll go get one with the cash is my slush fund". Maybe Donald Trump does, but there's probably an extra zero in that price and I don't think he's indicative of a typical 20-something interested in water sports. I knew I wanted an inboard but I didn't have the money, I started saving and in the mean time I traded my convertible for an I/O so I could get out and ride. I gave up one luxury for for another that I valued more. So I had $15k to spend. I saw some boats slightly out of my budget that I liked, so I shopped for a loan up to $20k with 50% down, term 3-6 years to get a mid 80s through mid 90s inboard. I prefer the classic styling of 80s boats, though up to mid 90s still look alright and I prefer my vehicles to not have fuel injection or any complex electronics. New boats throw a great wake and are convenient with built in ballast, but they're not for me. My boat is the newest vehicle I've ever owned, an '89, and it'll probably stay that way. Anyhow, no banks wanted to make a loan for a $20k or less boat with 50% down and a few years term. Surprisingly every bank I spoke to was more than happy to loan $80k for a new boat with little or nothing down on a 15+ year loan and a good interest rate. Seems a lot more risky, but maybe that's why the banks are in the situation they're in now. I ended up well under budget with a boat that looks great, works great, and does everything I need for my level of riding. I also managed to get rid of my old boat in the same transaction and ended up well under budget. I put the rest of what I had saved for an inboard into paying down student loans, as my top priority is to pay off my debt. I think it worked out quite well for me. If the OP wants to finance his boat and doesn't mind paying the interest, that's his choice. I'm curious what interest rate the bank is offering and what he's making on the money he'd rather save for the next house, if it's a net positive to take the loan. Either way though, I don't think $2k down on a $20k loan is unreasonable. |
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Also the OP is not talking about making a 50k purchase.......hes talking about 20k. A 20k wake boat purchase is prob the lesser of any evils in purchasing a boat. He's not going to lose much in depriciation unless he beats the crap out of it or trashes the engine. Quote:
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https://www.coastal24.com/checking/g...n-checking.htm
At 2% now. It fluctuates randomly. Used to be 2.5, then 2.75, etc |
USAA is the route I went too. Zero down and 304/month payment on a 27.5k loan. All the money I saved for it went to taxes, registration, and a carport to put it under.
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F'n UMERICA!!!! |
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It seems to be about 50/50 based on what i see here at the shop...
50% cash 50% finance just my .02 |
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I mean all kidding aside and this coming from no expertise at all...........Most of the people under 30 I've talked to finance a boat. If you are under 30 and can pop 20+ out of your wallet and it doesn't make you cringe......cool but I've got kids, a g/f, and an ex wife. Personally I would just never drop that kind of cash unless it was a home purchase. I owe more on my house, boat, and new truck than I could sell every organ for. Is it stupid? maybe. Is it America? F'yea. |
I could care less that my ride is not payed off, I'm on the water enjoying life to the fullest! Prob never buy another boat again, but my ride puts out a perfect wave, yes I said perfect, for me! And if I get tired of the color, I can get it wrapped! America!! EFF YA!!!
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I want one of those 2% + interest check accounts. I'm with US bank and get the .00001% like shawndoggy. Reason I am tying my money up longer term to make interest. I used to always keep between 15-20K in a savings account as a safety net and made almost 3%. Interest kept going down, do did my balance in savings. No need to let the bank use my money for free. So I keep my balance at 5k and make a whopping $0.17 a month.
If everyone went to the no loan concept as some suggested the new market on most high dollar items would dry up. Lets say the average cost of a new wakeboat is 70K(R20/Moomba outback start at 45K-The big boys at 130K+). I bet less than 10% of those are cash purchases. Without financing every manufacturer goes belly up. |
Will, getting guys under 30 financed is one of our biggest hurdles sir. Even with great credit profile. Our banks like to see established recreation loans, mortgages,etc.. Even with more than 10% down. Sometimes it's hard to explain to someone who takes care of their credit and make plenty of money to afford such a payment. That obviously isn't the case every time, I'm just trying to say it's tough qualifying sometimes.
There is a lot of money out there guys. I shake my head sometimes when I see checks written like it were for a electric bill or something. That's why I always tell people.. "I just sell them cuz i sure can't buy them" |
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If you don't mind paying all that interest then great, it works for you. For me, no way. I'm not saying wait until you're 40 to get a boat, but rather my advise is to get a cheaper boat and if you want something newer or more capable save your pennies. With this sport you kind of don't want to waste your whole 20s and 30s saving for a boat, but I'd say most everyone here can afford to pay a few grand cash for an old inboard that throws a decent wake. If you can't, you're simply overextending yourself by trying to own a boat at all or value other luxuries more than a boat. |
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That 2 percent rate you linked to is noted as being accurate from august 2011. It also requires using a debit card 30 times a month. Just sayin
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Alright, so I ended up finding a '93 Maristar 225 w/ LT-1 engine at 207 hrs. for 11k w/ a new cover and prop. The boat isn't perfect (couple tears in vinyl and such) but it's in good shape for the year. I did find some zero down options but the interest was always high. I ended up putting 500 bucks down and got in at 4.5% for 120 months. Of course I don't plan on using the full 120 but it makes it nice for tough months. Thanks for the advice guys.
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holy cow, that's a great loan on a 20 year old boat!
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I did 100% on mine a year ago. PNC bank. they require the boat to be less than 10 years old to finance though. if not, I think its a certain percent down then. I don't like to put money down. id rather have the cash in the bank. If I can afford the pmt with no issue than who cares. I did this with my last boat.
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