Financing/Boat Buying Insight Needed

[mwinger75]

I think this might be the year! Looking to buy used and wondered if anyone could shed some light on the best place to finance a used boat? Seems like Chase is great for cars, but not so much for boats. Any insight would be appreciated? 20% down? Thank

[nukemustang]

Are you a member of or able to become a member of a credit union? They seem to have the better rates compared to most banks. I think typical banks see boats as a luxury item and if your financial situation turns sour, the first thing you stop paying for is a boat/RV/jet ski/ATV/etc....so they ask for slightly higher rates.

I went through USAA (no, I am not a baller that paid cash for my boat) and am pretty happy with their terms.

[mwinger75]

Thanks, I purchased a car several years ago with a credit union because of the low rate...good call. Also, I'm assuming if bought at the right price, a Nautique would have a decent resale value (as I'm finding). So, if my life took a 180 I could get out from under it without being hurt too badly. How do you like the SV211? ...looking for something in that age group.

[nukemustang]

I love my 211. I would love a brand new 230 with the NSS and linc and a 450 motor.... but I also appreciate my sub $300 boat payment, lol. The boat is great for my needs, typically it is just our family, or maybe ours and another, it puts out a great wake for beginners and gets very large and rampy and will support anything I can do. I do wish it would surf easier, but I am thinking of putting on the gosurfassit kit eventually, and for the $3K that would cost, I am still doing great cost wise. Over the years, I have had a 2000 Malibu Sunsetter LXI (direct drive) and then bought a brand new 2005 MC X-2 which was a huge upgrade. The interior of the 211 is MUCH larger then the X-2 even though it is only a foot longer.

If I lived further south (florida) and on a lake, my desires for a newer boat maybe stronger, but until then, I am good.

It fits in my garage (84" door) as a great bonus not having to pay storage somewhere too. The walk thru is a bonus for my OCD of watching people not try to puncture the vinyl or drag wakeboards across it.

I think used boat prices are pretty "stable" in that new boat prices seem to keep rising, so as long as you get a good deal, you should be okay.

[swc5150]

I second your local credit union. I got a crazy deal on my latest 196, so I financed 0 down at 2.5%. Buy right, and you're safe if you need to unload it. I could sell my boat today for more than I paid. I don't like to finance depreciating assets, but I've yet to own a Nautique that fell into that category. I sold my first 196 for more than I paid for it brand new off the showroom floor. I may be the exception, but I've yet to lose a dime on any 196 I've owned, primarily due to the constant price increases on the new models.

[Jeff88]

Are you able to use a HELOC?

[mwinger75]

Good to know and thanks for the responses. I'd rather not get the house involved.

[Mnfazer]

I financed a boat this fall through Wings Financial at a rate of 2.9%. It was seemless, look them up.

[thtrog]

I just financed through USAA for the first time...easy process and competitive terms.

[Jeff88]

Good to know and thanks for the responses. I'd rather not get the house involved.

Interest is deductible and most of the rates are around 4%.

[Dandy21]

Interest is deductible and most of the rates are around 4%.

I would double check that. Some states may allow all interest to be deducted (MN does not) but the US federal government has restrictions. A boats interest could be deducted as a second (vacation) home if it had sleeping quarters, cooking area and self contained bathroom (same rules with a RV). I do know that on any of the Tow boats we have financed (same with autos) the interest is not deductible.
For the best interest rates, I have had great luck with the marine specific finance companies that our dealer uses. I believe they tend to understand the market better as well as the real risks involved.

Good luck.

[Jeff88]

I would double check that. Some states may allow all interest to be deducted (MN does not) but the US federal government has restrictions. A boats interest could be deducted as a second (vacation) home if it had sleeping quarters, cooking area and self contained bathroom (same rules with a RV). I do know that on any of the Tow boats we have financed (same with autos) the interest is not deductible.
For the best interest rates, I have had great luck with the marine specific finance companies that our dealer uses. I believe they tend to understand the market better as well as the real risks involved.

Good luck.

Home equity debt: This category includes mortgages taken out after Oct. 13, 1987, that were not used to buy, build or improve your home. But these mortgages qualify only if throughout the year they totaled $100,000 or less ($50,000 or less if married filing separately). Additionally, they must not have totaled more than the fair market value of your home, reduced by "grandfathered debt" and "home acquisition debt."
The good news is that if your mortgage interest meets these criteria, then it is deductible. If it does not, then there is a work sheet in Part II of IRS Publication 936 that can be used to calculate your deduction.

[kneebrdr]

With boat show season starting, may want to go to local boat show and talk to dealer about financing a used boat. I have also seen finance companies at the boat shows running "specials".

[Dandy21]

Home equity debt: This category includes mortgages taken out after Oct. 13, 1987, that were not used to buy, build or improve your home. But these mortgages qualify only if throughout the year they totaled $100,000 or less ($50,000 or less if married filing separately). Additionally, they must not have totaled more than the fair market value of your home, reduced by "grandfathered debt" and "home acquisition debt."
The good news is that if your mortgage interest meets these criteria, then it is deductible. If it does not, then there is a work sheet in Part II of IRS Publication 936 that can be used to calculate your deduction.

Thanks for pointing that out...I had overlooked the part about the house. I had assumed it was a straight note on the boat. Sorry...my mistake.

[Tallredrider]

For the last few years it is true that a used boat is likely to maintain its value. But I would remind everyone of what happened in 2008. That is not all that long ago. The banks had no choice but to repo many boats and sell them at a loss. Lots of people were upside down in their loans almost overnight. Many of the same economic issues are still in play in the US, so it could happen that the value of these boats plummet, at least for the short term.

Could you make your boat payments for a year if you lost your job or took a 50% pay cut?