I am looking at a nice 1988 Catalina 30 for $25k (turnkey condition). Is there a risk for me to borrow $20k (with $5k down) to purchase a sailboat? I am a member of Navy Federal Credit Union, they do have loans for boats. I also might check out LightStream loans (to compare it against the Navy Federal). Of course, I will hire a surveyor to inspect the boat before I buy it.
Finance a 38-year-old sailboat?
- Thread starter madmax
- Start date
Have you had the boat surveyed by an accredited marine surveyor? Any loan agency will require one at purchase, and considering that in 6 decades I have never found a "turn key" boat to be turn key. The survey won't be cheap, but it could save you $25k right off the bat.
It isn't really about your ability to get & pay off a loan, but more about how much the loan agency can get for the boat, if you default. Good luck.
It isn't really about your ability to get & pay off a loan, but more about how much the loan agency can get for the boat, if you default. Good luck.
The other consideration for a survey is getting insurance for your new-to-you boat.
I've heard that prices in SoCal are higher but 25k for a 38 year old 30' boat seems high to me. If it were a Pearson the seller would be happy to get 10. This is relevant because your bail out is to be able to sell the boat to re-pay most of the loan. For that you need to buy at market prices - that is the price you could turn around and sell it for.
I was looking at an '84 C30 that appeared to be in excellent shape until I found a few issues including sunken keel bolts, mast step and a few other smaller items. Other than that, the boat had been completely revamped. I was able to do an initial negotiation to 18k. The seller was originally asking 25k. The asking price is on the higher end but not unusual for this model and alleged condition.
A survey in the Chicago area will run around $700
A survey in the Chicago area will run around $700
The easiest way to finance a boat of that value is through a Home Equity Line of Credit. The rates will be good and payments flexible. Insurance companies have been reluctant to give hull insurance on old boats, going the HELOC route avoids that. However, most marinas now require liability insurance.
Do get a survey by a competent surveyor for your own piece of mind.
Do get a survey by a competent surveyor for your own piece of mind.
No disrespect, but If you can't pay cash for a $25,000 sailboat you might not be able to afford it. You are talking $5,000 down. Please understand that insurance, mooring, maintenance and interest charges will run more than $5,000 every year...lots more depending on where you live.
That's a bit judgmental. There are many folks who carry small loans on boats who don't have a spare $25K floating around to spend on a boat, but do have a few hundred dollars a month to spare to cover the costs of owning a boat.
Glad that worked for you, but it is completely irrelevant to the OP's question. And it is judgmental, you don't know what the OPs financial circumstances are and it may make more sense to keep the cash and borrow the money for the boat.
I would say there is little risk. For the bank or you, the boat could be resold if you can't make payments. The Catalina 30 is a very popular model, classic from the 80's, these are affordable boats that can last a very long time, if maintained well, there are plenty of resources for parts & upkeep here on this site. Many of us sail boats built in the late 70's-80's, I've questioned my decision many times to upgrade to a newer model, yet I treat my 1988 Cal, like a lady & she always brings me home safe. Good luck..
The biggest factor with any personal loan is not the purpose of the loan, it is creditworthiness of the borrower. If your credit score is high and the loan to value is good, then there should be no problem or than some lenders just do not lend money on boats. You won't know until you ask. In addition to receiving a satisfactory survey a contingency clause on receiving acceptable financing can be added to the purchase offer.
Dock fees and maintenance will may run 2 to 4 times the loan payment.
The prices here are cheap. It looks to me like the bottom has dropped out of the used boat market. I definitely wouldn't pay $25K for that boat.
How about a couple of nice looking Catalina 34's for even less money?
There is another one listed for $15K, but it looks a bit rough. Still, that's $10K less than what you are looking at for that Catalina 30!
I recently saw a 1988 Catalina 30 MK-II on the local Craig's List. The guy couldn't sell it and kept dropping the price. He eventually dropped it to $8K before the ad disappeared. It was not in pristine condition, but it certainly was not a fixer upper.
That's an attractive price for a C34. Quite a lot of boat for the money if it surveyed well.
Edit: assuming you can find a slip for it. Slips over 30' are hard to find in the PNW.
I don't think 30' slips are hard to find in Southern California. My marina has them available. I think a 34 footer (or so) is about as large a boat as they will let you put in a 30' slip.
Thank you for your replies. I will try to answer some of your questions.
1) I am pretty aware of the cost for maintenance, insurance, slip fees, etc. I have researched them and contacted my insurance agent.
2).Yes, the $25k is in C34's pricing range. I've been wanting a C34, but the slip fees will be more expensive. I really don't think I'll want to purchase a C30 for $25k, that is why I am asking everyone in here about your thoughts (especially with financing). I know it has to be under $20k or even at $15k. I will ask my surveyor for his opinion. The C30 I am looking at has almost everything, like autopilot, chartplotter, radar, AIS, new mainsail, recently painted bottom, etc. This boat checks most of my boxes.
3) I have contacted Cabrillo Marina in San Pedro, and they said they have slips available for a 30' sailboat. Alamintos Bay and Shoreline marinas are full. I will ask them to put my name on their waiting list for Shoreline/Alamintos.
4) I have an excellent credit history. My wife and I are retired. Our house is 99% paid for. I don't have a problem getting a loan. My credit union has known me for years (I went through many car/truck loans with them).
5) There is a C34 for sale in San Diego for $21k. I obtained a copy of surveyor's report (selected pages) from the broker. After reading it, I've decided not go with that boat. The stove is CNG, which I don't want to deal with (due to the high compression in CNG tanks, it's challenging to find someone who can refill them, etc.). I refuse to refill the CNG tank by myself; it's scary. The C34's electrical wires are in poor condition.
1) I am pretty aware of the cost for maintenance, insurance, slip fees, etc. I have researched them and contacted my insurance agent.
2).Yes, the $25k is in C34's pricing range. I've been wanting a C34, but the slip fees will be more expensive. I really don't think I'll want to purchase a C30 for $25k, that is why I am asking everyone in here about your thoughts (especially with financing). I know it has to be under $20k or even at $15k. I will ask my surveyor for his opinion. The C30 I am looking at has almost everything, like autopilot, chartplotter, radar, AIS, new mainsail, recently painted bottom, etc. This boat checks most of my boxes.
3) I have contacted Cabrillo Marina in San Pedro, and they said they have slips available for a 30' sailboat. Alamintos Bay and Shoreline marinas are full. I will ask them to put my name on their waiting list for Shoreline/Alamintos.
4) I have an excellent credit history. My wife and I are retired. Our house is 99% paid for. I don't have a problem getting a loan. My credit union has known me for years (I went through many car/truck loans with them).
5) There is a C34 for sale in San Diego for $21k. I obtained a copy of surveyor's report (selected pages) from the broker. After reading it, I've decided not go with that boat. The stove is CNG, which I don't want to deal with (due to the high compression in CNG tanks, it's challenging to find someone who can refill them, etc.). I refuse to refill the CNG tank by myself; it's scary. The C34's electrical wires are in poor condition.
