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Financing question

J

jmoreland

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Just curious what most folks are doing on their new or used boat purchases? I’ve been looking around a little bit and have talked to my credit union. A couple that keep popping up are lightstream and US Bank. I’m really not wanting to do a 20 year term, but would consider something in the 10-15 year range. I’d just like to hear what kind of rates and terms are out there that I may have overlooked. Thanks!
 
Some 401's allow you to take a loan from yourself . The interest is usually very low and paid back into your account .
 
Jack M said:
Some 401's allow you to take a loan from yourself . The interest is usually very low and paid back into your account .
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There's a limit as to what you can borrow, and you have to pay it back in 5 years. If you don't, there are serious financial consequences. Plus, the interest might be very low, but you are drawing nothing on what would have accrued earnings. Generally not recommended to draw from your retirement funds unless you absolutely have to.

I know US Bank had a 20 year loan at about 4.5% with an early payoff penalty within the first couple years of like $200. Nothing after that. Make it long to keep the payments small, then pay it off early or make an extra payment every year.
 
Companies have different rules ,my wife's it's not allowed.
My limit was 50% of what I had in my account 5 or 10 years .
 
Not sure if State Farm started doing boats again, but we went through them in 2017. They beat every local bank and all 3 credit unions I could have used.
 
My 1st 2 boats we used home equity loans. (Yeah back in the olden days!) We sold our I/O and took the proceeds and plunked it down on our current boat. We were going to go with Bank OZK which had good competitive rates but my wife hates loans/car payments etc. so we used cash for the rest......
 
If you are going with a Dealer I was told that the Dealer should be able to give you a good rate that the bank offers them for their business.
 
You mean you're not paying all cash like all the other high rollers?? :cool:

I got mine through Lightstream, I liked the flexible terms, low rate and best of all is an unsecured loan. In all seriousness I'm sure many of us can go all cash but if there's a recession in the near term I think there will be some bargain investments that the cash will be better put to use. At least that was theory for me but that blew up in my face.
 
ILLINOIS AVE said:
If you are going with a Dealer I was told that the Dealer should be able to give you a good rate that the bank offers them for their business.
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The dealership gets kickbacks from finance companies too.....so sometimes it's not on the best rate it's on how much kickback they are getting. Car dealerships used to, not sure if they still can, add to the interests rate and they make money off of the financing just for facilitating the deal.
 
Elite203 said:
The dealership gets kickbacks from finance companies too.....so sometimes it's not on the best rate it's on how much kickback they are getting. Car dealerships used to, not sure if they still can, add to the interests rate and they make money off of the financing just for facilitating the deal.
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I've worked at a car dealership for years and yup, you're correct, they can still bump up the interest rate to earn a "reserve" (the kickback) from the lender. I figured that was probably the case with boat dealers too, but nonetheless, we still chose to finance the portion of our boat and trailer purchase that was left over after deducting trade equity and our down payment. Our loan ended up being through US Bank; 180-month term @ 4.99% (purchase was just done this month). No way we're making payments on that thing for 15 years though! I'm guessing we'll get the itch to trade well before that anyway. ;)
 
We did a 15-yr loan with US Bank last year, but plan on paying it off early. I forget what the rate was, but I recall it was 5% something.
 
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