Boat Loan

[Jonald]

What’s up guys, I’m going to be buying a boat this winter and will need to finance at least 25k$. When I went to Cabela’s they are saying that the lowest interest rates they are seeing is around 7-8%. I have excellent credit fyi. Has anyone had experience financing through bps? Are there better options out there if I finance third party? What companies or lenders would you recommend?  Trying to get the lowest interest rate possible. 
 

thanks

nick

[Susky River Rat]

When I bought my boat from bass pro in 2019  I can’t remember what the rate was. I do remember being upset that their lender would not let me put more than 10% down as a down payment. They were upset when I wanted to have the loan for a shorter term. I would think the only way around their lender is to get a loan from a bank write them the check then owe your bank that you choose. 

[Jonald]

4 minutes ago, Darnold335 said:

When I bought my boat from bass pro in 2019  I can’t remember what the rate was. I do remember being upset that their lender would not let me put more than 10% down as a down payment. They were upset when I wanted to have the loan for a shorter term. I would think the only way around their lender is to get a loan from a bank write them the check then owe your bank that you choose. 

Did they allow you to pay more per month to lessen the length of the loan?

[Susky River Rat]

2 minutes ago, Jonald said:

Did they allow you to pay more per month to lessen the length of the loan?

Yes but they weren’t to keen on it. I argued with them a little bit. Their excuse was well you can pay it off anytime. I said that’s not really the point I want lower payments for a shorter time which is why I wanted to put x amount down. So I got stuck with only putting their amount they wanted down but shorted the loan from 10 years to 3. 

[Jonald]

Just now, Darnold335 said:

Yes but they weren’t to keen on it. I argued with them a little bit. Their excuse was well you can pay it off anytime. I said that’s not really the point I want lower payments for a shorter time which is why I wanted to put x amount down. So I got stuck with only putting their amount they wanted down but shorted the loan from 10 years to 3. 

Ok that’s good to know, thank you 

[Susky River Rat]

1 minute ago, Jonald said:

Ok that’s good to know, thank you 

The best I can say if you want something I’d stand your ground with them. You can always get a boat somewhere else.

[gim]

I bought a boat in 2015 from Cabela's.  I believe this was pre-BPS acquisition, so it may be different now.  Their loan system was through a private financing firm.  I do not remember what the name of it was because I wasn't interested in taking out a loan.

 

But if I had been, I would have looked at doing it through my bank ahead of time.  That is what I would suggest you do before committing to BPS.  Your bank may or may not have a better interest rate/loan options, but it doesn't hurt to check.

[Junger]

35 minutes ago, Jonald said:

What’s up guys, I’m going to be buying a boat this winter and will need to finance at least 25k$. When I went to Cabela’s they are saying that the lowest interest rates they are seeing is around 7-8%. I have excellent credit fyi. Has anyone had experience financing through bps? Are there better options out there if I finance third party? What companies or lenders would you recommend?  Trying to get the lowest interest rate possible. 
 

thanks

nick

 

Check out US Bank, I got way better terms than that, but that was back in Feb 2021.

[Darth-Baiter]

I've never taken a boat loan.  they run way long right?  like 10 year financing?

 

 

[flyfisher]

Talk to your bank and even better if you have a credit union.  I wouldn't even mess with their mortgage length financing

 

[gim]

5 minutes ago, Darth-Baiter said:

I've never taken a boat loan.  they run way long right?  like 10 year financing?

 

 

They are very similarly structured to an auto loan.  You can put more down and reduce the time line or do minimal down and pay it off for 20 years.  They generally don't depreciate nearly as quick as a car, so the value will remain higher for a longer period of time.

[Bankc]

3 hours ago, flyfisher said:

Talk to your bank and even better if you have a credit union.  I wouldn't even mess with their mortgage length financing

 

Agreed.  *Better yet, go to a website like Lending Tree and get a couple of quotes.*  Then take those to your bank and see how they can compare.  Then take the best quote to BPS and see if they can compete.  

 

Not always, but sometimes you'll find that if you can produce a quote for a cheaper loan somewhere else, the company you're talking will try to beat it.  And if not, then you've got a better deal in hand.  I've had it in the past where a dealer won't budge off an interest rate, telling me it's the lowest they can possibly go, and then after producing a better offer, they dropped it to beat my other offer.  

 

Doing more work on the front end can save you a lot of money.  

 

EDITED:

*Or even better still, don't.  Apparently, they sell your info to spammers.  

Edited January 18, 2023 by Bankc
New Information

[flyfisher]

For cars I have used dealer financing up front to get whatever rebates and the like and then went straight to my credit union to refinance....best of both worlds.  

[J._Bricker]

15 minutes ago, flyfisher said:

Talk to your bank and even better if you have a credit union.  I wouldn't even mess with their mortgage length financing

 

 

4 minutes ago, Bankc said:

Agreed.  Better yet, go to a website like Lending Tree and get a couple of quotes.  Then take those to your bank and see how they can compare.  Then take the best quote to BPS and see if they can compete.  

 

Not always, but sometimes you'll find that if you can produce a quote for a cheaper loan somewhere else, the company you're talking will try to beat it.  And if not, then you've got a better deal in hand.  I've had it in the past where a dealer won't budge off an interest rate, telling me it's the lowest they can possibly go, and then after producing a better offer, they dropped it to beat my other offer.  

 

Doing more work on the front end can save you a lot of money.  

Excellent advice and by doing your homework you’ll be better prepared to negotiate the terms YOU want.

[TOXIC]

I know a lot have used a company called Rec Lending because they always offer good rates.  Personally, I would first go to a credit union, second a bank.  In house financing is just another moneymaker for Bass Pro/Cabela’s.

[Motoboss]

If you have “excellent “ credit find a credit union (join) or your bank and find your best interest rate. BPS can’t make you finance through their bank but they insist because they get points (percentage (money kick back) on every deal they send to their financial partners, so they make money off your payment.

 

Interest rates are high right now, and going up so find the lowest rate and make your own deal on length, down payment and interest rate. Go in with your financing set and you’ll be in a stronger bargaining position.
You’ll be much happier!

[Scott F]

With home mortgages running near 7% I’m not surprised at 7%-8% rates being quoted for a boat

[12poundbass]

15 minutes ago, Scott F said:

With home mortgages running near 7% I’m not surprised at 7%-8% rates being quoted for a boat

I would think 7-8% for a luxury item like a boat would be a pretty good rate right now.

 

 

 

OP,

 

I’d go with what most are saying credit union or local bank. I would also check out Rec lending. They specialize in boats, RV, toys like that. My local Vexus dealer uses them quite frequently and I’ve heard good things about them from guys around here who’ve used them. 

[KSanford33]

40 minutes ago, Bankc said:

Agreed.  Better yet, go to a website like Lending Tree and get a couple of quotes.  Then take those to your bank and see how they can compare.  Then take the best quote to BPS and see if they can compete.  

 

Not always, but sometimes you'll find that if you can produce a quote for a cheaper loan somewhere else, the company you're talking will try to beat it.  And if not, then you've got a better deal in hand.  I've had it in the past where a dealer won't budge off an interest rate, telling me it's the lowest they can possibly go, and then after producing a better offer, they dropped it to beat my other offer.  

 

Doing more work on the front end can save you a lot of money.  

@Bankc I mean no disrespect, so please don't take what I'm about to say that way. But please don't go to LendingTree or Bankrate or any of those. I work in financing and can tell you numerous horror stories about them. Your phone will not stop ringing. It's very difficult to get sites like that to provide you with actual rates without having to enter your contact info.

 You're 100% correct that you should definitely do your homework ahead of time and to definitely take competitor's quotes to each other. 

 

 As others have said, credit unions are an excellent choice. They're not governed by the same laws as traditional lenders because they're owned by their members. The NCUA is in charge of them, so they can make better offers than a lot of traditional lenders can. Also, if you're a good customer of theirs, oftentimes they'll make you an offer that they wouldn't make to someone coming in off the street.

[WIGuide]

I would definitely look elsewhere given some of the stories here. The only thing I've financed through a dealer was a vehicle and they actually use the credit union I'm a member of for the loan. They have zero issues with putting extra down, paying extra for payments, or paying off early and I had worked with them on my other loans as well so I was comfortable using them. Your quote from BPS seems to be ok as far as interest rate depending on the term since interest rates continue to rise. Definitely shop around a see what your options are.    

[Gera]

I would hold any major credit purchases for the following months. Like cars, price will start going down as retailers need the sales to survive but right now it too soon for them to sell to you at a lost. People are not buying with the current interest rate.

 

In a few months they must move their inventory to survive even at a lost (that they will just write off) and prices will reflect this. 

 

In theory of course. 

[A-Jay]

@Jonald

First off, I am not an expert in boat shopping or boat finance.

But I have done both at least once, successfully (in my own mind anyway).

Here's my version . . . .  

Just like shopping for a boat, sounds like you'll also need to shop for a loan.

I say 'shop' because that's what you're doing.

I think sometimes we feel like the bank or whatever entity we use, is doing us a favor by lending us $$$. That's BS; especially today.  They all get a pretty penny in interest and need to earn our business, IMO. 

 

Perhaps consider not trying shop for the boat & the loan all at once.

Break it up in two 'steps' or 'phases' and it might seen less overwhelming.

 

  So first, pick out the rig you want, get with your dealer and outfit the entire deal exactly how you want it.  Oh, and make sure you do a meet & greet with the 'service manager' & the service department, because after the sale, THAT'S who you'll be dealing with. 

Not the sales staff. 

  Once you get the boat, motor & trailer set, get an itemized written quote.  

With that in hand, now you know what you're going to spend

and you can develop a plan for financing it. 

 

Now phase two, shopping for a loan. 

Knowing what you'll need (and maybe even a little more for the first year's insurance) can be very beneficial by boosting your confidence.  You can compare rates and perhaps even haggle a little with lenders. Especially effective with one or more loans quotes in hand

and if you do it face to face, rather than over the phone. (I'm that guy.)

 

  This process should be fun and exciting not worrisome.

It certainly can be but it's up to us to put in the work

and know what we want/need and most importantly - why.

Good Luck and I'm looking forward to seeing the pics of you in your new rig !

A-Jay

 

 

 

[padlin]

Just took a look at the pentagon credit unit, rates are usually pretty good, 7.74%, yuck.

 

My local bank says as of 1/3 boats are 4.75% for 2021 and up.

 

Most places term boat loans a Personal Loan, which never have good rates.

[Bankc]

2 hours ago, KSanford33 said:

@Bankc I mean no disrespect, so please don't take what I'm about to say that way. But please don't go to LendingTree or Bankrate or any of those. I work in financing and can tell you numerous horror stories about them. Your phone will not stop ringing. It's very difficult to get sites like that to provide you with actual rates without having to enter your contact info.

 You're 100% correct that you should definitely do your homework ahead of time and to definitely take competitor's quotes to each other. 

 

 As others have said, credit unions are an excellent choice. They're not governed by the same laws as traditional lenders because they're owned by their members. The NCUA is in charge of them, so they can make better offers than a lot of traditional lenders can. Also, if you're a good customer of theirs, oftentimes they'll make you an offer that they wouldn't make to someone coming in off the street.

None taken.  Yeah, I've never used one of those websites.  I just figured it might be an easy way to hit a lot of banks at once, judging by their commercials.  But if it sounds too good to be true...  So I'll take your advice on that.  Between my wife and I, we have several accounts through different banks and credit unions, plus our insurance company (USAA) that we go to for loans.  So we never really go outside of that circle (except for dealers) for loans.  Either way, we'll usually get at least three quotes, sometimes more, before settling in on one.  

 

It's not always about who has the lowest interest rate available.  Different companies will use different methods of doing credit checks, so it's possible to qualify for one companies best rate, and another companies second best, because the two companies aren't looking at the same data on you.  

[KSanford33]

27 minutes ago, Bankc said:

None taken.  Yeah, I've never used one of those websites.  I just figured it might be an easy way to hit a lot of banks at once, judging by their commercials.  But if it sounds too good to be true...  So I'll take your advice on that.  Between my wife and I, we have several accounts through different banks and credit unions, plus our insurance company (USAA) that we go to for loans.  So we never really go outside of that circle (except for dealers) for loans.  Either way, we'll usually get at least three quotes, sometimes more, before settling in on one.  

 

It's not always about who has the lowest interest rate available.  Different companies will use different methods of doing credit checks, so it's possible to qualify for one companies best rate, and another companies second best, because the two companies aren't looking at the same data on you.  

That's the best way to do it, really. I know it sounds old fashioned in the days of 1 day delivery and all the technology we have today, but developing a relationship with a few trusted financial firms is really the way to go.