Financing a new boat

[Rhyder]

So I am getting a 2021 AR190 and the dealer has put forward their offer. They talk like a shady used car dealership but they have their bottom line. They say I am tier 2 even though I have excellent credit and have missed no payments on anything for over the 2 years they track. And make plenty.

I have been looking at third parties, and most everyone is at least a little lower, but Southeast Financial has made an offer thats over a whole point lower than Yamaha offers, basically 1.5 points, they have great reviews on the BBB but I was wondering if anyone here has used them and if they are good overall after you sign with them.

 

[adrianp89]

Find another dealer if you can.

 

[Rhyder]

Find another dealer if you can.

I can, but its out of state, and there have been posts about how Yamaha wont or is reluctant to finance out of state, my guess would be to force you to go to the local yamaha dealer. plus i would have to get on a new list. on the other hand, every two weeks i get the, it should be here any day now, even was told Dec 7th was definatly when it would be in, that the delay was over some safety stickers or parts or something, but it was shipping...still not.

Of course this was right after I floated the fact I have started looking at other boats.

 

[anmut]

Dealers make good money off their financing programs. Find a local credit union. Rates are crazy low right now if you have good credit.

 

[PatrickKolby]

We got Tier 1 with Yamaha back in October. FICO is over 800. Not sure what the score range is for Tier 1, but there is a thread about that.

 

[2kwik4u]

We got Tier 1 with Yamaha back in October. FICO is over 800. Not sure what the score range is for Tier 1, but there is a thread about that.

Just about anything under 800 is Tier 2 as far as Yamaha is concerned. We have 790's when we bought (in 2017) and were NOT eligible for the special financing because of it. They should list those special rates and terms as those with EXTREMELY good credit, not just "well qualified". I'm more than well qualified (as being listed as "above average" would indicate), but they have a much more strict policy it appears. This is borderline bait and switch in my opinion, and I'll tell anyone who listens how pissed off it made me during the buying process.

The dealing with Yamaha Finance as they transitioned from Synchrony back to Yamaha ownership around the first of 2020 has been a GIANT pia for some. My issues have been minor in comparison, but they're still a PIA. Website looks like something my 9yr old made, and does NOT give you a warm fuzzy about security. With that said, at least the have a website now. I had to mail physical checks to Synchrony every month before. Even the "bill pay" on my banks website couldn't wire the money, they had to print, put in an enveleope, stamp, and MAIL the check to make the payment.

Local dealer and his finance guy were plenty fine to deal with. No beefs with them. Just to be clear.

Next boat will be 100% financed through my local credit union (if I finance), and I'll bring a check to pick it up at the dealership. I'll just skip that portion of the process.

 

[ripler]

Try US Bank, I just financed my MasterCraft with them. Luckily my dealer already works with them and when they came with an offer I went back at them with an interest rate that I would be willing to pay, they had no problem matching my offer.

 

[Kawak11]

I have a deposit on a 2021. The sales rep had the finance guy come to talk with me. He told me Yamaha was at 4.99% for 180, tier 1. Now I know from other posts here people were getting 3.99% for 180. I get the dealer trying to make money and the current market but come on. I couldn't negotiate anything. Paid MSRP, prep/freight, & tax. I will go to another bank but haven't seen much better, Essex Credit/Bank of The West was 4.59% for 180.

I tried to call Yamaha Finance to get current rates but was told to see the dealer.

Note: I wanted the longest term with the lowest rate. Loan will be paid off within 5 yrs.

I'm open to any bank or credit union.

 

[adrianp89]

Three years ago we got what I assume was tier 1 with 760 scores. It was the lowest rate advertised in the Yamaha website.

 

[ripler]

You guys need to find new dealers who are willing to work with you. I cringe when I read some of the "deals" that people are getting.

 

[PatrickKolby]

My dealer is awful and my only choice within a hour drive but I still got the 3.99 @ 180. I’ll consider myself lucky then ?

 

[HangOutdoors]

You all do know that the 1% difference in rate say at 40k loan amount at a 15yr term is circa $240 per year difference? 50k it is about $330 per year. If you are looking to pay off in 5 years you will eat an additional $1200 or so in interest, roughly, depending on amount financed if the rate spread is 1%. If you can't find a better rate, that doesn't throw a wrench in your deal, work the dealer to throw something in or knock something off and get your boat and get on the water. Or just get it and put a bit more into principal earlier to adjust the ammortization down.

 

[Bluewater272]

Southeast Financial is legit. They are a broker so you’ll end up with a different bank, but super easy and fast. Rate couldn’t be beat.

 

[slickstick]

Checkout lightstream. Rate probably isn't the absolute best you'll find, but online application, same day/next day funds, and it's an unsecured loan so you keep your title.

 

[Rhyder]

here is the problem. 1 point on the loan lower is basically the same payment, 430 and 411 respectively, but a 3000 difference if you go full term. i just used 38000 and what the website showed as avg. percentage, just to get an example.

The fact that the monthly payment difference is so small and the same amount financed, tells you if they aren't willing to match other offers, they aren't really looking at what you can pay, credit worthiness, etc, they are just squeezing you for all they can.

i plan on paying the boat off in 2-3 years, but I have experienced life enough that things come up that derail those plans all the time, house needs a new roof, the car you just paid off blows up, etc, so am also looking at worst case of it taking me longer. Plus even if i do pay it off, I lose some money at a higher rate.

i am getting offers from others to show them, but i also need to be really willing to go with others. Thanks for letting me know some places that have worked well so I am not just looking at fly by night places

 

[Kawak11]

here is the problem. 1 point on the loan lower is basically the same payment, 430 and 411 respectively, but a 3000 difference if you go full term. i just used 38000 and what the website showed as avg. percentage, just to get an example.

The fact that the monthly payment difference is so small and the same amount financed, tells you if they aren't willing to match other offers, they aren't really looking at what you can pay, credit worthiness, etc, they are just squeezing you for all they can.

i plan on paying the boat off in 2-3 years, but I have experienced life enough that things come up that derail those plans all the time, house needs a new roof, the car you just paid off blows up, etc, so am also looking at worst case of it taking me longer. Plus even if i do pay it off, I lose some money at a higher rate.

i am getting offers from others to show them, but i also need to be really willing to go with others. Thanks for letting me know some places that have worked well so I am not just looking at fly by night places

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I agree. Sometimes there is that unexpected issue that pops up and your plan is pushed out. The dealer has me with MSRP and all the fees. The loan is where I have some control.

Has your boat been delivered to the dealer? I feel I have a few months to go. I’m in no rush as it will be stored until April.

 

[HangOutdoors]

My point is, get the best rate and terms that you can, but don't let it stop you or get you worked up, regardless. If a few hundred bucks a year is something that is troublesome because someone else got a rate that you cannot or there is an advertised rate that you are unable to secure for whatever reason, then perhaps re-evaluating buying a boat should be something to consider. Or at the very least, something less expensive and/or used.

The lowest rate and terms someone can get is what they can get, it is not a comparison of what they think they "Should" be getting or what someone else has.

It is the same thing with the cost of the boat. What you get is what you can get, not what someone else got and sometimes not what may be available in other scenario's.

 

[Kawak11]

@HangOutdoors I see your point.

I didn't pull my deposit. I don't even have a delivery date so I can't get locked in on a rate now anyway. Heck I hope I get one.

However when you pay full price, I want the term given by the lender not what the dealer wants to tack on. Again I get it, high demand and no other dealers close. As for what I "should get", yeah I should get the lowest rate possible. I put in 26 years to have my credit score.

As for the "few extra hundred bucks a year" it's a matter of principle to me not my bank account. Re-evaluate... LOL I'm good.

 

[HangOutdoors]

@Kawak11 I agree it shouldn't be dealer driven on the rate and term for them to make more profit, that annoys me - I wasn't eluding to that scenario. And I don't think it should matter whether you pay full price or a discounted one. The terms and rate are between you and the lender not the dealer, imho.

Everyone should get the best possible rate they "Can" obtain, which could be different than the rate they want, was where I was going with it.

 

[traderfjp]

If you can get a home equity line of credit and then you can decide how much you want to pay each month. We have one at 3.5% I keep it to leverage our equity and the interest is deductible on your taxes.