Lets talk boat loans.

[Yamborghini]

So I'm not making much headway on loan shopping. My credit union will offer only 60 month financingon all prices. I'm looking to finance $20-25k. While that is doable for me I don't want to find myself in a pinch. As a crane operator I build something and get laid off. So what I'd like to ultimately find is long term financing 10-12 years and pay as much as I wish when the money is right. If I'm in a lull as far as work, I'd still have a low note. Possibly pay it off in 5 years if work keeps on like it is.

Is there places that offer these terms on $20-25k loans? most credit unions don't have their terms and rates posted. Any advice?

 

[Andy S]

The credit union my wife works for offers 100% financing at 5% to 10.25% for up to 120 months, rate is depended on credit score. USAA which we also bank at offer 4.49% on $10,000 - $34,999 up to 120 months, can only see the rates when after I log in. Here is the info from AllSouth Federal Credit Union (were the wife works) http://www.allsouth.org/Loans_231.html and http://www.allsouth.org/Boat_150.html.

 

[Bruce]

My experience is that used Yamaha's are harder to finance than other boats. Some of the nationwide banks that finance boats consider our boats to be PWCs and refuse to finance them. This is a misunderstanding that I feel Yamaha should work to correct. Perhaps as the forum grows we can find banks to work with our members.

Used Yamaha's represent great value but new examples are easier to finance.

I know that many members have found good financing deals through their local banks or credit unions so I encourage you to shop around for financing.

Many others use home equity to finance their boat.

When I found a SX230 that I really wanted I stretched to pay cash for it.

 

[Yamborghini]

Holy crap @andy07sx230ho those are great rates from everything I've seen.

@Bruce if this season doesn't pan out I believe that I will probably pay cash in early spring.

 

[Williamsone46]

In my neck of the woods you can get as low as 3.99% for 144 months through credit unions.

I haven't had any problems getting used Yamaha's financed!

 

[Ronnie]

Checkout Essex credit, they specialize in boat loans. The rates on used boats (up to 6 years old I think) are about 2% higher than on new boats and the term is also determined by the amount borrowed with a minimum of 10 years for $10k. 15 year terms are available on $15k+ loans. No prepayment penalty.

I should be paying off my boat soon, I don't like debt as it is, soon after I took out the boat loan Essex sent me 15 years (three books) of monthly payment coupons. This only motivated me to pay it off faster but it is nice having a nice low monthly payment in the interim.

 

[Yamborghini]

Thanks.
I'm just glad I'm not getting flamed for the long term loans. It's mainly my work that prevents me from wanting high monthlys. Feast or famine in operator land. It's great money. $100k+ a year if you a good and network well. But if it's slow? Unemployment living.

 

[ScarabMike]

I used USAA and got 4.9% for 180. Im not dragging it out, but it gives me some great flexibility in case of a pinch. You should try Pen-Fed also. You dont have to have military ties to use them.

 

[jawsf16]

I got my used boat 100% financed for five years at 2% through a local credit union. I was shocked to say the least...

 

[jonw9]

I went localt (actually my Marina/dealer) found the credit union. I went 180 mos. at 3.99% for the same reason as you. I could swing a higher payment, but I like the ability to pay less if I need to (Christmas, vacation, car repair, etc.).

$20-25k might require a shorter term, along the lines of the 120 months stated above.
It won't hurt to shop around, but know that the places that sell the stuff usually know where to get the low rates. If they can find you a low rate, they get the sale, and everybody wins.

 

[spaz1868]

I used a home equity loan with terms for repayment of up to 180 months and no early repayment penalties. It has the added benefit of being able to deduct interest from tax returns.

 

[jonw9]

^ That is a great way to go, and how we bought our first boat.
In my case the boat came ~4 mos. after buying the lake house, so the equity wasn't there. The good news is/was that the boat rate is lower than my mortgage rate.

 

[GiddYupJoe]

If you have no luck with any of the sugestions above, check out State Farm. They have decent rates out to 12 years on anything more than a few years old. 15 years for newer.

 

[Geiger41]

@Yamborghini If you can hold off a little Yamaha normally will offer 1.99% financing for up to 15 years. That's what I got when I bought my boat in September 2013. They may have the same offer this September so they can help get rid of the "leftover" models. I chose the 15 year term because if anything happens my monthly amount will be very low during that period. Luckily it hasn't and I pay the monthly amount that will have the boat paid off 4 to 5 years.

Right now Yamaha is offering 2.99 for all models. But again, if you can wait, you will see the 1.99% pop up again.
http://www.yamahaboats.com/offers

 

[RightStuff]

^^^^^^
What @geiger41 said, I did this last year (end of Aug.) and got 1.9%. Nice to have a low payment if you need it and pay more off when/if you can each month.

 

[xoomer]

I think your idea of paying cash in the spring is the best one. Taking out a 10-15 year loan when your job stability is questionable and you have never owned a boat before doesn't sound like a good plan to me.

Good luck,

 

[HidnNOS]

My experience is that used Yamaha's are harder to finance than other boats. Some of the nationwide banks that finance boats consider our boats to be PWCs and refuse to finance them. This is a misunderstanding that I feel Yamaha should work to correct. Perhaps as the forum grows we can find banks to work with our members.

Used Yamaha's represent great value but new examples are easier to finance.

I know that many members have found good financing deals through their local banks or credit unions so I encourage you to shop around for financing.

Many others use home equity to finance their boat.

When I found a SX230 that I really wanted I stretched to pay cash for it.

My credit union (Redwood) financed my boat NO PROBLEM for full purchase price.

 

[jonw9]

I just received this email from Costco today, in case anybody is a member and is still looking. Decent, but not great rates.

https://www.essexcredit.com/costco/?sub_source=18&keycode=Mon072114FocusEmail&source=849058

 

[Cowboy Casey]

My local credit union will do 10 years on my used boat.. payment ends up being about 60 dollars more a month at 500 to 540 depending on credit score... they usually dont go out to 10, I had to ask the loan manager and she agreed that they would for me...

 

[TechRider]

@Yamborghini no flaming and nothing wrong with your strategy. Long term loans are a good idea to keep payments low if you can get a low interest rate. When times are good pay down the principal and if times get tight you can afford your bills. As long as people are good about paying early it has many benefits. Of course if you have cash laying around to pay for a boat and have some reserves that would be great but most people don't fall into that category.

Lot's of lenders offering some good long term rates as others have posted.

I am doing the same thing with my new boat purchase. I pay as much as I can every month and strive to pay it off within 3-4 years. But if times get bad I can still afford the payments.