buying a boat
 

So I've got a bud who wants to get in the game around 50-60k but only has 25 in hand that he's willing to part with.
He asked me about who to finance with and I said lower your budget and pay cash or dig deeper into your purse, LOL.
Well I guess that isn't an option as he knows he'll get much more boat or a newer year model by stepping up to more coin.
Then I was like take a home equity loan against the house to purchase with cash in hand and you'll hold clear title instantly and enjoy more negotiating power since there's no waiting on closing.
I'm curious as to y'alls input for some quality advice on boat financing even though I say pay cash now and get the hurt over with.
As always thanks for your input, you guys and girls are always the best source of quality info.

Thanks,
Kelly

What kind of boat are you looking at?

Most banks are not going to want to do a small loan on a boat.

I agree he needs to dig deeper or start smaller.

Look at older clean boats. That's what I did and I am happy. No payment, and my 32' fountain is going to depreciate much slower then something newer. There is always going to be something newer, faster, nicer, etc. That's my .02.

Credit unions are a good outlet for boat loans. HELOCs can be a good idea too, if you have equity! LOL

Tell him to go to the banks and find out what they'll lend. Then he can look for something knowing what kind of cash he can put down and what the bank will back you on. My bank did a un secure loan on a older boat and I still held the title free and clear. It's always a pain to spend months finding a boat the spending just as much looking for a bank. I always went to my bank first.

After tax home equity rates are 2-3%. I'd pay the 25 down, borrow 25 and get in the boat he wants. As a friend of mine always says - life's not a dress rehearsal

Late model with a loan amount that equals a 20% book value of 25k or less. Get berried in payments...it's the American way. Buying a high performance boat is always the cheap part....keeping it going is another story. :)

Banks are going to want to see 10-20% down and less than 10 years old or so for a powerboat. That being said with 25k down your buddy should be able to buy a nice ride. Put the cash down and get something he will be happy with for a year or two.

Finance a house, finance an essential vehicle, pay cash for toys. That said, you cant beat credit union rates