Where do you go for boat loans on older boats?

[minnesota]

Running into a snag with the major lenders saying they don't do loans for older boats or if they do the amount is too low only for 25,000 or more. Any ideas?

[seapuppy]

I can't answer that....I did the second mortgage thing on my house to finance my boat....better rates and all that....plus since it has a head/galley/berth....we can right it off on taxes..... :wink:



SP irate:

[shrew]

Check Boat US for Boat Loans:

http://www.boatus.com/boatloans/default ... _id=400004

Typically on older boats, they will want a sizable downpayment. Frequently 20% to 25% to minimize the exposure and ensure you're not 'upside down' on the loan.

Also: try smaller lenders instead of the 'major' institutions. The Major banks have all been going through bailouts and restructuring, they are watching the bottom line and scrutinizing potentially high risk loans. In this economy with so many people being laid off and raises & bonus' being few and far between, a high end luxury item like a boat will be the first loan defaulted on in a worst case scenario. Try smaller local lending institutions, in particular Credit Unions. In the recent economic times, the small local banks and CU's have remained financially solvent and stabile. They also have slightly less restrictive lending practices for members.

If you take a boat loan for a boat which has a stove and head, they consider it a 2nd 'recreational' home and allow you to deduct the interest and taxes paid like regular property. If you take a 2nd mortgage on your home to buy a boat, then the home qualifies for the real estate deduction on interest paid. In that case you technically own the boat outright on paper, since the lean from the bank is on the house, not the boat.

Speaking of tax deductions. Check whether your local state places highway taxes on fuel. MANY states keep the highway tax on gas per gallon even at pumps on the dock. Since your boat doesn't take advantage of paved roads, signals and signs, you can deduct the taxes paid on boat fuel as well. However, you need to check with your state to determine whether they include highway taxes in the price per gal. first. Save your fuel receipts.

Ultimately, check with your tax preparer to make sure your complying with local, state and federal tax laws while also taking advantage of the deductions you are legally due.


sorry for hijacking the thread ops:

[seapuppy]

good post shrew.......also some states will refund the road use taxes..send the reciepts into the state along with a form and they send a check back for the taxes....a fair chunk of change sometimes..


SP irate:

[racer2c]

Originally Posted by minnesota

Running into a snag with the major lenders saying they don't do loans for older boats or if they do the amount is too low only for 25,000 or more. Any ideas?

In a pinch I've used a small independent bank, MammaPappa Bank of the East. Fantastic interest rates!