Used boat financing

[Dents]

Wondering what kind of financing you guys have got/seen on a used boat purchase this year. You can go up to 20 years now on new boats over $50k at around 8% or so which puts a $60k boat around $500/mo approx give or take... what kind of terms and rates are out there on used??? This might help some of you guys trying to get rid of your used boats..... or hurt!!

[Fast1911]

Can't comment on interest rates but I think 20 years financing on a boat is ridiculous to even consider.

[mtnsmith]

My credit union has 60mos-7.25, 120 mos-7.5, and 180 mos-7.75 for new or used, it doesn't matter. When we bought our boat new 2 years ago we got 6.5 from Bank of America.

[chpthril]

You can go 10 - 15 on used, and I've see >8%

[jwanck11]

15 yrs @ 7.5%

Payments in the mid 200s

An excelent idea if you can front load payments.

[dingleberry]

Don't know if it applies to used also, but my bank just financed my new boat at 6.39%, and I could choose 120 mos. or 180 mos. for the same rate

[noworries]

Can't comment on interest rates but I think 20 years financing on a boat is ridiculous to even consider.

Agree wholeheartedly. I suspect you'd be upside down on that boat for a very long time. Granted, present value matters, but you'd pay $120K for the $60K loan. $500 monthly at the terms you quoted assumes no down payment. If you want it to stay at $500, figure in your down payment and shorten the term, or the boat.

That's why I've got a new to me '02 20V -- and no boat payment.

[Dents]

I agree somewhat on 240 months financing being a bit crazy. If one was to actually intend on paying it out that long(hopefully not) or selling after a while you certainly would be better off in a Tige compared to a MC or CC at least. They talk big about great resale value but with the inflated prices on those boats at $80k+ you would be waaaaaaay upside down for a looooong time and pay a fortune in interest as mentioned. If I was buying a new boat I MIGHT consider financing for 20 years but pay it off in 5-10... Being in sales it is nice to have a smaller payment on months where sales are down but then pay it down in chunks on good months!!!!!

[brody66]

No offense but if you have to finance it for 20 years i dont think you can afford it. If you could pay it off earlier then i would go 10 years at max and if you only make the payments you would most likley be upside down for the first six years at least, most likley 8. I am in sales my self and know what you are talking about but if things get any tougher you wont want to be stretched even tighter when you know you cant sell your boat because you would have to come up with an extra 10 grand or more to pay the rest of the note off. Notice when you look at boats and sometimes they are extremely high in price, that is most likley someone that is trying to unload their boat at what they owe, just my opinion.

[Dents]

Good example of being buried is a friend of mine who owes $50k on a 4 year old CC 216 worth waaaay less than that. OUCH!! Wasnt too long ago that new wakeboard/ski boats were all under $50k and financing for 10 years sounded crazy!!!! I like to finance longer and pay off sooner. Financed boat for 4 years when I bought it paid off in 2... financed Expedition for 6 years paying off in 2. Yeah, 20 years on a boat is kinda crazy by any rationalization i suppose.

[mtnsmith]

Shoot, yacht financing goes to 30 years! Longer than my house mortgage.

[rogersbm82]

I have heard that as long as the boat has a head, you can pull out a mortgage on it.

[brody66]

I was told if it had a stove,sink head you can mortage and write it off as a second home.

[sparky216]

I was told if it had a stove,sink head you can mortage and write it off as a second home.

yea, but you have to pay property taxes as well......so that may eat into any upside

[sparky216]

No offense but if you have to finance it for 20 years i dont think you can afford it. If you could pay it off earlier then i would go 10 years at max and if you only make the payments you would most likley be upside down for the first six years at least, most likley 8. I am in sales my self and know what you are talking about but if things get any tougher you wont want to be stretched even tighter when you know you cant sell your boat because you would have to come up with an extra 10 grand or more to pay the rest of the note off. Notice when you look at boats and sometimes they are extremely high in price, that is most likley someone that is trying to unload their boat at what they owe, just my opinion.

One could say the same for a house, I have heard of 40 and 50 yr mortgages. I financed my boat for 15 at 5.5%, and I will most likely pay it off never. It's not an investment for me, so I never assume I'm going to make money on this deal. If I'm upside down, oh well, I could honestly care less. It's all about entertainment for myself, family, and friends........small monthly payment IMHO for a lifetime of memories