Recommendations for boat financing

dbrimm · #1 (**permalink**) 10-10-2007

Hi Everyone, my wife and I are looking to buy a new boat 36'-40', major production brand, $120K - $150K which we will live aboard and charter (crewed only) in the USVI and BVI.

Anyone have recommendations for any particular boat finance company?

Best state to buy in (we'd probably want to take possession on the east coast since the boat is headed to the Caribbean)?

Any suggestions/advice is welcome...

RickLaPaz · #2 (**permalink**) 10-10-2007

DO NOT MENTION the word CHARTER within ear shot of the lenders.

And try Susie Davis at Dimen Financial in Newport Beach, Ca. Sweetheart of a gal. 800-832-8022. Tell her Rick Booth sent you.

Good luck...........

camaraderie · #3 (**permalink**) 10-10-2007

dbrimm...welcome aboard! Can't help on the financing but just curious. How did you decide on that sized vessel for crewed charters?...most are a lot bigger for that end of the market.

7Psych · #4 (**permalink**) 10-10-2007

Most financing is at 6.50% with fixed rates for max. of 20 years. Some companies are higher. Be careful of the ARM rates, especially if you plan to keep the boat for sometime. Be careful of the "charter" word with any type of financing company...not something they want to hear....IMHO...

DrB · #5 (**permalink**) 10-10-2007

36' to 40' is small for a charter. I would think that you'd need to be at least 44' + range for a charter; even bigger if you are going to crew the boat.

DrB

RickLaPaz · #6 (**permalink**) 10-10-2007

Quote:

Originally Posted by DrB

36' to 40' is small for a charter. I would think that you'd need to be at least 44' + range for a charter; even bigger if you are going to crew the boat.

DrB

Agreed---we have the Irwin 52 which is decent but could still be a bit roomier for more than 6. We also just spent last week on our friends 48 Mayflower with 6 onboard, and THAT was getting crowded as well.

Or maybe you can just charter with some of the indigneous tribes people of Java and Borneo. In which case a 38 may fit the bill..........

dbrimm · #7 (**permalink**) 10-10-2007

Thanks for the responses so far everyone...

I'll have my wife get in touch with the gal from Newport Beach for some further info.

I'll make sure no one mentions the charter word in front of lenders, I'd heard that before and read it in a lot of the lenders materials (that they don't loan for charter boats) but always good to have confirmation from more people.

Also, I know that we're looking at small boats, but intentionally.

Our clientele is typically a couple (ie, honeymoon charters, and young adventurous couples) and no larger, we'll have approx 12-18 charters booked per season. I spent the last 3 years driving someone elses boat (same size and class) so we're just cutting out the middleman... haha. You guys are right on though and I wouldn't be coaxed on to a boat this size with 4-6 guests for a week... even day trips get cramped with that many people!

sailingdog · #8 (**permalink**) 10-10-2007

Umm... $120-150K is not really going to purchase much in the way of a new boat in that size range. Most 36-40' boats are going to be a good deal more expensive than that.

Also, unless the boat is a catamaran, you won't have the space aboard to have both crew and customers aboard. Even with a 40' catamaran, you're going to find that it is a bit small for crewed charters generally.

Where are you planning on registering or documenting the boat? BTW, if you're going for financing, it would probably be easier to get if you document the boat with the USCG, rather than state register it. USCG documentation will probably be required if you're chartering it in the Caribbean.

As for where to buy, you should probably purchase it in whatever state you're going to register/document the boat. I would guess that the boat will still need some outfitting and preparation before heading down to the Caribbean.

Quote:

Originally Posted by dbrimm

Hi Everyone, my wife and I are looking to buy a new boat 36'-40', major production brand, $120K - $150K which we will live aboard and charter (crewed only) in the USVI and BVI.

Anyone have recommendations for any particular boat finance company?

Best state to buy in (we'd probably want to take possession on the east coast since the boat is headed to the Caribbean)?

Any suggestions/advice is welcome...