financing purchase of used Whaler - Moderated Discussion Areas

  ContinuousWave
  Whaler
  Moderated Discussion Areas
  ContinuousWave: The Whaler GAM or General Area
  financing purchase of used Whaler

search | FAQ | profile | register | author help

Author Topic:   financing purchase of used Whaler

kgregg posted 08-08-2002 10:22 AM ET (US)
My credit union will finance only about half of the purchase price of a 1991 Outrage 19, trailer, and Merc 135 OB. I was hoping they'd finance closer to 85%. They use NADAGuides.com to value boat. What percent of purchase price did you finance when buying used Whaler? I've applied at Coastline Financing to see what they will loan. Thanks.
Bigshot posted 08-08-2002 11:25 AM ET (US)
Get an appraisel!
jameso posted 08-08-2002 11:48 AM ET (US)
STAY WITH THE CREDIT UNION! See if they have a line of credit type loan for the difference. Also maybe you don't need this boat yet, Old pappy used to say; "The deal of a lifetime comes around about every two weeks".
hooter posted 08-08-2002 12:11 PM ET (US)
Listen to Pappy an' pay cash f'yer toys. After they re-possess da furniture and da house, and yer wife an' dog leaves ya, you STILL gots yer boat.
where2 posted 08-08-2002 12:38 PM ET (US)
If I were loaning you the money, I wouldn't finance 85% of ANY boat, Boston Whaler or not. Why? Because anyone who only had 15% of the cost of a boat doesn't need to own a boat. No Offense, but boat's aren't cheap to maintain. (Ask my neighbors who have boats sitting in their yard which haven't been in the water for more than 2 years! we live on the water in Florida, we can boat year round!). One of the reasons I have the size boat I have is because I can afford to maintain it. It was paid for the day I bought it... The periodic payments I make on it are for Maintenance Items.
kgregg posted 08-08-2002 12:50 PM ET (US)
I've owned boats before... 2 sailboats... a mid 80s Catalina 25 and a 1973 C&C 30. My credit union financed 80+% of cost of C&C 30. I have good idea what it costs to own/maintain boats.

Landlocked posted 08-08-2002 02:11 PM ET (US)
Don't listen to them KG, If you wait till you can afford it, you'll never have anything. Live now and carry a big life insurance policy.
Line of Credit attached to your house is the way to go. Interest is low and deductible. And since its secured by your house, They don't care what you use if for.
Worked for me.
OK, I'm ready for my beating now.
Ll.
triblet posted 08-08-2002 02:17 PM ET (US)
Line of Credit is a great way, PROVIDED you
are the sort of person who can pay it down.
If you habitually max out your credit cards,
run away from an LOC.
Advantages of LOC: good rates, tax deductable,
just write a check to get money. I have one,
costs me $45/year, and I keep it even though
it hasn't had a balance in several years.

Chuck
David Ratusnik posted 08-08-2002 02:17 PM ET (US)
Buy a smaller boat- cash only. .03 David
triblet posted 08-08-2002 02:18 PM ET (US)
Oh, and does the credit union understand that
the NADA guide is hull only and does not
include motor, trailer, and electronics?
Chuck
kgregg posted 08-08-2002 03:01 PM ET (US)
>Oh, and does the credit union
>understand that the NADA guide
>is hull only and does not
>include motor, trailer, and electronics?

Using nadaguides.com, you can place a value on hulls, motors, trailers, and misc boating equipment. The credit union never asked me what equipment the boat had. They don't seem too interested in giving me a loan to buy this boat (despite me being a customer of theirs for 13 yrs). So, I will shop around for boat loans.

hauptjm posted 08-08-2002 04:27 PM ET (US)
kgregg, I would also agree that cash is the way to go, but if necessary to borrow, the home loan is the only way to go. Of course, you HAVE to pay it down asap. And don't forget to write off the fees, as well as the interest. This all assumes you have the appropriate equity in your home. If this loan brings your overall equity below 20%, you subject yourself to PMI insurance premium being added to your monthly note.
JFM posted 08-08-2002 05:34 PM ET (US)
k,
I'm a pay cash guy too.
I think most of the guys mean well, but if you are going to borrow money for a boat get a home equity loan.
If you can't get one you shouldn't be buying a boat.
Regards, Jay
Kelly posted 08-08-2002 06:57 PM ET (US)
John Pierport Morgan's yacht, the Corsair II, was 304'long, had a 33.5' beam, a 17' draft, and would go 19 knots. When asked about the cost of the Corsair II, Mr. Morgan replied, "If you have to consider the cost, you have no business with a yacht." It is all relative. Personally, I am torn. On one hand I want to be responsible. On the other, kids grow fast and life is short. Kelly
my1st13sport posted 08-08-2002 09:08 PM ET (US)
cash only, if you can ,but do what makes you happy. You only live once.
kgregg posted 08-08-2002 09:49 PM ET (US)
I failed to mention in original post that I do have a home equity loan. Problem is, I used it to pay off a car loan, pay down a large part of a 2nd car loan, buy a new roof and carpet for family room, buy Pergo for bedroom, buy an engagement ring, nearly pay off 2 credit cards, on and on. I do have some of it left for boat purchase, though. (Luckily)
Landlocked posted 08-08-2002 10:30 PM ET (US)
Not judging, don't get me wrong but I feel the need to temper my first post. I've been there.
Yes, I used a home equity loan to get my boat - the right boat came up when I didn't have the cash. My pops had 4 heart attacks -the first at 32. My grandma had 7 brothers. All died before 45 - you guessed it, heart attacks. I believe in living now. Tommorrow won't necessarily come. I carry enough life insurance to take care of my kids and wife in the event genetics take their toll. Without posting too much about my personal finances on a public forum, I'd also like to say that I've learned you can take living now too far. There is a point where debt takes the fun out of it.
A few years ago, in the middle of the remodel of a 100 year old house, I got layed off. Never missed a payment and managed to finish the house but life wasn't a lot of fun for a while. I've done the finance, refinance, and refinance the refinance thing a few times. It sucks.
There is nothing wrong with borrowing but do it wisely. When the new wears off the boat, the payment will still be there. AS I read your your last post, I'm getting a little bit of that dejavu' feeling. Just watch it.
If you know you can do it without strapping yourself and your job is secure go for it. If you have any doubts, think twice.... Just some friendly advice.
Ll.
jimh posted 08-08-2002 11:05 PM ET (US)
I may have told these stories before, if so indulge me again.
In a previous marriage (almost twenty years ago now), I had an -in-law who was quite a character. He went to the boat show one January and bought a Starcraft Islander 21 for no money down. The boat was priced about $12,000 (at the time), and the show "special" had the price lowered to around $11,000.
His salesman manipulated the paperwork to show that he'd made a down payment of $2000 on the boat with a price of $13,000. Then they took this to a banker and got a loan for the remaining $11,000--making it look like the buyer had made a 20% down payment. So my -in-law got into this boat for zero money down and just a monthly payment of a hundred bucks or so for some huge long term.
At the time it seemed pretty amazing to me. With a finance set up like that you'd wonder if he would ever bother to pay off the boat. Heck, just use it for a few months and then tell them to come get their boat back!
In contrast, more recently a friend finally sold his 27-foot twin engine cabin cruiser. He bought it new, had made a substantial down payment on it, had been making a huge monthly note on it for years, and had left it unused for the past two years--sitting in a boat yard for sale. He finally found a buyer. When all was said and done he had to come up with several thousand more to pay off the balance. It was a pretty expensive boat to own as it turned out.
In contrast, a used Whaler bought for cash and kept in good condition can be enjoyed and sold with out much lost investment.
Dick E posted 08-09-2002 12:00 AM ET (US)
NADA values are not true values for whalers.
Whalers are not like other boats. There BETTER built and retain values very well!
A 1968 Sakonnet will bring more money today then what the owner probably paid for it.
Get it appraised by a cetified marine appraiser. It will be more than NADA. Something you can take to the bank
Dick E posted 08-09-2002 12:00 AM ET (US)
NADA values are not true values for whalers.
Whalers are not like other boats. There BETTER built and retain values very well!
A 1968 Sakonnet will bring more money today then what the owner probably paid for it.
Get it appraised by a cetified marine appraiser. It will be more than NADA. Something you can take to the bank
Kelly posted 08-09-2002 01:00 AM ET (US)
Funny thing about engagement rings. There seems to be a statistically significant corelation between engagement rings and wives, babies, and a need for cash. Kelly
EddieS posted 08-09-2002 01:32 AM ET (US)
Follow the advice others have given about getting a survey done. I purchased a 1977 32ft luhrs and financed through my credit union, due to the cost, size and age they required a survey. Surveyers have more latitude in fixing a value on the boat, not unlike house appraisers. Tell the surveyer your situation, my surveyer was quite cooperative and I had no problem getting the loan with 20% down. It is also a well spent couple of hundred for peace of mind.
Ed

Hop to:

Contact Us | RETURN to ContinuousWave Top Page

Powered by: Ultimate Bulletin Board, Freeware Version 2000
Purchase our Licensed Version- which adds many more features!
© Infopop Corporation (formerly Madrona Park, Inc.), 1998 - 2000.

Author	Topic: financing purchase of used Whaler
kgregg	posted 08-08-2002 10:22 AM ET (US) My credit union will finance only about half of the purchase price of a 1991 Outrage 19, trailer, and Merc 135 OB. I was hoping they'd finance closer to 85%. They use NADAGuides.com to value boat. What percent of purchase price did you finance when buying used Whaler? I've applied at Coastline Financing to see what they will loan. Thanks.
Bigshot	posted 08-08-2002 11:25 AM ET (US) Get an appraisel!
jameso	posted 08-08-2002 11:48 AM ET (US) STAY WITH THE CREDIT UNION! See if they have a line of credit type loan for the difference. Also maybe you don't need this boat yet, Old pappy used to say; "The deal of a lifetime comes around about every two weeks".
hooter	posted 08-08-2002 12:11 PM ET (US) Listen to Pappy an' pay cash f'yer toys. After they re-possess da furniture and da house, and yer wife an' dog leaves ya, you STILL gots yer boat.
where2	posted 08-08-2002 12:38 PM ET (US) If I were loaning you the money, I wouldn't finance 85% of ANY boat, Boston Whaler or not. Why? Because anyone who only had 15% of the cost of a boat doesn't need to own a boat. No Offense, but boat's aren't cheap to maintain. (Ask my neighbors who have boats sitting in their yard which haven't been in the water for more than 2 years! we live on the water in Florida, we can boat year round!). One of the reasons I have the size boat I have is because I can afford to maintain it. It was paid for the day I bought it... The periodic payments I make on it are for Maintenance Items.
kgregg	posted 08-08-2002 12:50 PM ET (US) I've owned boats before... 2 sailboats... a mid 80s Catalina 25 and a 1973 C&C 30. My credit union financed 80+% of cost of C&C 30. I have good idea what it costs to own/maintain boats.
Landlocked	posted 08-08-2002 02:11 PM ET (US) Don't listen to them KG, If you wait till you can afford it, you'll never have anything. Live now and carry a big life insurance policy. Line of Credit attached to your house is the way to go. Interest is low and deductible. And since its secured by your house, They don't care what you use if for. Worked for me. OK, I'm ready for my beating now. Ll.
triblet	posted 08-08-2002 02:17 PM ET (US) Line of Credit is a great way, PROVIDED you are the sort of person who can pay it down. If you habitually max out your credit cards, run away from an LOC. Advantages of LOC: good rates, tax deductable, just write a check to get money. I have one, costs me $45/year, and I keep it even though it hasn't had a balance in several years. Chuck
David Ratusnik	posted 08-08-2002 02:17 PM ET (US) Buy a smaller boat- cash only. .03 David
triblet	posted 08-08-2002 02:18 PM ET (US) Oh, and does the credit union understand that the NADA guide is hull only and does not include motor, trailer, and electronics? Chuck
kgregg	posted 08-08-2002 03:01 PM ET (US) >Oh, and does the credit union >understand that the NADA guide >is hull only and does not >include motor, trailer, and electronics? Using nadaguides.com, you can place a value on hulls, motors, trailers, and misc boating equipment. The credit union never asked me what equipment the boat had. They don't seem too interested in giving me a loan to buy this boat (despite me being a customer of theirs for 13 yrs). So, I will shop around for boat loans.
hauptjm	posted 08-08-2002 04:27 PM ET (US) kgregg, I would also agree that cash is the way to go, but if necessary to borrow, the home loan is the only way to go. Of course, you HAVE to pay it down asap. And don't forget to write off the fees, as well as the interest. This all assumes you have the appropriate equity in your home. If this loan brings your overall equity below 20%, you subject yourself to PMI insurance premium being added to your monthly note.
JFM	posted 08-08-2002 05:34 PM ET (US) k, I'm a pay cash guy too. I think most of the guys mean well, but if you are going to borrow money for a boat get a home equity loan. If you can't get one you shouldn't be buying a boat. Regards, Jay
Kelly	posted 08-08-2002 06:57 PM ET (US) John Pierport Morgan's yacht, the Corsair II, was 304'long, had a 33.5' beam, a 17' draft, and would go 19 knots. When asked about the cost of the Corsair II, Mr. Morgan replied, "If you have to consider the cost, you have no business with a yacht." It is all relative. Personally, I am torn. On one hand I want to be responsible. On the other, kids grow fast and life is short. Kelly
my1st13sport	posted 08-08-2002 09:08 PM ET (US) cash only, if you can ,but do what makes you happy. You only live once.
kgregg	posted 08-08-2002 09:49 PM ET (US) I failed to mention in original post that I do have a home equity loan. Problem is, I used it to pay off a car loan, pay down a large part of a 2nd car loan, buy a new roof and carpet for family room, buy Pergo for bedroom, buy an engagement ring, nearly pay off 2 credit cards, on and on. I do have some of it left for boat purchase, though. (Luckily)
Landlocked	posted 08-08-2002 10:30 PM ET (US) Not judging, don't get me wrong but I feel the need to temper my first post. I've been there. Yes, I used a home equity loan to get my boat - the right boat came up when I didn't have the cash. My pops had 4 heart attacks -the first at 32. My grandma had 7 brothers. All died before 45 - you guessed it, heart attacks. I believe in living now. Tommorrow won't necessarily come. I carry enough life insurance to take care of my kids and wife in the event genetics take their toll. Without posting too much about my personal finances on a public forum, I'd also like to say that I've learned you can take living now too far. There is a point where debt takes the fun out of it. A few years ago, in the middle of the remodel of a 100 year old house, I got layed off. Never missed a payment and managed to finish the house but life wasn't a lot of fun for a while. I've done the finance, refinance, and refinance the refinance thing a few times. It sucks. There is nothing wrong with borrowing but do it wisely. When the new wears off the boat, the payment will still be there. AS I read your your last post, I'm getting a little bit of that dejavu' feeling. Just watch it. If you know you can do it without strapping yourself and your job is secure go for it. If you have any doubts, think twice.... Just some friendly advice. Ll.
jimh	posted 08-08-2002 11:05 PM ET (US) I may have told these stories before, if so indulge me again. In a previous marriage (almost twenty years ago now), I had an -in-law who was quite a character. He went to the boat show one January and bought a Starcraft Islander 21 for no money down. The boat was priced about $12,000 (at the time), and the show "special" had the price lowered to around $11,000. His salesman manipulated the paperwork to show that he'd made a down payment of $2000 on the boat with a price of $13,000. Then they took this to a banker and got a loan for the remaining $11,000--making it look like the buyer had made a 20% down payment. So my -in-law got into this boat for zero money down and just a monthly payment of a hundred bucks or so for some huge long term. At the time it seemed pretty amazing to me. With a finance set up like that you'd wonder if he would ever bother to pay off the boat. Heck, just use it for a few months and then tell them to come get their boat back! In contrast, more recently a friend finally sold his 27-foot twin engine cabin cruiser. He bought it new, had made a substantial down payment on it, had been making a huge monthly note on it for years, and had left it unused for the past two years--sitting in a boat yard for sale. He finally found a buyer. When all was said and done he had to come up with several thousand more to pay off the balance. It was a pretty expensive boat to own as it turned out. In contrast, a used Whaler bought for cash and kept in good condition can be enjoyed and sold with out much lost investment.
Dick E	posted 08-09-2002 12:00 AM ET (US) NADA values are not true values for whalers. Whalers are not like other boats. There BETTER built and retain values very well! A 1968 Sakonnet will bring more money today then what the owner probably paid for it. Get it appraised by a cetified marine appraiser. It will be more than NADA. Something you can take to the bank
Dick E	posted 08-09-2002 12:00 AM ET (US) NADA values are not true values for whalers. Whalers are not like other boats. There BETTER built and retain values very well! A 1968 Sakonnet will bring more money today then what the owner probably paid for it. Get it appraised by a cetified marine appraiser. It will be more than NADA. Something you can take to the bank
Kelly	posted 08-09-2002 01:00 AM ET (US) Funny thing about engagement rings. There seems to be a statistically significant corelation between engagement rings and wives, babies, and a need for cash. Kelly
EddieS	posted 08-09-2002 01:32 AM ET (US) Follow the advice others have given about getting a survey done. I purchased a 1977 32ft luhrs and financed through my credit union, due to the cost, size and age they required a survey. Surveyers have more latitude in fixing a value on the boat, not unlike house appraisers. Tell the surveyer your situation, my surveyer was quite cooperative and I had no problem getting the loan with 20% down. It is also a well spent couple of hundred for peace of mind. Ed