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Interest rates on new boat

I’m sure it depends on credit and some other factors. Mortgage rates are as low as 2.5% in some areas so 7% on a boat loan seems high but that’s just me.
 
Me too. Son’s car loan is in the 4s (and that was before close to 0 treasury rates). I would think boats would be close.
 
Credit score 795 and loan amount is 32k , glad i asked cause i thought boat loans were different from home and auto rates
 
It's not horrible for the term length, per se...but you can probably do a bit better.


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Best bet is to hit up your local banks and especially credit unions to get pre-qualified, then take whatever loan you select to your boat dealer. If your dealer can secure financing that beats your pre-qualified loan term/rate, then great!
 
So I can’t see past 4 years at my credit union for boats. But @ 4 years, new pontoon is 3.5% at my credit union. Don’t know if longer term increases that, but in current rate environment, I would not think too much. For longer term you might ask about a personnel loan or home equity loan and those might keep the interest rate lower as well. For loans I’ve found credit unions to be the best bet, but as DejaWiz suggests, get a quote or two you like and bring that to the dealer. They’ll get a kickback either way (lower, but will get something) so will want to work with whomever to match or beat the rate. You’ve got a great credit rating so I would think you could find something much better.
 
Some good ideas above. Similar to Tom, I was thinking about also exploring other loan options that might provide better rates. I know in Michigan, or maybe just in our two areas of Michigan, Boat/ATV/Snowmobile, etc. rates always seem high and out of whack with almost all other loan rates. If in an area that seems that way too, maybe looking into the HELC (Home Equity Lines of Credit) or other options. With the prime rate where it is, there has to be “some” option that is a better rate than that with your credit score.
 
The crazy thing is that is our first boat purchase and a few boat owners locally saying that’s a good rate ....so confused right now and don’t want the toon to be sold if i wait too long to decide
 
Some 401's allow you to take a loan ,the interest rate is usually 1/4 % over prime , its paid back into your account . Many years ago the interest was even deductible on your taxes ,but someone caught on to that .
 
See if your dealer has a recommendation. When we got ours, our dealer recommended State Farm. They had the best rates of all we had looked at, and went way out of there way to take care of us. Even met us at dealer to so we could sign everything at one time. Heck, I still get a birthday card from them every year ... ;)
 
SEMPERFI8387 said:
See if your dealer has a recommendation. When we got ours, our dealer recommended State Farm. They had the best rates of all we had looked at, and went way out of there way to take care of us. Even met us at dealer to so we could sign everything at one time. Heck, I still get a birthday card from them every year ... ;)
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Dealer recommended priority one bank
 
Got a loan through Lightstream (division of Suntrust now Truist).

$72k 4.49% 60 months. No prepayment penalty, and best part is it’s an unsecured loan so the boat does not have a lien on it. This was really a bridge loan until I unloaded some equities once they become long term and the tax on the gain is much less.

Dealer offered a similar-ish rate through their financing vehicle but asked that I not prepay early or they lose their kickback. I was upfront that I was going to prepay so I didn’t want to make them go through the paperwork, hence the loan elsewhere.

USAA had an attractive rate but they told me due to Covid they were capping boat loans at $25k IIRC. You may find other lenders with similar restrictions.

Good luck!
 
Potomacbassin’ said:
Got a loan through Lightstream (division of Suntrust now Truist).

$72k 4.49% 60 months. No prepayment penalty, and best part is it’s an unsecured loan so the boat does not have a lien on it. This was really a bridge loan until I unloaded some equities once they become long term and the tax on the gain is much less.

Dealer offered a similar-ish rate through their financing vehicle but asked that I not prepay early or they lose their kickback. I was upfront that I was going to prepay so I didn’t want to make them go through the paperwork, hence the loan elsewhere.

USAA had an attractive rate but they told me due to Covid they were capping boat loans at $25k IIRC. You may find other lenders with similar restrictions.

Good luck!
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Thanks for that share
 
Put half down on our new boat in December. 4% loan through Bank of the Ozarks. (Dealer recommended bank) But it didn't matter..... Sold our I/O in the spring. Paid off the loan in May......
 
Use your Libe of Credit on your house. Current rate on mine from Key Bank in NY is 3.99%. Used to be able to claim interest paid on the loan but accountant told me the law changed last year and cannot claim unless it is used solely for house improvements
 
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