Financing for older boats?

Cocktail Time

Cocktail Time

Well-Known Member
Jul 9, 2007
1,208
Lake Lanier, GA
Boat Info
1998 400 Sundancer, Garmin 840xs GPS, Furuno Radar, B&G GPS pilot etc.
Engines
Cat 3116's, Westerbeke 7.6 BTD
Looking for recommendations for lenders that will finance 20 plus year old boats. I have a friend that has a contract that is stagnating due to the buyer not being able to obtain financing on a 1998 400 DB. The buyer has excellent credit and a substantial amount of money for a down payment but lenders will only work with dealerships on older vessels, or at least the ones I'm familiar with. Can yall offer some sources? Thank you.
 
I went through Lightstream for our 1986 250DA
 
I've used my credit union with great results. Age will impact term, in my experience, but it is negotiable.

I checked against Lightstream on my last purchase. They were several points higher in APR and 5 years lower on term than my credit union. Your mileage may vary...
 
When we bought our current boat I called about 5 local credit unions. Most would not lend for boats at all. One would but only for brand new and only a 4 year term and the interest rate was around 12%. If you can find a CU that is willing then great but they don't seem too interested in dealing with boaters. And the first one I called was mine that I had been a member of for about 25 years. They were the ones that had the 4 year term and 12% interest. I checked with my local bank too and they also would not lend for boats but would for PWC.
 
boatman37 said:
When we bought our current boat I called about 5 local credit unions. Most would not lend for boats at all. One would but only for brand new and only a 4 year term and the interest rate was around 12%. If you can find a CU that is willing then great but they don't seem too interested in dealing with boaters. And the first one I called was mine that I had been a member of for about 25 years. They were the ones that had the 4 year term and 12% interest. I checked with my local bank too and they also would not lend for boats but would for PWC.
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Michigan...everyone has boats. Our CU's love 'em :)
 
Check with Coastal Financial out of Holland, Michigan. They work with many lenders and have great rates.
 
Pentagon Federal Credit Union - 100K max boat loan. Got 4% for 12 years amortized as 20 year. So in 12 years if I still have the boat I would have a small balloon payment.

I have other business with them. Tried first with one of the "premier" boat lenders. They offered 8.75% for 7 years even though I was putting 40% down. Called PenFed to check if they still had this loan offer. CSR said yes. Asked me a few questions about the boat. 15 minutes later said "We will mail a check in the morning. Or do you need it wire transferred?"...
 
boatman37 said:
When we bought our current boat I called about 5 local credit unions. Most would not lend for boats at all. One would but only for brand new and only a 4 year term and the interest rate was around 12%. If you can find a CU that is willing then great but they don't seem too interested in dealing with boaters. And the first one I called was mine that I had been a member of for about 25 years. They were the ones that had the 4 year term and 12% interest. I checked with my local bank too and they also would not lend for boats but would for PWC.
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Credit unions are local and generally are well set to do the local norm. In Michigan, as Stee said, CU financing big boats is normal. None in Indianapolis had an option that was not insane. One said when told loan amount and age, “you know you can get a new boat for that”? Not their norm...
 
I financed a portion of my last boat a 2000 400DA in 2009 (I think) and used Newcoast Financial Services who were a full service firm including managing the transfer of the USCG documentation. Might check with them.
 
I got a great referral to a small town bank about 40 miles away from an independent boat broker. The town is located on a river that's a major recreational boating area and the bank had a loan officer who specialized in marine loans.

They beat the snot out of any other lender I could find, credit unions included. Everyone else wanted to basically finance a brand new pontoon/runabout type boat as if it was a car purchase and with a pretty serious interest rate penalty over the lender I worked with.

It's amortized as a 20 year loan with a balloon payment in 5 years. The lender said people either sell or refinance at that point, and we'll probably refinance.
 
MonacoMike said:
Credit unions are local and generally are well set to do the local norm. In Michigan, as Stee said, CU financing big boats is normal. None in Indianapolis had an option that was not insane. One said when told loan amount and age, “you know you can get a new boat for that”? Not their norm...
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mobocracy said:
I got a great referral to a small town bank about 40 miles away from an independent boat broker. The town is located on a river that's a major recreational boating area and the bank had a loan officer who specialized in marine loans.

They beat the snot out of any other lender I could find, credit unions included. Everyone else wanted to basically finance a brand new pontoon/runabout type boat as if it was a car purchase and with a pretty serious interest rate penalty over the lender I worked with.

It's amortized as a 20 year loan with a balloon payment in 5 years. The lender said people either sell or refinance at that point, and we'll probably refinance.
Click to expand...

That Makes the point I was making. If the credit union doesn’t specialize in that kind of loan then it will be terrible.
 
Did LightStream for some of our 410 last week. Applied at 6pm and had the cash in our account by 1pm the following day. No lien on the boat, decent rate and 7yr max term
 
We did light stream in may on a 91. Had approve under an hour. Good credit. We took it as a personal loan not boat loan per their suggestion. Makes it easier without the collateral and lien. Try them.
 
Yeah we did Lighstream in 2015 and no lien. I applied and had the funds in my account the next day but their max term was 7 years and they do direct payment withdrawal from your account. I actually sold the boat 3 years ago and still haven't paid off the loan. It's small enough of an amount that I used the extra for a down payment on this boat.
 
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