Boat loans and boat financing directory
|My first fishing boat
Whether this is your first fishing boat loan, you are refinancing your fishing boat, or you have had previous fishing boat loans find out more how to get a low rate fishing boat loan. Boat financing & refinancing .
There is a great deal of information that you need to know about getting a loan for your fishing boat, and we hope that we can help making your marine loan a reality.
The Boat loan process can be involved and frustrating, but getting the right loan for your boat is what this artical all about. Read more.....
How to Get a Boat Loan
Getting a loan to buy a boat can be a frustrating experience. The banks want to loan the money (usually with a little interest rate premium) but there are a few pitfalls that you can avoid.
Pre-qualify. Go to the bank and tell them that you are looking at buying a boat that you will need a loan for. Tell them you wish to know 2 things: A. How much they are willing to lend you (how much can you afford). B. How much of a boat's value they are willing to lend. In most cases they will not lend the entire value. Don't forget that value and asking price can be two very different numbers.
Go find the perfect boat! New boats, like cars lose a considerable amount of value when you leave the showroom floor so consider the good used market. A lot of people buy boats and then never use them, or can't afford them.
Once you find the perfect boat or a couple of perfect boats, locate and write down every identifying number you can find. If it is an outboard, do the same for the engine. If the boat comes with a trailer, get all the info from the trailer as well. Make note of how long the trailer is (usually the same length as the boat), if it is galvanized or painted (big value diference especially in saltwater), and if it has a spare tire/carrier, fenders, steps, winch, etc.
When you or the bank tries to determine the value of a given boat, accessories are the most important aspect. Not just factory accessories either. Add-ons like downriggers, live wells, tow bars etc, add considerably to the base value. Make note of every accessory on the boat, even the seemingly trivial ones. If you do not list all the accessories, the bank will probably come up with a value that is considerably less than the boat is worth, or the asking price.
Go home and do your research. Go to NADA.COM and look up your boat by year and model number. If a given year does not list your model number, try the next model year. A boat manufactured in 2003 may actually be a 2004 model. Typically, if a boat was manufactured after June of a given year it is probably the next year's model.
Model numbers can be a little confusing. For instance, my boat's model number is 1752VST. The 1752 means it is 17 feet long, 52 inches wide. The V indicates that it is a V hull (it isn't really, but it says it is). I'm not sure what the S stands for, but the T indicates that it has a tunnel. Find out as much about the model number as you can because the factory options, such as the tunnel, can make or break the deal (the T added an extra $1000.00 to the value of my boat).
When getting the value form the NADA website, be careful checking options; some are quite deceiving. The options are broken into two catagories: Powerboats (have the engine built in) and just boats (typically with an outboard). You may check that your boat has a fire extinguisher, but if you check that option in the power boat category it will add $1500.00 to the value, and you just know that isn't right (they really mean that it has a built in extingusher which most outboards do not have).
Make sure you get all the accessories on your boat checked correctly. If your boat is an outboard you will need to run the value of the motor seperately. You will also need to run the trailer value seperately. Again, check all the accessories that are included. Simple finders up the value by $300.00.
Take all three values, add them up, and see if the asking price is even close. If it is, then you know how much the bank will lend on that boat.
Get ahold of the seller and make him an offer (your offer should be something around Loan value + what you wife approved). If the seller is close to the value with the asking price, don't waste his time giving a low ball offer. Chances are he went through the process of valuing the boat before he set the price. If it is a newer boat, perhaps the seller owes more than the value, in which case he probably has no room to bargain. Move on to another boat if you can not afford (or don't want to) make up the difference. Keep in mind that you don't want to be in the same shoes as that seller by owning a boat that is worth much less than you owe. Boats do not depreciate as quickly as automobiles but they do depreciate rapidly in the first few years.
When you and the seller have arrived at a deal, gather up your values and go to your banker. Make sure you talk to a human. They are going to go through the value process just like you did and you need to make sure they come up with the same numbers as you or you are going to need to beg for more money from the wife.
Close the deal as soon as you can. In my market, a boat that is priced anywhere near its value does not stay on the market very long. If you find your dream boat and arrive at an equitable deal, jump on it before somebody else buys it.