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Author Topic:   Boat Loan Rates?

JoeyP posted 03-21-2008 06:45 PM ET (US)
What's with the boat loan rates? I have been searching around and find the rates are about the same as they were 3 months ago. I got my eye on an 08 190 Outrage so I'm shopping rates. Yeah, I know.. I have been talking about a new 190 for a month now.
kamie posted 03-22-2008 11:39 AM ET (US)
Why would you expect them to go down?
Tom Hemphill posted 03-22-2008 05:38 PM ET (US)
I would have expected loan rates to go down the same way interest paid on bank savings accounts has plummeted.
I recently borrowed money for a used car purchase from my local credit union, and the interest rate was much less than other lenders. The terms were more flexible, as well. It may be the same case for boat loans. Unlike twenty years ago, credit unions nowadays pretty much accept anyone as members, in my experience.
swist posted 03-24-2008 09:45 AM ET (US)
If you hadn't noticed, there is a real crisis in the credit industry these days. No one is lending money to anyone but the lowest possible risk candidates. And there is not a lot of incentive to provide low interest rates when the lenders are now so paranoid about covering bad loans.
And as always in boating, there is not enough volume (compared to car loans or home mortgages) to amortize bad loans over a very large population of good loans.
JohnJerk posted 03-24-2008 10:12 AM ET (US)
Try a credit union as suggested above. If you can get to 6 or 6.5% on a 10 year loan you are doing pretty well as far as I can tell. A lot of lenders have a "best rate" of 8% or 10% - rediculous.
JoeyP posted 03-25-2008 05:05 PM ET (US)
I've found 6.99 to 7.25 on a 10 and 15 year loan at Commerce Bank. My Credit Union is offering 6.25 on five years and 7.25 on ten years. I would think that part of that plan to encourage consumers to spend would include a drop in consumer lending rates. Things jusy may be slow to respond. April could be a better time to shop rates.
JohnJerk posted 03-25-2008 07:56 PM ET (US)
I got my loan from America First Credit Union. 6.25% for 10 years (must be $20K+). They are a great lender for at least three reasons:
1. If thier rates go down in the future, you can call them and ask for the new rate (it's true and costs nothing).
2. They will compete with any rate offered anywhere else provided the amortization calculations are the same (can only be done when you originate the loan).
3. You can make a large payment and have them reamortize your monthly payment (so you can "borrow" less than $20K if you get a little savy with when you pay your down payment).
I don't know if they lend nationally or not, but I couldn't find anyone with a rate this low or an agreement this fair. Try them out or find a similar outfit. Good luck.

BlueMax posted 03-25-2008 09:13 PM ET (US)
Are you in a position that you can maybe purchase with a home equity loan? If so that may be the better way to go - possible 15-30 year payoff period which allows for paying down principle at a faster rate on lower monthly payments due to the longer term and also most equity lines follow prime rate which is now down around 5.25% so you can maybe get a line of equity with a credit union at prime (-)1% putting your loan at a possible 4.25% right now.
Ridge Runner posted 03-26-2008 04:20 PM ET (US)
I just got a 15 year loan on a 2002 295 Conquest at 6.87% from U.S. Bank, through iNet recreational Finance & Insurance. (512)231-0205. www.inetrac.com
JoeyP posted 03-26-2008 07:57 PM ET (US)
Bluemax
Yes, the home equity loan is definetly a possible option. It seems the better boat loan rates are available with larger loans say over 50K.
JohnJerk posted 03-27-2008 09:57 AM ET (US)
A financial advisor would tell you to never roll car/boat financing into a home equity loan despite the apparent benefits (the interest being tax deductible etc). This is because, should your financial situation change dramatically for the worse, and you've rolled all of your debt into your mortgage payment, they will come and take your house instead of just your boat. You need your house. Certainly if you owe very little on your house, you may very well be able to justify this option. Just don't underestimate these uncertain times...
Also, I don't think you can get a fixed rate of 4.5% on a home equity loan - never seen that.
Brian7son posted 03-27-2008 01:50 PM ET (US)
"should your financial situation change dramatically for the worse, and you've rolled all of your debt into your mortgage payment, they will come and take your house instead of just your boat."
That's exactly why I got a boat loan rather than doing that myself. I think that lots of people did that with boats and motorcycles (bought them with home equity lines of credit). I didnt want mine tied to my house. The record number of foreclosures going on scares me.
DLee posted 03-27-2008 05:30 PM ET (US)
I got 6.39 last month for a ten year boat loan through USAA. They are an amazing operation in all respects if you can qualify to join.
They've got 5.39 on new car loans now with up to 110% financing. Great insurance rates too.
Give them a call.

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Author	Topic: Boat Loan Rates?
JoeyP	posted 03-21-2008 06:45 PM ET (US) What's with the boat loan rates? I have been searching around and find the rates are about the same as they were 3 months ago. I got my eye on an 08 190 Outrage so I'm shopping rates. Yeah, I know.. I have been talking about a new 190 for a month now.
kamie	posted 03-22-2008 11:39 AM ET (US) Why would you expect them to go down?
Tom Hemphill	posted 03-22-2008 05:38 PM ET (US) I would have expected loan rates to go down the same way interest paid on bank savings accounts has plummeted. I recently borrowed money for a used car purchase from my local credit union, and the interest rate was much less than other lenders. The terms were more flexible, as well. It may be the same case for boat loans. Unlike twenty years ago, credit unions nowadays pretty much accept anyone as members, in my experience.
swist	posted 03-24-2008 09:45 AM ET (US) If you hadn't noticed, there is a real crisis in the credit industry these days. No one is lending money to anyone but the lowest possible risk candidates. And there is not a lot of incentive to provide low interest rates when the lenders are now so paranoid about covering bad loans. And as always in boating, there is not enough volume (compared to car loans or home mortgages) to amortize bad loans over a very large population of good loans.
JohnJerk	posted 03-24-2008 10:12 AM ET (US) Try a credit union as suggested above. If you can get to 6 or 6.5% on a 10 year loan you are doing pretty well as far as I can tell. A lot of lenders have a "best rate" of 8% or 10% - rediculous.
JoeyP	posted 03-25-2008 05:05 PM ET (US) I've found 6.99 to 7.25 on a 10 and 15 year loan at Commerce Bank. My Credit Union is offering 6.25 on five years and 7.25 on ten years. I would think that part of that plan to encourage consumers to spend would include a drop in consumer lending rates. Things jusy may be slow to respond. April could be a better time to shop rates.
JohnJerk	posted 03-25-2008 07:56 PM ET (US) I got my loan from America First Credit Union. 6.25% for 10 years (must be $20K+). They are a great lender for at least three reasons: 1. If thier rates go down in the future, you can call them and ask for the new rate (it's true and costs nothing). 2. They will compete with any rate offered anywhere else provided the amortization calculations are the same (can only be done when you originate the loan). 3. You can make a large payment and have them reamortize your monthly payment (so you can "borrow" less than $20K if you get a little savy with when you pay your down payment). I don't know if they lend nationally or not, but I couldn't find anyone with a rate this low or an agreement this fair. Try them out or find a similar outfit. Good luck.
BlueMax	posted 03-25-2008 09:13 PM ET (US) Are you in a position that you can maybe purchase with a home equity loan? If so that may be the better way to go - possible 15-30 year payoff period which allows for paying down principle at a faster rate on lower monthly payments due to the longer term and also most equity lines follow prime rate which is now down around 5.25% so you can maybe get a line of equity with a credit union at prime (-)1% putting your loan at a possible 4.25% right now.
Ridge Runner	posted 03-26-2008 04:20 PM ET (US) I just got a 15 year loan on a 2002 295 Conquest at 6.87% from U.S. Bank, through iNet recreational Finance & Insurance. (512)231-0205. www.inetrac.com
JoeyP	posted 03-26-2008 07:57 PM ET (US) Bluemax Yes, the home equity loan is definetly a possible option. It seems the better boat loan rates are available with larger loans say over 50K.
JohnJerk	posted 03-27-2008 09:57 AM ET (US) A financial advisor would tell you to never roll car/boat financing into a home equity loan despite the apparent benefits (the interest being tax deductible etc). This is because, should your financial situation change dramatically for the worse, and you've rolled all of your debt into your mortgage payment, they will come and take your house instead of just your boat. You need your house. Certainly if you owe very little on your house, you may very well be able to justify this option. Just don't underestimate these uncertain times... Also, I don't think you can get a fixed rate of 4.5% on a home equity loan - never seen that.
Brian7son	posted 03-27-2008 01:50 PM ET (US) "should your financial situation change dramatically for the worse, and you've rolled all of your debt into your mortgage payment, they will come and take your house instead of just your boat." That's exactly why I got a boat loan rather than doing that myself. I think that lots of people did that with boats and motorcycles (bought them with home equity lines of credit). I didnt want mine tied to my house. The record number of foreclosures going on scares me.
DLee	posted 03-27-2008 05:30 PM ET (US) I got 6.39 last month for a ten year boat loan through USAA. They are an amazing operation in all respects if you can qualify to join. They've got 5.39 on new car loans now with up to 110% financing. Great insurance rates too. Give them a call.