Insurance And Loans On A Boat?

[lynyrdsky1]

Hey guys I am about ready to finally get my first boat but i have a few questions.

Say I am getting a 19 to 21 ft boat thats either 10 or 15 years old with a 150 to 200hp on it, would the bank allow me to take out a loan between 3k or 5k? I am probably buying from a private owner so I am not sure how I am going to be able to put down a couple of grand and get a loan for the rest.

How much is insurance going to be? Is it like a car; paying 100 to 300 a month or less?

Thanks,

Austin

[bowfish12]

What the bank will allow you to loan on a boat is dependent on it's age, book values, your credit score etc. On a boat that is 10-15 years old they aren't going to give you much, but 2-4K is a good guess. A boat that old you would be better off paying cash for it, imo, in case something goes wrong with the motor, hull, electronics, etc. That way you would have the cash you saved up to use instead of having to use it to make a payment on a boat that you can't use.

Insurance would be dependent on if it's paid for or you have loan on it, age, tackle, etc. This is what I pay for the insurance on the two boats I have.

2004 Blazer 190 Pro V/200 hp- 330/year

2000 Lowe Roughneck 17'/50 hp- 120/year

Edit: I need to clarify on what I think the bank would loan you. It's going to depend on the factors like I said but you can get more if the boat is 10 yrs old compared to 15. I also think my 2-4K is not exactly right. It will depend on the book value of the brand as well as the bank. Fortunately for me, my bank has done two different loans for me without any problems.

[lynyrdsky1]

Thanks man another question though,

I am going to college and I need the boat for the bass club but I don't have room at home to leave it there how much would it be to keep it in a storage unit per month?

[bowfish12]

Depends on the unit and what not. Check around in the town you're going to college in and see if there are any that are big enough to store a boat. You should be able to find one but you'd better take a look at it to make sure you can maneuver around the lot. There should be at least one business there that can accomodate boats. But you never know. Also check marina's near by.

[Brian Needham]

insurance , mine is $40 per month

storage, mine is $42 a month .....this is just to park it in "open lot" inside the gates and under a camera. I keep it covered.

[Sfritr]

A wise man once told me "if you have to ask, you can't afford it." My advice would be to pay cash for the boat, typically, boat loans are not the greatest ideas. The boats depreciate much faster than cars/trucks. As far as insurance, mine is around $150 a year with tournament coverage. A storage space for a 20 ft boat is going to be costly, around $100-$200 monthly for that size.

if you can't afford to pay cash and don't have a place to store it you may want to reconsider...... just sayin

[win222]

I pay $170 a year for my bass boat that is worth about $10,000 from Foremost, not sure why some other people are paying more than double, maybe they have $50,000 boats, It sounds like the boat your looking at is about the same price, so I wouldnt pay more than $200 a year.

Also around here, outdoor storage run $30 to $60 a month, indoor storage runs $60 to $150 depending on alot of factors.

[ctf58]

A wise man once told me "if you have to ask, you can't afford it." My advice would be to pay cash for the boat, typically, boat loans are not the greatest ideas. The boats depreciate much faster than cars/trucks. As far as insurance, mine is around $150 a year with tournament coverage. A storage space for a 20 ft boat is going to be costly, around $100-$200 monthly for that size.

if you can't afford to pay cash and don't have a place to store it you may want to reconsider...... just sayin

Who you got insurance through?? Mine is over $200 a year for basic coverage on a $10,000 boat and I have a great credit score and no accidents.

[Big Al23]

Austin,

In today's economy borrowing is tough. You will find it difficult to find a bank to lend you money on a boat 10-15 yrs old. I'm sorry to say that but I think you will find this out. Banks and lending institutions lend money based on collateral. Most of them will not do boat loans because they do not want to repossess a boat, therefore the boat will not be the "collateral". I wish you luck and hope I'm wrong.

[Megastink]

Pay cash!!! I was having the same dilemma with buying a truck not too long ago. I have an old Nitro that needs some fixing, but I need to buy a truck to pull it first. Seeing as you are a college student, I cant imagine you have much credit, if any at all, and if you do, well, youre still a college student.

My point is, save your money and pay in cash. If you cant afford it, then dont buy it and fish as a non-boater in your club (like I do).

Consider this also: if you do buy it, and you have a serious mechanical problem (say a $500 fix) willyou have the money to fix it? if not, then you have our answer.

[lynyrdsky1]

Pay cash!!! I was having the same dilemma with buying a truck not too long ago. I have an old Nitro that needs some fixing, but I need to buy a truck to pull it first. Seeing as you are a college student, I cant imagine you have much credit, if any at all, and if you do, well, youre still a college student.

My point is, save your money and pay in cash. If you cant afford it, then dont buy it and fish as a non-boater in your club (like I do).

Consider this also: if you do buy it, and you have a serious mechanical problem (say a $500 fix) willyou have the money to fix it? if not, then you have our answer.

Man bad part is it reads in the bylaws that you have to have a boat.

[Megastink]

I would Join a different club. Think about it, you are going to spend all that money on a truck, plus boat maintenance, on top of going to college just to fish in tournaments? I would make a friend with a boat and just fish some local Open tournaments instead of "having to buy" a truck or boat.

Seriously, that's a bad deal. Don't join that club!

[lynyrdsky1]

I mean I have to have a boat for college fishing. I'm already in a club as a non boater.

[Big Fish Rice]

I mean I have to have a boat for college fishing. I'm already in a club as a non boater.

First of all, we live in a country where "loans" are available to those who show and prove themselves as responsible debtors. The majority of society depends on loans for vehicles, houses, boats, and equipment, so if you want to get a boat loan and the responsibility is worth the expense, then don't listen to people who try and "sway" your interests.

If you want a boat, it's going to come down to (1) paying for the boat, and (2) getting the insurance you need to protect the investment. Whoever said "boats depreciate more than cars do"...I urge them to looks at boat values again. Boats (if taken care of) will maintain impressive retail value over many, many years.

First thing is first. Get the information for the boat. Year, condition, motor, etc and get it inspected by a marine mechanic, or a person whom you trust to help with identifying any issues. Hiring someone who knows about boats can be a few hundred dollars for a day, but if he or she can help you identify the boat's overall condition, it may save THOUSANDS later down the road.

Second, if the boat checks out with a mechanic or marine inspector, get the info and head to your bank. Credit Unions are tough to beat. The more money you can put down, the better, but it's not necessary. When you apply for a "fun loan" as some call it, the bank will take into consideration the year of the boat, the overall condition, and the intended purpose. There is only one way to find out if you can get a loan for a boat...ask your bank and apply for a loan, which entails a credit check.

If they say yes and you get the loan you need, congratulations on your new boat.

If they say no, you can always check a second bank institution, but you don't want to "hop" around and keep applying for loans. A credit check tells a creditor you are applying for credit, but several "credit checks" make you look undesirable. If your first bank denies your application, you should identify "why" and work on the issue at hand. It may be a low credit score, or it may be an issue that you previously had with a creditor. Find out why.

Other than that, boats require annual maintenance that can add up. One mistake can ruin your hull, such as hitting a log or rock. A lower unit can cost a few thousand if you accidentally hit something, and fiberglass is not cheap to repair. Add up electronics, fishing gear and tackle, and you have yourself a floating sink hole for cash.

...but to some, the costs are well worth the investment.

[Nice_Bass]

Start with your bank that you currently use, or as someone said use a Credit union. Hopefully you have some money already, you do not necessarily need to put it as down payment, however a CU is more likely to loan you money if your assets cover what you are borrowing, and you keep those assets at the financial institution. Your rate and term on a boat that old will be very bad- and you might find getting a longer term on a newer boat may be a better option. It does not sound like you are spending much money, however loans on RV's boats etc. always carry higher risk to banks, as they are the first items that people stop making payments on when in financial trouble, and banks are not in the business of selling items. Anyhow, don’t become part of that statistic, and good luck.

[boydn1]

Guess it all depends on where you live. I pay about $180 a year for tournament coverage. Indoor storage close to the house is $70 a month, I drag mine about 20 miles and store inside for $35.