High-Performance Boat Financing Still "Extremely Limited"
#11
Registered
Wait a minute. The feds said if we spent trillions bailing out banks it would fix all that...........
#12
The quote below seems to indicate pretty good reasons for the "Why", and even points to a specific problem unique to the target market.
So no, the bailouts were not intended to return us to irresponsible lending, or irresponsible borrowing.
“The banks aren’t losing as much money as they were three years ago, but they’re still losing more money than they were five years ago,” he explained.
Another impediment to lending on go-fast boats? Historically speaking, they make poor collateral for financial institutions, thanks to unscrupulous owners who, when facing default, strip the boats of their engines—and sell them—prior to repossession.
The primary finance options for go-fast boat buyers, Patanaude said, remain home equity loans and loans secured against investment portfolios. But for buyers without those options, finding financing remains difficult at best, and while most estimates range from 18 to 24 months, no one can say with certainty when the credit crunch will begin to ease.
Another impediment to lending on go-fast boats? Historically speaking, they make poor collateral for financial institutions, thanks to unscrupulous owners who, when facing default, strip the boats of their engines—and sell them—prior to repossession.
The primary finance options for go-fast boat buyers, Patanaude said, remain home equity loans and loans secured against investment portfolios. But for buyers without those options, finding financing remains difficult at best, and while most estimates range from 18 to 24 months, no one can say with certainty when the credit crunch will begin to ease.
#13
Banned
The bailouts were meant to return the financial institutions to solvency, and to free up liquidity so businesses could keep their doors open. I don't recall anyone ever saying that the bailouts were meant to clear the slate so we could return to the days of Wild Wild West lending.
The quote below seems to indicate pretty good reasons for the "Why", and even points to a specific problem unique to the target market.
So no, the bailouts were not intended to return us to irresponsible lending, or irresponsible borrowing.
The quote below seems to indicate pretty good reasons for the "Why", and even points to a specific problem unique to the target market.
So no, the bailouts were not intended to return us to irresponsible lending, or irresponsible borrowing.
#15
Registered
Is there a number percentage wise of how many loans went bad.I know there were a lot of boats floating around as repo's the last few years,but there are a lot that are being paid as agreed.
#16
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The problem seems to be people who strip their drives and engines out of their boats when the payments get tough. There needs to be a law enacted that allow this type of fraud to be handled as a crime and the people that do this should pay for it dearly. Until they tie the drives and engines to the HIN, apparently nothing stops this theft, which prevents a lot of people who need financing to not have access to it.
#17
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The problem seems to be people who strip their drives and engines out of their boats when the payments get tough. There needs to be a law enacted that allow this type of fraud to be handled as a crime and the people that do this should pay for it dearly. Until they tie the drives and engines to the HIN, apparently nothing stops this theft, which prevents a lot of people who need financing to not have access to it.
Last edited by TexomaPowerboater; 04-05-2011 at 07:32 PM.
#18
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I don't think its irresponsible to buy a new boat with a loan anymore than it is to buy a new car. They both lose their value the minute they are driven away. Gap insurance covers the difference in case of a loss. The irresponsible lending blame lies in homeownership.
#19
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#20
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The problem seems to be people who strip their drives and engines out of their boats when the payments get tough. There needs to be a law enacted that allow this type of fraud to be handled as a crime and the people that do this should pay for it dearly. Until they tie the drives and engines to the HIN, apparently nothing stops this theft, which prevents a lot of people who need financing to not have access to it.
Forget legality for a moment. Think like someone lending money. Think like a banker. If the "collateral" you're lending on—the boat itself—has a good chance of being devalued before you can repossess it if that becomes necessary, why would you even bother making the loan?