Boat financing help - may lose a deal

Steve S

Well-Known Member
Jun 5, 2007
3,101
Northern IL.
Boat Info
2000 400 Sedan Bridge with twin CAT 3116's

2000 340 Sundancer - SOLD!
210 Monaco 1987 - SOLD!
Engines
Twin Caterpillar 3116's 350 HP straight drives
Any recommendations on yacht financing?

I have an offer accepted on a used 400DB. Got approved for financing BUT at very unfavorable terms. Makes me shake my head as I planned on 30% down and financing the balance. They offered me a loan with 42.5% down, 64% higher interest rate and shorter term then I planned on.
May blow the deal up.

I have excellent FICO credit well above 750 so that is not an issue.

Any recommendations on a lender? I am in Northern Illinois.

Thanks!

Steve
 
Don't know how long they can push a loan out to but try "Lightstream" (SunTrust)

Edit:
Just looked..... It looks like they only go out 7 years.
 
I got preapproved from essex credit. Terms were 15 year @ 4.94% (for a 2001 model) with minimum 10% down. Closing costs of up to $899.00 but they said it's often much cheaper. I can't speak to their customer service after closing as we haven't made the deal but might be worth checking out.

https://www.essexcredit.com/home/boat/rates/
 
Mark, I'd question that bit of advice. If times go bad like we've recently had experience with and you have to give back the boat, well so be it.

But if the collateral on your loan is your home and you have to give your home to the bank, that's a whole different thing.
 
I used Essex and am happy with them. They are one of the few who finance older boats. I will say this. They are not fast.

Josh
 
Mark, I'd question that bit of advice. If times go bad like we've recently had experience with and you have to give back the boat, well so be it.

But if the collateral on your loan is your home and you have to give your home to the bank, that's a whole different thing.

Totally understood and it's going to vary with every individual... I went with 50% down and a 2nd on my home and I was quite comfortable with that.
 
I personally would never mortgage my home for a boat loan as stated by GFC above.
Its not if but when a new crisis comes. Because I am old now my advice would be to by a boat that's maybe a little older and be extremely picky. Find the best boat that suits your needs that would not put you in a bad financial position if something unforeseen were to happen.
 
Thanks everyone for the advice. I got the problem solved by applying at my credit union, PenFed. Had to toss in a few more boat dollars on the down payment but got a 4.5% rate - 12 year note amortized as 20 years - so a balloon payment at the end. One phone call... asked a few questions... HIN, Dealer, etc. Boom! Check being mailed in the morning...
 
Thanks everyone for the advice. I got the problem solved by applying at my credit union, PenFed. Had to toss in a few more boat dollars on the down payment but got a 4.5% rate - 12 year note amortized as 20 years - so a balloon payment at the end. One phone call... asked a few questions... HIN, Dealer, etc. Boom! Check being mailed in the morning...
Congrat's !!!
 
Thanks everyone for the advice. I got the problem solved by applying at my credit union, PenFed. Had to toss in a few more boat dollars on the down payment but got a 4.5% rate - 12 year note amortized as 20 years - so a balloon payment at the end. One phone call... asked a few questions... HIN, Dealer, etc. Boom! Check being mailed in the morning...


That's great. Navy Fed wanted WAY more than last time, and depending on how much their rates suck. Good job!
 
That's great. Navy Fed wanted WAY more than last time, and depending on how much their rates suck. Good job!

Navy Fed's rates are higher for sure. However, my wife works for them, so that gives her a 1% reduction in the rate AND they will finance up to 125% loan to value. That means, no huge down payment, and you can even finance in tax/registration. This would still land you with a 2% higher rate than a lender like Essex.

Looking at this thread, that's still a better deal that posters above who had to pay massive down payments with rates higher than Navy Fed.
 
Thanks everyone for the advice. I got the problem solved by applying at my credit union, PenFed. Had to toss in a few more boat dollars on the down payment but got a 4.5% rate - 12 year note amortized as 20 years - so a balloon payment at the end. One phone call... asked a few questions... HIN, Dealer, etc. Boom! Check being mailed in the morning...

That's so different than my experience at PenFed. When I was shopping for my new boat, I called them because they were the lender on my current boat. I figured it would be easy to stay with the same lender and they had good terms etc. on the current loan (which was originated by my dealer). Long story short, when I called, the guy who I got on the phone basically told me they really didn't do boat loans and really weren't competitive. He recommended I go somewhere else! I guess it just depends on who's on the other end of the line.
 
That's so different than my experience at PenFed. When I was shopping for my new boat, I called them because they were the lender on my current boat. I figured it would be easy to stay with the same lender and they had good terms etc. on the current loan (which was originated by my dealer). Long story short, when I called, the guy who I got on the phone basically told me they really didn't do boat loans and really weren't competitive. He recommended I go somewhere else! I guess it just depends on who's on the other end of the line.

Depending when you spoke with them, that may have been true. Several years ago I was looking at a 44 Express Bridge and I was told the same thing - that they only had small boat loans (less than 30K) and didn't offer a loan like the one I already had. Deal fell thru so it was moot.

That was why I originally went to the loan broker who specializes in boat and RV loans. After I got the ridiculous terms I decided to call PenFed and check and I was surprized when the women told me that she could help me...
 

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