Let's not confuse the issue. While a seller agreeing to financing the sale of his/her boat is an act of desperation, and the buyer also assumes additional risks, the idea of a marketplace for these kinds of transactions could be a money maker.

I'd have to disagree with both those statements.
I see no additional risk on the buyers end of the transaction, the seller is taking quite a gamble.
And, I don't really see a market potential unless the seller sold his rights to the note to a 3rd party for less than the value of the principle. Then the 3 party will reap a return on both the interest and the additional monies from buying a promissory note at less than face value. It would be a great capital gain over time but comes with considerable risk.

Just my .02

See ya,
Kelly

A nice advantage to owner financing is not having to jump through the red tape and hoops that most banks put you through as a buyer. It also helps the buyer if on paper it appears they can not afford the boat but in reality they can. People that are in a cash business can really appreciate that. It helps the seller because it is a quicker easier way to sell and the seller can set the interest rate and the seller can and should be named as additionally insured on the insurance policy and also have it set up so that if the buyer cancels the insurance you have to notify the seller just like the banks do.

I don't remember if this was the original poster of a similar thread or a different member.
I was in the same situation as a seller of a wake/ski boat.
I contacted my attorney for my pool construction business and here's a link to his thoughts.

Don't forget to install a "Go Jak" as well. It makes locating the property MUCH easier should a default occur. Just think of it as very reasonable "insurance".

There is also "lender" insurance policies available, but this may not be cost effective for just one loan.

Depending on the risk taker you are as an individual, Loaning money can be a much better return than just investing it in stocks or a savings account. Lets face it, is the stock market any less of a risk?

Way to many issues with this. I can go with USAA and get up to 99k for 5-7% interest depending on years financed. As a seller I have to worry about getting my money monthly and going back on the buyer if something goes wrong. A bank has a hard enough time re-claiming property and they have more money and lawyers than we do to do it for them. Plus if I sell I want the money no and wait 5-10 years. Bad idea. On property or something I can see a rent to own, but houses are stationary and are less likely to be damaged or stolen, also boats depreciate so fast. bad bad bad idea.

Would people be interested in doing this if a third party handled the lien, collected on the account and handled repossesion of the boat if neccesary? For instance "Joe" sells his boat to "Bob" for $25000, Bob collects $5000 down. Joe takes a loan from Bob for $20000, but it is handled by "3rd party inc." Bob recieves a percentage of each monthly payment (including a portion of the interest), 80% as an example, 3rd party inc. keeps 20% for servicing the account, they handle the paperwork, collecting from Joe if neccesary and repo if it comes to that. This is making it simple but is this something that is marketable in your opinion?
The $20000, would break down to $405.53 monthly at 8%, Bob would recieve 19,464, and 3rd party inc. would collect the balance in this example.

I think you do have to be careful in this aspect. A bank has no personal ties to the property like an old owner. He knows his boat and he now knows where you live. If hes slick with paperwork and has a lawyer pal there could be a potential for nice scam. Its just way to personal for me, as a seller i have the constant threat of the buyer saying this is broke and this wasnt what I thought I bought, on and on. When I sell and the property leaves my driveway its no longer mine I dont want to worry about it, even if somebody left the driveway and came back 5mins later, sorry its now yours, new terms will be dictated.

And on credit unions, the one I work with PEN FED what a royal pain in the ace, red tape like a mofo. But they do have the cheapest rates. They are such a pain I have cut off the loan application process in midstride and gone elsewhere. USAA is a close second and beats just about everybody.

This I imagine would be aimed more at people with cash incomes, or boats that don't neccesarily meet traditional lending criteria. If someone is boat shopping with a 700-800 credit score, this would not even be a consideration.

why pay somebody to handle it, and lose money? I want my money now, chances are I am selling the boat because I need another one and need the cash or I simply need the cash period. And you cant do this if you have lien on your boat to start with. just bad bad bad idea.