Financing Your Boat
One thing to consider with a non-current boat purchase is the financing. If you are planning to finance, the lenders will base the amount financed off the wholesale or trade in value from one of the used boat guides such as NADA. This will undoubtedly translate to a higher percentage down payment. For example, instead of 10% down you can expect 20% or more for the down payment. You can use a boat loan calculator to check the impact on your monthly payment.
Private Party Used Boat Sales
Another good source for great deals is in the private party marketplace. These boats can be found in Craigslist, Ebay or Trader publications to name a few. During the housing boom many homeowners used lines of credit based on the equity in their houses to buy boats. One of the byproducts of this type of transaction is that the buyers received the titles because the lien was with the home and not the boat.
Unfortunately for the homeowners the economic downturn has reduced the equity in their homes and in many cases the buyers have found themselves with liquidity issues or insolvency. As a result these buyers have been forced to sell their boats for prices that are below current market standards. In some cases much lower.
Be aware of condition on these units however because the previous owners might be behind on the scheduled maintenance due to budgetary constraints. However there is an upside to financing your boat. The financing available on these units is usually quite favorable from the standpoint that the pricing would allow the buyer to get into the boat loan with a minimum down.
This is part two of a week long series of articles guiding you through the boat buying process in the current down economy. Click below to read parts 1 and 3.