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Who loans on old boats? Or Contenders?

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Who loans on old boats? Or Contenders?

Old 01-16-2019, 10:43 AM
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Default Who loans on old boats? Or Contenders?

I tried to get a loan today for an updated 80s boat today and they valued it at 18k which we all know the market value is twice that. Who loans on boats other than my average credit union.

I then asked a value on an 80s Contender and they didnít even know what a contender is because it wonít come up in NADA! Who loans on used Contenders because my credit union wonít.
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Old 01-16-2019, 11:07 AM
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I financed my last boat through lightstream and would recommend them. It was easy, painless, and they will finance a 30 year old boat.

https://www.lightstream.com/
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Old 01-16-2019, 11:10 AM
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Default 15 years

Most financing companies will not touch anything over 15 years old unless you are dealing with a larger more expensive vessel. I just closed on a new boat loan and my CU had the hard and fast rule of 15 years.

Good luck.
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Old 01-16-2019, 11:13 AM
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Did lightstream do Contenders?
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Old 01-16-2019, 11:15 AM
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pretty sure lightstream just considers it a personal loan and doesnt attach the boat with a lean or use it as collateral. So although im not 100% sure, the type of vessel is not as important as your credit history with them
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Old 01-16-2019, 12:44 PM
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Originally Posted by GC88 View Post
I tried to get a loan today for an updated 80s boat today and they valued it at 18k which we all know the market value is twice that. Who loans on boats other than my average credit union.

I then asked a value on an 80s Contender and they didnít even know what a contender is because it wonít come up in NADA! Who loans on used Contenders because my credit union wonít.
Most lenders get cautious around 20 years and many will not lend over 30 years.

A boat loan that is not based on the collateral (i.e. more like a personal loan) may work better for you but expect higher rates.

Nada is junk. If they rely on Nada then find someone else to get the loan through. Most of my recommendations are for 100-150k+ loans so not going to waste your time but there are plenty of threads here with good recommendations such as Lightstream.
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Old 01-16-2019, 12:45 PM
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Exactly as above. Lightstream will require you to actually own a boat, and can call the loan or massively increase the interest if you do not, but they otherwise do not limit you on the purchase. You can buy the boat you want.

It is effectively a personal loan, and you'll have shorter maximum durations for the loan than a normal boat loan.
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Old 01-16-2019, 01:05 PM
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A good alternative, if you have the time, is to open a home equity line of credit (HELOC). As the banks can be picky, don't blurt out you're buying a boat, if they ask just say it's to help with your kid's education or a home remodel. The HELOC requires some equity in your home, in essence it becomes a 2nd.
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Old 01-16-2019, 01:12 PM
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Originally Posted by Bouncing Along the Bottom View Post
A good alternative, if you have the time, is to open a home equity line of credit (HELOC). As the banks can be picky, don't blurt out you're buying a boat, if they ask just say it's to help with your kid's education or a home remodel. The HELOC requires some equity in your home, in essence it becomes a 2nd.
One of the worst ideas is to borrow money against your primary residence for a boat which is a depreciating asset/toy. During the financial crisis, people stopped paying for autos, toys (aka boats, RVs), and then eventually homes. Would you want to risk your home for a boat? Yes this is a small purchase but there are TONS of better options and HELOC should be a last resort for borrowing for a boat. And you are suggesting he lies for what the money is to be used for? Do they even need a reason?
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Last edited by mystery; 01-16-2019 at 01:18 PM.
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Old 01-16-2019, 01:15 PM
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Also check lending club and similar operators. You'll likely pay a higher rate but the loan will be unsecured if SHTF
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Old 01-16-2019, 04:50 PM
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Lightstream is fine they just do 84 months and would prefer 120. Are these people spending 80-90k on used Contenders doing it on 84 months?
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Old 01-16-2019, 06:22 PM
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Originally Posted by mystery View Post
One of the worst ideas is to borrow money against your primary residence for a boat which is a depreciating asset/toy. During the financial crisis, people stopped paying for autos, toys (aka boats, RVs), and then eventually homes. Would you want to risk your home for a boat? Yes this is a small purchase but there are TONS of better options and HELOC should be a last resort for borrowing for a boat. And you are suggesting he lies for what the money is to be used for? Do they even need a reason?
Actually, if you know how to manage your credit, using your equity in your home is not always a bad idea. For example, if he already owns his home free and clear it would be the best financing he can get. If not a HELOC, a HE Loan with a fixed rate and term if that makes you more comfortable.
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Old 01-16-2019, 06:30 PM
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Originally Posted by ByrdmanFL View Post
Actually, if you know how to manage your credit, using your equity in your home is not always a bad idea. For example, if he already owns his home free and clear it would be the best financing he can get. If not a HELOC, a HE Loan with a fixed rate and term if that makes you more comfortable.
Deductible interest to boot. Another thought, since we are talking about throwing good money after bad, is you can often take a loan agains your 401k or IRA (custodian rules vary). The plus side is you are borrowing your own money and paying yourself interest. The down side is you don't reap the compounded interest. Might not matter anyway after the next election and it all goes to hell. Max terms are usually 5 years however. You're looking to go 15 years on a 30 YO boat?
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Old 01-16-2019, 06:58 PM
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Originally Posted by popeyeiii View Post
Deductible interest to boot. Another thought, since we are talking about throwing good money after bad, is you can often take a loan agains your 401k or IRA (custodian rules vary). The plus side is you are borrowing your own money and paying yourself interest. The down side is you don't reap the compounded interest. Might not matter anyway after the next election and it all goes to hell. Max terms are usually 5 years however. You're looking to go 15 years on a 30 YO boat?
if you have good credit, cash flow, and equity a HE Loan can go up to 15 years. Sometimes it will be set up as a 15 year am but reprice or balloon every 5-10 years, sometimes not and fixed for the full 15. Usually HELOC will be interest only min payment and usable for 10 years.

usually there are limitations for 401k withdrawls like primary home purchase, financial emergency, etc. For any other withdrawls, it is considered a distribution at normal tax rate +10%. Be careful with that option.
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Old 01-16-2019, 07:21 PM
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Lightstream is great! I got a better rate than any of the quotes that I received from banks and credit unions. Also you hold the title not the bank. They do require a pretty decent credit score but the money is in your bank account in 24hrs. The boat I financed is older but will hold its value for the duration of my loan. Light stream will give you a loan as long as your credit score is good, itís up to you to be smart and do your due dillegence to make sure you wonít be upside down on the boat that you finance. Donít listen to the naysayers who undoubtedly will chime in and advise you not to finance a toy, life is short enjoy the ride.
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Old 01-16-2019, 07:33 PM
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Originally Posted by ByrdmanFL View Post
Actually, if you know how to manage your credit, using your equity in your home is not always a bad idea. For example, if he already owns his home free and clear it would be the best financing he can get. If not a HELOC, a HE Loan with a fixed rate and term if that makes you more comfortable.
I think that is even worse. Owning your home free and clear and then making a one decision that means you no longer own your home free and clear. I have had no problem getting long term fixed rate boat loans at rates very similar to rates offered for HELOC.
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Old 01-16-2019, 07:44 PM
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I want a 10 year boat loan for 32k. I did a 10 year boat for 22k for the one that I have now. I didnít think it would be difficult to find this from 3 years ago. Lightstream would be fine but itís 7 years. I would do 7 years but I havenít sold my boat yet so I would hold two boats untill mine sells. My current boat is a great boat and would expect it to sell within 60 days.

I dont want want to mortgage my house for a boat, just want a fixed loan for 10 years.
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Old 01-16-2019, 08:03 PM
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Lafayette fcu gave me a 10 year loan on a 42k boat that was 16 years old at the time. You will have to get it surveyed and put some money down.
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Old 01-16-2019, 09:14 PM
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Originally Posted by GC88 View Post
which we all know the market value is twice that.
Without the specifics of the boat we all have no way to even guess at the value.
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Old 01-17-2019, 03:26 AM
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Originally Posted by ByrdmanFL View Post
\

usually there are limitations for 401k withdrawls like primary home purchase, financial emergency, etc. For any other withdrawls, it is considered a distribution at normal tax rate +10%. Be careful with that option.
It's a loan, not a distribution.
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