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Thread: Financing Saltwater Boats

  1. #1

    Default Financing Saltwater Boats

    Do most of you guys that own ocean boats use just your local banks for financing or do you use some of the larger National marine related banks? Seems like after what I went through financing a river boat last year it would be a nightmare trying to coordinate buying a more expensive ocean boat (will all the accessories ) that is in the lower 48. Thanks

  2. #2

    Wink

    We bought an old boat that we could afford to pay cash for. However, we've been "financing" it ever since!

  3. #3
    Member bhollis's Avatar
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    I recently purchased a 30' SeaSport down in WA and brought it up to Juneau through the Inside Passage in early June.

    For financing, I initially contacted three of the national marine finance companies, and all three offered much better rates than the local Juneau banks. By playing the three finance companies off one another--essentially getting them to bid against one another--I think I ended up with a pretty good deal, and much, much better than I could have gotten locally. For what it's worth, I finally ended up going with EBoat Loans.

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    A larger boat is as easy to finance as a car or truck. If the boat has a head and small galley you can write off the interest as a second home. Another option is to tap into your home equity and set up a fixed rate loan. This also gives you the advantage to deduct the interest from your taxes.
    If you have a good credit score loan outfits will be beating a path to your door to give you the money.
    Good luck, what are you considering buying?
    Tennessee

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    Moderator Paul H's Avatar
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    You might want to check with the credit unions. I financed the engine for my boat and went through Alaska Federal Credit Union. They were really easy to deal with, and had much better rates than the banks.

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    Member Sierra Hotel's Avatar
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    Ditto for Alaska USA - this is my third boat thru them since 1992, rates are competitive and the services has been great.

    SH

  7. #7

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    Quote Originally Posted by Snowwolfe View Post
    A larger boat is as easy to finance as a car or truck. If the boat has a head and small galley you can write off the interest as a second home. Another option is to tap into your home equity and set up a fixed rate loan. This also gives you the advantage to deduct the interest from your taxes.
    If you have a good credit score loan outfits will be beating a path to your door to give you the money.
    Good luck, what are you considering buying?

    I have a bad itch for an ocean boat, something in the 24-28 ft range so as not to limit my range and be so manipulated by weather. It doesn't have to be new but I am thinking 1995 and newer would help.The primary location I'll use it is Valdez. The biggest problem I am having in finding a boat in Alaska is that the prices folks are selling them for used, exceeds book value (in some cases by a lot) and that makes it almost impossible to finance without forking out lots of coin. I just sold my river boat to be able to embark on this venture but its a tough one. I have found some good boats in the NW region off of some of the online classifieds like BoatTrader, and that seems like the thing to do. Its not that big of a deal to load up drive out and haul it back. But I am ansy about buying a boat online if you know what I mean, it seems as if getting pre-approval for x dollars and driving down there with a list of boats to check out may be the way.

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    Moderator Paul H's Avatar
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    The market is like that up here. Any of the popular boats retain their value well, and stuff in that size that is under $20k is either a gas guzzler, really old and/or will need alot of work.

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    Alaskacub,
    I hear ya about used boat values but some are dropping pretty fast up here mainly due to the fuel costs.
    I watch the classifieds almost daily and I see folks asking more for a similar Sea Sport that we own than what we paid new just 2 years ago.
    Bargins can be had if you are preapproved for the loan.
    Some things I would avoid on a larger ocean boat is any motor still carrying a carb on it. Most of the newer EFI motors get twice the economy of the older big block versions. Same goes for the newer DI 2 strokes if outboards are your choice.
    For example our 24 foot boat has the 496 ci EFI with 375 hp. We can cruise 25-30mph and still get on average at least 2.2 - 2.4 mpg. I talked to a gent in Seward a few weeks ago who has a 27 footer with the carbed 454 and he told me with 2 adults on board he is only getting .5 mpg!!!
    We wheeled and dealed for over a month this time of the year when we ordered ours for the following spring delivery.
    Even though I hate the idea of anyone buying anything that requires maintence from Alaska Mining and Diving they are having there huge summer clearance sale this weekend. Deweys has been advertising pretty hard as well so they must still be overstocked.
    If I can answer any questions for you about any of this give me a call.
    Buying our 24 foot SeaSport opened fishing opportunities that we never had before. For us it has been money well spent.
    Randy 694 0898
    Tennessee

  10. #10
    Moderator Paul H's Avatar
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    The other thing to factor for boats outside, is the value of your time and expense to go see the boat, and the expense to ship it up. A co-worker shipped up a 28 foot bayliner from seattle, and it was $5k. Fuel prices are higher now. If you drive down and tow it back, you have the expense of that trip, plus the value of your time for the trip.

    You might want to just hold on until the end of the season when folks either don't want to deal with storing a boat for the winter, or found out they really can't afford the boat they got and need to move it pronto.

    The difference between a 24 and 28 foot boat is pretty vast, they are almost double in purchase price, and suck twice as much gas. I don't see a 28 foot boat being one you'd take out in whether that would keep a 24 footer at port, the bigger boat would be more comfortable and have more room for gear.

  11. #11

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    Thanks for the insight guys, and I'll continue mulling it around and checking classifieds.

  12. #12
    Member GOT TOYS's Avatar
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    Default Finance

    Honda financed my whole package, because I bought their outboard.
    4% on $80K. Sweet deal. That was 3 years ago though....

  13. #13
    Member FISHFACE's Avatar
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    [
    The difference between a 24 and 28 foot boat is pretty vast, they are almost double in purchase price, and suck twice as much gas.

    That's not true we used to have a 24' sea sport explorer( ithink it a 5.3 efi but I cant remember) and now have a 30' sea sport offshore. The 30' is almost twice the weight, has another 2' in beam, has another motor, and is 6' longer, but gets better fuel economy. We burn 15 gal an hour between twin I/O D4's @ 26knts compared to 16.5 gal and hr on a single I/O doing only 23knts.
    Boatless

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    Moderator Paul H's Avatar
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    Not fair comparing a gasser to a diesel I was thinking in general terms if you jump from 24 to 28 you double weight and hp, you'll double fuel consumption.

    For those that can afford the 28-30 foot boats, more power to you. To those considering a 24-28 foot boat, you might not realize that a 20% longer boat can be 100% more expensive, in general.

    There are some 24' boats that are gas hogs, and some that are very efficient. I know guys with 24' tolman jumbos running 140's and burning 5gph at 25 nauts. Then there are older 24' glass boats with big blocks burning upwards of 20 gph.

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