Loan Term

Slayer · #1 (**permalink**) 08-31-2008

What are the typical loan terms, in months, for a loan on a sail boat?

sailingdog · #2 (**permalink**) 09-01-2008

It depends... how much is the loan for, is it a personal loan or a marine mortgage? what is the rate on the loan? Etc...

Cruisingdad · #3 (**permalink**) 09-02-2008

Generally you are limited to 240 months (20 yrs) at about 80-100k minimum. Lower loan amounts generally result in shorter terms. On some high end boats, they will push to longer rates. You will also, in general, have to put down 20%.

Hope that helps.

- CD

DrB · #4 (**permalink**) 09-02-2008

Has anyone here taken out a 20 year loan to buy a boat? I see these terms advertised all the time, so they must get business. I have a hard time knowing that I need to pay my house over 30 years, but a boat over 20 years? I can't fathom that.

Mine is for 7 because I could, but I'll be done with it in under 4. I do that all the time though, maximum loan time for car, home equity, in case of financial troubles (lower monthly payment), but usually double up each month and get it done sooner. I hate owing money, but I don't want to outlay $15K+ cash and put a hit into the security fund either.

DrB

Cruisingdad · #5 (**permalink**) 09-02-2008

Big difference between laying out 15k and 250-500k (or much more) on a boat. Just your down payment is more on those boats.

I have taken out a 20 year note and have paid cash. I have no real issue with either - depending on the plans. If you are going to keep the thing forever, and you have some hundreds of thousands left over, then by all means - pay cash. If you are only "going cruising" then are gong to come back after a few years, it seems like a loan might be better to me as it reduces your exposure should things ever really turn bad. The bank takes the risk at that point.

This is all personal opinions and personal preferences. THe only "bad" thing about a boat loan is that you pay all of your interest up front... just like a house. You do get to write it off (just like a house, though).

- CD

Robby Barlow · #6 (**permalink**) 09-02-2008

As SD mentioned, it depends very much on what you're looking for, but boats or for that matter cars, in my opinion are not exactly a good investment, as you will almost never recover the money you spent on them at the time of selling. I'd rather start with something older/cheaper/smaller on a short/mid term and move up if required, than commit myself for 10+ yrs. and spend more time worrying than enjoying.