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View Full Version : Boat Financing.... Loan terms


CrawlinZ
07-24-2007, 12:46 PM
This will be pretty weird question, especially coming from a finance manager at a car dealership, but what kind of requirements do most lenders have for boats? I see people talking terms of 30 years.

What are minimum financed amounts for certain terms? Believe it or not, google isn't that much of a help other than trying to get you to submit information to a bunch of banks.

PS - newbie here on the board. coming from the world of drag racing cars. finally had to give that up cause it just got too boring. looking to get into a nice used MC for some wakeboard fun since the old FourWinns my buddy's parents have isn't doing the job, haha. Board looks AWESOME and there is a ton of information here. I'm a moderator over on www.ls1tech.com for all the Corvette's and F-Body stuff. Trying to find a nice ProStar with the LT1 engine since I know those engines too.

Jkelly
07-24-2007, 12:50 PM
Welcome to TT. I don't know th official requirements, but my banks offered me 10,12, and 15 years. I choose 10, the difference in payments was only a few bucks between 10 and 12 and the amount of interest for 15 was heart breaking.

CrawlinZ
07-24-2007, 12:54 PM
yeah, was looking at like 20-25k boats, and putting 10k down. Just didn't know if they required you to have a minimum of 15k financed to do a 10 year term. I mean the payments aren't disasterous at a 5 year term, but just wanted to see all the options.

Chris

LQ9Lover
07-24-2007, 01:06 PM
Typically the minimum financed is 25k for the 15 year term. Under 25k choose between 10 or 12 year terms. The banks also like to see 10% down.

jwchapman
07-24-2007, 01:09 PM
How about buy a decent older used boat for $10-12k cash - should be some deals as summer draws to a close shortly. Then take the amount you would have had in payments and put it in a high interest (5% at many banks/CUs now) for the next couple of years. Then you'll have enough in cash/boat (it won't depreciate much at all) to get an even better one - with no loans or the stress that can cause. Just my conservative nature - I can't see financing toys.

swatguy
07-24-2007, 01:14 PM
It all depends on what you are looking to do. Besides credit.......Really depends on the boat you are looking at. The year will determine on the loan length, as well as the price of the boat, and what is required down. For most newer used boats say 2001 and above you can find no down loans with good rates, terms ranging from 5-10-15yrs I have even seen some places advertising 20yr loans on new boats. Crazy if you ask me to take out 20yr loan, but hey thats me. Probably would end up paying just a much in interest as the boat stickered. Credit unions are also a great place to search if you belong to one.

I can shoot you a couple places to look into, but yes the internet really is no help, because rates depend on alot more details for boats than cars. Again if you are interested in a couple different places shoot me an e-mail xstarrider@yahoo.com Would rather not post them here as I think it may be against the rules so don't want to cause any problems. But you really just have to call around. they key is to have an idea of what exact boat you are looking at (which you pretty much do) what price/year range. Then you can call around and get rates. Most places will pre approve you then for like 30-45days so you can search and then when you find what you want the process can be expidited rather than waiting for things to be approved when you find the right boat. Just makes the process a little smoother when buying a used boat.

BrianM
07-24-2007, 01:21 PM
Im with jwchapman

Cash for Toys! That is my philosophy. Start small and upgrade as funds allow. You can find yourself a very nice used Prostar for $10k sell it in a couple of years for what you paid for it and upgrade.

CrawlinZ
07-24-2007, 01:28 PM
True, cash for toys is good philosophy.

Only reason I picked something in that range, would be any upkeep needed on the boats I dont want to mess with myself like I could with the cars. So anything needing to be down, was figuring a couple g's in repairs needed to be done. That puts me right up in that other price range for a newer boat. I might be over exaggerating that stuff, but I'm the type of guy, that when I adopted from the humane society and they asked me how much i thought it was per year to take care of a dog, i said 15thousand? hahaha. They laughed.

Since I'm just starting this journey, any other sites besides ebay/boattrader/this site to look for stuff for sale? Trying to stay within a 300 mile radius of where I am(Milwaukee, Wisconsin area)

Jkelly
07-24-2007, 01:34 PM
I brought my boat from a ski school. Newer boat well maintained with a few hours and full factory warranty. At a better price than I found on the other sites.

endl
07-24-2007, 01:56 PM
Other than financing........you said wakeboarding but are talking about a prostar. Something like a Maristar might be better for wakeboarding and have more interior room for hanging out on the lake.

BrianM
07-24-2007, 02:21 PM
True, cash for toys is good philosophy.

Only reason I picked something in that range, would be any upkeep needed on the boats I dont want to mess with myself like I could with the cars. So anything needing to be down, was figuring a couple g's in repairs needed to be done. That puts me right up in that other price range for a newer boat. I might be over exaggerating that stuff, but I'm the type of guy, that when I adopted from the humane society and they asked me how much i thought it was per year to take care of a dog, i said 15thousand? hahaha. They laughed.

Since I'm just starting this journey, any other sites besides ebay/boattrader/this site to look for stuff for sale? Trying to stay within a 300 mile radius of where I am(Milwaukee, Wisconsin area)
A well maintained relatively low hour used is not going to cost much to maintain. The engines are basicly the same as a car. Change the fluids and do annual tune ups. Besides that burn a lot of gas. Additional unexpected repairs are going to be very few and far between on a well maintained sub 1000 hour boat. You can do LOTS of maintenance for $500 a month. ;)

Thrall
07-24-2007, 02:35 PM
Something to look at. When I bought my PS, I didn't have all the scratch up front, so I took out a $10k personal loan from the Credit Union. W/ good credit score and a good history w/ the bank, I think it was only 6%. Anyway, I got the boat I wanted when I wanted it and then paid off the loan within the year, so I didn't spend too much in interest.
I'm typically a "pay cash for everything except your house" type of person, but it nmade sense to me to get this loan so I could beat the AZ summer heat!
In regards to the type of boat. If you're looking for enough room for 6 adults or more, a PS 190 is a little small. Look at a PS 205 maybe.
Unless you're a real good 'boarder, the PS throws a decent wake. The guy I bought mine from was throwin' inverts off the back with no xtra weight, 3 adults in the boat, and a SKI rope.
I'm not that good, but it's more rider than boat, IMO. The PS puts down a nice firm wake.
Oh, and the LT-1 has been a real good engine, in my boat at least.

JohnnyB
07-24-2007, 02:38 PM
I did mine on a 12year loan but am paying at a pace for a 3 year payoff. Cash from my old boat down got me an interest rate not much worse than a 5yr. I did it in case I need cash for something else but intend to payoff at the current pace.

CrawlinZ
07-24-2007, 02:44 PM
Thanks for the recommendations guys. Not too familiar with all the types of boats, just looking at stuff that I'm trying to research as best as possible on this site.

To be honest, most of us are skiiers, but like to board every once in awhile. Trying to start getting into it more. Lakes around us are pretty busy and they aren't normally smooth, so maybe a bigger boat would ride better in that condition. So let's just go with beginner on the boarding rating, haha

I'll have to take your advice on the 205 and look into it some more then. As well as the maristar comment. thanks everyone

Sodar
07-24-2007, 02:46 PM
Im with jwchapman

Cash for Toys! That is my philosophy. Start small and upgrade as funds allow. You can find yourself a very nice used Prostar for $10k sell it in a couple of years for what you paid for it and upgrade.

That is for sure! The only way I can justify financing is when the interest rate is less than what my money is making for me in my investments or bank accounts. My house though... that is a different story! 8p

CrawlinZ
07-24-2007, 02:48 PM
Gas comment... hahaha, have you guys ever priced C16 race gas?

One trip to the track usually costs about $500 by the time you figure in the nitrous refills, race gas, gas in the hauler, gas in the generator, and typical car maintenance like valvespring replacement and tires/slicks replacement.

One other quick question, for most of the towers that I see coming on these boats, do they collapse or is it something you have to take completely off in one piece? Just asking for storage reasons.

swatguy
07-24-2007, 03:09 PM
Another wakeboat site........onlyinboards.com Great site easy to search.

Give us some insight on what you are going to be doing with the boat and howmany people you are going to have on it and I am sure all of us here can help you find the right MC for you. I live in the Chicago area and I will be the first one to tell you trying to find a used well kept wakeboat/inboard around here is tough(you ain't too far up there in Milwaukee. Sometimes a drive is worth it for the right deal and ride.

CBergerson
07-24-2007, 03:10 PM
Last fall, I bought my 2003 ProStar 197 with 20% down and a home equity line of credit. The interest is now tax-deductible.

And, thanks to Andy G and TT, I got a beautiful, well-maintained boat at a great price!!

Jkelly
07-24-2007, 03:16 PM
MY tower folds down. A pain in the a** by yourself by do able.

JohnnyB I did the same thing but a 10 year loan and paid off in 2.

CrawlinZ
07-24-2007, 03:32 PM
I'm not too finnicky when it comes to stuff. Like certain colors or big stereo setups, etc... Not a showboat by any means. Just something that's big enough to haul 6 for a nice cruise around the lake. Probably be 4 people most of the time.

Probably, figure on a 6 hour trip out on the lake, spend 2 cruising, 2 skiing/boarding, and 2 just chillin at the sand bar.

For the most part, all of us want to get more serious into the wakeboarding. All big snowboarders so would like something "similar" to do during the summers. So while not exactly the same, we all have gotten pretty bored with skiing.

I do have a problem buying "subpar" equipment, so it's why I came here for an MC

swatguy
07-24-2007, 04:02 PM
Well with all that said check out this post http://www.tmcowners.com/teamtalk/showthread.php?t=18030


I thinkn a V-drive would suit you far betther than a direct drive. I think an older Version of an X10 meaning the Maristar 210 could be had in your price range and serve you very very well. Would be one of my first pics for you. Think you would really enjoy the Maristar series. There is even a looker close to you on onlyinboards.com

Can you tell I have nothing but time on my hands :)

CrawlinZ
07-24-2007, 04:13 PM
haha, helping out EVERYONE, haha

much appreciated.

here's a quick question from a newbie... with what you guys were talking about in that topic about adding ballast, how is that done? certian compartments in the floorboards?

swatguy
07-24-2007, 04:24 PM
Ballast can be added several ways. You can either get bags to put in the compartments Ideal if you tow alot so yes they go in the compartments. On new boat they have integrated the tanks into the mold underneath the floor in some models so you don't loose that storage space. Water can be emptied at end of the day o r right on site for a ski set or a cruise around the lake.
You can go with lead Downside can't empty that :)
Same thing with sand bags so when you ski all that is still there as well where as the water can be emptied and filled on the lake.
Pretty much anything that adds weight is good ballast. You don't necessarily have to have it to learn, but again as you progress and start jumping the wake...you will want to add more and more, and then well you just get addicted and keepeng adding more til you can't add any more....... and then well you add more or upgrade to a bigger boat;) .

Ballast is just things you use to weigh it down so the wake out of the back gets bigger and you can catch more air. As you become a better boarder and progress you will add more ballast to catch more air. Later model wakeboats come with hard tanks and bags built in that you just hit a switch and a pump pumps the water in the tanks and bags automatically. VERY NICE FEATURE! You can go on and on with adding things it seems to never end. As I am sure it is the same with cars. Once you get it dialed somethng new comes out


That's what this site is all about...well that and entertainment and news

CrawlinZ
07-24-2007, 04:43 PM
yeah, when i got the car scaled we added ballast to certain areas to help it come out clean and even. so knew what it was, just didn't know how it would affect a boat, but now I'm understanding. It's a slow day here at the dealership, so research, looking at ads listed, and online poker is extremely exhausting, haha.