Personal Finance

Financing a used boat

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  • Jun 27th, 2016 9:50 pm
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[OP]
Sr. Member
Dec 22, 2007
810 posts
464 upvotes

Financing a used boat

Good day,

I am looking to purchase a Four Winns H200 SS boat (~40 000). If I buy new, they finance them up to 20 years.* Although it's probably a very bad idea to finance a boat for 20 years, I'd be interested to finance over maybe 15 years to get very low monthly payments, but I would like it to be an open load so that I would probably double or even triple my payments when I can to pay it up quicker.

I cannot use a heloc as I rencently used all of my available equity to buy a duplex that I am currently renting. I would have to wait a few years for the equity to build up a bit on both my house and my duplex.

Our finances are really strong, I have no debt other then my house, we make (wife and I) +170K a year and my Equifax score is +780.

I know very little in financing as I usually rarely finance stuff. But this time we would like to purchase a boat and finance it to get low payments. As I said we could buy new and they would finance over 15-20 years but I would rather buy used.

So basically, if I buy used, I could probably get a line of credit of 40K... but from what I can see the minimum payment are usually 2% of the remaining balance and this is too much unfortunately.

Is it possible to get a low interest loan (~ 6-7%) on a 10 or 15 years term to purchase a used boat ?

Much appreciated for the help..

Regards,
8 replies
Sr. Member
Nov 13, 2007
877 posts
119 upvotes
Toronto
Since you ask this in a financial section, maybe you should wait a few years until you pay off that HLOC before getting a boat, which is

1) A depreciating asset.
2) Cost you storage & maintenance.

That's my 2 cents.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2971 upvotes
superping wrote: Since you ask this in a financial section, maybe you should wait a few years until you pay off that HLOC before getting a boat, which is

1) A depreciating asset.
2) Cost you storage & maintenance.

That's my 2 cents.
Agree with this. If there's anything worse than financing a car it's a boat. OP, if your finances are in such great shape, along with good household income, wait until you can buy the thing outright and forget about financing. It's going to cost you enough as it is without debt servicing.
Deal Expert
Aug 22, 2011
35620 posts
21675 upvotes
Center of Universe
How about a LOC and rates can be as low as 4% (4.7% in my case with RBC)?
Sr. Member
Oct 11, 2010
976 posts
322 upvotes
Charlottetown
best things about owning a boat, the day you buy it and the day you sell it
Deal Fanatic
Apr 16, 2007
8000 posts
3297 upvotes
Financial District B…
SpykeYs wrote:
Is it possible to get a low interest loan (~ 6-7%) on a 10 or 15 years term to purchase a used boat ?
While many mainstream big banks offer extended terms for rec, ATV, marine and trailers there's usually a significant difference in finance terms and offerings between new vs used.

If you went to the Toronto boat show back in Jan you would have seen many financiers offering finance services other than the big banks. Check to see if there's a similar consumer trade show in QC.


There's a marine, ATV and power products dealer support FI called Dealer Plan. They are located in Peterborough and offer finance support to a number of retail dealers.
It may be worth checking them out to see if they offer services in or for QC.
https://dealerplan.ca/

They also act as a finance broker so they can save you some time and a lot of footwork as they can seek out best rates predicated on credit profile.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Guru
User avatar
May 7, 2007
13462 posts
5470 upvotes
"Financing" is like a used boat often ... kinda ... )))
Deal Addict
May 17, 2012
2579 posts
1406 upvotes
ontario
Break
Out
Another
Thousand

Financing a boat esp a used one is a terrible idea. Unless you can use an low interest Avenue like a heloc any loan you get for a used 'toy' like this will likely be high interest
Deal Fanatic
User avatar
Jan 27, 2007
5079 posts
940 upvotes
Peterborough
Coming from a boat owner - boats are very expensive and the season is very short.

I would not advise buying a boat on credit.

If you do buy it, pay cash.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]

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