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I Love microskiff.com!
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3.99% @ 15 yrs with a no money down option...just have to have above 740 credit and pass a few other details but a lot of our customers go for this option. Even had a few roll sales tax in and defer payments for 6 months till first payment due. Again they did it cause they had the option to do so. Also like others have said they got a better return with cash in other markets.
Damn, who is your preferred lender? Because that fits me.
 

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I would suggest getting your credit to grade A, 720 or above, have great debt to income ratio and finance out with still good rate with longer term. Them pay more than the payment. If you fall on hard times then you don’t have crippling payment and still your knocking it out when times are good.

Also, wait to put a good chunk down, always stay in the green and amortize the loan and figure out exactly what you pay with extra payments etc.
Credit Unions usually have the best rates and easiest terms. I used Vantage Recreational Marine Finance on my last boat.
If you are disciplined enough, get the longest term for the loan you can and then pay twice a month. The first payment covers the interest and a little of the principal. The second payment will go entirely towards the principal. You pay your boat off early and minimize the interest you pay.
Bingo, this way if rough times do come the payment is very low and can bridge the gap to get back to better times. If bad times never hit you pay it off way early.

Caveat is, you need top shelf credit and very solid debt to income ratio. If not, work on that first, it will save you a fortune over a lifetime!
 

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Have you heard of interest on a loan? The boat becomes much more expensive the longer you pay interest on it. And usually, the longer the term of the loan the higher the rate. The boat likely depreciates at a much quicker rate than you're paying down the loan, and depending on how much debt is on the boat, you could likely end up under water. A loan of 15 years on a boat doesn't make any financial sense.
Yes.

Although, the "usefulness or value" of a boat is its monetary value and all non monetary benefits enjoyed from owning it (fishing). It's not like the purpose of a boat is to be purchased and live in a garage and depreciate.

I understand the time value of money but also think the time value of fishing should be considered too.

You make a valid point about being underwater on a loan, as circumstances do change.
 

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But they do as that cash can create larger returns elsewhere than the interest paid on the loan
Agreed. Many are also owned by a business and used for corporate entertaining. Those buyers have teams of bean counters looking for every tax advantage/angle. The point is, most probably don't NEED a loan to purchase a multi-million dollar boat but many do secure one.
 

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I Love microskiff.com!
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Damn, who is your preferred lender? Because that fits me.
Check the Credit Unions....I did this with my Fury. Not trying to humblebrag, but I had the cash to pay the skiff directly when it was ready. Instead, I paid half-ish down, and sat on the cash balance (along withequity from a recent real estate transaction) until the market hit what I considered the low point during this COVID mess. The interest rate is damn near free money, and I have seen MUCH better returns in indexed ETF's that I DCA'd my cash into.

I used South Carolina Federal Credit Union, and I am in Texas. I plan to move all of my banking to them shortly, they have been wonderful across the board.
 

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I Love microskiff.com!
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3.99% @ 15 yrs with a no money down option...just have to have above 740 credit and pass a few other details but a lot of our customers go for this option. Even had a few roll sales tax in and defer payments for 6 months till first payment due. Again they did it cause they had the option to do so. Also like others have said they got a better return with cash in other markets.
I did almost exactly this, except I put a big chunk down payment, with my new new build from East Cape with the lender they suggested. I laughed at the terms when I first heard them but I'll have it paid off in 3 years or so.
 

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Have you heard of interest on a loan? The boat becomes much more expensive the longer you pay interest on it. And usually, the longer the term of the loan the higher the rate. The boat likely depreciates at a much quicker rate than you're paying down the loan, and depending on how much debt is on the boat, you could likely end up under water. A loan of 15 years on a boat doesn't make any financial sense.
So you're saying boats make financial sense? :)
 

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So you're saying boats make financial sense? :)
No, but sometimes yes. I’ve been doing like some others are recommending. I got a 10 year loan on a boat I will not ever sell and I’m making double payments. It will be paid off in well under 5 years and the money I didn’t put down is making me more money than the interest paid. I’m by no means rich, but get yourself a good financial guru and tell him not to ask questions about toy purchases so long as he is doing his job right
 

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So someone school me on this situation. I plan on spending around 30-35k on a new skiff build. I was going to put 10k down, and finance the remaining 20k. But i'd also be willing to finance longer, pay double payment, and keep my cash. Are there lenders that will finance 30k with no money down for longer than 5-7 years at a decent rate? My fico is around 780, transunion 828 and I have 0-1% credit utilization. I may also be looking to sell and upgrade every 3-4 years.
 

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So someone school me on this situation. I plan on spending around 30-35k on a new skiff build. I was going to put 10k down, and finance the remaining 20k. But i'd also be willing to finance longer, pay double payment, and keep my cash. Are there lenders that will finance 30k with no money down for longer than 5-7 years at a decent rate? My fico is around 780, transunion 828 and I have 0-1% credit utilization. I may also be looking to sell and upgrade every 3-4 years.
Local credit union had the lowest rates at the time of my purchase. I called all the banks in my town and asked what their best interest rate was without giving them any personal info.
 

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I Love microskiff.com!
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Definitely call around and compare. I have personal accounts in two credit unions and two banks. Rates can vary over two percent between them. It does vary from time to time so it pays to check around each and every time.
 

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I Love microskiff.com!
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3.99% @ 15 yrs with a no money down option...just have to have above 740 credit and pass a few other details but a lot of our customers go for this option. Even had a few roll sales tax in and defer payments for 6 months till first payment due. Again they did it cause they had the option to do so. Also like others have said they got a better return with cash in other markets.
Hmmm....I do need that EC Bay to fit my growing family
 

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Local credit union had the lowest rates at the time of my purchase. I called all the banks in my town and asked what their best interest rate was without giving them any personal info.
Yeah, i'm probly just stick to a regular 4-5 year loan.. but no reason to not explore other options.
 

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Yeah, i'm probly just stick to a regular 4-5 year loan.. but no reason to not explore other options.
The reason to look into a long-term loan is cash flow when times get hard. Using $65K at 4%, a 15-year loan $480 a month vs $1197 for a 5-year loan.

Now, I am not saying you should ever take 15 years and pay all that interest but should you lose a job or run into financial stress, making a $480 payment is easier than $1197. You should at a minimum pay ahead and keep the balance under the market value so you're never upside down on the loan. Ideally, you pay it off in 5 years or so but should something bad happen along the way you don't have $1197 due next month.

My bank's rate on a 15-year loan was the same a 5-year loan and the rate got cheaper the more money I borrowed.

Paying my boat in 5 years actually made little financial sense at the time but it was an emotional decision seeing that balance when I logged into bank account. Now, I have a $50K market value piece of fiberglass depreciating in my garage to sell if times get hard.
 

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V
The folks buying Vikings, Hatteras and other offshore sport-fishers don't need to get loans. ;)
Very true words Zika ... as you've mentioned before "Trust Fund Babies!" ... plus if they had to get load for their offshore SF, where they going to find someone to give them loan for fuel-ups!
 
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