Used boat financing via Formula dealers ---is this legit?

[damdonzi]

Was told that if you are an authorized Formula dealer, you send used boat loan business to 4 major banks only. One of them being Key bank. In return for this business, special financing is available to you to pass on to your customers.

If you have a used boat in your inventory -no matter what the manufacturer- that was traded toward a Formula, the promotion of the first 24 months 0% interest, and remainder of the loan is 4.99%. 180 months under $50K-$75K and 240 months over $75K. You have to meet certain credit criteria and have a 10% down payment.

Is this true, and how would the bank ever know if the boat was traded for a Formula?

[TexomaPowerboater]

Funny, I financed a used boat..... Dealership picked the bank....... and Key Bank it was.

[DollaBill]

I find that very hard to believe. I think I would bet big bucks against that. I've never heard of any restrictions like that. No way.

[damdonzi]

Originally Posted by F-N-iGuy.com

I find that very hard to believe. I think I would bet big bucks against that. I've never heard of any restrictions like that. No way.

Hey, I agree with you. I'm going to ask the dealer that told me for something in writing Monday. Will let everyone know what I find out. Supposedly this program is open to all authorized Formula dealers, yet little or none of them play it up. I am a big believer of the old saying "If it sounds to good to be true...."

[DaveP]

Originally Posted by damdonzi

Was told that if you are an authorized Formula dealer, you send used boat loan business to 4 major banks only. One of them being Key bank. In return for this business, special financing is available to you to pass on to your customers.

If you have a used boat in your inventory -no matter what the manufacturer- that was traded toward a Formula, the promotion of the first 24 months 0% interest, and remainder of the loan is 4.99%. 180 months under $50K-$75K and 240 months over $75K. You have to meet certain credit criteria and have a 10% down payment.

Is this true, and how would the bank ever know if the boat was traded for a Formula?

Specials hot rates because because they are a great dealer and a nice guy? NO Special rates because of the Formula buy down program that can be used on used inventory as well as new Formula's? YES And with the buy down program, someone has to pay for it (aka the cost is already built into the price to you)

[Dave1972]

DAMDONZI,

I got a call from a friend of mine who told me the exact same story a week or two ago. I think it is true...or at least they are marketing it that way. Great post...would love to hear a Formula dealer chime in on this one!

[Croozin2]

Originally Posted by Dave1972

DAMDONZI,

I got a call from a friend of mine who told me the exact same story a week or two ago. I think it is true...or at least they are marketing it that way. Great post...would love to hear a Formula dealer chime in on this one!

Might want to pop in the Formula forum. Magicfloat is a Formula dealer in Alabama (Nelem's Marine). Robert's a great guy - I'm sure he could shed some light on things.

[jeff1000man]

We had those kind of buy down programs when I was in the car business. Just try and beat he dealer up on the price and still get the good rate.

Always best to get best sales price and pay off early or double up on payments. Then you get the best of both sides.

[damdonzi]

Just got back from FLA. Yes, it is all on the up and up.
DaveP is right on the money, as always.

Formula buys down the rate in conjunction with Key Bank, helps the dealer move inventory that was traded toward a Formula and order more new Formulas. If you buy it and finance it yourself, you will do better on the overall price of the boat.

If you use thier program, it's 0% for the first 24 months and 4.99% for the remainder of the term. Minimun credit score of 660 and you must put 10% down. I am told that I will have a sample P&S waiting for me in my office tomorrow, so I'll scan and post for your guys to see. The program has been around for about a year and half, and not all the Formula dealer use it I am told, because it involves some participation from the dealer side as well.

And finally, I confirmed this with Formula at the show in Miami last weekend. It is legit, and I think Formula refers to it as the "Equity Building Program" internally.

[DaveP]

Originally Posted by damdonzi

DaveP is right on the money, as always.

Thank you sir!