E38 for sale in Comox, BC
- Thread starter Teranodon
- Start date
Looks like Nimue has been well cared for since appearing at a prior NW Rendezvous. Great looking boat!
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Does anyone have recent experience with financing a 40-year-old sailboat? I have been told it's not easy, that lenders have an age cutoff (age of the boat). I just wonder how this works:
Rates
As of January 2024, the best interest rates for yacht loans typically start around 7.74%. These rates fluctuate with market conditions, inflation, and supply and demand. Borrowers with the highest credit scores and strongest overall financial profiles usually get the best yacht loan rates. The higher your credit score, the lower your interest rate will be. The best yacht interest rates are reserved for the most well qualified borrowers. A well qualified borrower will have an excellent credit score, a history of on-time payments, provable income, consistent employment history, and no recent bankruptcies or foreclosures.
Rates
As of January 2024, the best interest rates for yacht loans typically start around 7.74%. These rates fluctuate with market conditions, inflation, and supply and demand. Borrowers with the highest credit scores and strongest overall financial profiles usually get the best yacht loan rates. The higher your credit score, the lower your interest rate will be. The best yacht interest rates are reserved for the most well qualified borrowers. A well qualified borrower will have an excellent credit score, a history of on-time payments, provable income, consistent employment history, and no recent bankruptcies or foreclosures.
windblown
Member III
We were told that the line was thirty years; after that it’s nearly impossible to finance with a boat loan. Perhaps that’s one reason why so many 30 year old boats don’t sell; buyers can’t get financing. However, our credit union offers personal loans for whatever use you want with limit and interest based on years of membership and credit score. We took out a personal loan, and then used the boat to secure it, which reduced the interest rate. Sure seemed like a boat loan to me, but the credit union insisted they don’t do boat loans for boats more than 30 years old.
When it comes to loans and collateral I kind of doubt that basics change much over the decades. Back in the 70's we bought a new trailerable sailboat, and I asked our credit union about a loan. They said they did not make loans on boats, mainly because it was a product they were not used to having as collateral. OTOH, they would quickly loan us money on our almost new car that we recently paid off. Cars, they understood.
Sailboats are a niche market then and now, and perhaps more so, now.
Even when they are OK with lending on some boats and even sailboats, they are leary of anything that is too "used" and not having a well known secondary market. For instance, there are used car lots all over town with cars from 20 or 30+ years ago and there is an active market for them.
I would guess that the market for any older boat is kind of similar to the market for classic light aircraft. All cash.
My guess is that Deborah got that loan based on "character" and on the lender's books that was a bit more important than "collateral".
As for me, our CU would give me a signature loan, no problem, but well short of the purchase price of that boat. Deborah's "character" value is obviously quite high!
My .02 worth (of 'character')
Sailboats are a niche market then and now, and perhaps more so, now.
Even when they are OK with lending on some boats and even sailboats, they are leary of anything that is too "used" and not having a well known secondary market. For instance, there are used car lots all over town with cars from 20 or 30+ years ago and there is an active market for them.
I would guess that the market for any older boat is kind of similar to the market for classic light aircraft. All cash.
My guess is that Deborah got that loan based on "character" and on the lender's books that was a bit more important than "collateral".
As for me, our CU would give me a signature loan, no problem, but well short of the purchase price of that boat. Deborah's "character" value is obviously quite high!
My .02 worth (of 'character')
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Ah, credit union. I borrowed $10K for a boat from the Washington Post Credit Union in 1975. I said, "is the boat collateral?" She said, "no, you are, honey."
She meant that they had a direct line to my paycheck in case of default. And yeah, nobody calls anybody "honey" anymore.
She meant that they had a direct line to my paycheck in case of default. And yeah, nobody calls anybody "honey" anymore.
A while back at work, I got a call from HR... (mildly) chastizing me for violating workplace "inclusivity" rules.
Someone - a guy, as it turns out - complained about my use of the phrase "thanks, guys" when wrapping up a meeting. Felt I was passive-aggressively misgendering people. Or something.
HR counseled that I can say "thanks, all"... or "thanks, team"... or even "thanks, people".... but not "thanks, guys". That's verboten.
It's a strange world these days.
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