Boat Loan

[Kuenro02]

Hey guys, I'm looking to purchase my first bass boat. Called my bank today and they offered a 6.7% interest rate. What kind of interest rates have you guys seen?

[Ski213]

It's real dependent on the age of the boat and the lending institution. Is that interest rate a straight boat loan, any boat you want rate or are their criteria for your purchase to get that rate? I've seen lower for new boats and I've seen alot higher for older used boats.

[Kuenro02]

This was for a 2000-2005 model for $8-$10k. Told me if I bought a 2011 or newer I'd get a 2.89% but I can't afford that.

[Ski213]

I took out a loan for mine. Shouldn't have but I've got too many hobbies not to finance one of them. I'm at 9.24 on a 98. That being the case I'd say what they're offering isn't stellar but is pretty in line with my rate. You could always shop around.

[J Francho]

I got zero percent. Paid in full with cash.

[slonezp]

3.9

[Kuenro02]

Thanks guys

[Bluebasser86]

I got low 4's on mine. Check with a credit union, bank wouldn't go lower than 6.5 despite having great credit and I had to jump through all kinds of hoops in the application process. Credit union got me the interest rate, term length, and payment I wanted. 

[Lund Explorer]

Hey guys, I'm looking to purchase my first bass boat. Called my bank today and they offered a 6.7% interest rate. What kind of interest rates have you guys seen?

 

 

This was for a 2000-2005 model for $8-$10k. Told me if I bought a 2011 or newer I'd get a 2.89% but I can't afford that.

 

My little amortization program tells me that a $10k loan with a 6.7% interest rate and paid back over a 5 year period would be just under $200 per/month.  On a boat that is already 10-15 years old, I would hate to think that your loan would take longer than that to pay back.  Taking these facts into consideration, you'll make the last payment on a boat that is going to be 15-20 years old.

 

Here are my thoughts, good or bad.

 

First and foremost is your comment that this is all you can afford.  This begs the question if you can afford the potential repair costs that a boat the age you are looking at could potentially cost?  What if the trolling motor kicks the bucket, can you find an extra $500 - $1,000 to mount a new one in it's place?  What about a lower unit, or even worse, a rebuilt power head?  The facts of the matter is that older stuff breaks more often.

 

With this in mind, you may be better off looking at a new or newer boat.  Same program tells me that you can take the same payment at a cheaper rate, extend it over a 10 year period, and can now borrow over $20k.  At the end of the loan, you have a boat that is only 10-15 years old, and with a brand new boat, you've got a warranty to cover many of those big ticket repairs. 

[jamey1e]

My personal bank wouldn't go lower than 7.0% and I have excellent credit.  They said there just wasn't enough market for it.  Checked with my credit union and got 2.0%. 

[zeth]

I bet you could get better. That's a of of money of the long term. My Credit Union said 14.8%. I couldn't believe it but they don't like to give out boat loans so... I'm waiting to pay cash next year. Theres actually more info on this and you'll get a better response on certain other forum related specifically to bass boats. not sure if allowed to say name here so I wont. I'll let someone else spill the beans.

[gardnerjigman]

My little amortization program tells me that a $10k loan with a 6.7% interest rate and paid back over a 5 year period would be just under $200 per/month.  On a boat that is already 10-15 years old, I would hate to think that your loan would take longer than that to pay back.  Taking these facts into consideration, you'll make the last payment on a boat that is going to be 15-20 years old.

 

Here are my thoughts, good or bad.

 

First and foremost is your comment that this is all you can afford.  This begs the question if you can afford the potential repair costs that a boat the age you are looking at could potentially cost?  What if the trolling motor kicks the bucket, can you find an extra $500 - $1,000 to mount a new one in it's place?  What about a lower unit, or even worse, a rebuilt power head?  The facts of the matter is that older stuff breaks more often.

 

With this in mind, you may be better off looking at a new or newer boat.  Same program tells me that you can take the same payment at a cheaper rate, extend it over a 10 year period, and can now borrow over $20k.  At the end of the loan, you have a boat that is only 10-15 years old, and with a brand new boat, you've got a warranty to cover many of those big ticket repairs. 

 

 

I'm 100% with Lund on this one. You can get the same payment over a longer term with a better interest rate. I'd go with the newer, nicer boat. You'll be ticked if you spend $8-$10k on something that either craps out, or you will most certainly out grow in a few years. (especially since this is your fist boat.)

[GetJigginWithIt]

On 7/29/2015 at 3:33 AM, Lund Explorer said:

My little amortization program tells me that a $10k loan with a 6.7% interest rate and paid back over a 5 year period would be just under $200 per/month. On a boat that is already 10-15 years old, I would hate to think that your loan would take longer than that to pay back. Taking these facts into consideration, you'll make the last payment on a boat that is going to be 15-20 years old.

Here are my thoughts, good or bad.

First and foremost is your comment that this is all you can afford. This begs the question if you can afford the potential repair costs that a boat the age you are looking at could potentially cost? What if the trolling motor kicks the bucket, can you find an extra $500 - $1,000 to mount a new one in it's place? What about a lower unit, or even worse, a rebuilt power head? The facts of the matter is that older stuff breaks more often.

With this in mind, you may be better off looking at a new or newer boat. Same program tells me that you can take the same payment at a cheaper rate, extend it over a 10 year period, and can now borrow over $20k. At the end of the loan, you have a boat that is only 10-15 years old, and with a brand new boat, you've got a warranty to cover many of those big ticket repairs.

What was the down payment amount. Usually a new boat loan requires 10 to 20 percent down. So for a boat that costs $20,000 that would be 2000 to 4000 down. If you have that then I would definitely go new and get the warranty. Also going new you can get options you really want and not settle for what is availible. Good post Lund Explorer.

 

[BassnChris]

I got low 4's on mine. Check with a credit union, bank wouldn't go lower than 6.5 despite having great credit and I had to jump through all kinds of hoops in the application process. Credit union got me the interest rate, term length, and payment I wanted. 

 

x2

Credit union was just a call to tell them what I boat I wanted and how much. They emailed me a link to sign the paperwork.

Stopped by on the way home to pickup the check....Very easy process. TOO DANG EASY!

[tcbass]

Like the above posters have said always go right to your credit union. They'll almost always be cheaper than the banks.

 

 

 

 

Checking with a few places banks, credit unions, first is never a bad idea. Tell them you're shopping around and see what they can do for you.

[gardnerjigman]

People all to often think that the bank is doing them a favor. You've got to understand that you are a customer and they need to compete for your business/money.