Boat Financing - 10% Realistic?

S

SeaRay41

New Member
Apr 29, 2009
2
What kind of down payment are credit unions/banks asking for with a new purchase of a boat less than $25,000? Are there any banks offering great rates with low DP? Low as in 5%?

Thanks in advance.
 
SeaRay41 said:
What kind of down payment are credit unions/banks asking for with a new purchase of a boat less than $25,000? Are there any banks offering great rates with low DP? Low as in 5%?

Thanks in advance.
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Figure somewhere around 8% - 9% for A-tier. Might be able to find a variable rate program - but you're going to have pay a fee (not a small one, either) for that. Down payment? Depends on a number of criteria. Not uncommon to do no down payment on the amount you're talking about - depending on age of boat, buying price compared to value, etc. A down payment doesn't necessarily mean a lower or higher rate. The bank is only going to finance a certain % of it's value. If you buy the boat too high, then they're going to require a down payment to make up the difference.

Hope this helps! I know it's probably not what you where hoping to hear, though.
 
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I'm sure things have changed a lot since Dec 07 when I got mine - I could have done zero down for as long as 10 years through MM. That was financing 25k on a 1996. I ended up putting over 20% down since I had the money and saw no need to pay even more interest. You should definitely shop around and see what offers are out there.
 
Do you belong to a CU? Our internal company credit union offers boat rates at 4.25 for 10 years. No idea on the down payment. However, it won't won't do you any good unless you work where I work. Just throwing that out (as an idea) if you belong to one.
 
Go to a local bank, put at least 10% down and only finance for 5 years. 6% APR is probably what to expect doing this. If you go to a marine finance company 9-10% is probably the best you are going to find at the moment.
 
Things have changed greatly. When I bought my current boat last May, they offered me 12k above what I needed for the boat, no money down, and 7.75%. Fast forward to now, my CU is only financing half the value of boats. I was able to get approved with Key for the newer boat I wanted, full value, no money down, but 9.13%.
 
Most loans by the bigger marine lending institutions require a minimum loan amount of $25,000 and the boat must be 10 years or less in age. Marine lending instituions also take into account what brand of boat (believe it or not) in determining loan to value relationships. If they had to recoup their money by repossessing the boat, some brands man fetch more or less than others when the banks sells. 10% down is usually the minimum and some lenders are now requiring up to 20% down.

Doug
 
firecadet613 said:
Things have changed greatly. When I bought my current boat last May, they offered me 12k above what I needed for the boat, no money down, and 7.75%. Fast forward to now, my CU is only financing half the value of boats. I was able to get approved with Key for the newer boat I wanted, full value, no money down, but 9.13%.
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Interesting as I heard Key was getting out of the boat loan business. We got ours about a year and a half ago through Key on one of the annual one (big) payment a year plans.
 
Went through National City/PNC for the full cost of this one six weeks ago. Very easy to deal with too. Good luck on stimulating the economy! - Jeff
 
Thanks for all the feedback. We left the dealership with a deal at 5% down, but now they are coming back requiring 10% down. I believe B of A was the financing entity. We would rather stick with 5% down for 10 or 12 years so if anyone has any suggestions for who to contact, let me know. We're trying to get this deal done today to take advantage of the SeaRay $1500 incentive for a 2008 185 Sport.

Also, what are your thoughts on the 3.0L/135HP engine versus the 4.3L? First boat, some skiing/wakeboarding, but not looking to carry lots while towing people. the dealer has the smaller motor which we're comfortable with but just wanted to get your take regarding resale value and better performance. Not sure if we're willing to put another $2,000 - $3,400 towards the larger motor.
 
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SeaRay41 said:
Also, what are your thoughts on the 3.0L/135HP engine versus the 4.3L? First boat, some skiing/wakeboarding, but not looking to carry lots while towing people. the dealer has the smaller motor which we're comfortable with but just wanted to get your take regarding resale value and better performance. Not sure if we're willing to put another $2,000 - $3,400 towards the larger motor.
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You can never go wrong with a bigger engine. It will help with resale, for sure. I've driven a 185 with both engines on more than a few occasions. That hull design is excellent! The 4cyl does a great job. But, 4.3L is a big difference. You may only be planning on taking 2 or 3 people with you, but once you own a boat, you'll be amazed at how many friends you have all of a sudden!
 
SeaRay41 said:
Thanks for all the feedback. We left the dealership with a deal at 5% down, but now they are coming back requiring 10% down. I believe B of A was the financing entity. We would rather stick with 5% down for 10 or 12 years so if anyone has any suggestions for who to contact, let me know. We're trying to get this deal done today to take advantage of the SeaRay $1500 incentive for a 2008 185 Sport.

Also, what are your thoughts on the 3.0L/135HP engine versus the 4.3L? First boat, some skiing/wakeboarding, but not looking to carry lots while towing people. the dealer has the smaller motor which we're comfortable with but just wanted to get your take regarding resale value and better performance. Not sure if we're willing to put another $2,000 - $3,400 towards the larger motor.
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Can you give us an update? What did you buy? Were you able to only put 5% down?
 
I would surprised if you could get away with 5% or 10% down now. Heck vacations/second homes they now want 20% down most of the time. Land/Lots you are looking at 30% down.
 
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