Boat Financing

[Baxter]

Hi All!

First post here. Looking at buying a boat and this seems like the perfect forum for my future boating and fishing adventures. I am going to throw a few questions out there. Hopefully these are relevant enough!

First, anyone out there very recently (in 2020) purchase a new boat? What kind of financing rate did you get? I have not formally applied yet, but talking to "dealerfinance" it looks like on a new $45,000 boat, over 15 years, it will be about 5.24% (I have great credit). This rate seems high to me - anyone able to get much lower? Any luck negotiating their interest rate?

I am leaning a few ways. Kingfisher 1825 potentially. Debating on a used Northwest 187 Compass as well. A few others. 18' welded. Any words of advise here?

Thanks! Hope to contribute a bunch to the fishing areas soon as well!

 

[Foxsea]

Yes, this is a great forum.
Most people with good credit find a HELOC is the best way to finance boat purchases.

Here's a thread from a few years ago but still relevant advice.
https://www.sportfishingbc.com/forum/index.php?threads/financing-a-boat.67346/

 

[Rain City]

Hi All!

First post here. Looking at buying a boat and this seems like the perfect forum for my future boating and fishing adventures. I am going to throw a few questions out there. Hopefully these are relevant enough!

First, anyone out there very recently (in 2020) purchase a new boat? What kind of financing rate did you get? I have not formally applied yet, but talking to "dealerfinance" it looks like on a new $45,000 boat, over 15 years, it will be about 5.24% (I have great credit). This rate seems high to me - anyone able to get much lower? Any luck negotiating their interest rate?

I am leaning a few ways. Kingfisher 1825 potentially. Debating on a used Northwest 187 Compass as well. A few others. 18' welded. Any words of advise here?

Thanks! Hope to contribute a bunch to the fishing areas soon as well!

I'm just going to save you the time now and tell you that any info provided by the members of this forum will double the size and budget of your boat. Also whatever you do purchase, if it's an inboard, again the members will force your hand to go for a POD conversion to outboards. Overpowered outboards. And of course you'll have to post a buy and then build thread to go along with these life altering changes. They'll expect no less. God speed.

 

[Baxter]

I'm just going to save you the time now and tell you that any info provided by the members of this forum will double the size and budget of your boat. Also whatever you do purchase, if it's an inboard, again the members will force your hand to go for a POD conversion to outboards. Overpowered outboards. And of course you'll have to post a buy and then build thread to go along with these life altering changes. They'll expect no less. God speed.

Hilarious.

I know the exact specs, just trying to decide on financing. Plan is most likely a Kingfisher 1825 with a 90 Yam, 99 kicker (FW controls undecided). Lowrance ti2 (probably). The main thing is I may go with a weldcraft, or perhaps hewes 180. What is available partially dictates that, as does price - price is one of the reasons for leaning Kingfisher. Seems to have more options for around the same or less $$

Pod, 115, etc, ya, would be awesome. Would upgrade to all that if any members want to pay the difference.

 

[bryce]

I'm just going to save you the time now and tell you that any info provided by the members of this forum will double the size and budget of your boat. Also whatever you do purchase, if it's an inboard, again the members will force your hand to go for a POD conversion to outboards. Overpowered outboards. And of course you'll have to post a buy and then build thread to go along with these life altering changes. They'll expect no less. God speed.

Speaking of which waiting to see a couple 425 Yamahas on a 30 foot commander .....standing by

 

[Baxter]

I have had one dealership say I could probably get 4.99%. Another goes with DealerFinance.ca, so I called them, they quoted a range of between 4.75 and 5.5. They can't get more exact without an application. Another dealer said between 5.99 and 6.99 and really didn't seem to care about answering my questions.

Considering my mortgage is now down to 1.9%, I figured other loan rates would also see drops, was hoping to get something in the 3-4% range, but doesnt seem to be the case. HELOC may be the right way to go, but not sure, with the 65% threshold, if I have enough equity - would be close - but also a bit nervous about using that, just as it is an easy backup if something goes horribly wrong with my house and I need to pull $ for whatever.

 

[Baxter]

Speaking of which waiting to see a couple 425 Yamahas on a 30 foot commander .....standing by

Would three be okay?

 

[ab1752]

I'm just going to save you the time now and tell you that any info provided by the members of this forum will double the size and budget of your boat. Also whatever you do purchase, if it's an inboard, again the members will force your hand to go for a POD conversion to outboards. Overpowered outboards. And of course you'll have to post a buy and then build thread to go along with these life altering changes. They'll expect no less. God speed.

Oh and don't forget the opportunity cost to your income due to the SFBC addiction affliction...it's legit and not a vaccine in sight, thanks stupid covid.

 

[Fisherman Rob]

I'm just going to save you the time now and tell you that any info provided by the members of this forum will double the size and budget of your boat. Also whatever you do purchase, if it's an inboard, again the members will force your hand to go for a POD conversion to outboards. Overpowered outboards. And of course you'll have to post a buy and then build thread to go along with these life altering changes. They'll expect no less. God speed.

LOL! And don't forget we'll tell you to find a decent used one for cash given the $20K you'll pay financing that $45K!

 

[Baxter]

LOL! And don't forget we'll tell you to find a decent used one for cash given the $20K you'll pay financing that $45K!

You're not wrong!. There was one great one I saw in Kitimat. Just a few years old. I think for $30k. Some logistical challenges with that one in these times. Just need to figure out loan situations with the bank.

Growing up we fished on my dads POS 14'er. Broke down a few times and limped back to shore. I'll never forget some near death experiences on that boat - and also some of my best memories of my dad as well.

All that said, I want to ensure that whatever I get is super reliable, and a lot of peace of mind comes with a new main and kicker. Used could be perfect, but also could be someone else's problem!

Have also been looking at cheap older (motorless) options and then just financing new power. Playing with a lot of ideas here... I am also a bit nervous with the whole world of COVID - My job is secure - for now at least. Taking on a loan is frightening right now, BUT I also have wanted a nice boat for the better part of 30 years.!! Want to live before I die!

 

[zurk]

just pay cash
heres mine :

 

[triplenickel]

Hi All!

First post here. Looking at buying a boat and this seems like the perfect forum for my future boating and fishing adventures. I am going to throw a few questions out there. Hopefully these are relevant enough!

First, anyone out there very recently (in 2020) purchase a new boat? What kind of financing rate did you get? I have not formally applied yet, but talking to "dealerfinance" it looks like on a new $45,000 boat, over 15 years, it will be about 5.24% (I have great credit). This rate seems high to me - anyone able to get much lower? Any luck negotiating their interest rate?

I am leaning a few ways. Kingfisher 1825 potentially. Debating on a used Northwest 187 Compass as well. A few others. 18' welded. Any words of advise here?

Thanks! Hope to contribute a bunch to the fishing areas soon as well!

Why new?

 

[N2013]

Honestly, I'd suggest looking for something used and avoid financing at all cost. Look at getting cash at a cheaper rate than 5.xx%. Hell you could probably get a little more boat if you bought something used with the same amount of money you would pay financing something new.

 

[the butcher]

Don't buy new. Buying the boat is the easy part. 1 time large outlay of cash or credit. The painful part is the ongoing blows to the wallet year after year with upgrades, add-ons, new gear, broken gear, etc... The money you save buying used will go a long ways to getting the boat fitted with the toys that are needed... Have your funds/financing ready to pull the trigger when you find the boat you want is the key to successful used boat hunting.

 

[walleyes]

Hi All!

First post here. Looking at buying a boat and this seems like the perfect forum for my future boating and fishing adventures. I am going to throw a few questions out there. Hopefully these are relevant enough!

First, anyone out there very recently (in 2020) purchase a new boat? What kind of financing rate did you get? I have not formally applied yet, but talking to "dealerfinance" it looks like on a new $45,000 boat, over 15 years, it will be about 5.24% (I have great credit). This rate seems high to me - anyone able to get much lower? Any luck negotiating their interest rate?

I am leaning a few ways. Kingfisher 1825 potentially. Debating on a used Northwest 187 Compass as well. A few others. 18' welded. Any words of advise here?

Thanks! Hope to contribute a bunch to the fishing areas soon as well!

There’s absolutely nothing wrong with buying new. If you can afford it and have a good steady income go for it and enjoy. One thing about buying new is you know what you have and if your a guy that takes care of his stuff you will have a boat for years. Also boats as you are looking at hold their value well especially if you look after it and don’t bang it up. New can be almost cheaper in the long run say over 10-15 years if you rig it up right off the hop you will need very little maintenance and up keep over the years. I bought a new 20’ Lund in 2006 and rigged it up to the tea right out of the shop. It cost me around $48,000.00 I sold the boat last year after 13 seasons on it for $37,000. I bought new and never had to put a dime in it other than minor maintenance each year. You will not get that kind of value from a used boat. Glass boats will depreciate at a much higher rate but boats like you are looking at will not. 5.24% is pretty much going rate for that type of loan this day and age. In the end it’s up to you but like I said if you can afford it and your not concerned about your income why not, there are worse things in your life to waste money on. The enjoyment you and a family can get out of a boat and boating is well worth the cost.

 

[the butcher]

Agreed that if you are in a good financial position to buy new it's the way to go... You get warranty, peace of mind knowing engine and Hull have never had issues etc... However, if you need to finance the purchase in my opinion you are usually more better off buying used. Whether it be a boat, car, RV, motorcycle etc... Any depreciating asset will depreciate heavily within first 3-5 years depending on the asset. A well cared for boat, rv, motorcycle etc, should be in close to new condition if it's less than 5 years old. Depending on the boat and initial purchase price, the depreciation can be significant. The downside of buying used is that you have to be patient as boats that are well cared for don't come onto the market as often. You also better know what to look for or else have a professional Check out the motor and hull.

 

[the butcher]

Something else that I forgot to add. Back in 2009 when the US housing market crashed and millions of folks lost jobs and homes.... Luxury items like boats did not sell enough to keep boat dealers and manufactures afloat. Used and new boats were being sold at rock bottom going out of business pricing just to get some funds into those companies to keep them afloat. At that time the US and Canadian exchange was also at par. If you bought a new boat then and sold it 10 years later, you would have broke even since after the recovery prices shot up through the roof.

Perhaps another opportunity like that may be around the corner with the economic impact of what's happening. If you are lucky enough to weather this storm and have the funds available, there may be some great deals on new down the road.

 

[Fisherman Rob]

Be aware of the financial risk when financing new boats. Because of the initial depreciation, you will be in a situation five or so years in where you owe the bank more than can be recouped in a used market. Hopefully you wouldn't end up in a situation requiring a forced sale at that point . Now the difference might not be much, but...

 

[the butcher]

Financing is a very profitable venture for boat dealers.... It bogs my mind when I see that many people are financing boats for 20 to 25 year terms. Over that long period, interest will be horrendous even with today's low interest rates. The dealers tack on additional things that you may not need or ant afford but when amortized over 25 years it makes it looks inexpensive based on how little it adds to each monthly payment.

 

[Baxter]

Agreed that if you are in a good financial position to buy new it's the way to go... You get warranty, peace of mind knowing engine and Hull have never had issues etc... However, if you need to finance the purchase in my opinion you are usually more better off buying used. Whether it be a boat, car, RV, motorcycle etc... Any depreciating asset will depreciate heavily within first 3-5 years depending on the asset. A well cared for boat, rv, motorcycle etc, should be in close to new condition if it's less than 5 years old. Depending on the boat and initial purchase price, the depreciation can be significant. The downside of buying used is that you have to be patient as boats that are well cared for don't come onto the market as often. You also better know what to look for or else have a professional Check out the motor and hull.

Two points:

Yes, used boats, 5 years old, seem to not exist! I have seen a couple, but they were not the right choice for various reasons. There was one a couple weeks ago that was perfect. and at the right price. I decided to sleep on it. It was sold by the next morning. Damn.

As for financing, maybe not with boats, but with cars, buying new can make more sense. When I bought my truck, buying new I got 0.9% financing. Had I bought used, 2 or 3 years old, the purchase price would have been lower, but the interest would have been MUCH higher, around 6% at the time (this was 2015), and the end result would be paying more for an older truck. So I bought new. Love the truck and the peace of mind knowing I know the complete history, will have it for a long time to come still.

With the boat on the other hand, I have recently found out that financing rates would only be about 0.25% higher on a boat that is 5 years old or less (rough estimate from the lender). So buying used (but fairly new) likely makes the most sense in this instance. I was quoted a range of 4.9%-5.49% for a new boat or 5.24%-5.74% for one 3 years old. So the difference here is not as extreme - purchase price would be far less, so used probably makes the most sense - *IF* I can find the perfect fit.

I was really hoping that interest rates on a boat would drop as they have in other areas. Loving my mortgage being at 1.4% right now!