Boat Loan

[Advocate777]

anyone have any recommendations on how to get a boat loan? I am based in southeast Pennsy and northern Chesapeake

[jameswilson29]

The conventional wisdom is you borrow money to buy an asset that will appreciate, like real estate, and you pay cash for a depreciating asset, like a boat or car. Only use somebody else's money to help you make money.

If you can afford it, you should be able to save your money to pay cash - don't borrow money to buy a depreciating asset that is a luxury item, unless you plan to live aboard and it replaces your housing expense. Not only is a boat a depreciating asset, but you also have ongoing maintenance and storage costs.

There are plenty of bargain sailboats out there. You can have just as much fun and learn just as much on a bargain used sailboat as you can on a shiny new boat that breaks the bank.

[kd3pc]

Serious question for an attorney??

Well anyway...If you are like the rest of us, Save a minimum of 25% of the purchase price (keeping in mind that survey, repairs, insurance and slippage will cost you $$ as well and you will likely have to show that to the bank as well). You will need to have a decent FICO score...likely 680 or better, and a means to pay back the loan that looks good in this economy. Your location has little to do with the loan, except you may have some local banks who know boats that are just as competitive on rates as the bigger banks.

Then go to the bank ...if that doesn't work, then you are back to post #2 as your only option.

The days of 5% down, no job and no credit history are pretty much over...as well they should have been some time ago..

[DRFerron]

Advocate,

I looked at your blog. Great that you took the ASA courses!

If you're still thinking about buying a boat in the 20K to 30K range, for a boat that (relatively) inexpensive, you'd do much better paying cash even if you have to wait a year or two. In the meantime, sail on other people's boats and/or join a club.

If you're set on a loan, the bank/lender will require insurance most likely, which will in turn require a survey. For the size, age and price range, it may take a while to locate a boat that passes a survey that an insurer accepts.

[kd3pc]

Thought this question looked familiar....counselor it was asked and answered three days ago:

http://www.sailnet.com/forums/genera...boat-loan.html

[Chris12345]

Buy an old boat (25+ years), this kills two birds with one stone:
a) No depreciation to speak of.
b) No one will give you a loan for it.

Taking loans for expensive toys that you have an even small potential to wreck makes for un-relaxed sailing.

Originally Posted by Advocate777

anyone have any recommendations on how to get a boat loan? I am based in southeast Pennsy and northern Chesapeake