Finance options for new boat

[thinkxingu]

Hi,
Looking at finance options for a new boat--usually use my credit unions, but they're at 6.5% for 7+ years and I'm thinking I might be able to do better elsewhere. Thoughts?

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[dave603]

What credit union is that?
GSCU is currently advertising 1.74% for anything that moves loans.

[ishoot308]

Originally Posted by thinkxingu

Hi,
Looking at finance options for a new boat--usually use my credit unions, but they're at 6.5% for 7+ years and I'm thinking I might be able to do better elsewhere. Thoughts?

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Have you tried the dealer your buying from?? Sometimes they work closely with local banks or other financial institutions and at times can offer very good rates. It's worth asking...

Good Luck!

Dan

[DesertDweller]

Originally Posted by dave603

What credit union is that?
GSCU is currently advertising 1.74% for anything that moves loans.

That's a kick ass rate. Only up to 36 months if that works for you and you are eligible to join.

Here are two national groups:

http://boatbanker.com/

https://www.essexcredit.com/

[Outdoorsman]

Originally Posted by thinkxingu

Hi,
Looking at finance options for a new boat--usually use my credit unions, but they're at 6.5% for 7+ years and I'm thinking I might be able to do better elsewhere. Thoughts?

If you are being offered 6.5% for 7+ years you may want to check out your Credit Score. There are several companies that will assist you with ways to improve your credit score.

[Outdoorsman]

Originally Posted by DesertDweller

That's a kick ass rate. Only up to 36 months if that works for you and you are eligible to join.

I did not check out your links so I will not comment on those, BUT, two key points from your post would be

"only up to 36 months" and "if you are eligible to join". Your credit score is KEY to getting low interest rates.

[thinkxingu]

Originally Posted by Outdoorsman

If you are being offered 6.5% for 7+ years you may want to check out your Credit Score. There are several companies that will assist you with ways to improve your credit score.

My credit score is just under 800--it's perfect. The credit unions I usually work with just aren't competitive over 4 years, as the posts above show. One will do 3.9 for 6, but I'd much rather go 7 right now.

I'll check with the dealer--any other suggestions in the meantime would be great.

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[DesertDweller]

Here are the disclosures on the Granite State Credit Union rates:

Rates and amount financed are determined by your credit history. All rates quoted include a discount for selecting 2 of the following services: life insurance, disability insurance, estatements or automatic payments, otherwise add .50%. Rates are subject to change at anytime however the rate will remain in effect for the life of the loan once disbursed. Estimated monthly payment does not reflect the additional cost of insurances. Additional rates and terms available. Please contact Member Services for additional information. *Annual Percentage Rate (APR) is based on a loan amount of $35,000 plus a $95 origination fee.

[thinkxingu]

PS Granite State is where the 6.5% is--those 1 and 2% offers are for less than 4 years.

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[Twox48]

What about a home equity line of credit? That's how I plan to finance my new boat. I'm at 2.5% right now...

[kawishiwi]

https://www.essexcredit.com/home/rates/
As mentioned in prior post.

These guys were so good and responsive for the loan on my new boat last year. Much better rates than my local credit union.

[thinkxingu]

Originally Posted by kawishiwi

https://www.essexcredit.com/home/rates/
As mentioned in prior post.

These guys were so good and responsive for the loan on my new boat last year. Much better rates than my local credit union.

4.9% for 10 years is pretty good--thanks for the link!

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[gator8]

I purchased a boat earlier this year and had an excellent experience with lightstream. (A division of SunTrust Bank) Everything was done online and the rates were the best I could find.

[rowinghelmet]

Hanscom Credit Union will do 2.44% for 72 months

https://www.hfcu.org/loans-and-credi...-rv-loans.html

[HellRaZoR004]

Originally Posted by rowinghelmet

Hanscom Credit Union will do 2.44% for 72 months

https://www.hfcu.org/loans-and-credi...-rv-loans.html

That's a great rate.

One thing to consider when searching. Make sure you do all the applications within 14 days as each time you have your credit pulled it will typically reduce your score. Each inquiry within 14 days is generally considered one inquiry. I say this because each inquiry could negatively affect your score by a few points and put you in a different bracket.

[noreast]

Bell weather had great terms and rates, haven't checked lately. As was said. Essex and boat bank usually work with the dealers with good rates. If you go short term as you plan you can find under 5 for sure possibly much lower. Also if you know exactly which boat you want you may want to wait for the boat shows, you could get better terms and lots of upgrades for free. They will still have plenty of time to build your boat for April. If the feds raise the prime rate that could impact luxury item rates pretty quick.

[thinkxingu]

One of the reasons I might bite now instead of waiting for the boat show is that I wouldn't have to pay for winter storage on a boat I'll be trading in--I'm thinking the $700 or so, plus fluids change, is about what I'd save extra at the show?

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[MAXUM]

Originally Posted by thinkxingu

One of the reasons I might bite now instead of waiting for the boat show is that I wouldn't have to pay for winter storage on a boat I'll be trading in--I'm thinking the $700 or so, plus fluids change, is about what I'd save extra at the show?

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I'm curious as to why you don't think the dealer wouldn't pass some if not all those costs on to you? Why would they take the hit to store and service a trade in now when that same space and service could be sold to a paying customer? Especially since space is very limited and comes at a premium. Also taking inventory now makes little business sense unless they think they can flip it BEFORE the end of the year (highly unlikely) otherwise they are going to get tax whacked on that inventory.

Ah... don't be fooled you will be paying for it and then some and just don't know it. Boats a relatively low volume high mark up product to move. These guys wouldn't survive if they were eating those kinds of costs deal after deal.

[thinkxingu]

I remember the boat show pricing last year being not as spectacular as we had been led to believe. I'm also very much a believer in two philosophies: 1. My time is valuable--I'll gladly pay a bit more to drive my boat to the marina next week and pick up my new boat in spring without having to worry about anything in between. 2. I want the company I work with to stay in business, so I'm fine if they make a little money or me.

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[noreast]

Boat shows are definitely a gamble. Last year some brands weren't offering anything while other were doing 3 to 7,000 in upgrades. of course if you bought a boat for 100,000 they would throw in a bit more.

[thinkxingu]

Two dealers have told me that the ordering of boats has changed to a quarterly process, which means they don't NEED to take orders in the cold winter months as much as in the past. We actually agreed on a deal today, which I'll post in the thread about upgrading pontoons.

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[thinkxingu]

Just a quick note that we ended up with GSCU at 4.79% for ten years. State Farm is offering a little lower, 4.55%, but the couple of bucks isn't worth another account to us.

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[radiocontester]

Originally Posted by thinkxingu

Just a quick note that we ended up with GSCU at 4.79% for ten years. State Farm is offering a little lower, 4.55%, but the couple of bucks isn't worth another account to us.

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That's pretty good. Workers Credit Union is also offering fantastic rates on recreational loans (4.49% for 10 years).

[thinkxingu]

Just noticed that Workers Credit Union is for people who live AND work in MA.

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[radiocontester]

Originally Posted by thinkxingu

Just noticed that Workers Credit Union is for people who live AND work in MA.

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I live in NH and work in MA and have done business with them recently (secured the lowest rate available for the product I was looking for). It's worth giving them a call to save a few bucks......

[thinkxingu]

I meant to say, it's for people who EITHER work or live in MA.

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[Old Sarge]

I purchased a new boat last spring from Irwin Marine. I got a 15 year fixed loan at 4.5%. It made me happy!!

[JasonG]

I would think an equity loan would be the way to go here. Plenty of bank reviews on this forum.