Finance and Insurance parameters

boatwatch · #1 (**permalink**) 10-11-2007

Anyone up on the age issues of a nice older boat in reguards too, How old will broakers be able to finance and how about a comprehensive insurance policy on the loan amount? Dreaming of a good old boat. In Florida.

k1vsk · #2 (**permalink**) 10-11-2007

Is this serious?
In regards to what?
Don't know what a "broaker" is but you finance the boat, not the broker. "How old will be broakers be able to finance..." is asking what the "broakers" age is!
He/she may facilitate (you obtaining financing) but you'd be FAR better off doing it yourself and shopping around.
Insurance is based on their assessed value of the boat, typically based on a survey evaluation. Your financial situation and or the amount of debt you incur is irrelevant to any underwriter.

boatwatch · #3 (**permalink**) 10-11-2007

I should be more clear. A Loan Broaker is who I refer not a sales broaker. And insurance is getting expensive and restricktive. So can one finance a boat from 1975 or 1981? What is the oldest year. Same goes for insurance within reason. Thanks
And a follow up; I know my spelling is terrible. I could first check with the dictionary, but that takes a lot of time for an informal posting

k1vsk · #4 (**permalink**) 10-11-2007

Not sure where or with what to begin.
First, realize loan brokers make a commission on each loan - they like to eat and buy groceries. Not that I begrudge them an opportunity to make a dollar but are you sure you want to contribute when you'd get a better rate by shopping with direct lenders? As I write, it occurs to me you may be confusing the two.
Regarding insurance, older boats are indeed becoming problematic to insure. Underwriter practices vary so there is no single answer to your question regarding availabilty which might also be something you might give more thought to if the boat value approximates that of the premium cost, deductible amount and your liability potential.

boatwatch · #5 (**permalink**) 10-11-2007

Thank for the reply. I financed a 1995 motor home and had to go through a broker who specializes in boats and rvs. My bank would not touch anything past a certain year( which year I can't recall). The Broker got me a loan with regions bank at a good rate. I think his charge was under four hundred dollars added to loan. Maybe he also recieved something from the bank I don't know. But my bank has a fee for loans also. If anyone needs his services let me know. I also remember last time I was going to buy a boat that it was sold to someone by the time I was able to get an insurance qoate and find a dock to put it.

Sailormann · #6 (**permalink**) 10-11-2007

Loans that are negotiated through brokers are frequently less costly than those negotiated directly with lenders. There is a marketplace for these loans - basically the amount of the loan, the applicant's FICO score and basic financial information is posted and lenders bid on the contracts.

The process happens electronically.

HOWEVER - my 2 cents.... don't ever go into debt to buy a boat. Wait a little while and pay cash - or buy now and buy cheaper.

Cruisingdad · #7 (**permalink**) 10-11-2007

THere are brokers for insurance and loans. I have used both.

Depending on the boat and the survey, you should be able to get a loan on most older boats if it is not a piece of junk. A repuatable survey will decide that. Brokers only sell the loans to banks and some may have restrictive policies on boats and age, but others may not. I am not sure that there is a magic number that you cannot go beyond. I know I looked at 82-85 Krogens and was approved for the loans.

Also, it would seem many banks do not deal directly with individuals. Like a Fannie Mae, they only want to buy the notes and not the work to get there. It is in your best interest to try and work with a broker and see what he can do. Because some have policies where they will buy the boat back if the loan defaults, they may be able to negotiate better rates than you can on your own. Still, it does not hurt to try both avenues (to a point).

I hope that helps. If you need reccomendations, please let me know.

All the best,

- CD

boatwatch · #8 (**permalink**) 10-12-2007

Thank you all for your information and best wishes. I know now where to get some good advise from people who have been there. I'm not ready yet and so I didn't want to ask the Broker (didn't want to get him excited prematurly). Although its never too soon to get the ducks lined up. When you find a good deal, you must act on it befor its gone. Thanks again