Boat Loan Question

I’m about to finance a boat and was curious if I can ask for more then what the boat costs for accessories. Will the bank do this or only lend the money the boat itself cost?

As long as it’s included in the original purchase price, yes depending on the bank. The dealer should know how to write up the sales contract.

Yikes! If you have to ask that question you might be better off saving up a little longer. Sounds like a terrible idea to me but to each their own.

At my credit union it depended on the age of the boat. Newer (less than 5 years?) boats would allow ~10% over sale price for accessories. Couldn’t do it for older boats.

Usually they won’t as mentioned above. I’m not sure why you would want to pay interest on accessories.

Is this being bought from a dealer? If so, they add the accessories to the sale and you could finance the whole purchase.

Unless you’re getting a short term loan like 5yrs or less I wouldn’t want to pay interest on accessories like Matt mentioned. You might not have some of the accessories due to them going bad or upgrading and you would still be paying for them.

My last boat came pre rigged so I didn’t have the option but my new boat I paid cash for the accessories and just financed the boat/motor/trailer.

You live once, I’m getting the boat. The cover wouldn’t be from the dealer it’d be from a cover shop.

They are all different. Credit unions seem to be more generous. I know Westconsin Credit Union would finance up to the full book value on used boats.
As a foolish young man, I financed my first new snowmobile along with a two place aluminum trailer, salt shield, C & A Pro skis, 192 carbide studs, mid-height windshield, and a pair of leather gloves, all rolled into the snowmobile loan didn’t seem foolish at the time, but the first summer and every summer thereafter, it did.
A boat payment comes every month all year round. Just sayin’

Be smart and pay cash for accessories. If you can’t, then you can’t afford them.

I bought my retirement 3 years ago this June. Loan officer said their loan would be for the exact amount of the boat as it came from the dealer. I’m fortunate enough to have several side jobs / “hustles” that provide me with smaller monthly checks that I just saved to buy the trolling motor, graphs, and other miscellaneous items. It took almost two years to save up enough to cover the cost of the electronics – but it sure felt good paying that invoice off in $100 bills!

I don’t see any difference in him wanting to wrap up all costs in one loan vs someone buying all the accessories with the boat from dealer. A loan is a loan and you’re borrowing the money either way.

Have the dealer write it up in your contract, then go enjoy your new purchase and don’t look back.

When I bought my first new boat off the showroom floor I had one hell of a time getting a loan for it. Every place told me I didn’t have enough debt because all I had was my mortgage, no vehicle loans, no credit cards or anything. Finally found some slip shot credit union that would do the loan and it was an absolute nightmare. The boat was garbage and the loan was terrible. Was one happy day when I saw that boat leaving my driveway with a new owner. I’ll never take out a loan on a boat again.

I don’t think boat loans are the worst thing in the world, if you get a good deal on the boat, actually use it, and take care of it. Got a loan on my first boat, paid it off early, used it a lot, and sold it 13 years later for $200 less than I paid for it. Same trolling motor, just 2 new graphs.

Boats are hardly the worst thing to finance out there. Just go with a short term loan or if you go with a longer loan like 10 years then pay it off early.
I financed mine for 60 months and paid it off in less than 3.
I was able to get the spare tire, cover, it came with a cheap graph all in the loan, but the rest I paid for out of pocket. I didnt have a trolling motor for a little while and bought a good used one at first then bought a much better one and then the motorguide I have now. You dont have to do everything at once, but its your money and if its worth it to you dont listen to others and just enjoy the heck out of it.
Just start playing pulltabs and be lucky and you will be money ahead.

Everybody at some time or another has a loan for something. The keys to loans are being able to afford them and getting them paid off. As long as the loan doesn’t have you on the financial tipping point go ahead. Try and pay extra whenever you can and get that thing paid off as soon as you can. As far as electronics I agree with the others. If you can’t roll them in the loan save up and pay cash. All you need is basic depth anyway. Learn to fish before getting all the fancy FFS and (5) 16″ screens.

Have fun and treat fishing for what it is…a hobby. It’s meant to be enjoyable not stressful.

I don’t see the bank lending money for a cover from a different vendor. Now if it was purchased through the dealer and added to the bill of sale I see the bank allowing it.

There is nothing wrong with a boat loan. Almost everyone has had a loan of some sort on a vehicle. You just need to be smart about the terms and the length so you don’t pay as much in interest as principal. Too many guys out there with 12 year boat loans at 8% interest. That’s a fools errand.

I’ve always financed the least amount that I can…that’s why I would stay away from accessories. You’re paying interest on something that depreciates quickly and is really a consumable item on your boat.

If you really want the accessories and can’t afford them, you need to seriously think about if it’s worth it. It’s your money so you could get creative and try to get a separate line of credit through the bank. For me, I’d limit the accessories and start saving for them in the future.

It’s your money, though. So, make the decision you are comfortable with. Just understand the financial risks you are taking.

YOLO

Can you roll it all together? Probably.

Would I put accessories on a loan and pay interest on those too? No way. But to each their own.

I too don’t think loans are “bad” when managed correctly. I am a cash for toys person, but that doesn’t mean it’s the only way to do it and everyone has their own situation. There are far too many people who plan for the future and whatnot while never living to reap the rewards for their work/savings. I have a wife and 3 kids who rely on me and my income as well…so I generally go with the rule of thumb that if I cannot pay for it without a loan, I either don’t need it or need to save longer. If I end up buried having not “lived” enough with buying things, I know it will still benefit them.

Youbetcha wrote:

YOLO

“you only live once.”

Very true, but remember a bad decision lasts as long as a good decision. Do whats right for your situation.

Since this thread got derailed into whether or not one should or should not finance, it really depends on a lot of factors. I bought a new jet ski a few years ago before the interest rates more than doubled. The jet ski only cost about $13K but I went with a five-year loan at 2.5% APR. I could have sold some stock to get the $13K, but the stock had a dividend yield of about 3%. And I would have had to pay long-term capital gains tax. And would have missed out on any gains if the stock price went up. Pretty easy decision for me to finance.

Now at an interest rate of about 7% APR, it’s more difficult to make the numbers work.

I’m kind of a numbers guy so I had to look into this more. I saw one dealer advertise 7.79% for 15yrs. I took 7.5% and for every thousand it’s $9.25 a month and $670 in interest for life of loan. 10yrs it’s $12 a month and $425 interest for life of loan. I don’t care what people do with their money and if the numbers work then I say do whatever you want just know what you’re getting into before hand.

boone wrote:

Since this thread got derailed into whether or not one should or should not finance, it really depends on a lot of factors. I bought a new jet ski a few years ago before the interest rates more than doubled. The jet ski only cost about $13K but I went with a five-year loan at 2.5% APR. I could have sold some stock to get the $13K, but the stock had a dividend yield of about 3%. And I would have had to pay long-term capital gains tax. And would have missed out on any gains if the stock price went up. Pretty easy decision for me to finance.

Now at an interest rate of about 7% APR, it’s more difficult to make the numbers work.

After tax on the dividends your gain isnt really 3%.

Most rich people make their money on debt. Borrow someone else money to invest and make money. Real estate investors for example borrow money all the time.

bigcrappie wrote:

Most rich people make their money on debt. Borrow someone else money to invest and make money. Real estate investors for example borrow money all the time.

They are likely borrowing against something that appreciates in value like property, not something for a recreational vehicle, etc.

Bluegill89 wrote:

I’m about to finance a boat and was curious if I can ask for more then what the boat costs for accessories. Will the bank do this or only lend the money the boat itself cost?

Yes you can ask, and if it’s new likely get the additional amount approved. If buying used, you can still ask for the additional amount, they don’t know what the purchase price is, they just know what they are willing to lend on that year, make, model etc. and if there is room for add’tl purchases go to town.

FWIW to the rest of you, I’m yet to hear someone come back on one of these threads and say “Thanks for all the input you rich old men, I changed my mind and didn’t buy the boat. Thanks for the advice guys, you saved me from financial ruin, and I love fishing from the shore.”

I 100% agree on keeping things like sonar screens out of your loan, save up and pay for those with cash, wait until Black Friday sales, you’d hate to be paying on electronics in year 8 of the loan that you took off your boat and replaced 4 years ago…

You’ll save $$ waiting for good store sales (or buy used) vs adding stuff to your boat’s total sale…

Any Dave Ramsey fans here? No ok just checking.

Ripjiggen wrote:

Any Dave Ramsey fans here? No ok just checking.

Always

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