Geeez. credit union financing. whoa....

boatman37

Well-Known Member
Jun 6, 2015
4,211
pittsburgh
Boat Info
2006 Crownline 250CR. 5.7 Merc BIII
Previous: 1986 Sea Ray 250 Sundancer. 260 Merc Alpha 1 Gen 1
Engines
5.7 Merc BIII
Calling around about a loan for the boat we are looking at and decided to try my credit union again. I called them years ago when we bought our last one but figured I would try again. Used boat for 48 months is 11.25% and 60 months is 12.5%. Hate to even ask what 120 months would be...lol. I asked her why it was so high and that I can get it elsewhere at 5-6%. She said I should probably go there then...lol. Going to try another credit union for the heck of it. Will update.
 
I had the same experience with local credit unions. I ended up at M&T where we do all of our other banking because I bought through a dealership, but interestingly enough M&T wouldn't issue me a used boat loan direct if the vessel was older than 10 years.

If your score is good these guys have some good rates and while I haven't used them personally others I've talked to have and really like it. They ach transfer right into your checking account

https://www.lightstream.com/
 
I used lightstream for my last boat. great service but they only go out 7 years
 
I went to PenFed (Pentagon Federal Credit Union) with my first large boat - my 340 Sundancer. You need to open a account with them first (I put $10 in a savings account). They have a boat loan not shown - 12 years but amortized as 20. I got it at 2.5%...

When I bought my 400DB, I first went to a large finance company that specializes in boat loans. They were offering a 4.25%/20 year loan... I was putting 35% down which put me almost exactly where I was with my 340SD. They came back with 6.9% for 10 years. Also wanted tax returns and more info. Pissed me off. SO I called PenFed and asked if they still offered the loan I had been on. "Yes".. 18 minutes later I was told "We will mail your check in the morning"... DONE!
 
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I called a few other credit unions. The lowest was 3.99% but for only 48 months. The lady I talked to wasn't the loan specialist so told me to call back tomorrow for more info. Called a few others and they were anywhere from 7.5% to 16%. Called Pen Fed just now and they are 7.25% for 10 years.

So far the best I have found is about 6.5%, ugh. Gotta pay to play I guess!
 
Try Lightstream. I was approved in three hours and the boat is not security for the loan. Good interest rate too and 84 months and no prepayment penalty.
 
Try Lightstream. I was approved in three hours and the boat is not security for the loan. Good interest rate too and 84 months and no prepayment penalty.
I used lightstream for my current boat but they only go out 7 years so they are out. i could do 10 but would rather do 15 and pay extra
 
Ah well I did 84 months but plan on paying it off much quicker.
 
I called a few other credit unions. The lowest was 3.99% but for only 48 months. The lady I talked to wasn't the loan specialist so told me to call back tomorrow for more info. Called a few others and they were anywhere from 7.5% to 16%. Called Pen Fed just now and they are 7.25% for 10 years.

So far the best I have found is about 6.5%, ugh. Gotta pay to play I guess!

You might not be playing in right park for the loan I have due to the value of the boat.
 
You might not be playing in right park for the loan I have due to the value of the boat.
Possible. The higher/newer you go the lower the rates. I plan on paying this loan off in about 5 years but don't want to be locked into that. I would rather have a cushion for emergencies. I paid double payments on my lightstream loan. Just hate this process...lol.

Made some more calls. So far the best I found was about 6.5% (seems to be the going rate as there were 3 or 4 about this rate).
 
I paid 7% at Grow Financial for a 6 year loan, no money down on an 18 year old boat. I wasn't too happy with the interest rate, but they were taking one hell of a chance with an old boat based solely on my credit.
 
Try BOA... they re-financed mine at 4.25% in 2012
 
No idea how loans work in US but if you have collateral greater than the value of the loan in Canada you normally can get a loan at prime. I have seen them advertised at prime minus 1/2%.
 
I have plenty of collateral and income isn't an issue just always get nervous when dealing with this stuff...lol. Need to email that rich uncle back from Nigeria so I can buy a brand new boat
 
Check out Chris at Coastal Financial in Holland, MI...he has been absolutely fantastic to deal with on used boats!
 
I thought the whole idea behind credit unions was they could make loans to members at lower rates than commercial banks.
Seems they’ve kind of lost sight of the member service concept.
I’ve been a member of Navy Federal Credit Union since 1975 and often get more favorable loans through local banks.
 
I thought the whole idea behind credit unions was they could make loans to members at lower rates than commercial banks.
Seems they’ve kind of lost sight of the member service concept.
I’ve been a member of Navy Federal Credit Union since 1975 and often get more favorable loans through local banks.
Usually when you are buying something including money, the seller will quote a market rate unless they really don't want to sell you. Maybe some credit unions have decided they do not want to be in the boat loan business for some reason. However, if you really want the loan, they may make it for a rate that suits them. I used to see lots of non competitive bids from subcontractors in the building trades. These subs were too busy to take on more work, but rather than decline the bidding, they would double their quote so as to not be selected. By bidding, they stayed in the loop for future work when the timing was better for them.
 

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