need advice on financing a boat - Page 2 - SailNet Community
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post #11 of 26 Old 03-20-2011
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esailor, try:

Welcome To Trident Funding Corporation

I just use them and they were great, process was extremely easy and pain-free. You can get a pre-approval. Amount borrowed (as long as it is around 20K) is not the issue, the issue is that you will pay a little more interest, but they do finance boat of that price and up to I believe 25 year old.
Good luck
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post #12 of 26 Old 03-21-2011
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Quote:
Originally Posted by eSailor View Post
Looking to spend in the $20k-$30k range. Any insight and advice on financing a boat is greatly appreciated. I will have 20% or so to put down.
Just curious, what sort of boat are you thinking of, what do you plan to do with it?

Nobody today wants to hear my thoughts on this subject, passed down to my brother an I from our dad when we were still quite young… Hopelessly Old School, I know, but it’s worked pretty well for me:

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Never, EVER, finance a TOY
Especially in today’s market, lots of boats out there that could get you out on the water for the amount of cash you’re able to put down… Pay cash, and put what you'd otherwise be spending on payments towards upgrades, which you know damn well you'll be doing anyway, no matter how much you spend initially...

That's my $.02, probably worth less than that... Of course, such a suggestion is inherently un-American anyway, so I’ll shut up now… (grin)
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post #13 of 26 Old 03-21-2011
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I second the comment from Jon

A boat is a depreciating asset. Pay cash and unless you have a secure income and predictable liabilities for the finance period the assets used to secure the loan are at risk.

But sailing is mental health care for me, there must be some value to that?

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post #14 of 26 Old 03-21-2011
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Financing a toy is not inherently a bad thing. There is a time value of money. Waiting to save can cost as much through inflation as interest on a loan, particularly if the interest is tax deductible. Further, if you have invested assets that would cause tax gains if sold, or you believe will earn more than the loan costs, it could be unwise to pay cash.

While banks get a bad rap for "not lending", they will actually lend you more than you should borrow in most cases. 10% or 20% down is just too little to provide an escape route if you must sell the collateral in the near future. Be realistic with your downpayment (30% to 50% makes more sense) and try to get on the shortest term of repayment that you can afford. Otherwise, financing a boat is not inherently a poor decision.


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post #15 of 26 Old 03-21-2011
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since not everything is black or white, I would say do what works best for you and what is comfortable for you. Each of us have different lives/believes/values so you will get different opinions on finances, money, "toys" etc, but eSailor asked a question about BOAT financing, not a request for live mentoring.
Good luck.

Last edited by cspaniel; 03-21-2011 at 12:13 PM.
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post #16 of 26 Old 03-21-2011
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Is this your first Sailboat ? For daysailing or overnight, or weeks,months at a time ?
Don't know your situation but you can get lots of help on Sailnet choosing an INEXPENSIVE sailboat for CASH ! Looks like maybe 3 people sailing ? Size of boat ? etc ?
Live mentoring is wonderful.

Last edited by sidney777; 03-21-2011 at 01:08 PM.
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post #17 of 26 Old 03-21-2011
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IMHO: from reading your original post, I would recommend that you wait until you have the cash. As you said: you are worried about using an equity loan because you wouldn't want your house at risk if something happened.
For example; my boat partner and I bought a boat for 25,500 in 2010, with taxes registration etc, that quickly became 30,000. We then spent another 13,000 upgrading/storing/mooring/repairing...this year alone!

We have 3,000 in the bank and are expecting to have to spend another 4000-5000 due to the fact that the previous owner never took care of the cushions, and now they are soaked with mold; requiring burning them and getting new ones.

If you cant handle these kind of expenses out-of-pocket, you have no business spending money on a toy like a boat.
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post #18 of 26 Old 03-21-2011 Thread Starter
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A boat that price is probably fully depreciated...as there aren't many NEW sailboats that would be in the $20-30k range. Home equity would likely be the ONLY way to go. As for if anything happens...well, since the boat is fully depreciated, sell it and pay off the equity. You'll likely break even after all the tax deductions you'll be able to take.
good point.
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post #19 of 26 Old 03-21-2011 Thread Starter
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my situation: I am in my mid 30's and basically grew up on the bay. parents had cabin cruisers while I was young and I talked my dad into a 1971 - 31' Westerly sailboat when I got out of college. We had that boat 10+ years (and surprisinly it was really realiable) and he sold it 2 years ago. I also spent some time on club race sailboats from 19' - 45'.

Looking at late 80's to early 90's sail boats in the 30' range. Not looking for performance or bluewater capabilities. Just a day/weekend sailor for the Chesapeake. I want something a little newer and better amenities / more comfortable than the Westerly. basically Pearsons, Catalina's,Hunters, O'day, etc......
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post #20 of 26 Old 03-21-2011 Thread Starter
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Quote:
Originally Posted by cspaniel View Post
esailor, try:

Welcome To Trident Funding Corporation

I just use them and they were great, process was extremely easy and pain-free. You can get a pre-approval. Amount borrowed (as long as it is around 20K) is not the issue, the issue is that you will pay a little more interest, but they do finance boat of that price and up to I believe 25 year old.
Good luck
interesting, thanks.
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