We have a couple of serious buyers for BUFFALO GAL, but they both require some level of financing to complete the deal. We are finding that the major marine financing companies that do business here in the southeast have pretty much dried up on boats over 30 years old, regardless how well maintained they may be. If anyone is aware of companies that are still lending in the over 30 market, I would appreciate hearing about them.
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Thread: Financing
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07-28-2019 08:05 PM #1Senior Member
- Join Date
- Oct 2007
- Posts
- 817
Financing
Bill Root, USCG 100 Ton Master, Near Coastal
MV BUFFALO GAL
1988 54' MY
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Re: Financing
It appears that the only people who can get financing for older boats are those buyers who actually don't need it. But it sounds like your buyers would have to have borrowing capability or collateral independent of the boat, to get the deal done. Any chance they could get signature loans, or a HELOC, to get the deal made?
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07-28-2019 09:38 PM #3
Re: Financing
It's hard to justify financing an older boat. No matter the shape it's a risky decision on all parts. Many who want to buy a boat and finance it don't have the means to recover from a major event like an engine failure or generator in need of replacement which would leave the lender in bad shape.
I know I could have gotten a better boat if I spent more and financed it but with the 2007 economic downturn and other life factors I may not have been able to keep it.Scott
41C117 "Hattatude"
Port Canaveral Florida.
Marine Electronics and Electrical Products Distributor.
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Re: Financing
You might have gotten a bigger boat, or a newer boat, but you would not have bought a better boat than a Hatteras, because there aren't any.
Just my two cents.
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07-28-2019 09:52 PM #5Senior Member
- Join Date
- Jun 2015
- Posts
- 338
Re: Financing
Some credit unions willTeachers fcu on Long Island, ny did mine. I believe they can do anywhere
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Re: Financing
I purchased my boat by borrowing from the cash value on a life insurance policy that I own. I just made sure my wife would be ok if I died to soon!
JonJonathan Brein
1982 43' DCFB #550
"Paragon"
Chesapeake, Virginia
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07-29-2019 08:01 AM #7Senior Member
- Join Date
- Apr 2005
- Posts
- 504
Re: Financing
Has anyone ever seen any data on the size and metrics of the lending market for older boats? I can see where it is a lending market with very unique risks to manage. Sometimes those present business opportunities.
Bruce
Freestyle
1986 CPMY (54MY with cockpit ext.)
Tampa
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Re: Financing
"DON'T BELIEVE ANYTHING YOU READ OR HEAR AND ONLY HALF OF WHAT YOU SEE" - BEN FRANKLIN
Endless Summer
1967 50c 12/71n DDA 525hp
ex Miss Betsy
owners:
Howard P. Miller 1967-1974
Richard F Hull 1974-1976
Robert J. & R.Scott Smith 1976-present
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07-29-2019 09:39 AM #9Registered Member
- Join Date
- Mar 2009
- Posts
- 35
Re: Financing
Have you considered seller financing to get the deal done? With a large enough down payment, it may be a reasonable
financial investment if you don't need the cash. No one knows the underlying worth of the boat collateral better
than you do.
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Re: Financing
That is an interesting idea.. the "but" is, with many very expensive systems, a buyer might be inclined to walk away. Lose and engine, or generator, and 30k could be out the window. Repo and relocation cost, it would have to be a very substantial down payment. Verifying that the buyer is maintaining adequate insurance would also be a concern. In theory, owner financing is very appealing in this environment of low interest rates, the reality of it could be a minefield.