Loan Fees... what is reasonable?

[Paul Paulo Pablo]

I'm looking to buy my first boat this coming weekend at the boat show. I decided to line up financing beforehand in case anyone tries to mess me around at the show (sort of as a back pocket option if I don't like what they're trying to sell me there). Got the financing approval through Essex, but the doc says "up to $900 Fee." I called and they said it's a smaller boat, so it would be $250 plus registration and title fees if they have to do that instead of the dealer doing it. So, possibly up to $499 or some such thing.

Is this normal for a boat loan? What am I missing here? What questions to ask?

Can't wait to get out on the water!

 

[robert843]

When I was looking at boat loans I looked at these guys and their interest rates and fees were higher then anyone I looked at I would look at a regular bank or credit union.

 

[MattFX4]

No that's high. I paid $25 for my loan fee through my local credit union. Got 4.5% for 180 months. No, I am not taking that long to pay it off!!

 

[Jluzader]

https://www.lightstream.com/boat-lo...ef_id=WKPBugAABUxE9yPG:20170215024930:s#rates

got 4.5% with no fees with these guys, also have my mortgage with them.

 

[Volffas]

Just to echo earlier comments, try a credit union. GE Credit Union in Cincinnati beat EVERYONE else hands down. It was/is our 1st time using a credit union, and we couldn't be happier.

Good luck!

 

[robert843]

Just to echo earlier comments, try a credit union. GE Credit Union in Cincinnati beat EVERYONE else hands down. It was/is our 1st time using a credit union, and we couldn't be happier.

Good luck!

Couldn't agree more I had never used a credit union before until a few years ago and now I use that credit union for anything I want financed. They are so easy work with I could walk in there tomorrow for a loan for just about anything and get a check with in a few minutes they are awesome once you get to know them and they know you. They have given me a 1.9% rate on anything I have done with them from boat to jet skis to cars. Now I have never financed anything longer then 60 months with them so I'm sure beyond that the rate may change.

 

[Paul Paulo Pablo]

Thanks for your replies... it's tough to know what's right when I haven't ever been through the process for a boat. I looked across different options and Essex seemed to be the best rate. Looked into my local credit unions, and they either didn't publish rates or their rates weren't good at all. Maybe I'll take a second look.

I'll check out lightstream as well.

Thanks!! It's going to be a great weekend...

 

[robert843]

Thanks for your replies... it's tough to know what's right when I haven't ever been through the process for a boat. I looked across different options and Essex seemed to be the best rate. Looked into my local credit unions, and they either didn't publish rates or their rates weren't good at all. Maybe I'll take a second look.

I'll check out lightstream as well.

Thanks!! It's going to be a great weekend...

The rate is important and if their rate they offered you is really good it could negate the fees. The issue I ran into was their published rates were great but what they offered me was not even close to there published rate it was almost 2 points higher. My credit at the time was just ok some where in the mid to high 700's so I did not have a 800+ credit score and that may have been what they wanted for the advertised rate. I also remember the process took a long time just to get a final figure from them I applied and it was 4-5 days before I had my approval letter with the amount of credit the would give me and the rate.

 

[Ronnie]

The additional fees are normal for Essex which is actually backed by Bank of the West. I financed both of my Yamaha jet boats through Essex primarily because they will finance a used boat purchase (even if the boat is more than five years old) and they still offer a 15 year term? Not an issue with a new boat.

I paid both of my boats off early (Essex does not charge any early payment / payoff fees) but I liked having a low monthly in the interim. If I would have taken a 5 year term and paid down instead of paid off the loans early I would have been stuck with a big monthly.

 

[Paul Paulo Pablo]

Robert, they were actually pretty quick for me... applied on Monday night at 10:30 PM, got the full approval by noon the next day. We're lucky to have great credit, so that could be the big factor.

Ronnie, we're of the same mind. I want a low minimum payment just in case, but I'm going to pay this thing off pretty dang quick.

 

[Bill D]

As others have said, I had really good luck with the local bank/credit union. The only catch was that the max term they offered on any boat loan was 8-10 years. That may be a problem for some purchasers.

 

[RightStuff]

+1 for LightStream here.

I used it for the last vehicle loan, great rate, unsecured, no early payoff penalty, and had the money in my account in ~24 hrs. Made buying the truck much, much easier, almost made the finance guy's head spin. It took him longer to give me the necessary 'under coating protection' spiel that signing the actual paper work.

 

[Matt Phillips]

I think it's always a good idea to know what outside vendors will give you for a loan in terms of APR, fees, etc. and know what you're qualified for.

Then when you're at the dealer, you can compare what they offer -- be that Yamaha financing or something else -- and make the best choice. I always view financing as something that should be shopped for just like the boat and price. You never know as the dealer may have a better deal for your specific situation or they may not...

 

[Benny Sibbitt]

The additional fees are normal for Essex which is actually backed by Bank of the West. I financed both of my Yamaha jet boats through Essex primarily because they will finance a used boat purchase (even if the boat is more than five years old) and they still offer a 15 year term? Not an issue with a new boat.

I paid both of my boats off early (Essex does not charge any early payment / payoff fees) but I liked having a low monthly in the interim. If I would have taken a 5 year term and paid down instead of paid off the loans early I would have been stuck with a big monthly.

I financed my boat through them also. Credit union wanted a 6% interest and bank of the west gave me 4% interest
Score high 700's
Only issue for me was it took a long time to get my title, tag and registration, about 6 or 8 weeks.
I bought my boat from a private sellers so I could trailer the boat till I receive tag in mail.
Buying from a dealer you should have that issue. But the savings was worth it.

Good luck

 

[DavisAR195]

I work for a large national bank and our standard origination fee is 1% of the loan amount with a cap of $150.00. The other thing you always want to be aware of is any pre-pay fees. If you pay off the loan early you can get a fee since the bank is no longer making any money of you and needs to recoup their fees. We have a 1 year pre-pay of $300.

Some banks/credit unions build their fees into the interest rate spread. For example, a credit union will advertise a rate of 2.99% with an APY of 3.45%. The spread is the difference between the rate and the APY. Depending on how long you plan on having the loan, it's generally cheaper to have an upfront out of pocket fee then having it built into the spread over the life of the loan.

 

[Jaime]

No that's high. I paid $25 for my loan fee through my local credit union. Got 4.5% for 180 months. No, I am not taking that long to pay it off!!

Wow that's a great rate, I got 5.4% on my loan

 

[weaselman]

I looked at boat loans and went with a home equity from my local bank at 3.49% for 120 months. Zero fees. Plan to pay the boat off in 5 years.

 

[Jaime]

I looked at boat loans and went with a home equity from my local bank at 3.49% for 120 months. Zero fees. Plan to pay the boat off in 5 years.

Now that's a deal!! Congrats

 

[props2you]

Yamaha is running 2.99 for the first 60 and 4.99 for the remaining 60/120, or 4.99 for 120/180. The latter will run you about $3,500 more in intrest for the full term. No prepay penalty either. Is through Synchrony Bank I believe.