Sailboat financing

[Jimleon]

I am attempting to purchase a 1999 Beneteau Oceanis 352 and need to finance some of the purchase price. However with a credit score of slightly higher than 620 I have been unable to find anyone who will finance the boat. Has anyone else ever had the same problem? Can anyone recommend a friendly lender? Thanks!

 

[Steve_Catalina]

Jim,
As you have already discovered someone with a 620 FICO will find it extremely challenging (read almost, but not completely impossible) to find a lender for a boat loan.
You could try someone like Chesapeake Financial Services in Annapolis Maryland. Their interest rates are high (above 15%) and they have outstanding debt limits.

A friendly lender will be difficult to find, unfortunately with your score most lenders will seem like they border on predatory lending.

Steve

 

[agprice22]

A co-signer is probably your best bet. Or begin building your credit score by taking a small loan and repaying it on time.

You could also ask the owner to finance part of the boat.

Thanks,
Andrew

 

[Jimleon]

Thanks. Actually my credit isn't as bad as it sounds. I spoke with a lender who told me they would readily finance a power boat for me but sailboats have a smaller potential customer base in the event of a repo so credit is much more difficult to obtain.

 

[kito]

When I was looking, I found I was better off looking at newer, more expensive boats that lenders were more willing to finance. I finally came to my senses and bought an older fixer-upper that I paid cash for. That way I can put money into the boat as my funds allowed instead of lining the bankers pockets with all the interest I would be paying. If you can't afford it, I would let this deal go imo. You will eventually find someone who will finance it but a what cost? Stuff happens for a reason

 

[Head Sail]

Look for a boat you can pay cash for. You'll be dumping plenty of money into it later.

 

[Don S/V ILLusion]

All good advice. It's never a good decision to finance a depreciating asset.