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Why let banks have all the fun?

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Old 01-21-2012, 12:02 PM
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Default Why let banks have all the fun?

Seriously!?!? I've been looking into seller-financing on a boat I'd like to purchase, and I'm not really seeing ANY need for a "real" bank. Banks set sky-high interest rates to cover their sky-high overhead. Banks set rules about lending based on generalizations with little to no market knowledge...for instance "a boat must be less than 10 years old", Why? it's likely because a boats value cannot be accurately assessed beyond that by unknowledgeable bankers...

I've been working in e-commerce for a dozen years, and I'd like to get some opinions on making a website that focuses on connecting able-sellers and smart buyers - who will conduct transactions without the "aid" of fricken loan-shark banks.

Could readilly available seller-financing slow the speed of boat depreciation once a boat is "driven off the lot"?

Would readilly available seller-financing hinder new boat sales / profitability, or just force efficiency?

Could readilly available seller-financing bring new people into the market place that a bank might not traditionally support?

With the right documentation and 3rd party vendors available on the site, perhaps we could / should cut the banks out??

Thoughts? Dave911
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Old 01-21-2012, 12:11 PM
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I think that's a great idea. All the new car dealers are financing anybody with a pulse. A lot of good people that pay there bills got stung in this economy. Didn't deep impact builder finance some boats awhile back?
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Old 01-21-2012, 01:14 PM
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Maybe a new loan site is not even needed. Perhaps a sticky on OSO to share "how-to"? If I was able, and selling a boat, I'd think about advertising "Financing your new-to-you boat? I will finance qualified parties saving you THOUSANDS!".
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Old 01-21-2012, 01:42 PM
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Something in the classifieds for owner financed boats or cars and trucks could work.
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Old 01-21-2012, 02:06 PM
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I would think that somehow any owner financed deal would end badly. Too much can go wrong and change in five or ten years, as someone who in house finances tools and equipment there is no way I would ever do this for a boat.

Example guy wrecks boat, he let insurance lapse. Guy dies, gets divorced, fired, disabled etc. Not worth the risk in my opinion.
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Old 01-21-2012, 06:31 PM
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Quote:
Originally Posted by Expensive Date View Post
I would think that somehow any owner financed deal would end badly. Too much can go wrong and change in five or ten years, as someone who in house finances tools and equipment there is no way I would ever do this for a boat.

Example guy wrecks boat, he let insurance lapse. Guy dies, gets divorced, fired, disabled etc. Not worth the risk in my opinion.
Not to mention people looking to scam, identity theft, do the deal, then move boat to another state re-title in new name and sell. Idiot holding the note will have little chance to locate the boat for prepossessing. No body to send the police after, as the people they thought they did the deal on with, will have no idea their identity was even stolen.


Very bad idea. There is a reason why overhead is so high, and that is balanced out on tens of thousands of deals, with one or a few deals, loss mitigation could never be met.
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Old 01-21-2012, 10:13 PM
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I think its a great idea, or the beginning of one. Something that may be worth looking into would be a "collection only" type company, we use them in auto finance, and some will even advance the seller a portion of the loan amount, once that initial advance is paid by the seller, the finance or collection company advance a large % of the balance (80%-85% with the companies I deal with). It's obviously more entailed then this but could potentially earn some large money in the marine industry.
The collection company acts as the bank, holds the lien and also handles repossession, garnishment and legalities if necessary. It would probably require a large overhead as well, but could work in some variation. Anybody wanna invest a couple million?
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Old 01-21-2012, 10:38 PM
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As I just purchesed a new boat and have yet to sell my old one I would be very interested in learning more about owner finacing type deals, have had a few interesetd people ask about it just not sure of the legalities, etc on the matter
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Old 01-22-2012, 12:19 AM
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Bad idea for the reasons others have listed, not to mention many other problems you can run into down the road going that route.
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Old 01-22-2012, 06:02 AM
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Credit Union... Far better than any bank you can find.
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