mirageman

So the wife said I *could* buy a boat as soon as she starts working again in July. I don't think I am ready for that just yet. I don't want to rush into anything and make a hasty purchase. She has been in school for the past 2 years for Dental Hygene and we have been in a negative cash flow situation for the past couple years. Our credit score is a 760 so we have that going for us.

Now since I am just starting to kick the tire around, what I wanted to know was how difficult it would be to finance a 100K loan with zero down on a mid 90's boat?

Otherwise I might just wait until next Spring to purchase, and have 20-30k to put down (most likely).

Some of the boats I am interested in are:
1993-1996 Cigarette Top Gun w/502's minimum and trailer
1996-2000 Powerplay 33' with 500's minimum and trailer
1997-2002 Pantera 28' w/twins & trailer

Idea's? Suggestions? Comments? Pro's? Con's? Post Whoring?

eyezlee

Ok I'll go. Check out www.boatfinance.com. Their interest rates are listed on the calculator page. For 100 to 150K they have 5.5% for 20 years. I don't know if anybody does no down financing.

29Fever

If possible I would do a HELOC or second mortgage. Rates are as low as 4% if you have decent equity in your house.


If you find the right boat at the right price you can get 0 down financing. Just make sure the boat is worth more than 100-110% of what you are paying for it. In my case, the bank didn't care how much was down as long as the collateral is worth more than the cash. I have had two 20 year boat loans through USbank in the 60-70k range with 0 down. With your good credit and future income potential you shouldn't have a problem. Especially if you working with a broker or dealer. Some of those guys have "funny" ways of making deals happen.

no offense to any dealers.

p.s. I don't recommend USbank. In my two dealings, they have lost titles both times.

mirageman

I was thinking of shorter term than 20 yrs. Maybe 10-15 years.
Eyezlee - The link didn't work.

BoatUS has the following rates:
5.37% APR for loans over $100,000
5.62% APR for loans $50,000 - $99,999
15% down though

From what I am seeing from Keybank, and others it does appear you stall have to put cash down.

But still these rates are fantastic my first house was 8.25%!

What qualifies as a second home? I heard you can write off the interest?
Thanks Eyeslee & 29Fever!

eyezlee

Pretty sure anything over 25' with a cuddy and a sink will qualify as a second. Fixed the link!

Peconic

I am not a CPA, but ....

- To qualify as a 2nd home, a boat, trailer home, whatever, needs to have a place to sleep, to cook and to go potti. Minimum is a bunk, a tiny camp stove, and a porta-potti. I found the above in my first boat and asked the dealer: "What's that crap?" Dealer: "Your tax deduction."

- Note needs to be secured by the "second home."

- You can't have another second home.

If you have the equity in your house, taking out a 2nd is probably cheaper and easier.

Things to look out for: Insurance. New performance boats are getting harder and harder to insure. Used perfomance boats are getting very hard to insure. If you use the boat as collateral, they want comprehensive on that boat.

mirageman

Does anyone know what insurance would run on a mid 90's Cig 38 Top Gun?

mirageman

So when applying for a boat loan you should state that you want the vessel to be qualified as a second loan? Or do you just collect the interest statement at the end of the year, and report on your 1099? I'm no tax guy myself, I use H&R Block
Or, do you just say screw it, At least I now have a boat?